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Auto Fraud Lawyer California: What Is Auto Dealer Fraud?

By Michael A. Klitzke, Auto Fraud & Lemon Law Attorney, Auto Law Firm, PC | Reviewed & updated June 2026

 

It all started with a handshake and a promise…

The following is an illustrative example and does not describe an actual client or case.

Mark had just landed his dream job and needed a reliable car. He walked into a local dealership and found what seemed like the perfect used SUV: clean, low mileage, and, according to the salesperson, never in an accident. Three weeks later, a mechanic delivered crushing news. The SUV had structural damage from a prior accident, and the dealership had quietly added an overpriced warranty to his loan without telling him.

Mark had become a victim of auto dealer fraud. 

 

What Is Auto Dealer Fraud?

Auto dealer fraud occurs when a dealership uses deceptive or illegal tactics to sell a vehicle. The core definition is false or misleading statements about a vehicle’s condition, history, or price which are illegal under the Consumer Legal Remedies Act (Civil Code section 1770), the Unfair Competition Law (Business and Professions Code section 17200), or Vehicle Code section 11713.

Common Types of Auto Dealer Fraud
The most common forms include odometer rollbacks, concealing accident history, unauthorized add-ons, interest rate manipulation, bait-and-switch advertising, and title washing.

For a full breakdown of each type with the specific law that applies, see our page on common types of auto fraud.

If any of these sound familiar, you may be a victim of auto dealer fraud, and you do not have to face it alone.

 

Why It Matters

 

Auto dealer fraud doesn’t just hurt your wallet — it can put your safety at risk and your credit in jeopardy. That “great deal” might come with hidden repair costs, unfair loan terms, and sleepless nights.

But here’s the good news: the law protects consumers from car dealership fraud — and so do we. These laws are designed to protect consumers and customers from losing thousands of dollars to fraudulent dealerships.

 

💡 Did You Know?

 

In California, car buyers are protected under the Consumer Legal Remedies Act (Civil Code section 1770), the Unfair Competition Law (Business and Professions Code section 17200), and Vehicle Code section 11713. If a dealership lies about a vehicle’s condition, adds charges without your consent, or hides material facts, you may have the right to cancel the deal, recover damages, and seek attorney’s fees. The CLRA can also shift attorney’s fees to the dealer when you win.

 

How We Help Victims of Auto Dealer Fraud

At our firm, we’ve seen it all — and we know how to fight back.

We act on behalf of clients who are involved in disputes with car dealers or vehicle manufacturers.

We take a hands-on, client-first approach to investigate dealership scams, hold dishonest businesses accountable, and help our clients recover what they’ve lost. We will explain the details of your case, determine if your vehicle is covered under warranty or lemon law, and provide every necessary detail to ensure you understand the process.

We’ll review your documents, pull history reports, interview witnesses if needed, and take legal action when necessary. If required, we can sue dealerships or vehicle manufacturers to recover damages.

You don’t have to feel powerless.

 

Representative Examples

 

The following is an illustrative example and does not describe an actual client or case.

In one matter, a buyer purchased what was advertised as a new car. Weeks later the client discovered the car had been in a prior acident which the dealer concealed. We pursued the claim and made the dealer buyback the car plus punitive damages. Results depend on the specific facts of each case, and past results do not guarantee a future outcome. 

 

Warning Signs You’re Being Scammed

Wondering if you’ve been targeted?

Here are some red flags to watch for:

  • A pushy salesperson who avoids your questions
  • Missing paperwork or blank sections in your contract
  • Promises that aren’t written down
  • High-pressure tactics to “sign now”
  • Unexpected fees or charges

If you suspect any of these warning signs, speak with an attorney to discuss your concerns and get personalized advice. If your gut says something isn’t right, trust it. Then call us.

 

Why Choose Us?

  • Focused experience in California auto fraud and lemon law
  • A personalized approach for each case
  • Clear communication throughout
  • No upfront fees in most cases, and the CLRA can require the dealer to pay your attorney’s fees when you win


Call us at 619-488-1309 or contact us online for a free case review. You can also learn more about our auto dealer fraud practice

 

What Happens If You Don’t Take Action?

Dealerships that commit fraud rarely stop with just one person. If you don’t take a stand, they’ll do it again.

Worse, you could be stuck with a car that’s unsafe, unaffordable, or impossible to resell — all because someone lied.

You deserve better.

 

Frequently Asked Questions About Auto Dealer Fraud

Q: What is the legal definition of auto dealer fraud in California?
A: There is no single code section that defines ‘auto dealer fraud’ as a single offense. It is a category of claims that are typically filed against car dealerships involving one or more of the following statutes: Vehicle Code section 11713 (false statements), the CLRA (Civil Code section 1770), the UCL (Business and Professions Code section 17200), and in some cases federal law (for odometer fraud or Truth in Lending violations).

Q: How is auto dealer fraud different from lemon law?
A: Lemon law (Song-Beverly Act) covers defective vehicles that cannot be fixed after a reasonable number of warranty repairs. Auto fraud involves deception or concealment at the point of sale, such as hiding accident history or lying about certification. Some cases involve both.

Q: How do I know if what happened to me was fraud?
A: A free consultation is the most direct way to find out. Generally, if a dealer made false statements about the vehicle or concealed material facts that would have affected your decision to buy, that is the foundation of a fraud claim.

Q: What is the deadline to file an auto fraud claim in California?
A: It depends on the claim. CLRA: 3 years. UCL: 4 years. Vehicle Code claims: typically 3 years. Odometer fraud under federal law: 2 years. Time runs from when you discovered or should have discovered the problem.

 

Ready to Fight Back?

We offer a free legal consultation to review your case. If we think you’ve been the victim of auto dealer fraud, we’ll take swift legal action to make it right.

Don’t wait. The sooner we act, the stronger your case.

 

Call Now or Contact Us Online

Let’s put a stop to the lies. Let’s make them pay for what they did. And let’s help you move forward with peace of mind.

 

About the Author: Michael A. Klitzke
Michael Klitzke is the founder of Auto Law Firm, PC, handling auto fraud, lemon law, and personal injury cases throughout California’s state and federal courts. He graduated summa cum laude (2 of 201) from Thomas Jefferson School of Law, where he served as a Law Review Editor and a national mock-trial competitor, and earned his B.A. in Political Science from San Diego State University. He argued the landmark consumer case Pulliam v. HNL Automotive, Inc., 13 Cal.5th 127 (2022) before the California Supreme Court, and has been recognized by Super Lawyers (Rising Star), Best of the Bar for one of the top 100 California verdicts of 2022, and Marquis Who’s Who in North America (2025). 

What is auto dealer fraud?