Auto fraud involves any deceptive or dishonest practices used by car dealers or manufacturers to mislead consumers. This can occur at various stages of the car buying or leasing process, from false advertising to hidden defects. Here are some common types of auto fraud:

1. Odometer Fraud

Odometer fraud occurs when a vehicle’s mileage is illegally altered to make it appear as though it has been driven fewer miles than it actually has. This deceptive practice can significantly inflate the car’s value and mislead buyers about its true condition.

2. Failure to Disclose Salvage or Lemon History

Dealers are required by law to disclose if a vehicle has been previously declared a salvage or lemon. Failure to do so is a serious violation of consumer rights and can result in substantial financial loss for the buyer.

3. Yo-Yo Financing

Yo-yo financing occurs when a dealer allows a buyer to take possession of a vehicle before financing is fully approved. Later, the buyer is called back to the dealership and pressured into agreeing to less favorable terms or a higher interest rate.

4. False Advertising

False advertising includes misleading claims about a vehicle’s features, condition, or price. This can include bait-and-switch tactics, where a dealer advertises a car at a low price to attract customers but then claims the car is no longer available and tries to sell a more expensive one, or even, attempts to sell the same car at a higher price.

5. Undisclosed Frame Damage

Selling a vehicle with undisclosed frame damage is another form of auto fraud. Frame damage can compromise the safety and integrity of a vehicle, and failing to disclose this information is both unethical and illegal.

6. Failure to Register the Vehicle in the Consumer’s Name

When a dealer fails to register a vehicle in the consumer’s name, it can lead to legal and financial complications for the buyer. Registration is essential for establishing ownership, and without it, consumers may face issues with insurance, taxes, and legal liabilities. The California DMV requires that car dealer’s register a vehicle in the consumer’s name within a certain period of time. If this does not occur, the dealer is in violation of the law.

7. Failure to Transfer Title in the Consumer’s Name

A dealer’s failure to transfer the title of the vehicle to the consumer’s name can create significant problems. This may result in the buyer being unable to prove ownership, sell the vehicle, or even legally drive it. This fraudulent practice can also expose the buyer to previous owner’s liabilities. California requires that dealers and lenders transfer title to the owner within 15 business days of the vehicle being paid for in full.

8. Failure to Honor a Warranty Included with the Sale

Dealers are obligated to honor warranties that come with the sale of a vehicle. If a dealer refuses to perform repairs or services covered under the warranty, it can leave the consumer with unexpected expenses and a vehicle that does not perform as promised. This constitutes a breach of contract and can be a basis for a legal claim.

At Law Office of Paul Mankin, APC we have a deep understanding of California’s auto fraud laws and a proven track record of success in handling these complex cases. Our team will:

Investigate Your Claim

We thoroughly investigate the circumstances of your purchase, gathering evidence to support your case.

Negotiate with Dealers

Our skilled negotiators will engage with the dealer or manufacturer to seek a fair resolution.

Litigate if Necessary

If a fair settlement cannot be reached, we are prepared to take your case to court to fight for your rights.

Experience

Our attorneys have extensive experience in auto fraud cases and a deep understanding of the laws that protect consumers.

Dedication

We are committed to fighting for your rights and ensuring you receive the compensation you deserve.

Results

Our track record speaks for itself, with numerous successful outcomes for our clients.