Auto fraud is becoming more common as more buyers turn to used car dealers, with thousands of innocent consumers finding themselves ripped off at some point in the car buying process. Auto fraud has rapidly risen as the economy has struggled along; auto lawyers are in high demand helping buyers cancel contracts and get their money back. Unscrupulous car dealers commit fraud by preying on innocent buyers. Here are some things you can do to help avoid becoming a victim of auto fraud, and what you can do to help yourself if you fall prey to a dealer scam.
Check Contracts Thoroughly
When purchasing a vehicle, before you sign any paperwork at all, contracts especially, make sure you double check the sales price, finance rate, number of payments, and vehicle history. Rather than signing a contract on the spot, tell the dealer that you want to take a coffee break and read the contract alone, or take a copy of the contract home with you so you can go through it at your own pace. Ask for a copy of the CarFax or AutoCheck and take time to read the disclosers; pay attention to any language printed on the paperwork which indicates that the deal is “as is” or required signatures on a blank “statement of facts”.
Be Wary of “Yo-Yo” Financing
With yo-yo financing techniques, customers sign all of the necessary paperwork and are provided with what they believe to be a final loan contract. They go home in their new car, which they believe they now fully own. Not long after, the dealer calls and says that the financing was rejected for whatever reason and that the customer should come back and sign a new contract. This new contract requires a much larger down payment and also has a higher interest rate. If the customer refuses, the dealer may say that the trade in vehicle was sold, or they could threaten to repossess your new vehicle or report it as stolen. These bullying tactics are very common, so it is best to call an auto fraud lawyer immediately if the dealer calls you back to sign a new contract after recently buying a car.
Speak to an auto fraud attorney – Speaking to an auto attorney is critical when faced with auto fraud or to ensure that you aren’t the victim of a dealership scam. An auto dealer fraud attorney will assess your situation and advise you whether you have a valid claim or not.
It’s best to call an auto fraud lawyer today if you are worried that you may be the victim of auto fraud or if you have concerns regarding your purchase (price, contract, warranty, prior accidents, etc.). When you think you have been ripped off, talk to one of our auto attorneys; we will help you to deal with any problems that you are facing. Our Auto fraud lawyers handle these cases on a regular basis and we never ask for a fee to give you advice.