What Is Auto Dealer Fraud In Michigan?

Auto dealer fraud encompasses any type of misrepresentation having to do with the sale or lease of an automobile. It includes odometer rollbacks, truth in lending violations, warranty violations, breach of contract arising out of warranty claims, and yoyo sales. Yoyo sales are the sale of vehicles which have been totaled and should be salvaged but get sold under a clean title fraudulently.

What Should A Used Car Dealer Disclose About A Used Vehicle Being Offered For Sale?

Car dealers in Michigan are required to disclose that the vehicle has or should have a salvage title. Used car dealers are required to accurately disclose the odometer mileage on the vehicle. They must accurately disclosed the mileage on the vehicle and whether the odometer is reading actual miles or not actual miles, but those disclosure requirements only apply to certain cars. In the case of the salvage disclosure, it’s only for what are called late model cars.

For the odometer, the disclosure requirement is for cars that are 10 years old or less. There is no duty, unfortunately, in Michigan, for the dealer to disclose anything about a used car whatsoever, except the odometer and the salvage title. As far as cars go in Michigan, it is a buyer beware state. Just because the dealer makes a couple of verbal promises or says this is a great running car does not mean that you have a valid case in Michigan courts. Consumers are warned to do their homework if they’re going to buy a used car. Be prepared to fix everything on it. However, car dealers who are essentially trying to rip people off in general tend to do other things involving the financing of the vehicle that allow us to take the case. Your best bet is to not trust any car dealer unless it’s in writing.

What Does The Term Rollback Mean When It Relates To Auto Dealer Fraud?

A rollback is when the dealer or prior owner of the vehicle has rolled back the mileage on the odometer. They’re trying to fraudulently add value to a car. Low mileage cars are worth more than a higher mileage car. If you see a car that’s 10 years old with only 50,000 miles on it, be very suspicious. Generally, people drive 12,000 miles a year or more. A 10 year old car should have 120,000 miles or more on it.

Does Auto Dealer Fraud Differ From Lemon Law Cases?

Auto dealer fraud includes lemon law cases. When we talk about lemon law cases, we’re talking about new car purchases or leases under the manufacturer warranty. Lemon law is a specific law that only covers new cars. There are other warranty laws that can be applicable where there’s a warranty or a service contract. Those types of laws apply to used and new cars, but the lemon law cases only apply to new cars.

Can I File A Lawsuit For Auto Dealer Fraud?

Whether you have a valid auto dealer fraud case depends on what the fraud is, how long ago it happened, and whether or not you signed a contract with an arbitration clause in it. If there’s an arbitration clause, you have to go to arbitration. Arbitration is a private courthouse that is paid for by companies. Consumer advocates have been trying to get rid of arbitration clauses for a long time because they hurt consumers. You can bring a claim if you’ve been cheated by a car dealer, as long as there was a legal violation.

For more information on Auto Dealer Fraud Cases In Michigan, a free initial consultation is your next best step. Get the information and legal answers you are seeking by calling (248) 843-0550 today.