$1.4 Million international car fraud operation Busted

Seven people who used at least 20 aliases and five fictitious companies among them, advertised cars on websites such as eBay and Autotrader and arranged for wire transfers to pay for the vehicles. No vehicles were delivered.

More:

http://www.usatoday.com/story/money/cars/2012/11/23/car-sales-scam/1722631/

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Kia, Hyundai Found to Have Overstated Fuel Economy

According to Consumer Reports, the EPA found that many vehicles in Kia and Hyundai’s lines did not meet advertised fuel economy claims. The New York Times is reporting that one consumer was so frustrated with the fuel economy in his 2012 Hyundai Elantra, he made this website:http://www.my2012hyundaielantragetslousygasmileage.com/ For specifics and to see if your vehicle is one affected by Kia’s and Hyundai’s claims, check out the chart below from the Consumer Reports’ website. If your vehicle is listed, head over to www.hyundaimpginfo.com or www.kiampginfo.com to claim your refund.

Make/model Old EPA mpg New EPA mpg
City Hwy Combined City Hwy Combined
2011-2013 Hyundai Elantra 29 40 33 28 38 32
2011-2013 Hyundai Sonata Hybrid 35 40 37 34 39 36
2012-13 Hyundai Accent 30 40 33 28 37 31
2012-13 Hyundai Azera 20 29 23/24 20 29/29 23
2012-13 Hyundai Genesis 3.8 19 29 22 18 28 22
2012-13 Hyundai Genesis 4.8 17 26 20 16 25 19
2012-2013 Hyundai Tucson 21 28 23 20 27 23
2012 Hyundai Veloster (manual) 28 40 32 27 37 31
2013 Hyundai Santa Fe Sport 21 28 23 20 26 22
2013 Hyundai Veloster 28 40 32 27 37 31
2012-2013 Kia Optima Hybrid 35 40 37 34 39 36
2012-2013 Kia Rio 30 40 33/34 28/29 36/37 31/32
2012-2013 Kia Sorento 21 28 23 20 26 22
2012-2013 Kia Soul 26 34 29 23/24 28/29 25/26
2012-2013 Kia Sportage 21 26 23 20 25 22

Chart from Consumer Reports: http://news.consumerreports.org/cars/2012/11/epa-finds-hyundai-exaggerated-fuel-economy-claims-refunds-coming-to-customers.html

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Buyer Beware: Flooded Cars will Soon be Flooding the Used Car Market

“After a total-loss claim is paid, insurers typically sell the vehicle to the salvage market. Because flooded vehicles often bear no signs of physical damage, “they offer a prime opportunity for con men to clean them up and sell them,” said Larry Gamache, a spokesman for Carfax. After other flood events like Hurricane Katrina, he said, “the percentage of cars that ended up in the market was alarming.’” More at: http://wheels.blogs.nytimes.com/2012/11/02/buyer-beware-cars-flooded-by-hurricane-could-turn-up-on-the-market/

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Owners Have More Power over Manufacturers in the Internet Age

With the advent of the Internet, manufacturers have had to pay more attention to disgruntled consumers.

“Just as the advent of social media has handed new power to retail shoppers, hotel guests and other consumers, disgruntled car owners suffering similar problems can more easily combine efforts to pressure auto makers to bend on repair costs. Blogs and government websites make news of widespread maintenance issues easier to find. And auto makers and dealers, many just starting to gain traction after the economic downturn, say they are keen to find and keep potential return customers.” More at:

http://online.wsj.com/article/SB10000872396390443854204578059093585436564.html?mod=djemTEW_t

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Rental Car Companies Agree to Stop Renting Cars that Have Been Recalled

The auto rental industry has agreed to stop renting or selling vehicles that are under safety recall before they’re fixed.

The agreement ended months of dispute between Boxer and three big auto rental companies: Avis Budget, Dollar Thrifty and Enterprise Holdings, which owns the Enterprise, Alamo and National brands. More at http://travel.usatoday.com/news/story/2012-09-27/Rental-car-companies-wont-rent-recalled-vehicles/57849026/1?loc=interstitialskip

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Don’t Fall Prey to Spot Delivery Scams and Yo-Yo Financing

Below is a link to an article on abuses stemming from spot delivery “Yo-Yo” tactics.

http://www.edmunds.com/car-loan/dont-fall-prey-to-spot-delivery-scams-and-yo-yo-financing.html “Regardless of the letter of the law, Kukla says dealerships can pressure unwary consumers to accept new, more expensive terms using a variety of tactics. Some dealers have threatened to repossess cars, while others even say they will report the vehicle stolen. When a would-be buyer asks to simply return the car, some dealers have demanded high rental fees or charged for excessive wear and tear on the brief period of usage.” These types of abuses are common in California. If the dealership you purchased a vehicle from is pressuring you to sign a new contract, contact us. Know your Rights.

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Premier Nissan of San Jose

Auto Fraud Legal Center has recently taken on a client who has strong legal rights against Premier Nissan of San Jose. AFLC will allege on behalf of the clients that Premier Nissan of San Jose committed egregious violations of California law.

Did you purchase a vehicle from Premier Nissan of San Jose? Are you having problems with the vehicle? Did you have problems with the dealership? Contact AFLC for a free case and contract review by one of our attorneys. You can also read up on 12 of the most common auto dealer tricks to see if you were defrauded by Premier Nissan of San Jose or any other dealer in California.

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Sanchez v. San Diego Autos

Auto Fraud Legal Center has filed a lawsuit on behalf of George and Evangelina Sanchez to assert their legal rights against San Diego Autos. Roughly 30 days after the Sanchezes purchased their vehicle, San Diego Autos told them they had to sign a second contract. The Sanchezes allege San Diego Autos did provide them a right to refuse to sign a new contract or to receive a refund of his downpayment and cancel the contract. While dealers have the right to cancel a sales contract, it is a very narrow right. Dealers generally cannot rescind or cancel the contract after 10 days of the purchase.

Even further, the Sanchezes allege that San Diego Autos backdated the second illegal contract to the date of the first contract. Backdating is illegal because it charges the customer interest on a contract that isn’t even in effect.

You can read more about the seller’s right to cancel and other Auto Fraud violations in our Auto Fraud Information Center.

Did San Diego Autos or another dealership in California violate your rights by forcing you to sign a second contract? Did the dealership make you sign a second contract? Contact AFLC at 1-800-4NOLEMON to speak to one of our auto fraud attorneys about your contract.

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Darlene Holland v. Pedder Nissan

Auto Fraud Legal Center has filed a lawsuit on behalf of Darlene Holland against Pedder Nissan. Ms. Holland alleges that Pedder Nissan improperly disclosed a deferred downpayment on the sales contract, a violation of California law. A deferred downpayment is a downpayment not made in cash on the day of the purchase. If you gave the dealership a check to be held for a few weeks, you may have an illegal sales contract.

Not only did Pedder Nissan improperly disclose the deferred downpayment, Pedder Nissan also had Ms. Holland sign a Hold Check Agreement. A Hold Check Agreement has payment terms that are different from your sales contract, a violation of California auto financing law.

Auto Fraud Legal Center believes Pedder Nissan’s illegal practices are widespread. In fact, AFLC filed a class action lawsuit against Pedder Nissan earlier this year. Want to see what other bad things Pedder Nissan has done to its customers? Click “Pedder Nissan” at the bottom of this post.

Did you write a check that Pedder Nissan said it would hold for a few weeks? Did you sign a Hold Check Agreement for a deferred downpayment? If so, contact the law office of Auto Fraud Legal Center for a free contract review to see if you have an illegal sales contract.

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California's Auto Fraud Legal Center

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