Common Auto Dealer Fraud Cases

Auto dealer fraud cases are rather common these days. Dealer fraud is the wrongful or criminal deception practiced by the auto dealer; it is intended to result in financial or personal gain. More and more people are becoming victims of dirty dealer tricks and scams. This happens because people lack knowledge about common types of dealer fraud. Following are the most common auto dealer fraud cases that may occur to you as a car shopper or a lessee.

Odometer Rollback Fraud

Odometer rollback is the practice of tampering with the vehicle’s odometer so that it shows less mileage than it actually has. Odometer fraud is one of the most common types of dealer fraud and it is practiced in nearly all the states. It should be mentioned that both mechanical and digital odometers may undergo odometer fraud, that’s why you should be extremely careful to detect the fraud. In any case, it is advisable that you ask the VIN of the car you are going to buy. With the Vehicle Identification Number (VIN) you will be able to look up the car’s last odometer readings along with the whole history of the vehicle.

Improper Certification of used Cars

Pre-owned vehicle certification programs are meant to give peace of mind to used car buyers. Different dealerships and manufacturers have different used car certification programs. The thing is that all of them have their own lists of vehicle parts that usually undergo inspection and repair. There is a not a set list of car parts to be examined or repaired and this serves as a ground for fraud and scams. For example, some dealerships do not perform used car certification at all though they claim they had. Other dealerships simply imitate used car certification; they may inspect the vehicle never fixing the existing problems.

Title Washing

One of the common auto dealer fraud cases is title washing. Title washing is the process of registering a salvage vehicle in a new state so that it acquires clean title. This is done to be able to sell a vehicle that has been branded as non-repairable in the previous state. Very often dealers know about the vehicle’s status and they conceal the information from the buyer trying to sell the car at a higher price than it is actually worth. Flooded or previously damaged vehicles are rather dangerous to drive; they may have serious safety problems that may result in car crashes and accidents.

Vehicle Misrepresentation

As you can see, there are different auto dealer fraud cases one can be a victim of. Dealer fraud can otherwise be defined as vehicle misrepresentation. In fact, when the dealer advertises a previous taxicab as simply a used car that has been driven by one owner, or when the dealer conceals the fact that the vehicle is a precious “lemon law” buyback, or when the dealer tells the buyer that the vehicle is in excellent condition when in reality it has frame o any other kind of damage, then we deal with vehicle misrepresentation.

The auto dealer fraud cases described above are just a few from several others. However, the increasing number of dealer scams and tricks should not frighten you. You need to just educate yourself with the right tips against dealer fraud or turn to an experienced auto dealer fraud attorney if you feel you have become a victim of dealer fraud.

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Armen Margarian

Please visit www.NexusLab.com to read by bio and to learn more about our projects.

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