Top Ferndale, MI Auto Dealer Fraud Lawyers Near You

What Is Auto Dealer Fraud?

Auto dealer fraud describes a specific type of fraud that pertains to the deceitful and unlawful sales practices of automotive dealers. This fraudulent practice focuses on the tactics used by the auto dealer at the time of the sale. This occurs when a dealer intentionally makes a misrepresentation of material fact, even though the dealer knows it is false, and you rely on their word. In other words, this fraud occurs when you purchase a vehicle based on the misleading information the auto dealer provided to you. It is considered a deceptive trade practice for which you may recover damages for in a civil suit, but it may also be a crime

What Are Common Types of Auto Dealer Fraud?

Auto dealer fraud can present itself in a number of ways. One common method is the “bait-and-switch,” where an advertisement shows one thing but the dealer switches it out or claims the model shown is no longer in stock, then tries to sell you a more expensive model or the same vehicle at a higher price. Another example is an auto dealer inflating the prices of vehicles then claiming it is a great price or on sale. Other times, the auto dealer may “forget” to disclose important information like defects or other dangerous conditions in order to make the sale, such as flood damage or a car deemed as salvaged. Auto dealers may “roll back” the odometer to hide the actual mileage on a vehicle. Or they may claim a vehicle is “new,” when in fact, it was previously purchased and returned back to the dealership. Undervaluing trade-in vehicles is another type of auto dealer fraud.

Is Lemon Law Different From Auto Dealer Fraud?

Lemon law differs from auto dealer fraud in that its focus is on the actual defects or issues with the vehicle itself instead of the sales practices. This area of law is meant to protect car buyers from defective vehicles or mechanical problems. Each state has its own lemon laws and protocol for handling lemon law claims. In most states if you are sold a “lemon,” the auto dealer has to fix the problems but you may be entitled to receive a refund for more serious mechanical problems. If no resolution can be reached or the auto dealer is not following the lemon laws in your state, you may wish to file a lawsuit to recover for the damages you have suffered.

Who Do You Report Auto Dealer Fraud To?

You may contact the dealership directly if you feel comfortable doing so, or you may have your attorney contact them. Either way, getting your complaint in writing is important to clearly document the issue, show the damages you have incurred, and be prepared to move forward with a lawsuit if the dealership is uncooperative. From there, state laws may require you to contact a specific state agency or the Attorney General to file a complaint, as auto dealer fraud is a consumer rights’ issue. Some states have a specific agency, department, or division that strictly handles complaints regarding auto dealers and fraudulent practices. If you still are unable to remedy the issue on your own or with the help of an agency, contacting an attorney is the next best step.

Are There Any Auto Dealer Fraud Lawyers Near Me In Ferndale, MI?

Don’t get taken advantage of without consulting with an attorney on how you can protect yourself and your rights under the law. An experienced auto dealer fraud attorney will understand what steps to take and when to pursue litigation. If you end up fighting in court, an attorney will advocate for you every step of the way and work toward the best possible outcome. The LawInfo directory can help you find verified auto dealer fraud lawyers in Ferndale.