Free Buyer GuidesCalifornia Used Car Fraud Lawyer
8 Steps to Protect Yourself from Used Car Fraud -- and What To Do if You Think You've Been Cheated
What Is Used Car Fraud?
Used-car fraud is when dealers use unfair or deceptive business practices to sell a used vehicle. Used car fraud is forbidden under the California Consumer Legal Remedies Act. This means…
- Used car dealers may not lie to customers.
- Used car dealers may not mislead customers.
- Used car dealers must tell you about any material defect in the car, such as if the vehicle was in a wreck or if the vehicle was once a rental car.
- If you ask a question, dealers must tell the truth, even if the truth is that they don't know the answer.
- If dealers advertise their cars as fully serviced and inspected, they must actually inspect them, fix material defects and tell you about any remaining problems.
- You also have the right to get the car inspected before you buy.
Costly and common types of used-car fraud include…
- Rolling back the odometer to hide the actual number of miles the car has gone.
- Not disclosing that the car is a "lemon buyback" that the original owner returned for a refund.
- Not disclosing that the vehicle has a "salvage title."
- Not disclosing that the vehicle used to be a rental, a demonstrator or was previously sold and returned.
- Quoting a lower price than the one on the contract, or charging you for features you were told were free.
- Contracts that are incorrectly dated, forged or not provided to you.
8 Steps to Protect Yourself From Used Car Fraud
Buying a used car today in Southern California can be a confusing and complicated process. And if you don't do your homework before you buy the car, you might end up with a car you don't want--a car you can't afford--or a car that doesn't work right.
Before you buy a used car, protect yourself by taking these key steps:
Step #1: Inspection. Have the car inspected by a mechanic you trust who does not work for the car's seller. If the seller refuses to allow you to have the car inspected, don't buy it.
Step #2: Warranty. Get a written warranty for the car you buy, if possible.
Step #3: Writing. If the seller tells you the car is in good mechanical condition, make sure the seller puts those statements in writing. If the seller's representations are only verbal, you may have a hard time proving that you were misled about the car's condition.
Step #4: Length of Contract. If you intend to finance the car, don't sign a contract to pay for a car that won't be around for the time it takes you to pay it off. Remember, if you agree to pay for the car over a period of five years, but the car lasts for only three years, you still have to pay the balance of the loan, even if the car no longer runs.
Step #5: Financing. Shop around for financing before you buy the car. Many car dealers have relationships with finance companies they want you to use. However, if you can get a better deal elsewhere -- such as at a credit union or bank -- you're wise to do so. Don't forget, if your credit is bad, the interest rate you will be asked to pay may be very high.
Step #6: Changing the Terms. If you sign a contract to buy a used car and the seller later tells you that you have to pay more for the vehicle than agreed, you don't have to do it. You have the right to demand your money back or insist on the terms you agreed to.
Step #7: Monthly Payments. Don't base your purchase on the amount of money you can afford to pay each month for the car. First, negotiate a fair price for the car and talk about the financing later. Remember, if you can afford the car you want only by financing over too long a period of time, you may be making a bad deal.
Step #8: Manufacturer's Warranty. Even if you bought a used vehicle, you still have rights under California lemon law. If the vehicle is fairly new, its original manufacturer's warranty may still apply and will allow you to bring a lemon law claim. If the vehicle came with a dealer's warranty, you can also bring a claim that the warranty has been violated. If the vehicle came with no warranty -- that is, if it was sold "as is" -- or with a service contract, you may still be able to bring a claim for used car fraud.
What To Do if You Think You've Been Cheated
Go to the dealer to ask for a refund, exchange or any service you're entitled to under a contract or warranty. If the dealer won't play fair, you may have to file a lawsuit to get your money back.
You have three years from the day you bought the car to bring such a claim. In a used-car fraud lawsuit, you can recover
- What you paid for the car and all of its repairs.
- Any money you paid for alternative transportation and other costs caused by the lemon
- Attorneys' fees, and
- Anything else the court thinks is fair.
- In cases of extremely illegal behavior by dealers who knew better, you may be able to get punitive damages, which are designed to punish wrongdoers financially, as well.
What's the First Step?
Fortunately, with more than 20 years of experience representing only automotive-fraud and lemon-law consumers, Howard Silver has built a strong record, with a 95% success rate and millions recovered for clients cheated by automakers, retailers and repair shops.
If you got a lemon of a repair, turn it Silver. Call the Law Offices of Howard D. Silver today at 1-866-49-LEMON or fill out our confidential online case evaluation form for a confidential, no-obligation consultation with Howard Silver.
You're Invited to Call or E-mail.
"If you have questions or problems relating to California's Lemon Law, car-repair fraud, used-car fraud, or unfair or deceptive business practices, please don't hesitate to call. I'll gladly speak with you over the telephone. Or, if you prefer, you can fill out our confidential online contact form at www.howardsilverlaw.com. I'll be happy to help you in every way." -- Howard