Common dealership fraud to be aware of in Missouri. RKB LAW’s auto fraud attorneys are here for you.

Auto Dealership

Failure to Provide a Title

Under Missouri law it is a violation to fail to provide a valid title at the time of the sale of the vehicle. If you purchase a vehicle in Missouri and do not leave the dealership with the title to the vehicle contact RKB LAW LLC to discuss your options to protect your interests.

Odometer Fraud

Rolled back odometers is one of the most common types of dealership fraud in the country. If a dealership misrepresents the actual mileage of a motor vehicle at the time of sale this is fraudulent and illegal. Both Missouri and Federal law provide remedies for consumers who have been victims of this activity.

High-pressure sales tactics

High-pressure sales tactics are designed to confuse a consumer choice using sales psychology, trickery, and deceit. They are utilized to obtain agreement to unfavorable terms for which a consumer would not otherwise agree. Examples include employing sales psychology strategies of misrepresentation, half-truths, peer pressure, manipulation, intimidation, coercion, manufactured delays and process, and limiting the time for the consumer to consider a decision and its consequences.

Formal Rental Car

We all know rental cars are not used and maintain in the same manner in which an individual owner treats their vehicle. It is a material fact that you deserve to know when making a car buying decision If a car was a formal rental car. Hiding this material fact is done because dealers know you would be less likely to own the vehicle and not pay the same price you would pay if this was a normal vehicle.

Dangerous and Rebuilt-Wrecked Vehicle Fraud

Another common fraud amongst auto dealers is selling a vehicle that may have been in a serious accident, in a flood, or have an open recall that has not been addressed.  Dealers sells these dangerous rebuilt-wrecked used car or truck without disclosing the vehicle’s crash history to the consumer and telling the truth about the vehicle’s history. Dangerous cars may look and drive great but are no longer crashworthy and will not do what they were originally designed to do in the event of an accident. They may have a bent and weakened frame, be missing airbags or worse. These dangerous vehicles not only pose a danger to the unsuspecting driver but to everyone else on the road.

Yo-Yo Fraud

Buying a new vehicle is exhausting. You spend hours at the dealership and then you are hurried and rushed through signing a stack of paperwork that is not explained you are told your loan was approved and you are given what you think is the final loan approval. You then drive away believing you own the car. After returning home the dealer calls you back and says there was a problem with the financing or that the financing was denied and you need to come back and sign a new contract. These new loans may have a higher interest rate or different terms or now you need a bigger down payment. Dealers may tell you to lie to the financing company about your income, employment history, or about the car itself. They will then tell you they have already sold your trade-in, may threaten to repossess the car you just purchased or call the police and report the car as stolen unless the car is returned or you agree to the new loan terms. 

Spot Delivery Fraud

“Spot Delivery” Fraud is a variation of Yo-Yo fraud. Spot Delivery Fraud occurs when the car dealer tells you that although your car loan hasn’t been approved by the finance company, you can drive the car home. Then the dealer will call and tell you that your loan was not approved on the same terms you agreed to, your trade-in has already been sold and you must now accept a higher interest rate loan or bring the car back and pay penalties for your use of the car. 

Dealer Kickbacks

Dealers may tell you that they can provide you with the best financing, when you may actually be approved for lower interest rates based upon your credit score. Dealerships may do this because they receive a kickback from the lender to put you in a higher interest loan. Their financing “deal” is not the best deal for you. They will make more money selling you the financing that provides them with a kickback at your expense.

Loan Packing

This involved the dealer representing that you must add-on items to the sale because it is required for financing. These include things like theft-etching, rust proofing, upholstery protection, GAP insurance, extended service contracts, lifetime oil changes, life insurance, or job loss protection.

Failure to purchase service warranty or GAP insurance

When you pay good money for a service warranty or GAP insurance, you expect the dealership to actually provide that service. Often times the dealer simply pockets the money you paid for these products and does not obtain the warranty or insurance.

Wrongful Repossession

Missouri law requires that car dealers and finance companies follow a very specific process before repossessing a motor vehicle.

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Category: Consumer Protection