Some car dealers are honest and some are not. The dishonest car dealers have many ways to cheat. Here are some of the most common types of used car auto fraud:

• Selling previously seriously wrecked cars
  
  The dealer must disclose the fact that the car had been in a serious accident.
  
  
• Selling unsafe cars
  
  It is illegal to sell an unsafe car, such as one with bald tires or defective steering.
  
  
• Selling prior rental cars with no disclosure
  
  Dealers must disclose that the car was previously a rental.
  
  
• Selling defective cars as certified used cars
  
  Dealer and manufacturer’s certifications mean the car is free of defects. If it is not, the buyer has remedies under the Consumer Legal Remedies Act and other laws.
  
  
• Conducting the sales transaction in a foreign language without providing a contract in that language.
  
  Dealers must provide a translated contract if the sale negotiations were conducted primarily in Spanish, Chinese, Tagalog, Vietnamese, or Korean.
  
  

If you believe you were the victim of any of these practices, please call Mark F Anderson at 415.651.1951 for a free consultation.

What about arbitration? Dealer contracts often include an arbitration clause in the fine print on the reverse of the contract. When sued, dealers in the past have forced the buyer to have an arbitrator decide the dispute. The arbitration process is typically a bad deal for the buyer. However, the good news is that in November 2011, the California Court of Appeal in Sanchez v Valencia Holding Company, LLC (2011) 201 Cal App 4th 74 held that the arbitration clause used by 99% of California car dealers is unconscionable and unenforceable.

Selling previously wrecked cars: Previously wrecked cars are sometimes repaired properly and sometimes they are not. The worst scenario is a car with repairs that leave it unsafe to drive. For example, the car may pull to one side or the other due to defective steering components. The car may have a bent frame. Buyers who suspect the car was previously wrecked should take the car to body shop for a safety inspection. Ask for a written report and digital pictures. Get reports from www.carfax.com and www.autocheck.com to see if there is a report of a previous accident.

Selling unsafe cars: Dealers may not sell cars that are unsafe. Tires must have legal tread left and must be in sound condition. The wheels must be sound and the right fit for the car.

Selling rental cars without disclosure. California dealers must disclose to the buyer in writing if a car had been a rental car. Failure to do so is basis to unwind the sale.

Selling defective cars as certified used cars. The California Cars Buyers Bill of Rights, Vehicle Code § 11713.18 makes it illegal to sell a vehicle as a certified used vehicle if the odometer has been rolled back, if it was repurchased as a lemon vehicle, in a flood, if it has frame damage, or it was damaged and not properly repaired leaving it unsafe. In addition, the California Consumer Legal Remedies Act makes it illegal for a dealer to certify a vehicle is free of defects when it is not. The Act carries with it the right to unwind the dealer, get damages, attorney’s fees and punitive damages.

Conducting the sales transaction in a foreign language without providing a contract in that language. California Civil Code § 1632 requires dealers that conduct the sales negotiation primarily in a foreign language to provide a copy of purchase contract in that language. Failure to do so is a ground to undo the sale.