Difference Between Lemon Law and Auto Dealer Fraud Cases

Difference Between Lemon Law and Auto Dealer Fraud Cases

California consumers are protected by two strongly regulated laws for defective vehicles and deceptive practices that can occur during any stage of the car buying process. The difference between lemon law and auto dealer fraud cases is simple; the California Lemon Law deals with defective or faulty cars and auto dealer fraud occurs when a car manufacturer or dealer gives you false information about the vehicle or financing to push you into signing a contract based on false information.

Here Are the Rules

The California Lemon Law, California Civil Code § 1793.2 et seq., works by protecting the vehicle buyer by ensuring the manufacturer's warranty, dealer warranty and/or extended warranty is enforced. The Consumer Legal Remedies Act (CLRA), California Civil Code §§ 1750 et seq., is in place to protect consumers from fraud and misleading practices committed by the car dealer or vehicle manufacturer during advertising, negotiations and after the finalized sale of any motorized vehicle in the state of California.

Protection from a California Lemon Law Attorney

California Lemon Law Attorney James Johnson and his team of Lemon Law Advocates are committed to protecting you from Auto Dealer Fraud and defending your rights under the powerful California Lemon Law. Seek experienced legal representation if you have purchased a vehicle with existing defects that violate the warranty or if you were misled about the condition of the vehicle or the financing terms. Call our Lemon Law Advocates at 877-787-1120 for your free case review today.

Do You Qualify for a California Lemon Law Case?

In the state of California, all vehicles sold with a dealership, factory or extended warranty are covered by the Lemon Law. Also known as the Song-Beverly Consumer Warranty Act (CWA), the lemon law offers broad and powerful protection for new vehicle buyers, lessees and those purchasing certified pre-owned vehicles. An experienced California Lemon Law advocate will help you exchange your vehicle for a replacement and recover costs for repairs and associated expenses from the cancellation or rescission of the sales contract if you have purchased a faulty or malfunctioning vehicle with any of the following defects:

  • An Unrepairable Vehicle Defect - Any vehicle that cannot be repaired with a 'reasonable number of attempts', which is defined by the California Lemon Law as 4 or more times or 2 or more times if the vehicle's defect is likely to cause injury or death.
  • A Vehicle Posing a Safety Hazard - Buyers qualify for protection when the defective vehicle poses a safety hazard to the driver or others.
  • An Inoperable Vehicle - If your vehicle remains inoperable due to a defect that is covered in the factory warranty for at least 30 days, within a years time.

Common Auto Dealer Fraud Scams in California

The California Consumers Legal Remedies Act (CLRA) declares acts of deception or methods of unfair competition in a transaction resulting in the lease or sale of a motorized vehicle to be unlawful. You are protected from Auto Dealer Fraud if you were taken advantage of or mislead during any phase of the buying process. Auto Dealer Fraud includes deceptive advertising, unclear financing terms and misleading negotiations used to take advantage of or scam the buyer. Here are the most common forms of Auto Dealer Fraud Scams:

  • Mileage Tampering - Tampering with any vehicle’s odometer is unlawful. Car dealerships have been known to roll back a vehicle's odometer to conceal the actual mileage.
  • Packing - This unlawful practice is when the dealer presents an inflated monthly payment within the terms of the financing contract. The dealer then takes advantage of the inflation by taking on additional 'optional' accessories, but only after the buyer accepts the original terms.
  • Yo-Yo Financing - When a buyer does not qualify for financing within terms they can afford, a dealership may falsify facts to make the buyer think they are getting what they want and later tell the buyer that he or she did not actually qualify for the loan after all. The scam occurs when the dealer tells them to return to sign a new contract with new terms that may include a higher interest rate or higher monthly payment.
  • Bait & Switch - This form of deceptive advertising happens when a dealership advertises a particular vehicle at a certain price, but when a potential buyer comes in for the offer, the dealer claims the advertised vehicle is no longer available. This scam occurs when the dealer will not honor the advertised 'special' and then pushes a buyer into a different vehicle at a higher price.

Contact an Advocate for Your California Lemon Law or Auto Dealer Fraud Case

If your vehicle is defective or you feel you've been taken advantage of during the purchasing process, the experienced California Lemon Law Attorneys will help you resolve your dealer fraud case or California Lemon Law case within 2-6 months. Our hands-on legal expertise will ensure you recover the maximum compensation you deserve, including attorney's fees, so you won't pay anything up front. Contact us today for your free case review or give us a call at 877-787-1120 to learn about your legal options. We successfully recovered millions of dollars for our Lemon Law clients in California and have the resources and experience to help you win your Lemon Law Case or Auto Dealer Fraud Case.

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