Auto Dealer Bait and Switch

It can be hard to pass up seeing a car sales ad offering a great price on a new car. But when you get there, the dealership tells you the vehicle has already been sold. The salesperson then uses high-pressure sales tactics to get you to pay more money for a similar vehicle.

This bait-and-switch type of sales fraud happens all the time in vehicle sales. Deceptive business practices can violate state and federal consumer protection laws. If a dealership tricked you into paying more for a vehicle, talk to a vehicle fraud lawyer about your legal options.

What Is an Auto Dealer Bait-and-Switch Scam?

Bait-and-switch is a type of automobile dealership fraud. It involves baiting you to the dealership with an advertised price that’s too good to be true. When you find out the advertised car isn’t available, the salesperson pressures you into another vehicle at a higher price.

Bait-and-switch is a deceptive business practice. The sale, promotion or advertised price was never actually available. Instead, the dealership profits by selling an inferior product for the same price or a similar product at a higher price.

An illegal bait-and-switch generally requires a falsely advertised price or unavailable product. It’s not necessarily illegal if a dealership advertises a low price on only one vehicle and sells that vehicle.

What Are the Signs of a Bait-and-Switch Scam?

The first possible sign of a bait-and-switch involves a new or used car ad at a price too good to be true. An advertised vehicle at a much lower price than any other dealership in the area is potentially a bait-and-switch. If you end up at the motor vehicle dealership, look for signs that the salesperson could be trying to scam you. The salesperson may:

• Start the car buying process too early
• Refuse to show you the advertised vehicle
• Not want you to read the fine print
• Make excuses for why the vehicle isn’t available
• Get the price requires buying extended warranty or service contracts
• Say your credit doesn’t qualify for the offering price

You can always walk away before signing anything if you get a bad feeling. The new vehicle might sell to someone else, but you can avoid losing thousands of dollars in a bait-and-switch.

How Can I Protect Myself From Bait-and-Switch Tactics?

Read the fine print if you see a low advertised price for a new car. Look for information about the quantity, financing requirements, and other add-ons.

When you get to the dealership, don’t let the dealer show you another vehicle until you can see the offered vehicle. If it’s at another location or was just sold, the vehicle may never have been available in the first place.

Ask for details about the rules and exceptions for getting the sale price. Make sure you understand the total out-the-door price after all additional fees. Get the offer in writing before you agree to the deal.

If the dealership took advantage of you with a bait-and-switch scheme, talk to a dealer fraud lawyer for legal advice. It may not be too late to get your money back and hold the dealer accountable.

Can You Sue the Car Dealership for Bait-and-Switch?

Bait-and-switch scams are against federal false advertising laws. Some states also have laws that prohibit bait-and-switch tactics. In other states, bait-and-switch scams fall under common law fraud. You can take legal action against a car dealership for fraud. Damages in an auto dealer fraud lawsuit can include:

• Actual damages
• A return of your trade-in vehicle
• Punitive damages
• Attorneys’ fees

The Federal Trade Commission (FTC) issued new truth and transparency rules to reduce deceptive auto dealer practices. The Combating Auto Retail Scams (CARS) rule targets common types of auto dealer fraud, including:

• Bait-and-switch tactics
• Hidden charges
• Deceptive advertising
• Misleading promotion claims

When the CARS Rule goes into effect, it will require dealerships to disclose all costs and terms clearly. It will also require buyer consent for any additional charges. The National Auto Dealers Association (NADA) opposes the new consumer protection rules.

Can an Auto Fraud Lawyer Help After a Bait-and-Switch Scam?

Dealerships know that the bait-and-switch scam is illegal, false advertising. They often get away with it because car buyers don’t report it. A dealer fraud lawyer can help you hold the fraudulent dealer accountable for their actions. Your lawyer can help you recover compensation to get your money back. Contact a dealership fraud lawyer to understand your legal options after a bait-and-switch scam.