Auto Dealer Fraud

Auto dealer fraud occurs in a variety of ways. Some common auto dealer fraud includes: spot delivery scams (“the financing fell through” excuse), incorrect credit scoring and/or financing eligibility scams, and a failure to disclose.

Spot Delivery Scams (“Yo-Yo” Car Sales)

Spot delivery scam occurs when the consumer finances the vehicle with the dealership under a low interest rate promotion. Shortly after the consumer takes possession of the vehicle, the dealer then contacts the consumer and informs them that the financing for the low interest rate promotion fell through or that the financing paperwork that was signed was incorrect. The dealer would then request that the consumer come back to the dealership to re-sign paperwork under different terms. If this occurred to you, then please contact our office for more information. Although the Texas Lemon law does not specifically include spot delivery scams as a viable cause of action, other laws such as the Texas Deceptive Trade Practices Act may assist a consumer who has been a victim of spot delivery scams. Spot delivery sales may be actionably, depending on a variety of factors. Those factors include oral and written representations made by the dealer and the documents that were signed at the time of purchase.

Incorrect Credit Scoring and/or Financing Eligibility Scams

Incorrect credit scoring and/or financing eligibility scams occur often, but are very difficult to prove. It occurs after the consumer has finalized price negotiations with the car salesperson at the dealership and is thereafter told by a loan officer of the dealership that their credit scores places them outside the eligibility for financing, or financing at a promotional rate. Before purchasing a new vehicle, be prepared and print out a copy of your credit scores. If the dealership makes representations on your credit score and you believe that the representation is inaccurate, then please contact my office for a free case review.

Failure to Disclose a New Vehicle’s Damage History

Undisclosed auto damages are normally discovered after the consumer has purchased and took possession of a new vehicle. A seller can mislead a buyer in a variety of ways. The car dealership may say that the car has never been wrecked, has never been repaired, has never been auctioned, or has never been subject to a flood. Even if a car is sold as new, it does not necessarily mean that it is defect or problem free from the time the car was manufactured to the time that it is placed for display at a car dealership.

In addition, a dealer may fail to disclose the “lemon” nature of a vehicle. Under the Texas lemon law, car dealerships are required to make proper disclosures if a vehicle has been returned as a “lemon.” If this has happened to you, then please contact my office.

About Our Texas Lemon Law and Auto Dealer Fraud Office

In addition to handling Texas Lemon Law related cases, the Law Offices of Kevin Le, PLLC also handles auto dealer fraud cases. Under the Texas Deceptive Trade Practices act, if the consumer can prove knowing or intentional misconduct, the consumer may be entitled to treble damages. Please call us toll free at 1-888-333-3813 or contact us online for a free case review.