What to Do If You’re Scammed by Car Dealership

It’s always upsetting to learn that someone’s overcharged you for something. When I was asked “What can you do if you’re scammed by a car dealership?”, I knew I had to answer it.

Legitimately, if you’ve signed all the documents, completed your purchase, and driven your new car home, legally, in most jurisdictions, there isn’t much of anything you can do. In the eyes of the law, you’re the owner of that car. That doesn’t mean there aren’t practical steps you can take to try and resolve the issue, however.

If you feel that may have been taken advantage of, overcharged, or outright scammed, here’s the steps I would recommend you take.

Talk to dealership management

Once you’ve realized something fishy happened, you may want to immediately call your salesperson. I wouldn’t recommend doing that. The salesperson isn’t going to be able to do anything to help resolve this issue, and they probably won’t want to if they did something nefarious.

You’ll want to talk to the sales manager, or better yet, the general manager (GM). When you do get through to a manager, the first thing you should try and do is appeal to them to “do the right thing.”

Don’t threaten or yell at the GM. In my 42 years in the car business, rarely did I see this tactic pay off. Car people are real people, just like you and me. They have families, and friends, and they can be swayed to help people in need.

Start out by approaching them as a human being and appeal to them on a human level. Ask them to do what is morally right. You might frame it exactly like that by saying something along the lines of, “Rarely in life can we make a wrong right, but now is one of those opportunities.” If you were legitimately scammed by a dealer, this tactic should work.

Be prepared to explain what the issue is and provide what you think would be a fair solution. The last part is critical. Come prepared with what you think would be a fair resolution to the problem.

By providing a solution, you are showing the GM good faith. This will encourage the necessary conversation that will ultimately lead to an acceptable resolution for everyone involved.

My experience has shown that this type of approach usually leads to a reasonable resolution. Personally, and during my 42+ year career in the car business, I am (and always was) more inclined to help a friendly person solve a problem than a screaming, threatening person.

Do you ever wonder how much car dealers mark up used cars? You might enjoy this article if you haven’t read it already: How Much Do Dealers Markup Used Cars?

Talk to dealership ownership

If presenting your issue to the general manager doesn’t resolve the problem, your next best bet would be to contact the managing partner, dealer principal, area vice president or the owner of the dealership.

I can tell you from experience that if I couldn’t resolve a customer issue at my level, and it made it up the ladder to someone of greater authority, they were going to do whatever they had to do to make the problem go away. The dealer principal, vice president, or owner is too busy with other things to really want to deal with you. Use that to your advantage!

When I worked for the Penske organization, we had a regional VP that always reminded us that if a customer issue ever reached him, he would do whatever he had to do to make the customer happy. His advice to us (his managers) was to simply handle the issue at our level so he wouldn’t have to.

With that being said, if you weren’t able to resolve the issue with the general manager, do your best to talk to the next level of authority. They’re likely to do whatever it takes to “make the problem go away,” and considering you want a fair resolution, this is one way to get it. At most dealerships you can identify this person on their website. If you can’t, call the receptionist and ask.

Legal and regulatory options

What if “talking it out” doesn’t work? Do you still have options if you were scammed, overcharged, or taken-advantage of by a car dealership? The answer is yes.

You can contact the Better Business Bureau, your state’s Consumer Protection Office, or even the Attorney General’s office. These three options could be time consuming. However, the Better Business Bureau would try to broker a resolution in a more timely manner than the other two would.

The Office of Consumer Protection and the Attorney General’s office generally want to see a pattern of abuse by a dealership before taking action. You may need to wait years for enough complaints to be filed before they will do anything. This is frustrating, but it’s the reality of the situation.

Leverage social media

The court of last resort, so to speak, is social media. There are any number of sites where you can post a review of the dealership and share your experience. Once again, do it in a respectful manner, no name calling, no shouting, no threats, as Sergeant Joe Friday from the old TV show Dragnet would say, “just the facts ma’am, just the facts.”

Although it may feel “good” to write out a diatribe, do your best to be succinct and factual in your online review. This will more than likely elicit a positive response from the dealer management. Dealers want to protect their online reputation. This means they’ll usually want to make amends for their wrongdoing to encourage a more positive review from you.

So what should you do if you’re scammed by a car dealership? Whether be an overcharge, a bait and switch, or something in between, realize that you might not have legal standing for your issue, but you do have options as to how to address it. From my experience, these are the avenues I suggest you travel if you ever find yourself feeling taken advantage of at a car dealership.

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23 Comments

Thank you for your recent post. I am now going through an issue like this myself have had nowhere to turn. I signed the contract but they still have the vehicle. I just received a letter from the finance institution stating that they had made a mistake on the contract and have now added 20 grand to the overall cost of the truck. I have tried talking to the manager multiple times And this was his solution to the 1st problem. I will try contacting the vice president And discussing any correction options with him. The contract States that arbitration is the only option. Any other advice Would be greatly appreciated thank you Reply

I worked with a credit repair team that obviously knows what needs to be accomplished and has a plan to make things work out. The team at firewallbreachexpert at gmail doot coom worked very hard to get rid of negative reports on my credit. They helped me so much that i was shocked at how well they did. I feel more than happy to have believed in them. Reply

Hello, I recently purchased a car and I believed I was scammed. The car cost $5999 and the car dealer said I had to put 2800 down on the car. I ask if this would be deducted from my base price and Henry and Israel both agreed it would. Well, they never deducted the $2800. I would look at the contract with the bank and wonder why my monthly rate was being deducted from $5999. I called the bank and inquired why I didn’t see my deposit and he indicated that was for the dealership! What the f… I don’t have $3000 just to give anyone and this in not what I was told. Please help mem Reply

All along during my visit they kept assuring me they were going to give me the best deal! Indeed, a raking over the coals and a shaft is what they gave me! This is my 4th Consecutive Honda Purchases, 3 leases plus the current purchase and others since at least the year 2000! They have no influence with Honda Finance regarding their lending/credit decisions My loan APR is over 3 times the market rate at $5/day Bank Financing is out of their control they told me Not renegotiable with lending bank for 3 years because of agreement dealer-lender, not true I can go to other lenders they said, by the way my bank told me they only issue car loans through dealers less than 30 days from purchase I have 8 offers from different lending institutions to reduce monthly payment by at least $60/month I have options I am ok, they told me They see nothing wrong at all with the above scenario! They actually think this transaction was a fair deal! They would not budge and in spite of repeating several times they wanted to help me, after 1/2 hour they felt everything was fair! ============================== TIPS
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1. Don’t do business with Coggin Honda, Atlantic Blvd., Jacksonville, FL! 2. Research market well before buying, dealer and auto maker incentives and discounts and best prices. Buy at the end of the month. 3. Research current local auto loan rates, get your loan from a credit union. 4. Above all, don’t believe when they are telling you you are getting a good deal, that should be your red flag! 5. Tell everyone if you have been swindled!
https://www.flhsmv.gov/safety-center/consumer-education/consumer-complaints/# Other resources (if you have been wronged, make it right):
https://blog.suretysolutions.com/suretynews/take-control-how-to-file-a-complaint-against-a-car-dealer https://carconsumers.org/wheretocomplain.htm https://www.flada.org/consumers/ http://www.mvdti.com/lectures/complaints.html https://consumeractionlawgroup.com/car-dealer-rips-off/ Reply

My husband bought a car on August 19th 2021. It’s an 05 Chrysler, Town and Country. The transmission went in it September 15th 2021. Didn’t even have the car a month. Maybe drive 100 miles on it, and that’s a big stretch. Obviously this guy sold him a lemon. Is there anything we can do? Reply

Sadly, on a used vehicle, you have little recourse … Take a look here: https://www.youtube.com/watch?v=dFoD7B1AK_s Reply

I got juked the listing for the car I bought was 17,500, I signed the paperwork to find out they changed it to 21 without telling me! What can I do guys…. Reply

This just happened to my nephew on 1/26/22. They told us car was $17000. Paperwork says cost of car $22,000! I am in contact with a general manager there to try and get compensation or something! Reply

CommentI bought a new car, but after 10 days I opened the window at the car and could not close it, I turned to the dealer with a problem, they told me that they would replace the car without any problems, but when I arrived they told me that this brand of car was not available and advised me to take the other is slightly higher in price than the previous one. I agreed and signed the papers. I asked what these amounts were, they answered me that these are amounts with interest, do not worry, refinance at the bank. When half a year later I went to the bank to refinance, they told me that you were deceived. They bought the first car from me for half the price of the cost of the car, and did not change it. When I went to the dealership to sort it out, they told me that you had signed the documents, which means you agreed to all the conditions. And now I have to pay twice as much as the cost of the car. What to do? Reply

Gerald Nissan of Naperville charged me more for the truck and markup price can they get away with this? The truck was $26,000,000 and they charged $29,000,000 then a markup price $3,000 as well. Reply

It first started with the air conditioning went out in my little 2006 BMW 325 I convertible it was off and on for a few weeks and then it finally went kaput and I put a new thermostat in. No luck! The window buttons had worn out so the drivers window didn’t work. I put about $500 in it before I realized that I was just throwing good money after bad and decided I should trade it in and get a new car. I am just changing career starting a new job and building a book of business so my means are a little lean and I didn’t want a big car payment. Well my BMW I did not have a car payment. It was paid free and clear so I was looking for a $5000 car, the Berges Volkswagen dealership had a used car for sale that was $5000 so I called on it. The salesman said it was a POS so I trusted his opinion looked at another car a little 2016 versa note and it was 7,900. It was more than I wanted to spend but he said with $2000 for my BMW it would be around my price.
That’s about the last of my recollection of any sort of negotiation.
Unfortunately, I have a compromised cooling system. My cooling system only works at 50% capacity due to an accident that I was in in 1995. I had been seriously sick all week and the drive home with a 30 minutes drive home without air. I was sick when the salesman came to my house to bring the car to me I drove the note back to the dealership with air conditioning, but I was still so sick that by the time I got to the dealership I was disoriented, nauseous, and in the beginning stag s of heat stroke. I know this because I’ve had heatstroke twice before since 1995 and heat sickness several more times.
I am a single 67 year old grandma. I was desperate to get the best vehicle I could without spending more than I could afford!
I sat in the waiting room while the salesman took it to the Sales Manager. The next thing I know I am being taken too the finance guy. Most everything from then on is a blurr! I do remember signing my name a bunch of times.It sounded like he was talking under water. I just wanted to get out of there and get home I was so sick. If you have ever had it you will know what I mean! I assumed they were being honest and fair with me. My mistake! I made it home before throwing up in my new car. But I left my bag at the dealership with the keys to my house so was not able to get into my house. It was 111° that day. I made a bunch of calls until I finally saw my neighbor got home. I went in passed out on her floor and her cousin called 911. The fireman came and treated me. And they got me in to my apartment thru an upstairs window. This was Friday night. I was sick like with the flu all weekend. Then on Monday at work when I had no idea what I paid for the car or what the interest was and still thought they gave me $2000 for the car. My colleague ask to see my paperwork. She was furious! I was only given $1500 for my BMW and the high Kelly blue book on the Nissan Note was only $5,400. So basically I was over charged $2,500 for the Nissan Note! Is there any thing I can do? I feel like I was severely taking advantage of considering my condition and they were aware of my condition as well. Reply

Hi Karen, we’re so sorry that this happened to you, that’s horrible. The first step would be to speak directly to the dealership sales manager, with highlighted numbers showing exactly what you’re upset about. Ask how he can make it right. A pro-consumer dealer should offer some way to make it right if the deal is as you’ve described. If you feel that you’ve been defrauded, you can also contact your state attorney general office, but that is a slower process. Best of luck! Reply

I contacted for a 2022 Hyundai Palisade Calligraphy.
Around 43000. I put $25000 down. The price rose to $ 88,000.00 plus at first, but afterwards down to 36000.00 and some. I was never able to aquire a tag or title because of the dealership saying the tag and sales had to be paid out of state because I was living in Illinois at the time and purchased the car Mississippi. Confusion set in because they sent paperwork on car to wrong place after much back and forth, up until they repo the SUV , I never had tag or paperwork? I spoked with a lawyer and she said They gave me a bad deal because I traded in a 2022 new car as down payment. They even offered to give me my trade in back because they couldn’t find away to work the paperwork on the car. I am so angry and frustrated. I don’t have a car to get around in and I’m disabled. I feel very strongly I was taking advantage of and given the shaft. They refused to work with me. Reply

A young couple reached out to me for help. They gave a dealership a bank check for $30,000 to deliver a vehicle. 2 months later no vehicle. Dealer complaint filed. Consumer Affairs complaint filed. Police report filed. Requested Dealers surety bond information. Dealer claims they sent the money off to purchase the vehicle. Whomever they “purchase” vehicles from informed them that the dealership had an uppaid balance and kept the $30k check. Dealer acts as if they are victims of the 3rd party as well. Reply

I feel like they took advantage of me because I was desperately looking for a vehicle to commute to work and I had poor credit they told me that they could only get me approved for a car that they just brought in a 2016 Chevy Trax. The front end had damage even one headlight was busted and it had no hub caps. The total cost was $32,000 interest included. $587 monthly payments. This happened last year and the vehicle is no longer running I’ve already invested $12,000 and still owe $20,000. Reply

As my 2002 Silverado was unsafe to drive I needed a vehicle. My ex husband works for a car lot and said go there and they will help you as my credit is good not great. I didn’t have money to put down just my Silverado that I was wanting $1500 for as my ex and my son had already talked to them about. They had a 2008 Ford F150 there nice truck with a lot wrong with it for about $9400 something or $9600 something I saw online. This is what I got. I was financed with no problems. As I was going through my papers after he printed them off days later or the next day, I’m sorry the MSRP was different than what he had online. It was about $1500 more but I didn’t have a screenshot or a picture that I had sent anyone with the price that he had online of the $9000 price so not only did he jack MSRP price up on me by about 1500 and I have no proof of the $9000 price . He got me a 2 year bumper to bumper warranty with GAP coverage and my insurance and payment for X $ per month. But said they were “letting me ‘borrow’ $500 cash towards my down payment and I could pay it back as I could bc they know I’m on disability and handicapped. Also my ex said I was good for it as I’ve always paid my debts” So in reality that $500 that I owe as I can I am not only paying it once am paying it twice with interest at my expense. It is possible my ex had nothing to do with this and had no idea, he is friends with one of the co-owners tho not as close as they used to
be. The co-owner that sold me, the F150 said don’t tell the bank about the $500 and make sure you tell the bank you gave us $2300 down and don’t tell the bank you traded in the Silverado either. He reminded me of this again before I left two more times. There is so much wrong with the F150 and as much as I know about vehicles for being a woman, he needs to knock about $4000 off of this vehicle If I don’t tell the bank, what is going on then I am committing fraud Just like he is, there’s no way I am going to lie, but the bank has not called yet. Please advise me on what to do. Reply

Hi Kristine, be honest with the bank about the situation, gather all your documentation, consider legal advice, and possibly file a complaint with the appropriate authorities to protect yourself from further financial harm. Reply

The dealership charged me $1,299 canadian climate protection on my new vehicle. What is this charge? I have not been able to find any information on this. Is it legit? Reply

I bought a used car and was never given the title. I can’t register the car. I keep getting the run around from the lot owner. I reached out to motor vehicle cobsumer investigation and was advised this is not a licensed dealer. I was advised to file a civil complaint and file a title search. How can I shut this scamming business down? Reply

Erica, I’m sorry to hear that. That’s horrible. If you have not received the title yet, we recommend reaching out to your state’s Attorney General complaint office ASAP. Let them know exactly what situation you are in. You can also make an appointment with your state DMV office to let them know what situation you are in, and to find out how you can ensure you remain legally driving as you find a resolution. Reply

Just bought a car the other day from a dealer. Today I get a call from the finance guy asking about the down payment. There was no mention of a down payment anywhere. I was given an OTD amount, went to the bank, came back with the check.
I’m sure it’s a scam. Since I didn’t catch it at time of signing the deal, am I liable for the scam down payment amount? Reply

Hey Winston, It sounds like a shady situation. If there was no mention of a down payment in the agreement you signed and you paid the full OTD amount, you shouldn’t be liable for any additional payment. I’d recommend reviewing your signed documents carefully and standing firm on what was agreed upon. If the finance guy persists, you might want to consult with legal counsel to ensure you’re protected. Reply