When you buy a car, whether new or used, you’re making a significant financial commitment. You expect honesty, transparency, and a vehicle that matches the dealer’s promises. Unfortunately, not all dealerships play by the rules. Some intentionally deceive buyers to make a sale, leaving you with a car that isn’t what you were told it would be. If that has happened to you, our seasoned car dealer fraud lawyers stand ready to fight for the full and fair compensation to which you are entitled. Contact the dedicated New Mexico consumer lawyers here at Feferman, Warren & Mattison for a free consultation today.
Car dealer fraud occurs when an auto dealership uses deceptive, dishonest, or unfair practices to get a consumer to buy or lease a vehicle. This kind of fraud can take many different forms, and in most cases, it is deliberate. The goal is to mislead the buyer into closing the deal, regardless of the truth.
Here at Feferman, Warren & Mattison, we proudly sue car dealers for defrauding consumers. If you’re facing any of the following issues, our legal team is here to help.
Auto Dealer Undisclosed Damage
A dealer must disclose if a vehicle has been in an accident or sustained serious damage. If you later learn your car was previously wrecked, flooded, or rebuilt, especially after being told it had a “clean history,” you may have a strong legal claim for fraud or misrepresentation.
Some dealers falsify income, employment, or other financial details on your loan application without your knowledge, often to push through financing you never actually qualified for. This can leave you stuck with unaffordable payments or unexpected loan terms you didn’t agree to.
Rolling back a car’s odometer to make it appear newer than it is is illegal. If your vehicle has fewer miles on the dash than it actually has on the road, the dealership may have violated both federal and state law.
Many buyers searching for a lawyer to help with a lemon law matter are actually dealing with undisclosed prior damage or mechanical failures. If your situation involves dealer fraud, we can help.
Issues With Titles or Plates
When a dealer sells you a car, they’re legally required to provide a valid, clean title. If the title is branded (salvage, rebuilt, flood, or otherwise impaired) and they failed to tell you, that’s a violation of your rights. Similarly, if the dealer fails to transfer title or give you license plates, you may have a strong case.
Dealer Failing to Pay off Trade-In
If you traded in a car with an outstanding loan, the dealer promised to pay it off. But when they don’t follow through, you’re left with two car payments and a massive headache. This is not only unfair, but potentially actionable under consumer protection laws.
Pricing Used Cars As if They Were New
Passing off a used vehicle as new, or failing to clearly disclose that it’s pre-owned, can be a deceptive sales tactic. This kind of misrepresentation can also apply to demo vehicles, loaners, or cars with significant mileage already on the odometer.
Spot Delivery Scams
This scam happens when the dealer lets you drive off the lot before financing is final, then later claims the loan “fell through” and pressures you into a worse deal. Often called a “yo-yo” sale, this practice is not only shady; it can be illegal.
Dealers Refusing to Return Trade Ins & Down Payments When a Car Deal Falls Through
If the financing doesn’t go through and the sale is canceled, the dealer must return your trade-in vehicle and down payment. Refusing to do so can be a violation of your consumer rights, and we may be able to help you recover what you’re owed.
New Mexico law offers significant protections to car buyers. The New Mexico Unfair Practices Act (UPA) is the primary law that protects consumers from deceptive trade practices. Under the UPA, a car dealer cannot knowingly make false or misleading statements to get you to purchase a vehicle. This includes misrepresentations about the vehicle’s condition, history, price, financing terms, or warranty.
For example, if a dealer tells you the car has never been in an accident, but it turns out to have a history of collision damage, that’s a violation of the UPA. The same applies if the dealer fails to disclose that the car was previously salvaged, flooded, or branded a lemon. Misleading odometer readings, false statements about warranty coverage, or hidden fees in the contract also fall under the UPA.
New Mexico law also requires proper title disclosure. A dealer must transfer a clean and accurate title when selling a car. If the title is “branded”–for instance, if it says salvage, rebuilt, or flood–this must be disclosed to the buyer before the sale is complete. Selling a car without the proper title or failing to disclose title issues is a violation of both state and federal law.
Federal laws, such as the Truth in Lending Act (TILA) and the Federal Odometer Act, provide additional protections. These require full disclosure of financing terms and prohibit odometer tampering. If a dealer violates these laws, they can be held liable in court.
Dealers often target vulnerable buyers, including those with limited English proficiency or low income. This could constitute fraud or a UPA violation. Similarly, “yo-yo financing” scams, where the buyer is told the loan didn’t go through and they must accept worse terms, often target low-income buyers and are illegal under certain circumstances.
Buyers also have post-sale protections. If you discover that the dealer misrepresented the car after purchase, you may still have legal recourse, even if you signed an “as-is” agreement. That’s because dealers cannot use a disclaimer to shield themselves from liability for fraud.
If you believe you’ve been the victim of car dealer fraud, the first thing to do is gather documentation. Keep all paperwork you received from the dealer, including the sales contract, warranty documents, financing agreements, and any advertisements or written representations. If you communicated by text or email, save those as well. Take notes about your interactions with the dealership while the events are still fresh in your mind.
Once you’ve gathered this information, it may be time to speak with an experienced consumer protection attorney. We can evaluate whether the dealer broke the law and advise you on how to proceed. We can help arrange an inspection of the vehicle. In many cases, you may be entitled to recover damages, or even obtain triple damages under the UPA if the fraud was willful. A lawyer can file a lawsuit on your behalf for the following:
In many successful cases, the court may also order the dealer to pay your attorney’s fees.
Don’t wait too long, as there are time limits for filing legal claims, and evidence becomes harder to obtain as time passes. Even if you’re unsure whether your situation qualifies as fraud, it’s worth speaking to a lawyer who can help you sort it out.
At Feferman, Warren & Mattison, we’ve helped many consumers take on dishonest car dealers. We know the laws. We know the tactics. And we know how to fight back. If you suspect you’ve been defrauded, contact our car dealer fraud lawyers today to discuss your case.
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