Quick Look
If you suspect someone is fraudulently selling cars by misrepresenting facts such as age, mileage, or model year, you might want to report them to the Consumer Protection Agency.
To file a complaint against an auto dealer, you’ll need to provide information from the manufacturer’s warranty for each vehicle involved in the case. This includes any official paperwork from the DMV or Department of Motor Vehicles.
If a fraudulent auto dealer has victimised you, it could be not easy to seek justice without having these documents. To make matters worse, state laws vary significantly across the country.
In most states, consumers may sue individual dealerships that violate state law. However, if a business operates under multiple names or licenses, it may also be liable for violations committed under those names. So, you must check with consumer protection agencies in your area to ensure you have legal recourse.
The Federal Trade Commission (FTC) oversees deceptive advertising practices by businesses, including auto dealerships. Since the FTC has jurisdiction over nationwide companies, it offers more options when pursuing cases involving unfair or deceptive business practices.
You can request a refund directly from the company; however, if you choose this route, you may lose valuable evidence of wrongdoing.
Instead, the best option is to contact state authorities. For instance, the California Department of Justice enforces strict regulations governing the sale of vehicles.
California residents have the right to seek remedies for alleged false representations made by dealers regarding the condition or value of vehicles sold within the state.
As long as you follow proper procedure, you may be able to recoup damages for losses caused by a fraudulent transaction.
Car dealerships
Car dealerships are great for selling cars because almost everyone wants a new one once a year. So when you put them together, you create an environment where buyers and sellers congregate.
The problem is that most people hate buying a car because they feel like cattle. Even though it happens all the time, it’s still unpleasant.
It would help if you also dealt with the stress of driving across town to pick a new ride. Then there’s the added inconvenience of having to find parking. After that, there’s always a long wait while you sit in traffic, hoping your car doesn’t break down.
A dealer is essentially a mini-market. But instead of shopping for groceries, you shop for a vehicle.
But the best part is that car dealers are built on trust, which means you won’t deal directly with anyone unless you’ve already established a relationship.
There’s a lot of value here for both sides. For buyers, you can access thousands of vehicles without leaving home and only pay after choosing the one they want.
For dealers, investing in a highly automated system makes sense because they can make money even if nobody buys cars.
This is why companies like Dealership.com are so successful. You can visit them online and browse, select and reserve a car in seconds.
They’ll even come to you if you live close enough to one. A few years ago, we did this with our service when our customers bought their vehicles online. We would drive to their homes and park right next door.
At the same time, car dealerships tend to be very expensive. If you’re paying for parking, gas, insurance and taxes, you might as well buy a real estate property and leave those costs behind.
Before approaching any business for a service, make sure to know its rules and regulations. If you happen to find yourself in a situation where you feel cheated after having a deal with an automobile dealer, you can take steps to protect your interest legally.
In California, most dealerships are required to provide customers with a written list of their rights and responsibilities. This document usually includes how long you have to wait between making a payment and receiving your vehicle. Also, these documents include essential details such as the amount for which you can claim damages, whether or not you must pay the total amount you owe even though you are entitled to a trade-in allowance, and when you can initiate legal action against the dealership.
While it may seem like a hassle to check the terms and conditions of your contract, it is advisable to do so because dealerships often alter these documents without telling customers. For example, if you cannot access these agreements online, you could lose out on essential protections, including the right to change your mind within seven days following purchase. In addition, you also retain the option to cancel your contract within 48 hours of signing it.
As mentioned earlier, dealerships generally must give customers a list of their rights and obligations before selling them vehicles. However, there are exceptions to this rule. For instance, dealerships often ask buyers to sign blank forms containing vague clauses, which makes the terms challenging to decipher. Therefore, it is best to ask for a copy of the written agreement.
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