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Examples of auto dealer fraud in North Carolina


When a Fayetteville area resident goes to buy a car, it is often a long and involved process that can also be stressful. A person may be wondering if they are actually receiving a good deal on the car or if they are losing          money on the purchase. Car dealerships can be a place where fraud can easily occur. There are several ways in which consumers can be victims of auto dealer fraud in NC.

There are many ways in which a person can be the victim of an auto dealer fraud in North Carolina. These include:

  • Financing fraud. This occurs when a dealership incorrectly calculates a credit score, incorrectly uses a credit score, inflates prices for credit customers, uses illegal conditional delivery agreements, or engages in packing schemes.
  • Undisclosed vehicle history. This happens when a dealer sells a car without disclosing its previous history.
  • Loan packing. Loan packing is when a dealer adds unwanted products to bump up the monthly payment.
  • Odometer fraud. A common practice where a seller sets the odometer back to a lower and easier to sell number.
  • Title fraud. This can happen when there is a failure to disclose that a vehicle was a previous rental car or was a lemon.
  • Backdating contracts. A dealer may change the date of the contract to force the consumer to pay interest for a time when the contract wasn’t in effect.

There are many fraudulent schemes in which a consumer can fall victim. A legal professional who is skilled in consumer law can help someone who thinks they are a victim to car sales fraud. They understand that car sales fall under both state and federal laws and that a consumer can easily fall victim to deceptive practices. They can help their client understand their rights when it comes to fraudulent car sales.