Purchasing a vehicle is a significant financial investment, and because of this, most people understandably assume that the dealership they are working with is being honest about the vehicle they are selling and the terms associated with the transaction. Unfortunately, this is not always the case. In fact, car dealer fraud is more common than many people realize, and if you recently purchased a vehicle only to discover that the car dealer misrepresented important facts, engaged in deceptive practices, or otherwise committed fraud, you are most likely wondering whether there is anything you can do to get your money back. Fortunately, if you’re reading this, you have options, and you’re in the right place. Read on and reach out to Feferman, Warren & Mattison to learn more. Here are some of the questions you may have:

What Types of Dealer Misconduct May Qualify as Fraud?

The first thing you should understand is that not every dispute with a dealership will rise to the level of fraud. However, when a dealer intentionally provides false information, conceals important facts, or otherwise misleads a consumer into purchasing a vehicle, there is a chance that fraud has occurred. Some of the most common examples of car dealer fraud include the following:

  • Misrepresenting a vehicle’s accident history
  • Failing to disclose major mechanical defects
  • Altering an odometer reading
  • Concealing a salvage or rebuilt title
  • Falsifying financing information
  • Adding unauthorized fees, products, or services to a contract
  • Advertising a vehicle with features it does not actually have
  • Misrepresenting the overall condition of a vehicle
  • Failing to title and register a vehicle
  • Failing to pay off a trade in

Some Common Warning Signs of Dealer Fraud

Generally speaking, there are several red flags that may indicate a dealership engaged in deceptive conduct, including the following:

  • Consumers learn after a purchase that a vehicle has serious problems, such as undisclosed wreck damage or title problems
  • Contract terms that do not match verbal promises
  • Missing or incomplete paperwork
  • Pressure to sign documents quickly
  • Inaccurate information contained within financing documents
  • Vehicle history reports that contradict the dealer’s statements

If any of these circumstances sound familiar, it may be worth having the transaction reviewed by an attorney.

Can I Recover the Money I Paid to the Dealer?

In many cases, the answer to this question is yes, though the outcome will depend on the specific facts involved.

Simply put, if a dealer committed fraud and that fraud caused you to enter into a transaction that you otherwise would not have entered into, you may have grounds to pursue legal action. Depending on the circumstances, a court may award various forms of relief. Some potential remedies are as follows:

  • Damages for the reduction in the value of the vehicle
  • Rescission of the transaction
  • Return of the purchase price, down payment, and monthly payments
  • Reimbursement for certain expenses
  • Compensation for financial losses
  • Statutory damages
  • Punitive damages
  • Attorney’s fees and costs

What Evidence Can Help Support a Claim?

As with most legal matters, documentation is extremely important. Some of the most helpful forms of evidence are as follows:

  • Purchase agreements
  • Financing contracts
  • Advertisements and online listings
  • Vehicle history reports
  • Emails and text messages
  • Repair records
  • Photographs
  • Witness statements

What Should I Do If I Suspect Car Dealer Fraud?

If you believe that a dealership deceived you during the vehicle purchasing process, it is important to act promptly. Some of the most important steps you can take include the following:

  • Gather all paperwork associated with the transaction
  • Save all communications with the dealership
  • Create a timeline of events while the details are still fresh in your mind
  • Avoid signing additional documents without fully understanding them
  • Speak with an experienced New Mexico consumer lawyer as soon as possible

At the end of the day, purchasing a vehicle should not result in unexpected financial hardship because a dealership chose to engage in deceptive conduct. However, if you find yourself in this situation, we are here to help. Contact Feferman, Warren & Mattison for an initial consultation today so we can discuss your circumstances.