Driving a Lemon?

Understanding Motor Vehicle Dealer Fraud:

Know Your Rights Before and After You Buy

Buying a car is one of the biggest purchases most people make. Unfortunately, not every dealer plays fair. At Ginsburg Law Group, PC, we help consumers fight back when they’ve been misled, deceived, or defrauded by auto dealers.

If you recently bought a vehicle and something doesn’t feel right, you may be the victim of motor vehicle dealer fraud. Below, we break down some of the most common types of fraud—and what you can do about it.

1. Spot Delivery Fraud (“Yo-Yo Sales”)

What it is:
Spot delivery, also called a “yo-yo sale,” happens when a dealer lets you take the car home before final financing is approved, usually on the promise that the loan is “done.” Days or weeks later, the dealer calls to say financing fell through and insists you:

• Return the car

• Sign a new loan agreement with worse terms, higher interest, or more money down

• Or pay added fees

Sometimes they even threaten to report the vehicle stolen if you don’t comply.

Why it’s illegal:
Dealers are required to fully disclose financing terms under the Truth in Lending Act (TILA) and state consumer protection laws. If they misrepresent the financing process or trick you into signing multiple contracts under pressure, it may constitute fraud, deception, or unfair business practices.

Signs of a Spot Delivery Scam:

• You took the car home the same day, but financing wasn’t finalized

• You received a call within a few days saying your loan was denied

• You were told to come back and re-sign different paperwork

2. Pre-Delivery Damage or Concealed Repairs

What it is:
Some dealers sell cars that have been damaged prior to sale—from accidents, floods, or transport—and fail to disclose the damage to the buyer. Others may “repair” a damaged vehicle but not inform you that the car had significant body or frame work done.

Why it’s illegal:
Dealers have a duty to disclose known damage—especially if the damage affects the car’s safety, value, or use. In many states, failing to do so violates consumer fraud statutes and may even constitute a breach of warranty or common-law fraud.

Examples of undisclosed damage:

• Frame or structural repairs

• Flood damage

• Airbag deployment not disclosed

• Vehicles misrepresented as “certified pre-owned” or “accident-free”

How to detect it:
You may only discover the damage after purchase during an inspection, when applying for insurance, or when trying to trade in the vehicle. If you feel you weren’t told the full story about the vehicle’s condition, you may have a case.

3. Odometer Rollback Fraud

What it is:
Odometer fraud happens when a dealer (or previous owner) manipulates the mileage on a vehicle to make it appear newer or less used than it actually is. This fraud is designed to inflate the car’s resale value—and deceive the buyer.

Why it’s illegal:
Odometer rollback is a federal crime under the Motor Vehicle Information and Cost Savings Act. It’s also illegal under state consumer protection and deceptive trade practices laws.

How it happens:

• Mechanical odometers are rolled back manually

• Digital odometers are reprogrammed using software

• Titles are “washed” by registering the car in a different state to conceal mileage

Warning signs:

• Title or Carfax history shows mileage inconsistencies

• Excessive wear on the interior doesn’t match reported mileage

• Service stickers or maintenance records show higher mileage than the odometer

If you’ve discovered that your vehicle’s mileage was altered or misrepresented, you may be entitled to compensation, including a refund, rescission of the sale, and attorneys’ fees.

What You Can Do If You’ve Been the Victim of Auto Dealer Fraud

🛑 Don’t wait—you may have limited time to bring a claim.
✅ Document everything—contracts, texts, emails, financing paperwork, repair records, and vehicle history reports.
📷 Take photos—of damage, odometer, or anything suspicious.
📞 Contact a consumer protection attorney—we’ll evaluate your case and explain your rights.

At Ginsburg Law Group, PC, we investigate and pursue claims involving:

• Spot delivery / yo-yo sales

• Financing misrepresentation

• Undisclosed vehicle damage

• Odometer fraud

• VIN switching

• False advertising (e.g., “no accidents” or “one owner” claims)

How We Help

When you work with us, we will:

• Review your sales documents and vehicle history

• Demand accountability from the dealership

• Negotiate a refund, replacement, or financial compensation

• File suit if necessary under federal and state fraud laws

• Fight for attorneys’ fees so you don’t pay out of pocket

Don’t Let Dealer Fraud Drive Your Life Off Course

If a car dealer lied to you or failed to disclose important facts, you have legal rights. You may be able to cancel the deal, recover money, or even return the vehicle—but the sooner you act, the better.

We are currently accepting Dealer Fraud cases in Pennsylvania and New Jersey.

If you feel you have been the victim of auto dealer fraud, contact us today for legal help.

Dealer Fraud cases are taken on a contingency basis at Ginsburg Law Group – which means we don’t get paid unless you get paid!