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Descripción General

California car dealer fraude occurs when a dealer makes false representations, omits material facts, or engages in deceptive practices during a vehicle sale. California law provides strong protección al consumidors, including the right to rescind the transaction and recover substantial daños.

Key Protection: Under California Vehicle Code Section 11713, dealers are prohibited from making false or misleading statements about vehicles. The Consumer Legal Remedies Act (código civil 1750) provides for treble daños and abogado's fees for dealer fraude.

Common types of dealer fraude in California:

  • Odometer fraude: Rolling back or disconnecting the odometer
  • Salvage title concealment: Hiding prior salvage, rebuilt, or flood title
  • Accident damage concealment: Failing to disclose prior collisions
  • Frame/structural damage: Hiding significant damage history
  • Payment packing: Adding undisclosed products to financing
  • Yo-yo financing: Demanding vehicle return after sale for new terms
  • Bait and switch: Advertising one price but charging another
  • Lemon laundering: Selling buyback vehicles without disclosure
Important: Before filing a demanda judicial under the CLRA, you must send the dealer a written carta de demanda at least 30 días before filing. This is a legal requirement under código civil Section 1782.
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Lista de Evidencias

Gather this evidencia to support your dealer fraude reclamación:

Purchase Documents

Sales contract, buyer's order, financing documents, and all signed paperwork

Vehicle History Report

Carfax, AutoCheck, or NMVTIS report showing actual history

Pre-Purchase Comunicaciones

Emails, texts, and written statements from salesperson about the vehicle

Advertising Materials

Screenshots of online listing, window sticker, and promotional materials

Independent Inspección Report

Mechanic's inspección revealing undisclosed damage or issues

Title and Registration

Vehicle title showing any brands (salvage, rebuilt, flood, ley limón buyback)

Testigo Information

Names and contact info for anyone who heard dealer's statements

Reparación Estimates

Estimates or invoices for reparaciones needed due to undisclosed conditions

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Calculate Daños

Calculate your potential recuperación from dealer fraude:

Purchase Price $25,000
Less: Actual Value (with issues) -$12,000
Overpayment (Actual Daños) $13,000
CLRA Treble Daños (3x) $39,000
Reparación Costs $3,500
Total Potential Recuperación $42,500+
Rescisión (Return the Vehicle)

You can demand to rescind (cancel) the transaction:

  • Return the vehicle to the dealer
  • Get back full purchase price
  • Loan should be cancelled
  • Recover sales tax, registration, and other fees
  • Recover incidental costs (seguro, reparaciones, etc.)
Benefit of the Bargain Daños

If you keep the vehicle, puede recuperar:

  • Difference between price paid and actual value
  • Cost of undisclosed reparaciones needed
  • Diminished value due to damage history
  • Additional interest paid on inflated loan amount
Treble (Triple) Daños Under CLRA

If the dealer's conduct was willful:

  • Tribunal can award up to 3x actual daños
  • "Willful" means intentional deception, not mere negligencia
  • Pattern of similar conduct helps prove willfulness
  • Dealer's knowledge of defecto is key evidencia
Odometer Fraude Daños

Under federal and state odometer laws:

  • 3x actual daños OR $10,000, whichever is greater
  • Abogado's fees and costs
  • Punitive daños possible in California
  • Can pursue both dealer and prior rollback source
Honorarios de Abogado: Under the CLRA and Odometer Act, prevailing consumers recover their abogado's fees. This makes it economical to hire an abogado even for moderate claims, as the dealer pays the legal costs.
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Texto Modelo

Use this template language for your dealer fraude carta de demanda:

CLRA Carta de Demanda (Required Before Demanda Judicial)
[Your Name] [Your Address] [City, State ZIP] [Phone Number] [Email] [Date] VÍA CORREO CERTIFICADO CON ACUSE DE RECIBO [Dealer Name] [Dealer Address] [City, State ZIP] Re: Demand for Rescisión/Daños - Vehicle Fraude Vehicle: [Year Make Model] VIN: [VIN Number] Purchase Date: [Date] Stock No.: [If known] Dear [Dealer Name]: NOTICE UNDER CALIFORNIA código civil SECTION 1782 This letter constitutes the notice required by código civil Section 1782(a) antes de filing suit under the Consumer Legal Remedies Act (código civil Sections 1750 et seq.). This letter is also demand for relief under California Vehicle Code Section 11713 and the Federal Odometer Act (49 U.S.C. 32701 et seq.). FACTS On [Purchase Date], I purchased the above-referenced vehicle from your dealership for a total price of $[Amount]. Your salesperson, [Name], represented that: [List all representations made - e.g.:] 1. The vehicle had never been in an accident 2. The odometer reading of [XXX,XXX] miles was accurate 3. The vehicle had a clean title with no salvage or other brands 4. The vehicle was in excellent mechanical condition 5. [Other representations] FRAUD DISCOVERED On or about [Discovery Date], I discovered these representations were false: [Detail the fraude - e.g.:] 1. A Carfax report reveals the vehicle was in a major collision on [Date] with $[Amount] in damage 2. Service records show the vehicle had [higher mileage] on [earlier date] 3. The vehicle has a branded title due to [salvage/flood/ley limón buyback] 4. A mechanic inspección revealed [undisclosed damage or defects] VIOLATIONS OF LAW Su conducta viola: 1. Vehicle Code Section 11713 (false statements by dealer) 2. código civil Section 1770(a)(5) (misrepresenting vehicle characteristics) 3. código civil Section 1770(a)(7) (representing goods are of a particular quality when they are not) 4. código civil Section 1770(a)(9) (advertising goods with intent not to sell as advertised) 5. 49 U.S.C. 32703 (odometer tampering) [if applicable] 6. Business & Professions Code Section 17200 (prácticas comerciales desleales) DAMAGES As a result of your fraude, I have suffered the following daños: - Overpayment for vehicle: $[Amount] - Cost of reparaciones for undisclosed damage: $[Amount] - Diminished value: $[Amount] - Incidental expenses: $[Amount] - TOTAL daños reales: $[Amount] DEMANDA de conformidad con código civil Section 1782, I demand that within thirty (30) days you: OPTION 1 - RESCISSION: 1. Accept return of the vehicle 2. Reembolso the full purchase price of $[Amount] 3. Pay off or cancel the financing with [Lender Name] 4. Reembolso sales tax, registration, and document fees of $[Amount] 5. Reimburse my incidental costs of $[Amount] OR OPTION 2 - DAMAGES: 1. Pay actual daños of $[Amount] 2. Pay additional daños as appropriate under applicable law CONSEQUENCES OF FAILURE TO CURE If you fail to remedy this situation dentro de 30 días, I will file suit seeking: - Rescisión or actual daños - Treble daños under the CLRA for willful violación - Punitive daños - Abogado's fees and costs - Any other relief the tribunal deems appropriate I am also prepared to file demandas with: - California Department of Motor Vehicles - California Abogado General Protección al Consumidor Division - Federal Trade Commission Please respond in writing dentro de 30 días. Atentamente, [Your Signature] [Your Printed Name] Anexos: - Vehicle History Report - [List other evidencia] cc: [Abogado, if retained]
Odometer Fraude Carta de Demanda
[Your Name] [Your Address] [Date] VIA correo certificado [Dealer Name] [Address] Re: Federal Odometer Act Violación Vehicle: [Year Make Model], VIN: [VIN] Dear [Dealer]: DEMANDA UNDER FEDERAL ODOMETER ACT (49 U.S.C. 32701-32711) On [Date], I purchased the above vehicle from your dealership. At the time of sale, the odometer read [XXX,XXX] miles, and you provided an Odometer Disclosure Statement certifying this mileage. ODOMETER FRAUD DISCOVERED I have discovered that this odometer reading was false: [Provide evidencia - e.g.:] 1. Service records from [Source] dated [Date] show mileage of [Higher Amount] 2. Carfax/AutoCheck reports show mileage inconsistency on [Date] 3. Mechanical inspección reveals wear inconsistent with stated mileage This constitutes a violación of 49 U.S.C. 32703, which prohibits odometer tampering and false disclosure. DAMAGES Under 49 U.S.C. 32710, I am entitled to recover: - THREE TIMES actual daños, OR $10,000, whichever is greater - Reasonable abogado's fees and costs Actual daños for odometer fraude = (Represented mileage value) - (Actual mileage value) Using standard per-mile depreciation: $[Amount] actual daños Treble daños (minimum $10,000): $[Amount] DEMANDA I demand payment of $[Amount] dentro de 30 días to resolve this matter without litigio. If payment is not received, I will file suit in [tribunal], seeking treble daños, abogado's fees, costs, and any other available relief. Atentamente, [Your Name]
Yo-Yo Financing Response
[Your Name] [Your Address] [Date] [Dealer Name] [Address] Re: Rejection of Demand for Vehicle Return Vehicle: [Year Make Model], VIN: [VIN] Contract Date: [Date] Dear [Dealer]: I am in receipt of your letter dated [Date] demanding that I either return the vehicle or sign a new contract with different financing terms. I reject this demand. BINDING CONTRACT EXISTS On [Date], I purchased the above vehicle and signed a Retail Installment Sales Contract. I provided a down payment of $[Amount], took possession of the vehicle, and have been making payments. This contract is binding. YOUR OPTIONS WERE CLEAR The contract states that financing is "subject to approval." However: 1. You allowed me to take delivery of the vehicle 2. You accepted my trade-in and down payment 3. You registered the vehicle in my name 4. [Number] days have passed since the sale Under California código civil Section 2983.35 and established case law, you cannot unilaterally cancel a completed sale merely because you were unable to assign the contract to a third party. ILLEGAL CONDUCT Your demand constitutes: 1. Violación of Vehicle Code 11713.1(e) - making buyer responsible for dealer's financing failure 2. Violación of CLRA - unfair and deceptive business practice 3. Potential theft/conversion if you repossess DEMANDA Le exijo que: 1. Cease all demands for the vehicle's return 2. Cease all threats of repossession 3. Honor the original contract terms 4. Confirm in writing that the sale is final If you attempt to repossess this vehicle, I will immediately contact law enforcement and file suit for: - Conversion/theft - CLRA violacións - Intentional infliction of angustia emocional - Punitive daños The vehicle will not be returned. Honor your contract. Atentamente, [Your Name] cc: California Department of Motor Vehicles [Abogado]

Próximos Pasos

After discovering dealer fraude, take these steps:

1. Gather and Preserve Evidencia

Document everything immediately:

  • Order Carfax, AutoCheck, and NMVTIS reports
  • Get an independent mechanic inspección
  • Preserve all paperwork, texts, and emails
  • Screenshot all online listings
  • Take photos/video of vehicle condition
2. Enviar CLRA Carta de Demanda

This is a required step before filing a CLRA demanda judicial:

  • Enviar via correo certificado with acuse de recibo
  • Keep a copy for your records
  • Wait at least 30 días for response
  • If dealer offers to cure, evaluate carefully before accepting
3. File Demandas

Report the dealer to regulatory agencies:

  • DMV: File demanda online at dmv.ca.gov against dealer license
  • Abogado General: File demanda with Protección al Consumidor Division
  • FTC: Report at reportfraud.ftc.gov
  • BBB: File demanda (less effective but public)
4. Consult an Abogado

Consider hiring a protección al consumidor abogado:

  • Many work on contingency (no upfront cost)
  • Abogado's fees recoverable under CLRA if you win
  • Experienced abogados know dealer tactics
  • Most offer paid consultations
5. File Demanda Judicial if Necessary

If the dealer doesn't resolve the matter:

  • Small Claims: Up to $10,000 (no abogados allowed)
  • Limited Civil: $10,001-$25,000
  • Unlimited Civil: Over $25,000
  • File in county where you bought the vehicle or where dealer is located
Don't Delay: The prescripción is strict. CLRA claims must be filed within 3 años. Odometer claims within 2 años (or 1 año(s) desde discovery). Act promptly to protect sus derechos.

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