Car Dealer Fraud, What Can I Do?

You spend days, maybe even weeks, sifting through ads and reviews, trying to find the perfect automobile for you. When you do, you seal the deal, sign the paperwork, and drive it off the lot only to discover that you have been had. What can you do?
If you believe that you may be the victim of auto dealer fraud, you do have options. From civil to criminal liability, and some administrative options, victims of auto dealer fraud can and should fight back against unscrupulous dealers.

Contact the Dealer

It may seem obvious, but the first thing you should do if you believe you have been misled by an auto dealer is to contact the dealer. In fact, many states mandate that you notify the dealer first and provide it with an opportunity to correct the situation. It is entirely possible that the fault you have found in the vehicle may have been unknown to the dealer at the time of the sale, and legitimate dealers may be willing to correct the problem.

This contact can be initiated either by you or your attorney, but in either case it should be in writing and should clearly set out the problems you have discovered in the vehicle. It should also clearly outline what you want the dealer to do to correct the situation. Be reasonable; do not ask for things like a refund and to keep the vehicle. If the problem is fundamental, rendering the vehicle virtually useless, you may consider asking to unwind the deal, getting your money back upon the return of the vehicle to the dealer. Of course, in most situations, the most reasonable resolution will be to have the necessary service performed by the dealer at its expense to put the vehicle into the condition they represented it was in at the time of the sale.

Contact State Agencies

If, after speaking with the dealer, your situation is still not resolved, you may want to contact state agencies. Many states have government programs designed to monitor and regulate auto dealers. A complaint to the correct agency could cause the initiation of an investigation into the dealer’s practices, government orders requiring the dealer to correct the situation, or the dealer could lose its license to sell vehicles in that state or face other consequences.

As a bonus, availing yourself of these services do not cost you anything, as they are government run programs. In some instances, they may be able to recover money for you or even refer the case to state law enforcement if they believe that the dealer is committing criminal fraud. Of course, not every situation is appropriate for government intervention, or the agency may be unwilling or unable to do more than send a warning letter. However, even in this situation, the results of the agency’s investigation can be useful in establishing the elements of a private lawsuit.

Private Legal Action

If you have exhausted your other options, it may be time to consider pursuing a private legal action. You may have claims for things like breach of contract, fraud, negligent misrepresentation, and a host of state specific statutory claims.
A claim for fraud would involve establishing that the dealer intentionally misled you in an effort to induce your purchase. If the misrepresentation was accidental, that could be a negligent misrepresentation. If the dealer included guarantees or offered to sell something different than what you ultimately received, you may be able to establish that the dealer failed to satisfy its obligations under the sales contract. And, in many states, there may be claims set forth in the state’s statutes creating private causes of action against dealers that mislead buyers or sell vehicles that do not work properly.

Of course, given the range of legal options, you should probably speak with an experienced auto dealer fraud attorney. Your attorney can evaluate all aspects of your case and explain your available options, including what to expect if you file a lawsuit against the dealer and what kind of results you might reasonably expect from such action. He or she may also be able to help you explore other options, such as administrative procedures through state agencies. Your attorney can also help you comply with every aspect of your state’s notice requirements and pre-suit procedures in order to ensure that you do not miss any prerequisites before filing your lawsuit, if that remains your best option to be made whole.
To find an experienced auto dealer fraud attorney in your area, use HG.org’s lawyer search feature.