Nowadays, most car buyers start their search online. Auto dealers advertise vehicles on their websites, third-party platforms and social media, often highlighting special deals, low prices and impressive vehicle features. While online listings can be a convenient way to compare options, not all dealers are honest in their advertisements.
Far too often, misleading claims, hidden fees and deceptive sales tactics can leave buyers feeling cheated and financially burdened. As a result, if you’re in the market for a car, it’s important to know how to spot potential fraud and protect yourself from dishonest dealerships.
Common online scams and misinformation
Many auto dealers use online advertising to attract customers, but some rely on misleading or outright fraudulent practices to make a sale. Here are a few common tactics to watch for:
- Bait-and-Switch Advertising: A dealer may advertise a car at an attractive price to lure buyers in, only to claim that the vehicle has already been sold or that additional fees apply. They then pressure buyers into purchasing a more expensive model.
- False Vehicle Descriptions: Some dealers misrepresent a vehicle’s condition, mileage or accident history. A car listed as “certified pre-owned” or “one-owner” may have hidden damage or a questionable past.
- Undisclosed Fees: Many online listings display low prices but fail to mention hidden charges, such as inflated documentation fees, add-ons or dealer prep fees, which significantly increase the final price.
- Title Washing: Some unscrupulous dealers attempt to hide a car’s salvage history by moving the title between states with different reporting requirements, making it appear as though the vehicle has a clean history.
- Fake Online Reviews: Some dealerships manipulate their online reputation by posting fake positive reviews or paying for deceptive testimonials to mislead potential buyers.
While there are reputable auto dealers with whom one can do business, buyers should always take precautions to avoid becoming victims of fraud:
- Verify Vehicle History: Always check a car’s history report through services like Carfax or AutoCheck to confirm accident records, previous ownership and title status.
- Request Everything in Writing: Verify that the final price, warranties and any dealer promises are documented before signing any agreements.
- Read the Fine Print: Be cautious of financing offers or extended warranties that may contain hidden fees or unfavorable terms.
- Get an Independent Inspection: If possible, have a trusted mechanic inspect the car before purchasing to confirm its condition.
- Research the Dealer: Look up complaints with the Better Business Bureau (BBB) and read customer reviews from multiple sources to get a full picture of the dealership’s reputation.
With all this being said, fraud can affect even the most conscientious consumers. If you’ve already been misled or defrauded by an auto dealer, you may have legal options. Seeking legal guidance is wise.