Understanding Dealer Fraud

Dealer fraud occurs when car dealerships use deceptive practices to sell vehicles. Common schemes include misrepresenting a car’s history, hiding defects, inflating prices, or adding unwanted products to your contract. If you’re shopping for a car, knowing the red flags can save you thousands.

Red Flags to Watch For

• Odometer rollback or tampering
• Undisclosed accident history
• “Yo-yo” financing (taking the car back after purchase)
• Hidden fees or add-ons not discussed upfront
• Promises that aren’t in writing

What to Document

• All written communication, emails, and texts
• Copies of every document you sign
• The vehicle’s VIN and any Carfax/AutoCheck reports
• Names and roles of dealership staff you interact with
• Photos of the vehicle (inside and out)

Practical Checklist

• Research the dealership’s reputation online
• Get a third-party inspection before buying
• Request all promises in writing
• Double-check financing terms
• Don’t sign blank or incomplete documents

What to Do If You Suspect Dealer Fraud

If you think you’ve been scammed, act quickly:

• Gather all documentation
• Contact the dealership in writing
• File a complaint with your state’s consumer protection office
• Reach out to a consumer law attorney for guidance

Need help with a dealer fraud issue? Contact Ginsburg Law Group, PC for a confidential review.