How to Avoid Auto Fraud When Buying a Used Car
Don’t Let This Happen to You:
Mark thought he had found the perfect deal. The used car looked great, had low mileage, and the dealership promised it had “never been in an accident.”
But just three weeks later, the car broke down on the freeway. A mechanic revealed the vehicle had serious frame damage from a previous collision—something that was never disclosed.
Mark learned the hard way that avoiding auto fraud takes more than just trust.
If you’re shopping for a used car, it’s critical to understand how auto fraud works—and how to protect yourself from becoming the next victim.
At Auto Law Firm, we help people just like you hold dishonest dealers accountable and recover what they’ve lost. We created this page to give you clear, easy-to-understand answers and offer real help when you need it most.
What Is Auto Fraud—and Why Should You Care?
Auto fraud happens when a car dealer misrepresents or hides important facts about a vehicle to make a sale.
That includes things like:
- Selling cars with rolled-back odometers
- Failing to disclose accident damage
- Hiding prior flood damage
- Charging more than the advertised price
- Selling vehicles with a salvage title as if they were clean
If this sounds shocking—it’s because it is.
But it’s also more common than most people think.
Used Car Buying Tips to Avoid Auto Fraud
The best way to avoid auto fraud is to know what warning signs to look for before and after you buy.
Let’s look at a few dealership fraud prevention strategies that can save you from big losses:
1. Be Wary of Deals That Seem “Too Good”
If the price looks too good to be true, it probably is. Dealers may use low prices to lure you in, only to upsell or hide problems later.
2. Always Get a Vehicle History Report
A CARFAX or AutoCheck report can reveal a lot: prior accidents, title status, mileage discrepancies, and more.
3. Review the Sales Contract in Detail
Watch for:
- Extra charges that weren’t discussed
- Add-ons you didn’t ask for
- Financing terms that differ from what was promised
Many fraud cases we handle start with contracts the buyer was rushed into signing.
4. Ask the Right Questions
- Was the car ever in an accident?
- Has the title ever been branded as salvage or flood?
- Is the mileage accurate?
If the answers sound vague or change over time, that’s a red flag.
5. Bring a Mechanic Before You Buy
A pre-purchase inspection by a trusted mechanic can reveal serious issues even the cleanest car lot might “overlook.”
What to Do If You Suspect Dealership Fraud
Even with the best used car buying tips, things can still go wrong.
If you believe you were misled or lied to during your car purchase, you have options.
At Auto Law Firm, we help clients:
- Cancel fraudulent sales
- Get their money back
- Recover compensation for repair costs and losses
- Hold dishonest dealerships accountable
⚖️ California Law: Your Rights as a Used Car Buyer
California has some of the strongest consumer protection laws in the country when it comes to auto fraud.
Under the California Vehicle Code, Business and Professions Code, and the Consumer Legal Remedies Act (CLRA), dealerships are legally required to:
- Disclose prior accident damage, salvage titles, and odometer accuracy
- Accurately advertise vehicle pricing
- Avoid deceptive or unfair business practices
- Provide buyers with proper documentation and disclosures at the time of sale
🚫 If a dealer fails to disclose material information, adds hidden fees, or lies about a vehicle’s condition, it may be considered fraud, misrepresentation, or a violation of California’s Unfair Competition Law (UCL).
💥 And yes—you can take legal action even after you’ve signed the contract if the dealer broke these laws.
Why Dealerships Get Away With It—Until They Don’t
Unscrupulous dealers rely on the fact that most buyers:
- Don’t know their rights
- Don’t know how to fight back
- Don’t want to deal with the hassle
That’s where we come in.
We’ve helped many clients like you recover thousands—and in some cases, tens of thousands—of dollars.
You don’t need to navigate this alone.
Real Example: Fraud Hidden Beneath the Hood
A client bought what he believed was a “certified” used SUV.
When his wife noticed a weird noise in the engine, a mechanic discovered the engine had been swapped with a lower-grade version.
The dealership denied it—but our investigation told a different story.
We recovered the full cost of the vehicle and additional damages.
That’s what dealership fraud prevention looks like in action—after the fact.
Why Clients Trust Us to Handle Auto Fraud
✔ We know the tricks dealers use
✔ We build strong legal cases—fast
✔ We pursue refunds and financial recovery
✔ We don’t get paid unless you do*
Whether it’s odometer rollback, hidden damage, or a bait-and-switch tactic, we’re here to help.
Schedule Your Free Auto Fraud Review
Think you’ve been misled in your used car purchase?
We offer a free case review to help you understand your rights. If there’s a case, we’ll fight to make it right.
👉 Call us today or fill out our quick form to get started.
Frequently Asked Questions
Can I sue a car dealership for selling me a damaged vehicle?
Yes. If the dealership failed to disclose damage or misrepresented the condition, you may have a legal case for fraud or misrepresentation.
What if I signed the paperwork? Isn’t it too late?
Not always. Many fraud claims are based on what was not disclosed or misrepresented, regardless of what’s in the contract.
How much does it cost to hire your firm?
We typically handle these cases on a contingency basis—meaning no fees unless we recover money for you.*