Nowadays dealer fraud scams increase in number day by day. You can come up with various dealer scams and loose huge amount of money and waste your time. We are here to help you overcome this problem and get the best deal. Below you can take a look at the list of most common dealer scams. Our advice is to go to the market only after getting familiar with these most common dealer fraud scenes.
1. Vehicles with undisclosed frame damage or salvage title force you loose your money for an unsafe car. By law, dealerships have to disclose all material damages associated with the vehicle that they know about. A vehicle history report is once again a valuable tool to check if the vehicle has suffered any damages in the past.
2. Bait and switch false advertising scam is practiced through deceptive advertising. Dealers mislead the potential consumers labeling the actual status of the vehicle improperly. As advertising is one of the most important components of any business, dealers may apply every step to catch the eye of potential consumers. This is also considered illegal and a “bait” case, which is an enforceable action and punishable.
3. Odometer rollback fraud is when the used car is sold without disclosing the actual mileage of the vehicle. Rolling back the odometer gets the seller more profit, since fraudulent dealers purchase a vehicle with a really high mileage at a low price, roll back the numbers on the odometer and sell it to a consumer at a high price.
4. “Spot delivery scam” is also known as the “Yo-yo finance scam”. This scam involves the signing of the second contract for 2 common fraudulent reasons:
(a) the financing with the lower rate did not go through, so you have to sign a new contract at a higher rate to be able to keep the car;
(b) the dealer claims that they got you a better deal that will lower your monthly payments. When faced with the fist scenario, you should know that if this happens the dealership has 10 days to find you financing or cancel the contract. If the 10 days pass, they have to honor the contract no matter what. If they cancel or recall your contract within those 10 days, you are entitled to ALL money paid as a down payment and other fees/taxes. In the second scenario please be careful, why would a dealership call you back and give you money back? Usually they increase the number of payments to make it look like you are paying less. Be careful, read everything before you sign another contract.
Getting familiar with these scenes youarm yourself with the knowledge that can help you avoid dealer fraud scams. The list is not the final one, because the scammers always practice knew scams unfamiliar to you.
If you have had a trouble with a new or used vehicle that you purchased or leased, contact the Law Office of HovanesMargarian. Even if you are not sure if you have a case, the office can determine this for you.