Author Archives: Jay Butchko
Car Kiting: Dealers Selling Vehicles that They Don’t Actually Own
Most people have heard of the term check kiting, but few are aware that the same type of fraudulent scheme can be and is regularly used by car dealers across the country. Car kiting involves selling a vehicle that has been traded in before first paying off any outstanding liens. This type of activity… Read More »
Undisclosed Add-on Products
Under both Pennsylvania and federal law, used car dealers are prohibited from engaging in fraudulent sales practices when advertising or selling used vehicles. Unfortunately, many dealerships still attempt to get away with unscrupulous business practices, such as adding products and services to a buyer’s contract without being asked to do so. These products are… Read More »
The Buyers Guide
Under federal law, used car dealerships are required to post a disclosure document, also known as a Buyers Guide, that gives consumers information about their purchase and any warranties on all vehicles being offered for sale. Used car dealers who fail to post these disclosures, or who alter them in such a way that… Read More »
The Used Car Rule
While many of the laws that protect consumers from fraud when purchasing used cars are passed by state legislatures, a number of rules were also put in place by the federal government. For instance, the Federal Trade Commission (FTC) enforces a federal regulation known as the Used Car Rule, which requires dealerships to disclose… Read More »
Non-Disclosure and Affirmative Misrepresentations by Used Car Dealers
Most fraudulent activity that takes place during the sale of used vehicles falls under one of two categories: non-disclosure or affirmative misrepresentations. The first occurs when a dealer purposely withholds information that affects the value or desirability of the vehicle, while the latter involves taking a more active role in misleading customers. Fortunately, both… Read More »
Yo-Yo Financing Tactics
Of the many fraudulent tactics used by unscrupulous used car dealers, yo-yo financing is perhaps the most common and devastating to buyers. Yo-yo financing occurs when a buyer signs a contract, takes the car home, but then is notified weeks later that his or her financing wasn’t actually approved, and the car must be… Read More »
The Dangers of Odometer Fraud
Recently, the owner of an Arizona used car dealership was arrested for selling vehicles with false odometer readings to unsuspecting consumers. During its investigation, the Arizona Department of Transportation discovered that in addition to altering the mileage on its vehicles, the dealership had also removed the letter “C” designation from many of their titles,… Read More »
Pennsylvania Law May Make it Easier for Used Car Dealers to Sell Defective Vehicles
Last year, the Pennsylvania Legislature passed a new state law that requires used car dealers to disclose when one of their vehicles is subject to an open recall. Initially hailed as a victory for consumers across the state, a number of safety groups have since raised concerns that the law can actually be used… Read More »
Signs that Your Transmission May be Defective
The transmission plays a critical role in the proper functioning of any vehicle, as it transfers the rotational power generated by the engine to the car’s wheels. This in turn, makes it possible for the gear ratio between the engine and the wheels to change as a vehicle speeds up and slows down. Although… Read More »
Undisclosed/Concealed Frame Damage
Under Pennsylvania law, used car dealers are required to disclose when their vehicles have certain types of damage, including bent and cracked frames. Unfortunately, this type of damage is difficult to see with a visual inspection, so when unscrupulous dealers fail to disclose problems with a frame, an unknowing purchaser could end up with… Read More »
