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What Consumers Need to Know About Auto Dealer Fraud

Finally, you are ready to buy your next car. It is a major investment and you should take it seriously. Dishonesty happens everywhere and auto dealer fraud is not an exception. Auto dealers will not cheat you outright but will mislead you in a way that you will end up paying more for your vehicle. Here is what you need to know about auto dealer fraud.

What Is Auto Dealer Fraud?

“Auto dealer fraud” is a term to describe various deceptive and unlawful practices that automobile dealers use in order to sell a vehicle or to sell it at an unreasonably high price compared to its true worth. Auto dealer fraud can happen at various stages of the vehicle purchase process starting from advertising to negotiation to financing.

Luckily, there are auto dealer fraud laws that are used to protect consumers. These laws mainly deal with deceptive and unfair practices. They are different from the lemon laws which protect consumers in the event they purchase or lease a defective vehicle. 

Most types of fraudulent activities are related to non-disclosures or affirmative misrepresentations. Non-disclosures occur, for example, when the dealer hides the fact that the car has been in an accident or was used as a rental. Examples of affirmative misrepresentation include odometer tampering, “bait and switch” advertising or quoting a monthly price that includes unwanted services and items.

Can I Sue a Car Dealership If I am Cheated?

The answer is yes. You can sue a car dealership if the true condition of the car was not revealed to you at the time of the transaction or if you were misled by various practices to pay an unreasonably high price. Your first step should be to contact a knowledgeable auto dealer fraud attorney without any further complicating your situation. If you engage in a friendly attempt to resolve your issue with the dealership without an attorney you will likely end up on the loosing end of the deal one again. Dealers are very savvy and know how to trick consumers even after they have been caught on their initial fraud. So it is best to let an attorney handle them as soon as you realize you have been a victim of fraud.

Do I Have to Pay the Attorney’s Fee?

The good news is that it is the wrongdoer who will pay the attorney’s fees. Contact The Margarian Law Firm first when you realize you might have been defrauded by the dealer. You will not pay for our services out of pocket. In case of a successful outcome, it is the car dealership that will be responsible for our fees. There is no risk to you even if your case does not go as anticipated. We never charge our clients out of pocket.

Call us at (818) 553-1000 for a FREE consultation to discuss the particulars of your case. We are ready to assist you, help you get a refund and get you out of that defective and dangerous vehicle! 

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