What Is Used Car Fraud?

Even if you bought a used vehicle, you still have rights in California. If the vehicle is fairly new, its original manufacturer's warranty may still apply and will allow you to bring a lemon law claim. If the vehicle came with a dealer's warranty, you can also bring a claim that the warranty has been violated. If the vehicle came with no warranty -- that is, if it was sold "as is" -- or with a service contract, you may still be able to bring a claim for used car fraud. Used car fraud is forbidden by the California Consumer Legal Remedies Act, which prohibits used-vehicle dealers and most other retailers in California from using unfair and deceptive business practices to sell their goods. That means dealers may not lie to or mislead customers. They are also legally obligated to disclose any material defect in the car, which includes a past wreck or a former life as a rental. If you ask a question, dealers must tell the truth, even if the truth is that they don't know the answer. If ...  more