Legal Question in Consumer Law in California

Car fraud/deception?

This happened 2 1/2 months ago, but it's been bugging me ever since. My lease was up on my '99 car, so I took it to a dealer. The salesman had never done a lease return and stumbled through it. Anyway, I was wanting to re-finance it and pay it off in 3 years. The salesman told me it was foolish to do this, as ''the lease-end purchase price is $6,500 and the Blue Book value is only $4,500 for this car. So the bank will only lend you $4,500. You'll have to pay a down payment of $2,000.'' I didn't have $2,000 to pay then and there, and they talked me into buying a more-expensive car for $10,995 (5 years of payments), with $1,000 up front. Days later, I was mad at myself and checked the Kelly's Blue Book myself. The prices on my '99 were much higher than the $4,500 that the salesman told me, and not only that, but a friend who used to sell cars told me that the purchase price was negotiable as well (the salesman had told me this $6,500 lease-end price was firm). So now my '99 is gone and I'm stuck with a car I really don't want. Can I give the car back, or, on this new car, at least negotiate an even longer extended warranty or something to justify what I consider fraud (unintentional?) or deception?


Asked on 7/10/02, 2:54 am

1 Answer from Attorneys
Alexander Trueblood Trueblood Law Firm

Re: Car fraud/deception?

The question is how much higher than $4500 was the Bluebook value of your car? If it exceeded $6500, the dealer has defrauded you by inducing you to give up the car, which you had an option to buy at $6500. If the value is somewhere between 4501 and 6500, we get into a gray area where the dealer made a misrepresentation, but with some doubt about whether it was really harmful to you financially. (I don't think the $6500 lease-end purchase price is "negotiable" as a practical matter, although you could have negotiated the interest rate and term of course).

If the value exceeded 6500, I disagree that you are stuck with the deal. In that case, the dealer committed a fraud by misrepresenting blue book value and the benefits of the transaction. You should consider rescinding the transaction in writing, after consulting with an attorney.

You can go to www.naca.net and contact a consumer lawyer in your area.

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Answered on 7/10/02, 1:28 pm


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