Help for Consumers Cheated by a Car Dealership

Cars are one of the most expensive and important purchases made by consumers. Cars are also consistently one of the top purchases that results in consumer complaints.  Auto dealer fraud is one of the most common types of fraud lawsuits brought by consumers. 

The car buying process can be complicated, negotiations can be challenging, and back office conversations can be confusing. Even the most prepared consumer can find themselves at a disadvantage and end up with a bad deal when facing a car salesperson who is well-versed in auto sales and financing scams. 

When up against a dishonest dealer, consumers often face a variety of illegal tactics. Car dealerships make money selling cars. The more cars they sell and the more you pay, then the more they earn. Too often bad dealers engage in auto fraud or deceptive practices to close the sale and get you to buy expensive add-ons.  

Talk to a car dealership lawyer if you think something went wrong when you purchased your vehicle.  There are many ways dealerships take advantage of consumers during the car sales process.  There are also a variety of state and federal laws that protect consumers when purchasing a vehicle.  

In many cases, dishonest behavior by a car dealership can violate the Massachusetts Consumer Protection Act.  If you sue a car dealership and the judge finds the dealership violated the Consumer Protection Act, then the judge can order the dealer to pay 2 or 3 times the amount of the damages plus your attorneys' fees and reimbursement for litigation costs at the end of the case.  

Examples of unfair and deceptive acts by car dealerships that may be found to violate the Massachusetts Consumer Protection Act include: 

• Lying About the Vehicle: A dealership may make false statements to convince you to buy the car. For example, a dealer may lie about features, performance abilities, model type, or model year. A dealer might also lie and say that a car is new when it is used or say it is a certified pre-owned vehicle when it is not.  Depending on the details, the lie might be a misrepresentation that can be considered an unfair or deceptive practice, or it could be auto fraud.  

• Failure to Disclose: A dealership may cheat a consumer by selling a car without making required disclosures, or by not telling you things they know about the car that might make you change your mind about buying it. Dishonest dealerships commonly fail to disclose that the car was damaged or had some type of problem. For example, the vehicle was in a major accident, has a salvage title, or is a lemon law buyback. Even worse, a dealership may actively hide the fact that a vehicle needs repairs now. 

• Spot Delivery and YoYo Sales: This is when a car dealership lies about financing.  The dealership approves the consumer “on the spot” just to pull them back later like a “yo-yo” to get additional money.  A consumer gets approved for financing by the dealership and drives the car off the lot. Later the car dealership contacts the consumer to lie about the financing falling through and to tell  the consumer to pay more money to keep the car.  Dealers will also threaten the consumer with repossession to get them to pay money they do not owe.

• Breaking the Lemon Law:  The type of seller, length of warranty, vehicle mileage, and status as a new or used vehicle define the circumstances when a vehicle may be covered under a Massachusetts lemon law. The lemon laws also determine the opportunities you must give the seller to repair or remedy the defect under the auto warranty before filing a lawsuit.  A Massachusetts lemon law lawyer can help you navigate the process and advise on the steps you need to take.  

“Lemon” is the name given to a motor vehicle that has a defect during the warranty period that substantially impacts the vehicle's safety, use, or market value. It includes cars, vans, or trucks bought for personal or family use.  In some situations, motorcycles are also covered under the lemon law.  It does not cover auto homes, off-road vehicles, or vehicles purchased primarily for business use. 

The Massachusetts lemon law requires the defective vehicle be repurchased or replaced by the dealer or manufacturer if it cannot be repaired. Under the law, the manufacturer or dealership is given only a limited number of attempts to fix it. Failure to comply with the lemon law is also a violation of the Massachusetts consumer protection law commonly referred to as “93A.” General law chapter 93A offers additional protections to consumers. If you win a 93A lawsuit, you may be able to receive two or three times the amount of your damages, attorneys’ fees, and costs. 

Car dealerships and manufacturers are in the business of selling cars. They are not quick to admit they have sold a defective product or refund your money. Having the assistance of a lemon law attorney and filing a lawsuit is often needed to enforce your auto warranty.