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Automotive Fraud, Dealer Fraud and Repair Fraud

In California, Dealership Fraud and Repair Fraud are so common that many employees in the automotive business may not even know that their exaggerations or omissions are illegal. Whether intentional or simply through negligence, The California Civil Code protects Auto Buyer's from being misled.

Repair and Dealer Fraud in California applies to all vehicles and transactions and is defined by the Civil Code as follows:

Yo-Yo Sale, Spot Delivery Fraud and Conditional Delivery Scams

Auto Contract Fraud

Yo-Yo Sales, Spot Delivery Fraud and Conditional Delivery Scams are one of the most widespread abuses in the automotive industry. This sophisticated form of fraud applies to both leased and purchased vehicles that are being sold as either new or used and is very difficult for most consumers to recognize that they are being defrauded. Yo-Yo Sales, Spot Delivery Fraud and Conditional Delivery Scams always require the buyer signing a second loan or lease agreement.

Negotiating in a Foreign Language Contract Fraud

foreign-Language Contract Fraud

If a dealership, either orally or in writing, negotiates the sale or lease of a vehicle to a consumer in the Spanish, Chinese, Korean, Tagalog or the Vietnamese language, then the dealership must give that consumer a translation of the Buyer's Guide and the vehicle's final contract in the language that the sale was primarily negotiated in prior to presenting the buyer with a final contract for the sale or lease to sign.

California Lemon Law

The California Lemon Law (Song-Beverly Consumer Warranty Act) protects consumers from being stuck with a defective vehicle if, under the original warranty, a manufacturer extended warranty (Certified Vehicles,) or a dealer warranty, the manufacturer or dealership cannot repair a defect or malfunction that substantially affects the vehicle's use, value or safety within a reasonable number of repair attempts.

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