Los Angeles Auto Dealer Fraud Attorney
At Auto Fraud Legal Center LLP, we specialize in one thing: protecting consumers from dishonest car dealers. We’re a fast-moving, litigation-focused firm where attorneys make a real impact — without the burnout of traditional firms.
Auto dealer fraud happens when a dealer lies, hides important facts, or tricks a customer into an unfair deal. Fraud can include hiding past accidents, rolling back odometers, lying about financing, or adding hidden fees. Knowing your rights is the best way to protect yourself and get your money back when a dealer breaks the law.
What is Auto Dealer Fraud?
Auto dealer fraud happens when a dealership purposely misleads a buyer during a car sale or lease. Common examples include:
- Lying about the car’s condition
- Hiding accident or damage history
- Rolling back the odometer
- Falsifying loan or contract terms
- Charging for products or services that don’t exist
Simply put, if a dealer tricks you into paying more, agreeing to unfair terms, or buying a car you wouldn’t have otherwise purchased, it may be auto fraud.
In California, these actions are illegal. Victims may be able to recover money for the car’s purchase price, down payment, repair costs, and other financial losses.
Common Car Dealer Scams
Here are some of the most common ways Los Angeles car dealers try to lie and cheat.
Each of these scams can cost buyers thousands in repairs, lost value, or unfair loan payments.
A car dealer may hide or lie about a vehicle’s accident history. This can include failing to mention a major crash, downplaying the damage, or providing false repair records.
Accident history affects a car’s safety, reliability, and resale value. Buying a car with hidden or misrepresented accidents can lead to surprise repair costs, poor performance, and lower resale value.
A car with a salvage title has been declared a total loss by an insurance company after a serious accident, fire, or flood. Some dealers hide this fact and claim the car has a clean title to make it seem safer and more valuable than it really is.
Buying a car with a hidden salvage title can cause big problems. These vehicles often have hidden damage, are harder to insure or register, and usually lose value quickly.
Vehicles used for rentals or rideshare services often have higher mileage, more wear and tear, and require more frequent repairs than privately owned cars. A dealer may not tell buyers about this history, which can lead to unexpected repair costs, lower resale value, and safety issues.
Some dealers use misleading ads to get buyers into the dealership. For example, they might advertise a car at a low price or with special financing, then claim it’s sold and push the buyer toward a more expensive vehicle.
These tactics can waste your time, cost you money, and create stressful pressure to make a deal you didn’t plan. California law requires dealers to advertise honestly and bans bait-and-switch schemes.
Dealers sometimes falsify important paperwork, like loan agreements, titles, odometer readings, or signatures, to mislead buyers. This can hide problems with the car, change the terms of a sale, or manipulate financing.
Using forged documents can lead to serious financial and legal problems, including unexpected debt, disputes over ownership, and trouble enforcing warranties or contracts.
Some dealers sell cars as “certified pre-owned” (CPO) even when the vehicles don’t meet the required inspection and safety standards. Certified cars are supposed to pass a thorough check to ensure quality and safety.
When a dealer skips inspections or falsely labels a car as certified, buyers may pay extra for a vehicle with hidden problems, past accidents, or mechanical issues. This can lead to financial losses and serious safety risks.
A financing agreement can be inflated when a dealer adds extra products, fees, or services without telling the buyer. This may include unnecessary insurance, extended warranties, or service contracts, which are often included in monthly payments without clear disclosure.
Loan packing tricks buyers into paying more than the car’s actual value or the cost of legitimate products. It can create long-term financial strain with higher payments and unnecessary expenses.
A car that was returned to the manufacturer under California’s Lemon Law has a history of serious defects or recurring mechanical problems. Dealers are legally required to disclose this information and mark the title accordingly.
If the dealer hides this or claims the car has a clean history, it’s considered fraud. Buying a hidden Lemon Law buyback can lead to repeated repairs, ongoing mechanical issues, and big financial losses.
A car’s frame can be seriously damaged in an accident, affecting its safety and handling. Dealers are required to disclose any frame damage, but some hide or downplay it.
Buying a car with undisclosed frame damage can lead to expensive repairs, lower resale value, and serious safety risks.
A dealer can mislead buyers by including false information in the sales contract or other paperwork. This might involve overstating the car’s condition, claiming it’s new when it’s used, listing features or warranties that don’t exist, or hiding past accidents or title problems.
Any intentional false statement that affects a buyer’s decision can be considered a form of fraud. These misrepresentations can cause buyers to pay more than the car is worth or agree to terms they wouldn’t have accepted if they knew the truth.
A car’s price can be inflated when a dealer adds extra products, services, or fees without clearly telling the buyer. This often includes extended warranties, insurance, or dealer-installed accessories bundled into the total price.
Price packing can make a car seem cheaper than it is, leading to unexpected costs and higher payments than the buyer expected.
Some dealers alter a car’s mileage to make it look less used than it really is. This is illegal and affects the car’s value, reliability, and lifespan.
Odometer fraud can lead to costly repairs, frequent breakdowns, and a lower resale value, leaving buyers with significant financial and safety risks.
Title fraud happens when a dealer hides or falsifies information on a car’s title. This can include undisclosed salvage or rebuilt titles, past accidents or flood damage, or using fake documents to transfer ownership.
Buying a car with a fraudulent title can lead to financial losses, trouble registering the vehicle, and even legal problems if the car was stolen or improperly reported. Dealers often cannot produce the title as it won’t pass emissions or other technical requirements. This is their problem to fix, and we hold them to it.
Warranty fraud occurs when a dealer lies about a car’s warranty. They might claim a car is still under the manufacturer’s warranty, sell it as “new” when it’s not, or promise an extended warranty that doesn’t exist.
This can leave buyers paying for repairs without coverage, facing expensive mechanical issues, and losing the protection they expected.
Yo-yo financing happens when a buyer drives off with a car before the loan is fully approved, then the dealer calls back asking for higher payments or new terms. Dealers often claim the original loan fell through and pressure buyers to accept worse conditions. This practice can create financial stress, higher costs, and even risk of losing the vehicle if the new terms aren’t met.
Your Rights Under California Law
California law protects buyers from dishonest dealers. If you’ve been the victim of auto fraud, you may be able to:
- Get your money back (purchase price, down payment, repair costs, etc.)
- Cancel the sale or loan and return the car
- Collect extra damages if the dealer knowingly deceived you
- Recover legal fees and, in some cases, punitive damages
An experienced attorney can review your case, gather evidence, and take action against the dealership to protect your rights.
Do You Have a Valid Case?
To prove auto dealer fraud, you’ll need to show the dealer lied, hid important facts, or tricked you—and that you relied on this when buying the car. Evidence such as contracts, ads, text messages, repair records, or expert inspections can strengthen your case.
Fraud cases can be complex, and small details make a big difference. If you believe a dealer defrauded you, the best step is to speak with a lawyer who specializes in auto fraud.
Why Choose Auto Fraud Legal Center?
Suing car dealers for auto fraud is all we do. Every year, we help hundreds of clients fight back against dishonest dealerships across Los Angeles County. Our track record includes thousands of successful cases and hundreds of five-star reviews.
We know the tricks dealers use and how to hold them accountable in court or arbitration. With our experience and focus, we work to get clients their money back and deliver the justice they deserve. Looking for proof? Look no further than the hundreds of five-star Google reviews from our satisfied clients.
We Represent Clients in the Following LA Superior Courts
- Beverly Hills
- Burbank
- George Deukejian
- Glendale
- Inglewood
- Lancaster
- Michael D Antonovich
- Norwalk
- Pasadena
- Pomona
- San Pedro
- Santa Monica
- Stanley Mosk
- Spring Street
- Torrence
- Van Nuys
- West Covina
In addition to representing our clients in LA County courts, we also represent victims of dealer fraud in arbitration cases through JAMS and AAA Arbitration.
Talk to an Intake Specialist Today
If you think you’ve been the victim of auto dealer fraud, don’t wait. Contact Auto Fraud Legal Center today for a FREE case evaluation.
