When considering buying a car, you research makes and models, compare prices, and maybe even negotiate confidently. However, just when you think the numbers are settled, a few extra changes seem to magically appear on the contract in front of you. In some cases, these unexpected fees can cause real financial strain on consumers. If you are staring at a contract that includes hidden fees that you don’t recognize or never agreed to, our firm is here to help. Contact a knowledgeable New Mexico car dealer fraud lawyer from Feferman, Warren & Mattison to learn more. Here are some of the questions you may have:
What Are Hidden Fees in Car Contracts?
Not every added charge is illegal, but some may be deceptive or improperly disclosed. Generally speaking, a hidden fee is any cost that was:
- Inflated beyond what was advertised on the internet
- Increased above what is on the car’s sticker price
- Misrepresented as mandatory when it was optional
- Not disclosed before you agreed to the purchase
Some of the most common examples of hidden fees are as follows:
- A cash price for the vehicle greater than the price on the internet
- Charges included on the sticker that were not advertised on the internet
- A cash price for the vehicle greater than the sticker price
- “Required fees” that are not really required, including additional profit or add-ons
- Surprise add-ons for service contracts, GAP, or other extra products
Are Hidden Fees in Car Contracts Illegal in New Mexico?
Hidden fees can be illegal when they involve deception, misrepresentation, or unfair trade practices. Businesses may not engage in misleading conduct that causes consumers to enter into transactions they otherwise might not have agreed to. This includes the following:
- Advertising a vehicle at a certain price and then refusing to honor it
- Misrepresenting fees as “mandatory”
- Rolling optional products into financing without consent
- Misstating the nature or purpose of the charge
Additionally, federal laws, such as the Truth in Lending Act, also require accurate disclosure of financing terms. If the true cost of credit is concealed through hidden charges, that may create additional legal violations.
What Should You Do if You Discover Hidden Fees After Signing?
If you believe hidden fees were included in your car contract, you should first review your purchase agreement and compare the advertised price to the final contract amount. You should also gather any emails, advertisements, or written representations relevant to the purchase. Then, finally, yet perhaps most importantly, you should retain the services of a knowledgeable New Mexico consumer lawyer who can assess the circumstances of your case and build a comprehensive strategy on your behalf.
At Feferman, Warren & Mattison, we have decades of experience representing victims of car dealer fraud in New Mexico, and we’re here to put that experience to work for you. Contact our firm for a free initial evaluation today.
