Lawsuits Against Car Dealerships and The New Jersey Consumer Fraud Act

Did a dealership do the following?:






Most salesmen are trained either officially or unofficially. Many dealerships use third-party providers and send their salesman for training. Many dealerships simply train their salesman by using more experienced salespersons. However, there are some very specific tools that salesman use while selling vehicles. The old adage is true 1st you by the salesman then you buy the product. Salesmen do everything in an attempt to gain your trust. Once the gain your trust they can take advantage. You should not feel obligated to buy a vehicle just because you’ve been speaking to a salesman for a long period of time. You should not sign documents by vehicle just because you’ve been at the dealership for many hours and you need to go. There are some very simple tactics that salesman use. They attempt to divide spouses and keep their attention separate. They attempt to keep you there as long as possible and tire you out. They make it difficult for you to leave. Some of these things would include hiding your trade vehicle or making it difficult to get the keys. Every time you get up early have another offer or need you another any minutes. These role techniques and tactics the car salesman use to sell you vehicles and keep you at the dealership and to keep you confused. Because if you are thinking correctly most of the time you probably wouldn’t buy the vehicle.

Price Packing

The price packing is both a legal term and an industry term. The basic concept behind price packing is that the dealership will work you put on payments. This means that they will quote you certain payment based on what you’ve told them. Many times this payment is too high for the vehicle. This means as an example if you said you would pay $300 per month and the vehicle which you are looking at and it only costs $280 per month they put extra items and or raise the price and increase financing to go from $280 to $300 per month. This is commonly called a bump.

Vin Cloning and Odometer Fraud

Vin cloning is the use of fake vans to sell automobiles. This is not that common but is a tactic still used by many reputable individuals trying to make money by selling vehicles. What they do is salvage or get a van out of an auction or junkyard its clean. And the Venice put on a vehicle that is stolen or has many problems. Thus the Vin that you are looking at and either Carfax research appears clean when the car in fact itself might be stolen or have many other defects. Occasionally you will see a story on the news where a vehicle suddenly gets picked up by police that an individual has purchased despite the fact that the event has checked out as clear.

Vehicle History and Damages Cars

Misrepresentations as to the vehicle history is one of the most common claims for fraud and consumer fraud that I see on a daily basis. It is not a comment for a car dealership or salesman lie about the history of the vehicle in either a important or tangential manner. As an example they might say it has one owner when it in fact it had many. They might say it was driven by a little old lady one of fact they purchased at auction. The dealer might say that a representative of the dealership drove the car and use that as a demo, when in fact it had been used as a loner. This requires extensive diligence on an individual purchasing the car and make sure they write down all the representations and have the representative of the dealership whether it be the salesman or the finance manager to confirm in writing the promises. This way when later on down the road you discover that the representations were false you have an appropriate basis to make a claim which is easier than if you did not have these representations in writing.

Credit Applications and Consumer Fraud

The salesman will have the consumer sign a blank credit application and place false information to have his or her credit approved. There are consumer and criminal laws covering this area. The dealer, or anyone for that matter, cannot place false information on a credit application to get a loan. Get copies of all credit application forms from both the lender and the finance company on your transaction.  Information and changes in the credit application usually are the basis for many used car scams and consumer fraud.

Misleading Advertisements and bait and switch

Misleading advertising is a very ripe area for litigation and dealership abuse. Misleading advertising can occur in many different ways. Often, a dealership will advertise a vehicle which they might not have an inventory. The purpose is to lower potential customers to the dealership and have them purchase another vehicle. Another tactic that is available to dealerships is known as the golden hammer. The vehicle which is advertised might have damage or some other issue so when the customer gets there they disclose this and then they switch the customer into another vehicle. Another right area for litigation is advertised price. Frequently dealerships advertise a price on the website which is different than the posted price on the vehicle. This requires extreme customer diligence.

Can I sue the lender?
Can I cancel a contract for purchase?
Should I purchase a certified used car?
Should I use Carfax?
Do dealerships have a code of ethics?
What are my rights when a new car is sold with damage?
How do courts view the Consumer Fraud Act?
What are some insider secrets of car salesmen?
Should I file a complaint with the BBB?
What are the top consumer complaints in New Jersey?
Do car salesmen know if a car has been in an accident?
Is there an entire market in buying and selling damaged cars?
Do car dealers have disputes with their own employees?
Where do I look for recalls on my car?
What is my car worth?
When can I get triple damages?
What is the dealer liability for selling damaged cars?
What is a sub-prime loan?
Can I access any public records?

Do car dealerships have a banking license?
Ford Recalls.
Dealership ethic requirements.
Car salesman do have secrets.
Car repair scams.
Trial Lawyers for Public Justice.
Do car salesman have code words?
Does the dealer have insurance and does it cover my claim?