How to Protect Yourself against Auto Fraud
You do not have to be a victim of auto fraud. Informed consumers can take steps to protect themselves against deceptive auto dealer practices that could cost thousands of dollars. The following are some important tips and measures you can take to protect yourself from becoming a victim of auto fraud.
- Don't deal with lenders through the auto dealership. By finding your own financing outside of the dealership, you can get a lower loan rate as well as avoid the flurry of paperwork that conceals auto fraud at the time of sale.
- Don't give the dealership consent to pull your financial information. It is important to wait until you're ready to negotiate the sale of the vehicle before allowing a dealership to view your credit report so as not to give them the upper hand in the negotiation.
- Don't sign any mandatory arbitration agreements. If you sign a "dispute resolution" contract, you will be waiving your legal right to sue the dealership in the event of a future auto fraud dispute.
- Read all the fine print. Slow down during the purchasing process. Be willing to walk away from the deal if you don't agree with the price, services, and limitations. Don't agree to any of the add-ons that are offered.
- Avoid on-the-spot deliveries. A dealer will urge consumers to drive the vehicle off the lot before getting final loan approval from a bank and will ask a consumer to sign a right of rescission contract. Signing this form may open up the opportunity to modify contract terms including interest rates and more.
- Pay attention to extras and alleged bonuses. Most dealers make money off the extra items they squeeze into contracts, whether you are aware or not. Stay alert and remember that nothing is free.
- Become informed before you walk into a dealership. Research everything you can about the vehicle you wish to purchase including prices, models, add-ons, etc. Be sure to shop around to get the best possible deal, and always negotiate the MSRP price.
- Be aware of buying or leasing a vehicle on your first trip to the dealership, relying on oral promises by dealers, giving a dealer a deposit before completely reading and understanding all the terms of the contract, paying extra for extended maintenance contracts including warranties.
If you or a loved one has been a victim of auto fraud, it is important to seek the help of a qualified consumer fraud attorney who will protect your legal rights and maximize your interests. Under federal and state laws, perpetrators of auto fraud will be held liable for their wrongdoing. Please contact us today to speak with an experienced auto fraud attorney who will ensure your get the compensation you deserve.