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:
2981.As used in this chapter,unless the context otherwise requires:
If a vehicle was repurchased under the California Lemon Law for a defect by either the vehicle's manufacturer or dealer, then the Vehicle's Manufacturer is required to brand that Vehicle's Title as a "Lemon Law Buyback" and to affix a "Lemon Law Buyback" decal to the vehicle.
Rewritten contract and backdating fraud happens when a dealership has you sign a new retail installment sale contract or lease, but dates that “new” contract back to the date of the original deal. This isn’t just sloppy paperwork – it can create hidden finance charges, the wrong APR, and misleading disclosures about what you’re really paying for the vehicle under California 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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