Car Dealer Scammed You? California Carta de Demanda for Auto Dealer Fraude & Bait-and-Switch
Bait-and-switch pricing, yo-yo financing, hidden fees, or lies about the car's history? California law punishes dealer fraude with rescisión, statutory daños, and treble daños for intentional misconduct.
Rescisión
Full Reembolso Available
$5,000+
CLRA Statutory Daños
3x Daños
Treble for Fraude
!!
California Has NO "Cooling-Off Period" for Car Purchases
You CANNOT return a car simply because you changed your mind. The "Contract Cancellation Option" is an OPTIONAL add-on you must have purchased at time of sale. To rescind a car purchase, you must prove actual fraude, material declaración falsa, or contract violacións. Buyer's remorse is NOT grounds for return.
$ California Laws That Protect Car Buyers
California provides strong protections against dealer fraude. These laws give you leverage in your carta de demanda:
Vehicle Code Section 11713 - Dealer Misconduct
Prohibits dealers from making false statements, engaging in bait-and-switch, failing to honor advertised prices, and other deceptive practices. Violacións can result in dealer license suspension or revocation by the DMV.
Prohibits unfair and deceptive practices in consumer transactions. Allows recuperación of actual daños PLUS statutory daños up to $5,000, AND abogado fees. Requires 30-day notice before filing suit.
código civil Section 1572 - Fraude
Defines fraude as intentional declaración falsa, concealment, or false promise. Fraude claims can support rescisión (contract cancellation) and potentially treble (3x) daños for intentional misconduct.
Business & Professions Code Section 17200 - Unfair Competition Law (UCL)
Prohibits unlawful, unfair, or fraudulent business practices. Allows for injunctive relief and restitution. Often used alongside CLRA claims for dealer fraude.
Requires dealers to honor advertised prices and terms. Prohibits advertising vehicles that are not actually available for sale at the advertised price (bait-and-switch).
Rees-Levering Motor Vehicle Sales and Finance Act (código civil 2981-2984.6)
Governs all retail installment sales of motor vehicles. Requires specific disclosures, regulates finance charges, and provides remedies for contract violacións including rescisión.
!! Common Dealer Fraude Tactics
If the dealer used any of these tactics, you likely have grounds for a carta de demanda and potential legal action:
Bait-and-Switch
Dealer advertises a specific car at a specific price, but when you arrive: the car is "just sold," they pressure you to buy a more expensive vehicle, or they add fees that weren't in the ad. Vehicle Code 11713 and 11709.2 prohibit this.
Yo-Yo Financing / Spot Delivery Scam
You drive off with the car, then days/weeks later the dealer calls claiming financing "fell through" and demands you sign worse terms or return the car. Often the dealer never had approved financing in the first place - pure manipulation.
Hidden Fees & Dealer Add-Ons
Undisclosed charges packed into the contract: inflated doc fees (CA limit is $85), nitrogen tire fill, VIN etching, fabric protection, "dealer prep," market adjustments - often added without clear disclosure or consent.
Vehicle Declaración Falsa
Concealing material facts: odometer rollback, prior accident damage, salvage/rebuilt title, flood damage, frame damage, rental car history, or known mechanical defects. Dealers must disclose - failure is fraude.
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Dealers Are Held to a Higher Standard
Unlike private sellers, licensed dealers are presumed to have expertise and access to vehicle history. Courts hold them to a higher standard of disclosure. "I didn't know" is rarely a valid defense for a dealer.
$ Lo Que Puede Recuperar
California law provides multiple avenues for recuperación against fraudulent dealers:
Damage Type
Descripción
Rescisión (Full Reembolso)
Contract cancellation with return of full purchase price, down payment, trade-in value, and all payments made. You return the car, dealer returns your money.
CLRA Statutory Daños
Actual daños suffered PLUS up to $5,000 in statutory daños per violación. No need to prove specific dollar amounts for the statutory portion.
Fraude - Treble Daños
For intentional fraude, courts may award up to 3x actual daños. If you lost $10,000, you could recover $30,000.
Honorarios de Abogado
Recoverable under both CLRA and many fraude claims. This makes it economical to hire an abogado even for smaller claims.
DMV Demanda
While not monetary, filing with DMV Investigations can result in dealer license suspension or revocation - powerful leverage for acuerdo.
Typical Reclamación Values by Fraude Type
Fraude Type
Typical Recuperación Range
Hidden fees / overcharges
$500 - $5,000 (fees + CLRA daños)
Bait-and-switch price difference
$2,000 - $15,000 (price diff + daños)
Yo-yo financing (worse terms)
$3,000 - $20,000 (rate diff over loan + daños)
Undisclosed accident/damage
$5,000 - $30,000+ (diminished value + fraude daños)
Salvage title concealment
Full rescisión + daños (often $15,000-$40,000+)
@ Plantilla de Carta de Demanda
Enviar this letter via correo certificado with acuse de recibo requested. For CLRA claims, this letter serves as your required 30-day notice before filing suit.
DEMANDA FOR COMPENSATION - AUTO DEALER FRAUD / CLRA NOTICE[Your Name][Your Address][City, CA ZIP][Phone][Email][Date]
VÍA CORREO CERTIFICADO CON ACUSE DE RECIBO
[Dealership Name][Dealership Address][City, CA ZIP]
Re: Demand for Compensación - Dealer Fraude / CLRA Violación
Vehicle: [Year Make Model]
VIN: [Vehicle Identification Number]
Purchase Date: [Date of Purchase]
Contract/Deal Number: [If available]
Dear [Dealership Name / General Manager]:
THIS LETTER CONSTITUTES NOTICE de conformidad con CALIFORNIA código civil SECTION 1782 (CONSUMER LEGAL REMEDIES ACT)
I am writing to demand compensación for daños resulting from fraudulent and deceptive practices in connection with my purchase of the above-referenced vehicle from your dealership.
FACTS:
1. On [Purchase Date], I purchased a [Year Make Model], VIN [VIN], from your dealership for a total price of $[Total Price].
2. [Describe the fraude/declaración falsa in detail. Examples:][FOR BAIT-AND-SWITCH:]
Your dealership advertised this vehicle at a price of $[Advertised Price] on [Website/Platform]. When I arrived to purchase the vehicle, your sales staff claimed [the car was sold / additional fees applied / different terms required] and pressured me into paying $[Actual Price] - a difference of $[Difference].
[FOR YO-YO FINANCING:]
I signed a retail installment contract and took delivery of the vehicle on [Date]. On [Date of Callback], your dealership contacted me claiming the financing had "fallen through" and demanded I return to sign a new contract with [higher interest rate / larger down payment / different terms]. This "spot delivery" scam is an unlawful practice.
[FOR HIDDEN FEES:]
The final contract included undisclosed charges totaling $[Amount], including: [list fees - e.g., inflated doc fee, dealer add-ons, accessories never requested]. These fees were not disclosed in the advertised price and were added without my informed consent.
[FOR MISREPRESENTATION:]
Your dealership represented that this vehicle [had no accident history / was not a salvage title / had accurate mileage / had no frame damage]. I have since discovered that [describe what you discovered - e.g., "the vehicle has a salvage title" / "the CarFax shows 3 prior accidents" / "the odometer was rolled back"]. This material fact was concealed from me at time of purchase.
VIOLATIONS OF LAW:
Your conduct violates multiple California statutes:
1. Vehicle Code Section 11713 - Dealer misconduct including [false statements / bait-and-switch / failure to honor advertised price]
2. Consumer Legal Remedies Act (código civil 1750-1784) - Specifically Section 1770(a), prohibiting:
[Select applicable subsections:]
- (5) Representing goods have characteristics they do not have
- (7) Representing goods are of a particular quality when they are not
- (9) Advertising goods with intent not to sell as advertised
- (14) Representing a transaction involves rights it does not involve
- (16) Representing the subject of a transaction has been supplied de acuerdo con a previous representation when it has not
3. código civil Section 1572 - Fraude through intentional declaración falsa and/or concealment of material facts
4. Business & Professions Code Section 17200 - Unfair and fraudulent business practices
5. Rees-Levering Act (código civil 2981-2984.6) - Violacións of motor vehicle retail installment sales requirements
DAMAGES:
As a direct result of your fraudulent conduct, I have suffered the following daños:
[Price difference / overcharge]: $[Amount][Hidden fees paid]: $[Amount][Diminished vehicle value]: $[Amount][Additional financing costs]: $[Amount][Other documented daños]: $[Amount]daños reales SUBTOTAL: $[Subtotal]
CLRA Statutory Daños: $5,000.00
TOTAL DEMANDA: $[Total][IF SEEKING RESCISSION, ADD:]ALTERNATIVE DEMANDA - RESCISSION:
In the alternative, I demand full rescisión of this transaction de conformidad con código civil 1689 and 1572, including:
- Return of my down payment: $[Amount]
- Return of all monthly payments made: $[Amount]
- Return of trade-in vehicle value: $[Amount]
- Cancellation of any financing contract
Upon receipt of the above, I will return the vehicle to your dealership.
DEMANDA:
de conformidad con código civil Section 1782, I am providing you with this notice and demand that you:
1. Pay the daños identified above within thirty (30) days; OR
2. Agree to rescisión of the transaction with full reembolso within thirty (30) days
If you fail to respond satisfactorily dentro de 30 días, I will pursue all available legal remedies including:
- Filing suit under the CLRA for actual daños, statutory daños, punitive daños, and abogado fees
- Filing suit for common law fraude seeking treble daños
- Filing a demanda with the California DMV Investigations Unit (potential license suspension/revocation)
- Filing a demanda with the California Abogado General
- Filing a demanda with the Federal Trade Commission
I am prepared to resolve this matter without litigio if you act promptly and in buena fe.
Please contact me at [Phone/Email] to discuss resolution.
Atentamente,
_______________________________
[Your Signature][Your Printed Name]Anexos:
- Copiar of purchase contract / retail installment agreement
- Copiar of advertisement showing original price (if applicable)
- CarFax or AutoCheck vehicle history report
- Photographs of [damage / odometer / title]
- Comunicaciones with dealership
- [Other supporting documents]
cc: California DMV Investigations Unit
California Abogado General (if filing demanda)
[Your abogado, if applicable]
🖩 Auto Dealer Fraude Calculadora de Daños
Use esta calculadora interactiva para estimar los posibles daños en su caso. Ingrese su información a continuación para obtener un estimado de daños recuperables.
📈 Desglose Estimado de Daños
Daños Directos$0
Daños Consecuentes$0
Angustia Emocional (Est.)$0
Multas Legales (Est.)$0
TOTAL ESTIMADO DE DAÑOS$0
Aviso Legal: Esta calculadora proporciona estimaciones aproximadas solo con fines educativos y no constituye asesoramiento legal. Los daños reales varían significativamente según los hechos específicos, la solidez de la evidencia y muchos otros factores. Consulte con un abogado calificado de California para una evaluación precisa de su caso.
% Lista de Evidencias - Gather Before Sending
>Advertisements / Screenshots - Save the original listing showing advertised price, features, and vehicle description. Screenshot website ads, print ads, emails.
>Purchase Contract - The retail installment sales contract showing all terms, prices, and fees. Look for discrepancies from what was advertised or verbally promised.
>Rees-Levering Documents - All documents required under California law including itemized costs, APR disclosures, and buyer's rights notices.
>CarFax / AutoCheck Report - Independent vehicle history showing accidents, title issues, odometer readings, service history. Compare to dealer representations.
>Comunicaciones with Dealer - Emails, text messages, voicemails. Especially important for yo-yo scam (save messages about "financing falling through").
>Financing Documents - All loan paperwork, especially if terms changed. Compare original approval to final contract.
>Second Opinion / Appraisal - Independent mechanic inspección or dealer appraisal showing true condition or value vs. what you were told.
>Title Documents - Check for salvage brand, rebuilt status, or lien issues that weren't disclosed.
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Document Everything NOW
Take screenshots of online ads before they disappear. Save all text messages and emails. Get a CarFax immediately. Evidencia disappears - dealers remove listings and "lose" paperwork. Build your file before sending the carta de demanda.
>> Qué Sucede Después You Enviar the Letter
Días 1-7: Dealer Receives Letter
correo certificado provides proof of delivery. Dealer's management and/or legal team reviews the reclamación.
Days 7-21: Dealer Response
Expect initial contact - often denegación or lowball offer. Don't accept immediately. This is negotiation.
Days 21-30: Negotiation Period
CLRA requires 30-day notice before filing suit. Use this time to negotiate. Document all communications.
Day 30+: If No Resolution
File DMV demanda (threatens their license). Consider small claims (up to $12,500) or consult abogado for larger claims. CLRA allows abogado fee recuperación.
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DMV Demandas Are Powerful Leverage
Dealers need their license to operate. A demanda to DMV Investigations (even if it doesn't result in action) often motivates acuerdo. File at dmv.ca.gov/portal/vehicle-industry-services/investigations/.
? Preguntas Frecuentes
What is the yo-yo financing or spot delivery scam?
Yo-yo financing occurs when a dealer lets you drive off with a car before financing is actually finalized, then calls days or weeks later claiming the financing "fell through." They demand you sign a new contract with worse terms (higher interest, bigger down payment) or return the car. This is often illegal because many dealers never had approved financing - it's a pressure tactic to lock you into worse terms after you're emotionally attached to the vehicle.
Can I return a car if the dealer lied to me?
Important: California has NO automatic cooling-off period for car purchases. You cannot return a car simply because you changed your mind. Sin embargo, if the dealer committed actual fraude (lied about the vehicle's condition, history, or terms), materially misrepresented facts, or violated the Rees-Levering Act, usted puede tener derecho a rescisión (contract cancellation) and a full reembolso. You must prove fraude or contract violación - buyer's remorse is not sufficient.
What fees can California dealers legally charge?
California Vehicle Code limits documentation fees (doc fees) to $85 (as of 2024). Sales tax, DMV registration, and smog certification are legitimate pass-through costs. Dealers CANNOT legally charge: inflated doc fees above the limit, undisclosed add-ons (nitrogen, VIN etching, fabric protection) without clear consent, or "market adjustment" fees hidden from advertised prices. All fees must be itemized on the contract.
How do I file a demanda against a car dealer?
File demandas with: (1) California DMV Investigations Unit - they handle dealer licensing and can suspend/revoke licenses; (2) California Abogado General - for CLRA and prácticas comerciales desleales; (3) FTC - for federal protección al consumidor violacións; (4) BBB Auto Line - for arbitraje. DMV demandas are particularly effective because dealers risk losing their license to operate.
What is the cooling-off period for buying a car in California?
There is NO automatic cooling-off period for vehicle purchases in California. You cannot simply return a car because you changed your mind. The "Contract Cancellation Option" is an OPTIONAL add-on that dealers may offer (for a fee) allowing return dentro de 2 días for used cars under $40,000 - but only if you specifically purchased this option. Without it, rescisión requires proving fraude, declaración falsa, or contract violacións.
Can I sue a dealer for selling me a car with undisclosed damage?
Sí. California dealers have a legal duty to disclose material facts including: prior accident damage, salvage/rebuilt title status, flood damage, frame damage, odometer discrepancies, and known mechanical defects. Failure to disclose constitutes fraude under código civil 1572 and violates the CLRA. You can sue for rescisión, actual daños, CLRA statutory daños up to $5,000, and potentially treble (3x) daños for intentional fraude.
Dealer Won't Cooperate? I Can Help.
For large fraude claims or dealers who refuse to respond, I assist with carta de demandas, DMV demandas, negotiations, and litigio.