What to Do When an Auto Dealer Defrauds You?

Do you think you will never be misled by an auto dealer? Don’t be so sure! Sometimes the best deals turn out to be a scam. Auto dealers can scam you in various ways from advertising to the negotiation of vehicle pricing and financing terms. Ever heard of “bait and switch?” This happens when an auto dealer cheats you by advertising the vehicle at a certain price and then offering a different (supposedly a better) car. Most often you end up buying at a price higher than the advertised price.

But this is just one example of auto dealer fraud. The auto dealer may fail to disclose all information to you (for example, whether the vehicle has had damages in a previous accident). You may end up buying a faulty product at a much higher price and even can’t resell it at the previous price.

Dealers apply various tactics and the most important thing is to be aware of them when you are buying a car. But what to do if you discover that you have been cheated after you sign all the documents?


  1. Contact the Dealer

It may seem natural but in some cases, you may even be required to give the dealer a chance to correct the problem. Make sure you contact in writing clearly mentioning the problem and what steps you expect the dealer to take.

  1. Contact the Police

In some situations, the mere threat of the police action solves the issue. You need to provide documentation and other evidence that proves that you have been misled.

  1. Contact State Agencies

Many states have government programs that deal with auto dealer issues. The dealer is risking to lose the license if they don’t resolve the issue. These state programs are often a solution to many situations. However, not every situation is proper for government intervention. In some cases, the dealer may just get a warning letter and you will be left with your problem.

  1. Contact an Auto Dealer Attorney

When you have exhausted all options, you need to contact an experienced auto dealer attorney that can help you recover damages and even get a full refund. If you happened in such an unpleasant situation, the experienced attorneys at the Margarian Law Firm can help. They will evaluate all aspects of your case and describe the options you have, including what to expect from a lawsuit.


Call us at (818) 553-1000 for a free consultation.

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