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Writer's pictureMadelyn King

Auto Dealership Fraud: How an Attorney Can Help Protect Your Rights

 

Buying a car can be an exciting experience, but unfortunately, it’s also one where many consumers find themselves at risk of being deceived. Auto dealership fraud is a common issue that consumers face, ranging from misleading advertising to deceptive financing practices. Whether it’s being misled about the true cost of a vehicle or being pressured into signing a contract that doesn’t match the terms you agreed upon, fraud in auto dealerships can leave buyers feeling vulnerable and taken advantage of.


getting new car keys from car dealership

What Is Auto Dealership Fraud?

Auto dealership fraud involves any form of dishonest or unethical behavior by car dealerships or salespeople intended to mislead customers. This can include:

  • False Advertising: Dealers may advertise a car at a certain price or offer promotions that don't exist. Once you’re in the dealership, the price may suddenly be higher, or the deal may come with hidden fees or conditions that were not disclosed upfront.

  • Bait and Switch: This is a common tactic where a dealership advertises a car at a low price to attract customers, only to claim that the car is no longer available or only available with an added premium or higher fees.

  • Undisclosed Fees and Charges: Some dealers may add hidden charges to the contract, such as additional service fees, delivery charges, or "mandatory" add-ons, which significantly increase the final price of the vehicle.

  • Deceptive Financing Practices: Dealerships may mislead consumers about financing terms, such as falsely advertising low monthly payments that are actually tied to long loan terms, higher interest rates, or high down payments. In some cases, buyers may not realize that the financing deal offered is much worse than what was initially promised.

  • Odometer Fraud: This occurs when a dealer sells a used vehicle and alters the odometer reading to make the car appear as though it has fewer miles than it actually does, misleading the buyer about the vehicle's condition and value.


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How an Attorney Can Help

If you find yourself the victim of auto dealership fraud, an experienced attorney can help you navigate the complex legal landscape and protect your rights. Here are a few ways an attorney can assist:

  • Identifying Fraudulent Practices: An attorney can help you identify whether the dealership's actions qualify as fraud or simply a misunderstanding. They will analyze the sales process, advertising, contract details, and any other documentation to determine if any fraudulent practices occurred.

  • Negotiating with the Dealership: An attorney can serve as a buffer between you and the dealership. They can negotiate on your behalf for a fair resolution, whether that means a refund, a better financing deal, or returning the vehicle for a full refund.

  • Legal Action and Consumer Protection: If negotiations fail, an attorney can help you pursue legal action. Many states have laws in place to protect consumers from fraudulent practices in car sales, such as the Magnuson-Moss Warranty Act and state lemon laws. An attorney can help you file claims and, if necessary, take the dealership to court.

  • Seeking Damages: If you've been a victim of fraud, you may be entitled to compensatory damages, including the cost of the vehicle, interest paid on a fraudulent loan, and any consequential damages you've suffered.


Auto dealership fraud can leave consumers feeling deceived and helpless, but with the right legal support, you don’t have to face it alone. An attorney with experience in consumer protection and auto fraud can ensure that your rights are upheld and help you seek the justice and compensation you deserve. If you believe you’ve been a victim of auto dealership fraud, Bainum Law can help! Call Bainum Law today to consult with our trusted attorney, Craig Bainum, to determine how to best protect you and your financial well-being.

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