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Overview

Car dealer bait and switch is one of the most common forms of auto fraud in California. The scheme is simple: advertise an attractive price or feature to get you in the door, then reveal the "real" terms once you are emotionally invested in the purchase. California law provides powerful remedies when dealers engage in this deceptive practice.

Key Protection: California Vehicle Code Section 11713 specifically prohibits dealers from advertising vehicles they do not intend to sell as advertised. Combined with CLRA Section 1770(a)(9), victims can recover up to three times their actual damages plus attorney fees.

Common dealer bait and switch tactics include:

  • Advertised price unavailable: "That price was for a different trim level" or "The sale ended yesterday"
  • Hidden dealer fees: Document fees, "market adjustments," or mandatory add-ons not disclosed in ads
  • Forced add-ons: Requiring purchase of paint protection, extended warranties, or accessories to get advertised price
  • Financing bait: Advertising 0% APR that "you don't qualify for" once you arrive
  • Trade-in deception: Promising high trade-in value online, then lowballing in person
  • Phantom inventory: Advertising specific VINs that are perpetually "just sold"
  • Last-minute price increases: Adding charges during signing that were not in the quoted price
Important: Under CLRA Section 1782, you must send a written demand letter at least 30 days before filing a lawsuit for damages. This letter must be sent by certified mail and give the dealer an opportunity to cure the violation.

This page covers both perspectives:

  • If you were deceived by a dealer: How to demand a refund, calculate your damages, and pursue legal remedies
  • If you received a demand letter: How to evaluate the claim, understand your exposure, and respond appropriately
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Legal Basis

California provides multiple overlapping statutes that protect consumers from dealer bait and switch:

Vehicle Code Section 11713 - Dealer Advertising Violations ▾

Vehicle Code Section 11713 is the primary statute governing dealer conduct. Key prohibitions include:

  • 11713(a): Making or authorizing any statement that is untrue or misleading
  • 11713(e): Advertising a vehicle for sale at a price that does not include all charges the buyer must pay
  • 11713(f): Advertising that a vehicle is available at a particular price when the dealer knows or should know the vehicle is not available at that price
  • 11713(q): Requiring a buyer to purchase goods or services as a condition of sale that were not disclosed in the advertisement

Remedies: Violations can result in DMV action against the dealer's license, and provide grounds for civil claims under the CLRA and UCL.

CLRA Section 1770(a)(9) - Advertising with Intent Not to Sell ▾

Civil Code Section 1770(a)(9) is the core bait and switch prohibition:

"Advertising goods or services with intent not to sell them as advertised."

Key interpretations:

  • Intent can be inferred from pattern of conduct (repeated unavailability of advertised vehicles)
  • Inadequate inventory to meet reasonably anticipated demand shows intent
  • Disparaging the advertised vehicle to push alternatives is evidence of scheme
  • Sales commission structures that discourage selling advertised vehicles are evidence

Remedies under CLRA Section 1780:

  • Actual damages
  • Treble damages (3x) for willful violations
  • Punitive damages if fraud, oppression, or malice shown
  • Attorney fees and costs (one-way fee shifting)
  • Injunctive relief
Business & Professions Code 17500 - False Advertising ▾

B&P Code Section 17500 broadly prohibits false or misleading advertising:

  • Covers any statement known or should be known to be misleading
  • Lower intent standard than CLRA (negligence rather than intent)
  • Applies to all advertising media (print, digital, broadcast, signage)
  • Can result in criminal misdemeanor charges by district attorney

Application to dealer bait and switch: Advertising a price the dealer knows is not the actual out-the-door price, or advertising vehicles the dealer does not intend to sell, violates Section 17500.

Business & Professions Code 17200 - Unfair Competition Law ▾

UCL Section 17200 provides three independent grounds for liability:

  • Unlawful: Any practice that violates another law (Vehicle Code 11713, CLRA, or B&P 17500)
  • Unfair: Practice whose harm outweighs any legitimate utility
  • Fraudulent: Practice likely to deceive reasonable consumers

UCL remedies: Restitution and injunctive relief. Note that UCL does not provide damages or attorney fees in private actions, but is often combined with CLRA claims.

Automobile Sales Finance Act (Civil Code 2981-2984.6) ▾

ASFA regulates vehicle financing and protects against hidden finance charges:

  • All finance terms must be clearly disclosed before signing
  • Optional products must be separately itemized and consented to
  • Dealer cannot misrepresent credit terms or add undisclosed charges
  • Buyer has right to cancel certain add-on products within specified period

Violations of ASFA can void or modify the financing contract and support claims under CLRA and UCL.

Statutes of Limitations:
  • CLRA claims: 3 years from the date of violation
  • UCL claims: 4 years from the date of violation
  • Fraud claims: 3 years from discovery of the fraud
  • Written contract claims: 4 years
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Evidence Checklist

A strong bait and switch case requires evidence of both the "bait" (what was advertised) and the "switch" (what you were actually charged). Gather these items before sending your demand letter:

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The Original Advertisement

Screenshot of online ad with URL and date, printed ad with publication info, email marketing, social media post, or in-store signage. Capture exact price, vehicle details (year, make, model, VIN if shown), and any stated limitations.

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Purchase Contract and Buyer's Order

All documents you signed at the dealership showing the actual price charged, itemized fees, and any add-ons. Compare line by line against advertised price.

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Communications with Salesperson

Emails, text messages, or notes from phone calls where the advertised price or features were discussed. If you have written confirmation of the advertised terms, this is powerful evidence.

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Timeline of Events

When you saw the ad, when you contacted the dealer, when you visited, what was said, and when you purchased. Contemporaneous notes carry more weight than later recollections.

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Witness Information

If someone accompanied you to the dealership and heard the salesperson's statements, get their name and contact information. Their corroboration strengthens your case.

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Pattern Evidence

Search Yelp, Google Reviews, BBB complaints, and car forums for similar complaints against the same dealer. A pattern of bait and switch shows intent and supports punitive damages.

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Financing Documents

Retail Installment Sales Contract, credit application, and loan documents. Check if financing terms match what was advertised or promised.

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Add-On Disclosures

Any paperwork for extended warranties, paint protection, GAP insurance, or other products. Were these disclosed in the ad? Were you told they were "required"?

Preserve Evidence Immediately: Dealers may remove or change online ads once challenged. Use the Wayback Machine (web.archive.org) to find archived versions. Screenshot social media posts before they can be deleted. Export emails to PDF.
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Calculate Damages

Calculating damages in a dealer bait and switch case requires comparing what you were promised versus what you paid:

Advertised Price $28,995
Price Actually Charged $34,500
Overcharge (Actual Damages) $5,505
Treble Damages (3x) $16,515
Incidental Costs (travel, time) $350
Total Potential Recovery $16,865+
Calculating Actual Damages ▾

Price Difference Method:

  • Subtract advertised price from actual price charged
  • Include all mandatory fees not disclosed in advertisement
  • Include required add-ons that were not mentioned

Additional actual damages:

  • Travel costs to dealership (IRS mileage rate: 67 cents/mile)
  • Time spent (reasonable hourly value x hours)
  • Interest paid on inflated loan amount
  • Cost to unwind unwanted add-on products
Treble Damages Under CLRA ▾

Under CLRA Section 1780(a)(1), the court may award up to three times actual damages if the violation was willful:

  • "Willful" means intentional deception, not just negligence
  • Pattern of similar conduct is strong evidence of willfulness
  • Management knowledge of the scheme supports treble damages
  • Training materials or internal policies encouraging bait and switch are powerful evidence

Example: If your actual damages are $5,000, treble damages would be $15,000.

Attorney Fee Recovery ▾

CLRA Section 1780(e) provides for one-way attorney fee shifting:

  • If you win, the dealer pays your attorney fees
  • If you lose, you do NOT pay the dealer's fees
  • This makes it economical to pursue even moderate claims
  • Creates significant settlement pressure on dealers

Fee exposure example: A $5,000 actual damages case could generate $20,000+ in attorney fees if litigated. Dealers often settle to avoid this exposure.

Rescission (Cancel the Transaction) ▾

In some cases, you may demand to rescind (cancel) the entire transaction:

  • Return the vehicle to the dealer
  • Get back full purchase price paid
  • Have financing cancelled or paid off
  • Recover sales tax, registration, and other fees
  • Recover incidental costs (insurance premiums, accessories)

Rescission is typically available when the fraud is fundamental to the transaction, not just a price discrepancy.

For Dealers Receiving Demands: Attorney fee exposure is real. A demand for $3,000 in actual damages could result in $15,000+ in total exposure (treble damages + fees) if litigated. Evaluate early settlement seriously. I can help assess whether the claim has merit and negotiate resolution.
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Sample Language

Use these templates for your dealer bait and switch demand letter. Remember: the CLRA requires 30-day notice before filing a damages lawsuit.

CLRA 30-Day Demand Letter - Dealer Bait and Switch
[Your Name] [Your Address] [City, State ZIP] [Email] [Date] VIA CERTIFIED MAIL - RETURN RECEIPT REQUESTED [Dealer Name] [Dealer Address] [City, State ZIP] Re: CLRA 30-Day Pre-Suit Demand - Bait and Switch / Price Deception Vehicle: [Year Make Model] VIN: [VIN Number] Purchase Date: [Date] Dear [Dealer Name]: NOTICE UNDER CALIFORNIA CIVIL CODE SECTION 1782 This letter constitutes the notice required by Civil Code Section 1782(a) prior to filing suit under the Consumer Legal Remedies Act (Civil Code Sections 1750 et seq.) for violations of Section 1770(a)(9) and related provisions. FACTS On [date], I viewed your advertisement for the above vehicle at a price of $[advertised amount]. The advertisement [describe where seen: on your website at URL, on [auto platform], in [publication], etc.] clearly stated the price was $[amount] with [describe any stated terms]. Based on this advertisement, I visited your dealership on [date] to purchase the vehicle at the advertised price. However, when I attempted to complete the purchase: [Describe what happened - choose applicable scenarios:] 1. I was told the advertised price was "not available" because [the vehicle just sold / the ad was a "mistake" / that was a different trim / the sale ended / etc.]. 2. I was presented with a final price of $[actual amount], which included $[amount] in undisclosed fees and charges including [list: "market adjustment," "dealer prep," "mandatory accessories," etc.]. 3. I was told I had to purchase [add-on products] totaling $[amount] to get the advertised price, which was not disclosed in your advertisement. 4. The financing terms were changed from the advertised [0% APR / $X monthly payment] to [actual terms] because I supposedly "didn't qualify." VIOLATIONS OF LAW Your conduct violates: 1. Vehicle Code Section 11713(a), (e), (f), and (q) - False advertising and requiring undisclosed charges 2. Civil Code Section 1770(a)(5) - Representing goods have characteristics they do not have 3. Civil Code Section 1770(a)(9) - Advertising goods with intent not to sell as advertised 4. Civil Code Section 1770(a)(13) - Making false statements about reasons for price 5. Business & Professions Code Section 17500 - False and misleading advertising 6. Business & Professions Code Section 17200 - Unfair and fraudulent business practices DAMAGES As a direct result of your bait and switch, I have suffered the following damages: - Price overcharge (actual vs. advertised): $[amount] - Undisclosed fees: $[amount] - Forced add-ons: $[amount] - Travel and time costs: $[amount] TOTAL ACTUAL DAMAGES: $[amount] DEMAND Pursuant to Civil Code Section 1782, I demand the following remedy within thirty (30) days: 1. Refund of the difference between the price charged and the advertised price: $[amount] 2. Refund of undisclosed fees and forced add-ons: $[amount] 3. Reimbursement of incidental costs: $[amount] TOTAL DEMAND: $[amount] CONSEQUENCES OF FAILURE TO CURE If you fail to provide an appropriate remedy within 30 days, I will file suit seeking: - Actual damages as calculated above - Treble damages under CLRA Section 1780(a)(1) for willful violation - Punitive damages for fraud - Attorney fees and costs under CLRA Section 1780(e) - Injunctive relief - Any other relief the court deems appropriate I will also file complaints with: - California Department of Motor Vehicles (dealer license action) - California Attorney General Consumer Protection Division - Federal Trade Commission Please respond in writing within 30 days. Sincerely, [Your Signature] [Your Printed Name] Enclosures: - Copy of advertisement (screenshot) - Purchase contract showing actual price - [Other evidence]
Hidden Fees / Forced Add-Ons Paragraph
Your advertisement stated a price of $[amount] for the [vehicle]. However, the final contract I was presented included the following charges that were not disclosed in your advertisement: - "Market Adjustment": $[amount] - "Dealer Prep Fee": $[amount] - "Documentation Fee" (above legal max): $[amount] - "Mandatory Protection Package": $[amount] - [Other undisclosed charge]: $[amount] Total undisclosed charges: $[amount] Under Vehicle Code Section 11713(e), dealers may not advertise a vehicle at a price that does not include all charges the buyer must pay. Under Section 11713(q), dealers may not require buyers to purchase goods or services as a condition of sale that were not disclosed in the advertisement. Your practice of advertising a low price to attract customers, then adding thousands in undisclosed fees at signing, is a classic bait and switch scheme prohibited by both Vehicle Code 11713 and CLRA Section 1770(a)(9).
Financing Bait and Switch Paragraph
Your advertisement prominently featured "[0% APR financing available]" or "[payments as low as $X/month]" for the [vehicle]. Based on this advertisement, I visited your dealership expecting to obtain these financing terms. However, after spending [X hours] at your dealership, I was told that I "didn't qualify" for the advertised financing and was offered a rate of [actual rate]% APR instead. Over the life of the loan, this increased my total cost by approximately $[amount]. This is a textbook financing bait and switch. You advertised attractive financing terms with no intention of providing them to most customers. Under CLRA Section 1770(a)(9), advertising with intent not to sell as advertised is unlawful. The fact that advertised financing is consistently "unavailable" to customers demonstrates the deceptive nature of your advertising.
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Next Steps

After discovering dealer bait and switch, take these steps:

1. Gather and Preserve Evidence ▾

Before contacting the dealer or sending a demand:

  • Screenshot or print the advertisement (use Wayback Machine if needed)
  • Collect all purchase documents and financing paperwork
  • Export any emails or text messages with the salesperson
  • Write down everything you remember from the transaction while fresh
  • Search for other complaints against the dealer (pattern evidence)
2. Send CLRA Demand Letter ▾

This is a required step before filing a CLRA lawsuit:

  • Send via USPS Certified Mail, Return Receipt Requested
  • Address to dealer's legal department or registered agent
  • Keep a complete copy for your records
  • Save the green return receipt card when it arrives
  • Mark Day 30 on your calendar - this is the cure deadline
3. File Regulatory Complaints ▾

Report the dealer to regulatory agencies:

  • DMV Investigations: File complaint at dmv.ca.gov - can result in dealer license action
  • Attorney General: Consumer complaint at oag.ca.gov
  • FTC: Report at reportfraud.ftc.gov
  • BBB: File complaint for public record

Regulatory complaints create additional pressure and may uncover pattern of conduct by the dealer.

4. Evaluate Dealer's Response ▾

After sending your demand, the dealer may:

  • Pay full demand: Accept and verify payment clears
  • Offer partial settlement: Evaluate against your actual damages and litigation costs
  • Deny claim: Document response; prepare for litigation after Day 30
  • Ignore demand: Silence is not a cure; file suit after Day 30
5. Consider Legal Options ▾

If the dealer does not cure within 30 days:

  • Small Claims Court: Claims up to $12,500, no attorney needed
  • Superior Court: Larger claims with attorney fee recovery
  • Class Action: If pattern evidence shows widespread scheme

I personally draft demand letters and handle auto fraud claims for California consumers. The CLRA's attorney fee provision makes representation economical even for moderate claims.

Statute of Limitations: CLRA claims must be filed within 3 years. UCL claims within 4 years. Do not delay - the longer you wait, the harder evidence becomes to gather and the less credible your claim appears.
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When to Hire an Auto Fraud Attorney

Car dealer bait and switch cases range from simple overcharges to complex multi-layer fraud. Here's when you can handle it yourself versus when professional help is essential.

Handle It Yourself When:
  • Small Overcharge: The price difference is under $500 and you haven't taken delivery
  • Still Within Rescission Period: California law may allow cancellation within 2 days for used cars under certain conditions
  • Dealer Is Cooperative: They acknowledge the error and offer to fix the contract
  • Clear Documentation: You have the ad, your notes, and the contract showing the discrepancy
Hire an Attorney When:
  • Significant Financial Loss: Price difference, hidden fees, or financing fraud exceeds $2,000
  • Dealer Denies Wrongdoing: They claim "that's what you agreed to" or refuse to negotiate
  • Multiple Fraudulent Practices: Bait and switch combined with yo-yo financing, packing, or odometer fraud
  • Already Took Delivery: Unwinding the deal becomes more complex once you've driven away
  • Financing Was Altered: Different rate, term, or payment than what you agreed to
  • Threatening Collection: Dealer or lender is threatening repossession or credit damage

Why Attorney Representation Often Makes Sense

  • Fee-Shifting: CLRA and Automobile Sales Finance Act require dealers to pay your attorney fees if you win
  • Treble Damages: Willful CLRA violations allow up to 3x actual damages plus statutory penalties
  • Contract Rescission: Attorneys can unwind the entire deal, getting you out of a bad contract
  • DMV Complaints: Serious violations can result in dealer license suspension
  • Leverage: Dealers know the costs of litigation and often settle quickly when attorneys are involved
Not Sure If You Need an Attorney?

Take our quick assessment to get a personalized recommendation based on your specific auto fraud situation.

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💡 Attorney Fee-Shifting

Many auto fraud attorneys work on contingency. The fee-shifting provisions in California law mean there's often no upfront cost to you for representation on viable claims.

Need Help With a Dealer Bait and Switch Claim?

I personally draft demand letters and handle auto fraud claims for California consumers. $575 flat fee for demand letter preparation. CLRA's fee-shifting provision makes representation economical for larger claims.

Schedule Consultation Email: owner@terms.law