Auto Fraud

Auto fraud encompasses a wide-array of fraudulent, illegal and deceptive acts and practices, such as auto dealer sales misrepresentations, bait-and-switch schemes, spot-delivery scams, odometer rollbacks, loan packing and forgery, to name just a few.

ivan hannibal, attorney at law

Wisconsin has several different laws that protect consumers from unscrupulous auto dealers that lie, cheat and steal to make a sale.  Some of those laws pertain to written disclosures auto dealers must make to consumers prior to selling a vehicle, while some relate to auto dealer advertising and sales representations.  Other laws govern both required and prohibited terms in vehicle sales and loan documents.

Wisconsin law requires auto dealers to disclose a vehicle’s use history and condition.  A vehicle’s use history includes use as a rental vehicle, lease vehicle, business vehicle and fleet vehicle, among other things.  A vehicle’s condition includes conditions such as salvaged, flood damaged and lemon buyback, among other things.

Wisconsin law specifically prohibits an auto dealer from using any false, deceptive or misleading advertising or representations—including face-to-face representations—to induce a consumer to purchase a motor vehicle.

If you believe that you have been defrauded or misled by a car dealership or other auto-related business, call the Auto Justice Law Office for a free phone consultation to discuss your legal rights and options.  A customer who prevails on an auto fraud claim is entitled to recover damages as well as costs and attorney fees.

Types of auto fraud

Auto Sales Fraud

  • Misrepresentations regarding a vehicle’s use history or condition
    • Misrepresentations regarding a vehicle’s use history include a dealer’s failure to disclose, among other things, that the vehicle was previously used as any of the following:
      • Rental vehicle
      • Lease vehicle
      • Business vehicle
      • Fleet vehicle
      • Taxicab or other public transportation such as Uber or Lyft
      • Police vehicle
      • Government or driver-education vehicle
    • Misrepresentations regarding a vehicle’s condition include a dealer’s failure to disclose, among other things, that the vehicle was any of the following:
      • Salvaged
      • Flood damaged
      • Lemon buyback
      • Transferred to an insurer as a result of an accident
  • Trade-in fraud
  • Advertising bait-and-switch schemes
  • Odometer rollbacks

Auto Financing Fraud

  • Yo-yo financing fraud, bushing, spot delivery scams and de-horsing schemes
  • Falsification, forgery or backdating of credit applications, sales documents or financing documents
  • Loan packing
  • Undisclosed financing fees

Unwanted or Undisclosed Add-ons, Options or Accessories

  • Extended service contracts
  • Rust proofing
  • Gap insurance