Automobile Fraud: Auto Fraud FAQ's
Auto fraud is oftentimes the failure by the seller to disclose some material fact which if the buyer had known he or she would not have gone through with the transaction. It can pertain to either a new or used vehicle, and either a vehicle which is purchased or leased. The many different kinds of automobile fraud include odometer fraud, sale of a previously repurchased lemon vehicle, sale of a previously salvaged or wrecked vehicle, false advertising, financial scams, and similar kinds of unethical and illegal activities.
1. Odometer fraud - Odometer fraud usually results when someone has changed the odometer settings in order to roll back the mileage to a lower previous setting, or has actually replaced the odometer without providing the required notice be put on the vehicle. Odometer fraud is usually difficult to prove, particularly when a used vehicle has gone through several hands before it reaches the dealer who ultimately sells it to the consumer. The best way to determine whether your vehicle has an incorrect odometer reading is to check with the California Department of Motor Vehicles, or research the vehicle's history on various Internet sites including www.carfax.com. You might also contact former owners, or have a qualified mechanic inspect the vehicle.
2. Other automobile frauds - There are many ways in which a dealer may defraud a consumer so as to increase profits. These include altering the terms of the contract; forging signatures; forcing the sale of unnecessary additional products such as paint sealant, alarms, service contracts, etc.; adding in the negative equity on your trade to a purchase or lease contract without disclosing that fact to the consumer; misrepresenting the sales price and discounts, etc. Many times a consumer may not even be aware of the fact that he has been defrauded by one or more of these schemes because they are is such an integral part of the sale or lease process.
