You walk into a dealership believing you are making a responsible decision. You test drive the vehicle. You sit across from a salesperson who assures you everything looks good. You sign what feels like a mountain of paperwork. Then, days or weeks later, you realize something is very wrong. The vehicle has prior damage that was never disclosed, the financing terms are not what you agreed to, or the mileage appears suspicious. At this point, you’re most likely wondering if you can cancel your car purchase. Read this blog and reach out to the New Mexico car dealer fraud lawyers at Feferman, Warren & Mattison to learn more. Here are some of the questions you may have:

What Counts as Car Dealer Fraud in New Mexico?

Not every bad deal is fraud. However, certain deceptive practices absolutely are. Car dealerships are prohibited from engaging in unfair or deceptive trade practices. This includes situations where a dealer intentionally misrepresents key facts or fails to disclose material information that would have influenced your decision to buy the vehicle. Some common examples of car dealer fraud are as follows:

  • Failing to disclose prior accidents, flood damage, or salvage titles
  • Odometer tampering or misrepresenting a vehicle’s mileage
  • Advertising one price and then adding undisclosed fees at signing
  • Changing financing terms without your knowledge
  • Falsifying income or credit information on loan documents
  • Selling a vehicle that does not match what was advertised
  • Failing to pay off a trade-in

If a dealership knowingly provided false information, or concealed something important that directly impacted your decision, you may have legal grounds to challenge the transaction under New Mexico’s consumer protection laws, and a consumer lawyer from our firm can help.

Can I Actually Cancel the Contract?

Many people assume there is a universal three-day right to cancel a car purchase. In most dealership transactions, that simply is not true. Once you sign the contract, it is generally binding. However, fraud changes everything.

If you can demonstrate that the dealer made a material misrepresentation or omission, that you relied on that misrepresentation when purchasing the vehicle, and that you suffered financial harm as a result, you may be entitled to sue for fraud or violation of the New Mexico Unfair Practices Act.

Feferman, Warren & Mattison has extensive experience holding fraudulent car dealers responsible on behalf of our clients. If you believe you are a fraud victim, please don’t hesitate to contact our firm for a free initial consultation today.