Auto dealers have an amazing number of scams they can perpetrate on their customers. Often, people don’t know that the car dealer is cheating them and breaking the law. If you have any suspicion you might have experienced auto dealer fraud, you should call a knowledgeable lawyer immediately.
Common Types of Auto Dealer Fraud
There as many types of auto dealer fraud as there are stars in the sky. In our past cases we have held many perpetrators responsible for many different scams.
Many scams involve financing fraud, such as the financing falling through after the sale. This is called a “spot delivery” or a “yo-yo sale.” Dealers must settle the financing before you take the car off the lot. Often, however, they make wild promises without actually advance commitment form the finance company. Then, when the financing falls through, they say “We need the car back, or we’ll call a wrecker. And don’t ask for your down payment or trade-in, because they’re gone.” That’s illegal, and you don’t have to take it.
Other scams involve the title. You must be given a chance to see and to sign the certificate of title when you buy the car. The dealer must disclose the mileage of the vehicle and other important information on that title, and not on any other document. Often, however, car dealers do not even have the title on the lot when they sell you the car and sometimes, they don’t even own the car when they sell it to you. Dealers can also overcharge, fail to pay off a trade-in, commit odometer fraud — the scams are endless.
As the leading consumer protection law firm in Michigan, we will know how to help with any form of auto dealer fraud. Contact our lawyers for a free initial telephone consultation.