What is considered auto fraud in California?

Auto fraud includes odometer rollback, failure to disclose prior accidents or damage, selling salvage/flood vehicles without disclosure, yo-yo financing scams, hidden fees, false advertising, failing to disclose rental or fleet use, and misrepresenting vehicle condition.

Can I return a car if the dealer lied to me in California?

You may be entitled to rescission (unwinding the sale) if the dealer made fraudulent misrepresentations or concealed material facts. Unlike a normal buyer's remorse situation, fraud can void the contract and require the dealer to take the car back and refund your money.

Do I Need a Lawyer for Auto Fraud in California?

Q: Do I need a lawyer for auto fraud in California?

Yes, for significant fraud. California's Consumer Legal Remedies Act (CLRA) and Auto Fraud statutes provide for rescission, damages, and attorney fees. An auto fraud attorney typically works on contingency and can recover your losses plus penalties.

Auto Fraud in California

Auto fraud is one of the most common consumer complaints in California. State and federal laws provide strong protections for car buyers who have been deceived, including the right to rescind the sale and recover damages.

Common Types of Auto Fraud

Type of Fraud	What It Involves
Odometer Rollback	Tampering with mileage to show fewer miles; federal felony
Undisclosed Damage	Hiding prior accidents, frame damage, flood damage
Title Washing	Concealing salvage, flood, or rebuilt title status
Yo-Yo Financing	Calling buyer back claiming financing "fell through" to get worse terms
Packed Payments	Adding hidden products to inflate monthly payment
Bait and Switch	Advertising one price, charging another

California Laws Protecting Car Buyers

Consumer Legal Remedies Act (CLRA): Prohibits deceptive practices, allows actual damages plus attorney fees
Unfair Competition Law (UCL): Broad prohibition on unfair business practices
Automobile Sales Finance Act: Regulates dealer financing practices
Vehicle Code 11713: Prohibited dealer practices, DMV can suspend license
Federal Odometer Act: Makes odometer tampering a federal crime with treble damages

Damages Available

Rescission: Undo the sale, return car, get full refund
Actual damages: Difference between what you paid and true value
Consequential damages: Repair costs, rental cars, lost wages
Statutory damages: Under federal Odometer Act, treble damages or $10,000 minimum
Punitive damages: For intentional fraud or malice
Attorney fees: Recoverable under CLRA and other statutes

Red Flags When Buying Used Cars

Price significantly below market value
Dealer won't provide vehicle history report
Inconsistent wear patterns (low miles but worn pedals/seats)
Fresh paint or body work
Mismatched VIN stickers
Water stains, musty smell, or rust in unusual places
Pressure to sign quickly without inspection
Title from another state (potential title washing)

Steps to Take

Get a Carfax or AutoCheck report
Have an independent mechanic inspect the vehicle
Gather all purchase documents, ads, and communications
Send a written demand letter to the dealer
File complaints with DMV and Attorney General
Consult with an auto fraud attorney

Where to File Complaints

California DMV - Dealer Complaints
California Attorney General
Better Business Bureau
County District Attorney (for criminal prosecution)

Private Seller vs. Dealer

Dealers are subject to extensive regulations and consumer protection laws. You have strong legal remedies against fraudulent dealers.

Private sellers have fewer legal obligations. "As-is" sales are more enforceable, but outright fraud (lying about known defects) is still actionable.

Statute of Limitations

CLRA claims: 3 years from discovery
Fraud claims: 3 years from discovery
Federal Odometer Act: 2 years from discovery
Contract claims: 4 years

Why You Need an Attorney

Most work on contingency (no upfront cost)
Attorney fees recoverable under CLRA
Complex law requiring expertise
Dealers often have aggressive defense
Maximize damages and remedies

Do I Need an Auto Fraud Lawyer?

What type of fraud do you suspect?

How much did you pay for the vehicle?

Who did you buy the vehicle from?

What evidence do you have of the fraud?

When did you purchase the vehicle?

Have you contacted the dealer about the issue?

You Should Consult an Auto Fraud Attorney

Try Resolving Directly First

Consider a Consultation

Auto Fraud in California

Common Types of Auto Fraud

California Laws Protecting Car Buyers

Damages Available

Red Flags When Buying Used Cars

Steps to Take

Where to File Complaints

Private Seller vs. Dealer

Statute of Limitations

Why You Need an Attorney

Resources

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