Auto Dealer Fraud

Law Offices of Brandon A. Block sues automobile dealers for fraud. A car dealer cannot make misrepresentations in selling or leasing a car. Some of the more common examples of misrepresentations by a dealer include the following:

  • Prior Wrecks/Rentals – A dealer cannot sell a vehicle that previously was a rental, wrecked or salvaged (i.e., declared a total loss) without disclosing it to the consumer. The best way for a consumer to know for sure about a vehicle’s prior history is to have the car inspected by a licensed body shop expert.
  • Laundered Lemons – A “laundered lemon” is a previous “lemon” car being resold. A dealer cannot sell one without divulging all the defects or the vehicle’s history.
  • Negative Equity Scams – A dealer cannot misrepresent that a trade-in has “negative equity” (the trade-in vehicle’s fair market value is less than what is owed). Dealers often do so in order to add the payoff amount on the trade-in to the price of the new car.
  • Odometer Rollbacks – Dealers sometimes sell cars after altering the mileage stated in the odometer, giving the appearance that the car has less use. This is illegal on many levels.
  • Yo-Yo Sales – A “yo-yo” sale occurs when the dealer tells the consumer that financing could not be arranged at the original terms, so the consumer must sign new papers with a higher interest rate, more down payment or other conditions.

If you are the victim of automobile dealer fraud, you may be able to “rescind” (unwrite) your contract, such that it is no longer in effect. You also may be entitled to money damages.

We have successfully resolved claims against car dealers throughout California for fraud. Please feel free to contact us with your issue.