Types of Auto Fraud: Know the Signs Before It’s Too Late
The moment Jason drove his new “certified pre-owned” car off the lot, something didn’t feel right.
The brakes squealed. The steering felt loose.
A week later, his mechanic gave him the news: the car had been in a major accident. The title had been washed, the damage concealed, and Jason had unknowingly become a victim of one of the most common types of auto fraud.
And he’s not alone.
Auto dealer fraud affects thousands of consumers every year—hardworking people who trusted a dealership and got stuck with a lemon, fake paperwork, or hidden costs. At our firm, we help victims of car dealer scams fight back and get the justice they deserve.
What Is Auto Fraud?
Auto fraud happens when a dealership lies, misleads, or withholds information during the car buying process.
These deceptive tactics can lead to serious financial loss, safety risks, and emotional stress. That’s why it’s important to recognize the red flags—and know that you don’t have to face it alone.
The Most Common Types of Auto Fraud
1. Odometer Rollback Fraud
In this scam, the dealer or seller rolls back the odometer to make a car appear newer and less used than it really is.
Why it matters: You could pay thousands more than the car is worth, and face expensive repairs far sooner than expected.
Car fraud example: A vehicle shows 50,000 miles. In reality, it’s driven over 120,000 miles—undisclosed and undocumented.
2. Title Washing
This occurs when a dealer transfers a car title from one state to another to hide a salvage or branded status (like flood damage or being declared a total loss).
Why it matters: You think you’re buying a clean-titled vehicle, but you’re actually getting one with a dangerous or costly history.
3. Bait-and-Switch Tactics
A classic scam. The dealer advertises a car at a low price, but when you arrive, that vehicle is “suddenly sold”—and they push you toward a more expensive option.
Car fraud example: You’re promised a $15,000 sedan. The “deal” magically disappears, and you’re pressured into a $21,000 model with worse terms.
4. Spot Delivery or Yo-Yo Financing
Dealers let you take the car home before financing is approved—only to call you back days later demanding a higher rate or larger down payment.
Why it matters: You think the deal is done. But the dealer uses this tactic to trap you into worse terms after you’ve already emotionally committed.
5. Non-Disclosure of Damage or History
Dealers are required to disclose prior accidents or frame damage. Some don’t. Others actively cover it up.
Car fraud example: The dealer says the car has a “clean history,” but a third-party report or mechanic reveals major collision damage.
6. Packing Payments with Hidden Add-Ons
Some dealerships sneak in extra charges—like extended warranties, window etching, or service packages—without clearly disclosing them or getting proper authorization.
Why it matters: You end up paying more than agreed, often without even knowing what you’re paying for.
How Do I Know If I’m a Victim of Auto Fraud?
If you’ve experienced any of the following, you may be a victim of car dealer scams:
- Unexpected fees or add-ons you didn’t agree to
- A car that broke down soon after purchase
- Financing terms that changed after you drove off
- Title or history reports that don’t match what you were told
- Suspicious odometer readings or missing service records
You are not alone—and you do have legal rights.
What Should I Do If I Suspect Auto Fraud?
The first step is to speak with a legal team that understands the many types of auto fraud and knows how to prove them.
We’ve handled hundreds of cases where buyers were taken advantage of—and we know how to gather the evidence, confront the dealer, and fight for the outcome you deserve.
💡 Did You Know?
In California, car buyers are protected by the Consumer Legal Remedies Act (CLRA) and Unfair Competition Law (UCL). If a dealership lies, withholds important information, or adds unauthorized fees, you may have the right to cancel the deal, recover compensation, and hold the dealer accountable.
Why Clients Choose Us
Here’s what makes our law firm different:
✅ We’ve helped clients recover compensation, cancel fraudulent contracts, and even get full refunds
✅ We act quickly—because time is critical in fraud cases
✅ We know the tactics dealers use—and how to stop them
✅ We treat every client with respect, transparency, and care
Real Client Story
Maria bought a used SUV from a major dealership in town. She was told it had a clean title and had only one previous owner.
A month later, she took the car to get serviced—only to find out it had a salvage title and had been in two accidents.
We took action right away, got her full purchase price refunded, and held the dealership accountable.
Don’t Let a Car Dealer Scam You
If something feels off about your car purchase, trust your gut.
You may have been misled, overcharged, or sold a vehicle under false pretenses—and you deserve to be made whole.
Let us evaluate your situation with zero pressure. We’ll tell you if you have a case—and what your best next steps are.
Call Now to Schedule a Case Review
You don’t have to take on the dealership alone.
Contact us today to schedule your free, no-obligation consultation with our legal team. We’re ready to help you fight back against fraud.
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