Consumer Auto Fraud

Odometer Rollback Fraud

Some unscrupulous sellers will illegally alter the vehicle’s odometer reading (often known as “winding back the clock”) to reduce the recorded mileage, making the car appear less used than it actually is. This fraudulent practice inflates the vehicle’s value and deceives buyers into believing they are purchasing a car with significantly less wear and tear.
This is, of course, very dangerous as your vehicle may require much-needed repairs (a new timing belt, brake pads, bushings, shocks) that you think are thousands of miles down the road.

What’s more, contrary to popular belief, modern digital odometers can still be manipulated, and a history report doesn’t always catch these alterations.

Title Washing

This scheme involves sellers removing negative information from a vehicle title, such as “salvage” or “flood damage,” to make it appear clean. (For example, a lot of vehicles that were water damaged in Hurricane Katrina hit the market with washed titles.)

This practice allows dealerships and private sellers to pass off previously totaled or water-damaged vehicles as safe and reliable, and charge much more for the vehicle than it’s actually worth. Sadly, buyers often discover title washing only after experiencing mechanical failures or attempting to resell the vehicle.

Bait-and-Switch Tactics

Bait-and-switch is actually an outlawed advertising scam that is prevalent in many industries, and you may well have heard of this term. When it comes to vehicles, the dealership will advertise a car or truck at a price that appears too good to be true.

Of course, once you’re on the lot that vehicle is no longer available. But you’ll then be pressured into buying a different, more expensive vehicle instead. These tactics often include aggressive up-selling and misrepresentation of financing terms, and are highly illegal. However, slick dealers can disguise these practices with a heavy dose of charm and deception.

False Advertising & Misrepresentation

This is a little different from the bait-and-switch practice outlined on this page. In this case, a dealership could falsely claim that a vehicle is in excellent condition, has never been in an accident, or has certain premium features that it doesn’t have.

Financing terms may also be misrepresented, with unexpected fees or higher interest rates hidden in the small print of the contract. Buyers often sign paperwork under the assumption that they’re getting what was advertised, only to realize later that they have been misled. And by then, they think it’s too late. But in many instances, our top auto fraud lawyers can help.

Undisclosed Mechanical Defects

Some sellers will knowingly conceal mechanical defects, sometimes very serious ones, selling cars with pre-existing damage or unaddressed safety issues. Common undisclosed defects include engine failure, transmission problems, electrical malfunctions, and even frame damage. Buyers can be responsible for paying thousands of dollars in unexpected repair costs, and even worse, be involved in accidents that arise from these defects.

Yo-Yo Scheme

Some dealerships will have you sign all the financial documents stating that you have a loan. Then, a few days later, after the buyer has shown off the vehicle to all of her friends, the dealership will call and tell the buyer that financing fell through and the buyer has to either give more down payment, agree to a higher interest rate, or both. Buyers who do not know their rights will fall for this scheme and end up paying more than they originally agreed to.