The Dealership Cheated Me and is Now Out of Business

What Can You Do When a Dealership Cheated You and is Now Out of Business?

At the Law Office of Jeffrey L Le Pere, we see this all the time. A dealership changes ownership or has simply gone out of business. If the dealership cheated you at the time of sale and is no longer in business, we can still help you.

Common examples of how the dealership cheated you include the following:

failure to disclose a prior accident,
failure to honor a warranty and repair a vehicle; and
failed to transfer title.

How We Can Help You

Dealership Surety Bond:

Any new or used motor vehicle dealers that sell more than 25 vehicles a year must carry a surety bond that’s valued at $50,000 in order to sell vehicles in California. This bond protects consumers like you when dealership cheats or misrepresents the history or condition of a vehicle.

Consumers can file claims with the bond issuer as needed. Consumers are also protected if a bonded car dealer goes out of business or otherwise has financial problems that renders it incapable of resolving a dispute.

Once the bond is exhausted, it’s exhausted. So, time is critical to make a claim before the $50,000 runs out. There are limits a consumer can seek when making a claim on a surety bond. We are ready to help you sort this out and get the help you need.

Acts of misconduct or fraud can include:

Falsifying a vehicle title to make a sale. Falsifying a vehicle title involves altering or tampering with the official documentation of a vehicle in order to misrepresent its ownership, history, or condition.
Fail to transfer a title correctly. An improperly transferred title can create significant hurdles when it comes to registering the vehicle in your name, potentially leading to fines, delays, or even legal issues.
Lying about the condition or mileage of a vehicle. This can lead buyers to make uninformed decisions, ultimately resulting in financial burdens due to unexpected repairs and maintenance costs.
Steal from customers deposits. One way an auto dealer can steal from customers deposits is by encouraging the buyer to place a deposit to hold a car. When the buyer attempts to finalize the purchase they discover that their deposit has vanished without a trace.
Fail to pay sales tax on vehicles sold.

Holder in Due Course:

If the dealership arranges for financing on your behalf, then that lender is called the Holder in Due Course. The Holder then sits in the position as the dealership and can be made liable for any misrepresentation or misconduct attributed to the dealership.

Without the Holder Rule, consumers remain liable to make installment payments on a car, truck, SUV or motor home that is defective or the dealership made material misrepresentations as part of the sale. An experienced attorney can hold the Holder accountable for the acts or omissions made by the dealership.

The Holder Rule is also being used to protect consumers from manufacturers in bankruptcy, such as Fisker. Many people financed their Fisker EV through Chase or other financial institutions. Even though Fisker is in bankruptcy protection, the Holder Rule provides an option for any breach of warranty or lemon law claims.

Attorney Jeffrey L Le Pere focuses solely on auto fraud and lemon law claims. He has unique experience having been a prior defense attorney representing dealerships and manufacturers to make claims against surety bonds or Holders in Due Course.

If a dealership cheated you when you purchased your new vehicle, contact us for a FREE case review! We’re ready to fight for you!