top of page

​

The car dealer you bought your car from may have cheated you without your knowing. There are many ways some dealers defraud their customers, such as:


Failing To Disclose A Car’s Accident History


If a dealer knows or should know that a car was in an accident that caused substantial damage, such as frame or suspension damage, the dealer has a duty to tell you. If the dealer fails to do so or lies to you about a car’s accident history, you may have a claim against the dealer. Similarly, if a dealer knows that a car was previously a rental car or a “lemon law” buyback, the dealer has to tell you. 


False Advertising


If a dealer advertises a car at a certain price, the dealer cannot sell you the car at a higher price – even if you did not see the ad. Such a practice is prohibited by California law.


Failing To Itemize Deferred Down Payments
 

Any deferred down payment must be properly itemized in the contract you sign when you buy your car. For example, if you agree to make a $2,000 down payment by giving the dealer $1,000 on the day you sign the contract and another $1,000 a week later, that is a deferred down payment, and the two payments must be listed separately in the contract. If they are not – for example, the dealer lists a single $2,000 down payment instead of two separate payments and their different due dates – the dealer is in violation of the law.


Failing To Provide Registration
 

When you buy a car, the dealer has 90 days to provide you with registration for the car. If that does not happen, sometimes because the dealer did not truly have the right to sell the car and a prior owner is still owed money, you may have a claim against the dealer for violating California law. 


Failure To Provide A Translated Contract
 

If you negotiate your car purchase primarily in Spanish, Chinese, Tagalog, Vietnamese or Korean, the dealer must give you a copy of the contract that is fully translated into the language you used and do so before you sign an English version of the contract. The failure to do so violates California law and you might be able to rescind the contract.


If you think a dealer cheated you, please contact the Gratch Law Group for a free consultation.

​

This overview does not constitute legal advice. It is intended solely for general information purposes and provides only a broad sense of possible legal issues. Any legal rights and remedies you may have will depend on your specific experience(s) and facts.

​

Dealer Fraud

bottom of page