Auto Sales Fraud
Car dealerships engage in various conduct that triggers the protection of consumer fraud statutes as well as common law principles. Examples of unscrupulous dealership conduct by their salesman: selling a "lemon" to a consumer (a car that was previously damaged, wrecked, or otherwise defective and one that should not be on the road); Financing fraud where a dealership engages in strong arm or high pressure sales tactics to "close a deal" sometimes completely unaffordable to the consumer; Baiting a consumer and switching the terms of the contracts to which they never agreed; "Spot delivering" or doing a "yo-yo sale" of a vehicle, where a dealership relinquishes the vehicle to the consumer and then calls him or her back to return the vehicle because they allegedly have to agree to a higher rate to obtain financing for the car; Failing to disclose certain terms of a loan contract that are required by Federal and State Law; Threatening or otherwise harassing a consumer to induce him or her to enter into a contract; Taking advantage of the elderly in a car sales contract; Using a fraudulent contest or sweepstakes scheme to induce the consumer to come to the dealership and to enter a contract to which they never agreed; and other such illicit practices to improperly induce a consumer into purchasing a vehicle.
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