Auto Dealer Fraud

Auto Dealer Fraud

Even when you are purchasing a car from a dealer, you could still fall victim to dealer fraud. In some cases, this is to allow the dealer to make more money from the sale of a vehicle while in other cases, it is to allow the dealer to make a commission on upselling additional insurance or other products. Regardless of the reasons behind the fraud, you deserve protection and we are here to help you protect your rights.

Spot Delivery Scams

Banks typically do not approve auto loans on evenings, or weekends. However, some dealers will offer “spot delivery” which means you make a down payment, perhaps trade in your current vehicle, and the dealer “assures” you that your financing will be approved. Upon the bank opening, the dealer tells you the loan has been denied by the bank. Chances are, the only “deal” offered is returning the car. However, this may be illegal, particularly if you are told you will not get your deposit refunded. Dealers are not supposed to release a vehicle to you until the financing is in place. Spot delivery is a form of “yo-yo car sales” and in Alabama, this is a form of auto dealer fraud.

Yo-Yo Car Sales

You found the perfect vehicle and the dealer has told you the financing went through with no problem. You leave the lot with your car and a week or so later you get a call telling you that in fact, there is a problem with the financing. The dealer tells you they can get your car financed for significantly more than what the current deal is, pay a larger down payment, or you can return the vehicle. They may also threaten you with legal action such as reporting the vehicle stolen if you refuse to agree to any of these steps. Rather than caving into these tactics, you need to contact an attorney who has experience with auto dealer fraud cases.

If you have faced problems with a new or used car dealer acting in a manner you believe is illegal, contact Tron Law Firm immediately. An attorney from our Hoover AL office can help consumers across Birmingham, AL and the surrounding area hold unscrupulous dealers accountable for their illegal actions.