Suing a Car Dealership for Fraud: How to Protect Your Rights and Win Your Case

Some deals sound too good to be true—and sometimes, they are. Hidden fees, misleading contracts, and undisclosed vehicle issues can turn a simple car purchase into a costly mistake. 

Legal options exist if a seller misrepresents details, charges for services never agreed to or fails to disclose major defects.

Laws protect new car buyers from deceptive practices. Holding a business accountable takes preparation—clear documentation, knowledge of consumer protections, and, often, legal support.

This guide teaches you how to identify dishonest practices, what to do if you’ve been misled, and what legal actions may be available.

Reasons to Sue a Car Dealership

Not every bad deal is illegal. But some are. Legal action becomes an option when a seller crosses the line from a mistake to deception.

Misrepresentation of a Vehicle’s Condition

A buyer purchases a used vehicle advertised as accident-free. Later, a mechanic discovers frame damage. If a seller knowingly hid this detail or altered records, that’s a misrepresentation. Mileage tampering, falsified repair history, and undisclosed recalls also fall under this category.

Bait-and-Switch Tactics

You negotiate a deal for a specific model at a set price. When you arrive to sign, the offer is suddenly unavailable. The only options are a higher price or a different vehicle. If a business lures customers with false promises, it’s dishonest and may violate consumer protection laws.

Hidden Fees and Unauthorized Add-Ons

A final contract lists charges never discussed: extended warranties and service plans. If these extras were added without clear consent, that’s a potential breach of contract.

Selling a Lemon Without Disclosure

Some used cars are legally classified as lemons due to repeated mechanical failures. Sellers must disclose this status. Buyers may have grounds for legal action under lemon laws if they don’t.

Breach of Contract

If a business agrees to specific terms—like trade-in value, warranty coverage, or financing rate—and fails to honor them, that’s a breach. Any written agreement should be followed exactly as signed.

Laws exist to protect consumers from dishonest practices. If a seller misled you, the next step is to seek legal advice.

Can You Sue for Deception or Misrepresentation? Your Legal Consumer Rights 

If a seller misled you about financing, added hidden fees, or misrepresented a vehicle’s history, legal action from a reputable law firm may be an option.

When a Lawsuit Is Justified 

A lawsuit isn’t for every dispute. Cases that often hold up in court as consumer fraud include:

• Odometer Fraud: Rolling back mileage to increase value
• Undisclosed Damage: Selling a wrecked vehicle as clean
• Title Issues: Claiming a car has no liens when it does
• Hidden Fees: Charging for extras never agreed to
• False Advertising: Bait-and-switch tactics or misleading promotions by a salesperson

If a business knowingly deceived you, legal claims may be stronger than simple complaints.

Next Steps: Complaint or Lawsuit?

Before starting a case, start with a formal complaint to consumer protection agencies. The Better Business Bureau, the Federal Trade Commission, and the California Attorney General all handle disputes. If they can’t resolve it, an experienced attorney can help you review legal options.

Filing a Complaint Against a Car Dealership in California

A bad deal isn’t always illegal, but some business practices cross the line. If a seller misled you, refused repairs, or added hidden fees, filing a complaint can hold them accountable. Here’s how to do it.

Step 1: Gather Evidence

Strong complaints come with proof. Collect:

• The original sales contract and any financing documents
• Emails, texts, or voicemails about the sale
• A vehicle history report from Carfax or AutoCheck
• Inspection records, repair estimates, or export opinions
• Any written promises or warranties

Step 2: Contact the Car Dealer

Sometimes, a formal complaint in writing can resolve the issue. Be direct. Outline the problem, reference any misleading claims, and request a solution. Keep a copy for your records.

Step 3: File a Complaint with Consumer Protection Agencies

If the business won’t cooperate, take the next step. File complaints with:

• Better Business Bureau (BBB): Tracks unethical business practices and can mediate disputes.
• California Department of Motor Vehicles (DMV): Investigates cases involving false advertising or odometer tampering.
• Federal Trade Commission (FTC): Handles deceptive business practices on a national level.
• California Attorney General’s Office: Protects consumers and enforces state laws.

Each agency has an online complaint form. Be clear, include supporting documents, and keep a copy.

Step 4: Consider Arbitration or Small Claims Court

Some contracts require arbitration before legal action. Small claims court may be a faster option if your claim is under a certain amount. California’s small claims courts handle cases up to $10,000.

Step 5: Speak with a Lawyer

Legal action may be the next step if compliments don’t lead to a resolution. An attorney can review your case, help recover damages, or take the matter to court if necessary.

Filing a complaint can pressure businesses to fix mistakes. If they won’t, you have other options.

What Kind of Lawyer Do You Need to Sue a Dealership?

Not every attorney handles disputes against sellers. The right one depends on your case.

• Auto Fraud Attorney: Specializes in deceptive sales, misrepresentation, or odometer fraud. Ideal for cases involving hidden fees, undisclosed damage, or contract breaches.
• Consumer Protection Lawyer: This type of lawyer focuses on unfair business trade practices and violations of federal or state laws. It is useful when a business engages in deceptive advertising or refuses to honor agreements.
• Lemon Law Attorney: This is the right choice if a vehicle has repeated defects and qualifies under state lemon laws.

Understanding Attorney Fees

Many attorneys offer free consultations to assess a claim. Some work on a contingency basis, meaning they only get paid if they win. Others charge flat fees or hourly rates, depending on the case.

What to Do If You’ve Been Charged Fake or Hidden Fees 

Extra fees can add up fast. Some are legal, but others are deceptive. You have options if a seller slipped in charges you didn’t agree to.

First, review your contract. Compare the final numbers to what was promised. Look for vague charges or unexpected add-ons. Keep every document—sales agreements, financing terms, and emails.

Some cases qualify for legal action, especially if a scam, defective vehicle, or misrepresentation is involved.

The Law Office of Paul Mankin helps car buyers hold dealerships accountable. Contact us for a free consultation and learn how to get your money back. We work on a contingency basis, so you don’t pay unless we win or settle. See how auto dealer fraud laws protect you.