Common dealer schemes
- Hidden history. The dealer doesn’t tell you the car was in a serious wreck, had frame or flood damage, or has a salvage or rebuilt title.
- Odometer fraud. The mileage was rolled back or misstated.
- “Yo-yo” financing. Days or weeks after you drive away, the dealer calls to say your financing “fell through” and pressures you to sign a new contract with a higher rate or a bigger down payment.
- Add-ons and payment packing. Extended warranties, GAP coverage or other products are slipped into the deal without your clear agreement.
- Misrepresented terms. The interest rate, payment or trade-in terms aren’t what you were promised, or the dealer never paid off your trade-in loan.
Laws that protect car buyers
Washington Consumer Protection Act
Prohibits unfair and deceptive business practices. A consumer who wins can recover actual damages and attorney’s fees, and the court may increase the damages up to three times, to a maximum of $25,000.
Washington’s dealer practices law (RCW 46.70)
Licenses vehicle dealers and lists specific unfair practices, including changing the terms of a deal after you take delivery (sometimes called “bushing”). A violation is also a violation of the Consumer Protection Act.
Federal Odometer Act
Someone who violates the Act with intent to defraud is liable for three times your actual damages or $10,000, whichever is greater, plus attorney’s fees.
Truth in Lending Act and the FTC “Holder Rule”
The Truth in Lending Act requires accurate disclosure of your financing terms. Under the FTC’s Holder Rule, most consumer car-finance contracts let you raise claims against the dealer against the bank or finance company that bought your contract, up to the amount you have paid.
What to do now
- Keep everything: the buyer’s order, the retail installment contract, ads, window stickers, vehicle history reports, texts and emails.
- Don’t sign new paperwork under pressure, especially if the dealer says your financing “fell through.”
- Don’t simply stop making payments without advice. That can lead to repossession and damage your credit.
- Have the car inspected by an independent mechanic and get the findings in writing.
- Contact us for a free case evaluation.