Auto Dealership Fraud

The truth is, there are many different F Words, but the one I want to shine a light on today is fraud—specifically, auto dealership fraud.

If you’ve ever bought a car from a dealership, you’ve probably felt it: that sense that something just isn’t adding up—but you can’t quite put your finger on it. That feeling? It’s your intuition sounding the alarm. In the world of car buying, your gut might be the most powerful fraud detector you have.

💼 A Personal Wake-Up Call

When I bought my last car, I came prepared: research, screenshots, and the advertised price in hand. But suddenly, a $1,000 “Pre-Delivery Service Fee” showed up on the final paperwork.

The salesman tried to spin it like a favor—waiving it to make me feel like I was getting a deal. But it wasn’t a discount. It was a deceptive fee they never mentioned upfront. When I challenged it, they brought in a “finance manager” to smooth it over.

That’s when I realized: when you start asking questions, they bring in backup to derail your clarity. That moment of clarity? That’s your truth. Trust it.

🧠 Did You Know?

According to the FTC, shady dealership practices are among the most frequently reported auto-related consumer complaints. From fake fees to falsified financing terms, these scams cost Americans billions each year.

🛑 Common Types of Auto Dealership Fraud

• 🚗 Non-disclosure of previous accidents or damage: Vehicles may have hidden histories like frame damage or salvage titles.
• 🔁 Bait and switch: They advertise a low price, then push you toward a more expensive option.
• 🔢 Odometer fraud: Rolling back mileage to increase a car’s perceived value.
• 📄 Title washing: Disguising flood or salvage titles as clean ones.
• 🧾 Junk fees: Unnecessary charges snuck into the paperwork.
• 🛡 Unnecessary add-ons: Sneaking in warranties or service packages you didn’t agree to.
• 🪝 Yo-Yo Financing: Approving financing, then pulling it and pressuring a higher rate.
• 🎖 Military scams: Targeting service members with deceptive deals.

📊 A Nationwide Problem
A new FTC rule—“Combating Auto Retail Scams (CARS)”—was slated to take effect in July 2024, targeting deceptive dealership tactics like bait-and-switch advertising and junk fees. However, due to legal challenges, its implementation is now delayed until 2025. That means consumers are still vulnerable, making awareness more critical than ever.
🔗 Source: FTC CARS Rule Announcement

🤔 Common Dealership Tricks to Watch For

• 📝 No prices on vehicles. They steer the conversation toward what you can afford monthly to distract from the total price.
• ⏳ Drawn-out sales process. They keep you waiting for hours to wear you down.
• 💸 Hidden fees. Things like $1,000–$2,000 “service fees” with no clear purpose.
• 📊 Manipulated financing. Even with pre-approval, they rerun your credit and offer inflated rates.
• 🛋 Bundled add-ons. GAP, warranties, and fluff packages sneak into your loan.
• 🚫 Payment over price. They mask inflated prices with seemingly low monthly payments.

🚀 How to Protect Yourself

• 📄 Get the out-the-door price in writing before you step on the lot.
• 📷 Take screenshots of online listings.
• 📖 Demand a line-by-line breakdown. Don’t accept vague lump sums.
• 😏 Trust your gut. That uneasy feeling? Listen to it.
• 🚪 Walk away if needed. That’s your greatest leverage.

🚗 Pro Tip: Cash is Leverage

When you come with your own financing or cash, you hold the power. If they’re not handling your loan, they have fewer tricks up their sleeve. They can’t slip in extra interest, change the terms, or bury fees inside a loan you can’t fully trace.

With your numbers and confidence in hand, you can:

👊 Negotiate from strength
🏋️ Refuse unnecessary add-ons
🚫 Say no to pressure

🤯 Dealership Fraud Doesn’t Always Look Like a Scam

Sometimes it sounds like:
“Let me talk to my manager and see what I can do for you.”

But you’re smarter than that.

💛 Know your worth.
🌟 Trust your gut.
💼 And don’t let anyone sell you more than you came for.

📲 Learn. Question. Walk if needed. The truth is, silence protects the scam—your voice ends it.

---

🚫 Have a Dealership Story to Share?

📧 Share it at tips@thetruthaboutthefword.com to help shine a light on fraud hiding in plain sight.