Author Archives: Jay Butchko
Pennsylvania Dealership to Pay More than $2 Million in Fines for Fraud Scheme
Early last month, a Pennsylvania used car dealership agreed to pay more than $2 million in restitution and fines for selling vehicles at falsely inflated prices to subprime consumers. Unfortunately, this type of conduct is not uncommon in the used car sales industry, so if you were recently taken advantage of by a dealership… Read More »
The FTC and the Used Car Rule
In 1985, the Federal Trade Commission (FTC) instituted the Used Motor Vehicle Trade Regulation Rule. More commonly referred to as the Used Car Rule, these regulations require used car dealers to display window stickers, known as Buyers Guides, on all used cars. These stickers contain important information about the vehicle being sold, including information… Read More »
The Puppy Dog Close
Used car dealers are notorious for using certain sales tricks to convince consumers to buy a vehicle. For instance, most people have heard of the bait and switch technique, which involves advertising cars at an apparent bargain and then substituting more expensive or inferior vehicles when consumers actually show up at the lot. While… Read More »
Beware of Purchasing Used Cars Flooded During Hurricane Michael
Thousands of vehicles have been damaged or destroyed during hurricanes in the last year. That is not to say however, that all cars affected by flood damage can’t end up in your own driveway. In fact, many vehicles that are damaged by floods are repaired and then resold in other parts of the country… Read More »
Holding Used Car Dealers Accountable for Unfair Advertising
In recent years, a number of used car dealers have come under fire for their use of unfair and illegal advertising practices. While shedding light on these violations has helped ensure that the wronged parties received compensation for their losses, the reality is that used car dealerships continue to utilize unfair advertising methods at… Read More »
Tips to Avoid Becoming the Victim of Used Car Fraud
Sometimes, despite a buyer’s best efforts, he or she will become a victim of used car fraud. In these cases, filing a suit against the dealership that sold the car is often a victim’s best course of action. However, there are steps that prospective car buyers should consider taking to help reduce the likelihood… Read More »
Used Car Dealer Contract Requirements
Although many people know that used car dealers in Pennsylvania are required to comply with certain regulations when it comes to advertising and general business practices, few are aware that they must also use and refrain from using specific language in their contracts. If you believe that the contract for the sale of your… Read More »
What Documentation Should I Receive When I Purchase a Used Car in PA?
When you buy a used vehicle in Pennsylvania, dealerships are required to comply with certain rules. For instance, dealers aren’t allowed to advertise cars as being sold “as is” except in certain circumstances. Similarly, dealers must disclose certain information about the vehicles they sell, including whether a vehicle has damage to its frame, transmission,… Read More »
When are Used Car Dealers Required to Issue Refunds?
Although many used car dealers make vague promises about refunding a buyer’s deposit if that person discovers damage within a certain period of time, or is otherwise unhappy with an offer, it is not uncommon for dealerships to fail to respect these guarantees. Fortunately, Pennsylvania law does require used car dealers to make refunds… Read More »
Undervaluing a Vehicle Trade-in
Used car dealer fraud can occur at essentially any stage of the purchasing process. This includes unfair or deceptive advertising, concealing the inclusion of certain add-ons in the purchase contract, selling a flood-damaged vehicle without notifying the buyer, and rolling back an odometer. While these are perhaps the most well-known schemes utilized by used… Read More »
