At Norris Law Firm, PLLC, we fight for clients who have been victimized by NC auto dealer fraud and other deceptive auto sales practices. The sale of an automobile touches on a wide range of federal and state consumer protection laws. When dealers violate those laws, consumers have the right to undo the purchase, get their money back, or sue for damages.
NC auto dealer fraud covers a broad area. Car dealers sell vehicles every day. Most consumers buy a car only once every few years. As a result, the cards can seem stacked against the consumer. If a dealer deceived you in connection with the purchase, finance, or lease of your vehicle, you may have legal recourse. Contact us today for a free case review.
Types of NC Auto Dealer Fraud
Many different actors perpetrate auto fraud — including car dealers, manufacturers, insurance companies, extended warranty providers, and automotive finance companies. Below are the most common warning signs. Not all of these items necessarily constitute fraud. However, they all signal potential misconduct worth investigating.
Spot Delivery Sales This type of NC auto dealer fraud occurs when a dealer manipulates a buyer into believing financing has been approved at an agreed interest rate.
Financing Fraud Common variations include incorrectly calculating credit scores, deferred down payments, negative equity manipulation, unlawfully inflating sale prices for credit customers, illegal use of conditional delivery agreements, and loan packing schemes.
Undisclosed Damage or Mechanical Problems Dealers cannot legally conceal prior accidents, lemon law buyback history, rental returns, or salvage titles. NC auto fraud law prohibits dealers from deliberately misleading consumers. Ask directly whether the vehicle was in an accident. The dealer must tell you the truth.
Undisclosed Vehicle History Selling a vehicle without disclosing its previous history violates the law. Failure to make certain financial disclosures in auto leasing also violates the law.
Odometer Fraud This involves rolling back the odometer to show a lower, more attractive mileage figure.
Title Fraud Title fraud often accompanies other schemes — such as failure to disclose a prior rental history or a manufacturer lemon law buyback.
Backdating Contracts This forces the customer to pay interest for a period when the contract was not yet in effect.
Price Manipulation This occurs when a dealer inflates the advertised price to include optional items without disclosure.
Bait and Switch Sales A dealer switches the price, vehicle year, make, model, or finance terms of an agreed upon or advertised vehicle — including switching from a sale to a lease without clear disclosure.
Fake Contests or Specials Dealers sometimes use fake promotions to draw in buyers and then alter the terms at the dealership.
Trade-In Fraud This includes prematurely selling a trade-in, failure to properly value or credit the trade-in, or burying a trade-in’s negative equity into the new purchase price without disclosure.
What You Can Do About NC Auto Dealer Fraud
You can take active steps to protect yourself before signing anything. However, if a dealer has already taken advantage of you, we are here to help. Under North Carolina’s Unfair and Deceptive Trade Practices Act, victims of auto dealer fraud may recover treble damages — three times their actual damages — plus attorney’s fees.
We understand NC auto dealer fraud. We fight aggressively for victims of these schemes. Read our case results to see what we have won for NC consumers. Then contact us or call 919.981.4475 for a free case review today.
