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60 Second Lemon Law Assessment™
The true cost of auto dealer fraud is rarely just the sticker price. It’s the unexpected repair bills for problems the dealer conveniently “forgot” to mention. It’s the lost wages from taking time off work to deal with their dishonesty. These aren’t just inconveniences; they are real financial losses. If a dealer cheated you, you don’t have to absorb that cost. Federal and state consumer protection laws give you the power to fight back and recover every dollar you’re owed. This guide explains exactly how to do it.
Suspect you were a victim of dealer fraud? Take our free 60-Second Assessment or call 1-888-536-6671 to find out what legal options you have. There is no fee unless we win your case.
This guide covers the most common types of auto dealer fraud, the warning signs to watch for, your legal rights, and how an experienced consumer protection attorney can help you get the compensation you deserve.
Auto dealer fraud is any deceptive practice by a car dealership designed to mislead consumers during the vehicle purchase process. It can happen at any point in the transaction, from the initial advertisement to the finance office paperwork to the post-sale warranty. The fraud may be intentional (the dealer knowingly deceives you) or the result of reckless disregard for the truth (the dealer should have known about the issue).
Dealer fraud is distinct from a lemon car situation, where the vehicle has a manufacturing defect. In fraud cases, the issue is the dealer’s dishonesty rather than a factory defect, though the two can overlap when a dealer sells a known defective vehicle without disclosure.
Rolling back a vehicle’s odometer to show fewer miles is a federal crime under the Motor Vehicle Information and Cost Savings Act. Despite this, the National Highway Traffic Safety Administration (NHTSA) estimates that odometer fraud affects more than 450,000 vehicles sold each year in the United States. Digital odometers have not eliminated this problem; they have simply changed the tools used to commit the fraud.
Warning signs:
Dealers are legally required to disclose known material damage to a vehicle, including prior accidents, structural damage, and flood damage. Despite this, some dealers sell repaired salvage vehicles without disclosure, or purchase flood-damaged cars from other states and resell them without revealing the history.
Warning signs:
Title washing involves moving a vehicle through multiple states to strip negative title brands (salvage, rebuilt, flood, lemon buyback) from the vehicle’s record. The car ends up with a “clean” title that hides its troubled history. This practice is illegal but still widespread.
Finance office fraud is one of the most common forms of dealer deception:
Beyond shady financing tactics, dealers also have a legal duty to protect your personal information. The federal “Red Flags Rule” requires dealerships to create and implement a written Identity Theft Prevention Program (ITPP). The goal of this program is to detect, prevent, and reduce the harm from identity theft in connection with financing a vehicle. This isn’t a generic checklist; each dealership’s plan must be tailored to its specific operations and approved by its leadership. The rule outlines dozens of potential red flags, such as alerts on a credit report, suspicious identification documents, or personal information that doesn’t match up. This program is a crucial safeguard designed to stop identity thieves from using your name to fraudulently purchase a vehicle.
Advertising a vehicle at one price to get you in the door, then claiming it is no longer available or adding mandatory fees and accessories that inflate the real cost. This violates both the Federal Trade Commission Act and most state consumer protection laws.
When a dealer knows a vehicle has mechanical issues or outstanding recalls and sells it without disclosure, they have committed fraud. This is especially common with lemon buyback vehicles that dealers acquire at auction and resell to unsuspecting consumers.
Multiple federal and state laws protect consumers who are victims of auto dealer fraud:
Beyond your state’s specific rules, a powerful federal law provides a crucial layer of protection for consumers everywhere. This is the Magnuson-Moss Warranty Act, sometimes referred to as the federal Lemon Law. It holds manufacturers accountable for the promises they make in their written warranties. What makes this law especially helpful is its fee-shifting provision. This means that if you win your case, the manufacturer can be required to pay your attorney’s fees. This is the key that allows firms like ours to represent you without any out-of-pocket costs. It’s worth noting that while many state laws mandate that fees shall be paid, the federal act uses the word may. This small difference highlights why having an experienced attorney on your side is so important to make sure you get the justice you deserve without paying a dime.
Every state has consumer protection and deceptive trade practices laws that prohibit fraud and misrepresentation in vehicle sales. Many of these laws allow consumers to recover:
Learn more about consumer protection laws for car buyers.
Beyond federal laws, your state’s Attorney General’s office is often your best first stop for help with dealer fraud. These offices have consumer protection divisions designed to assist residents with these kinds of disputes. While our firm focuses on helping consumers with Lemon Law claims against vehicle manufacturers, we believe in empowering you with the right information. Many state agencies offer free resources, mediation services, and formal complaint processes to hold dishonest dealers accountable. For example, the Ohio Attorney General provides a clear path to file a complaint against a business. You can find similar robust support through the consumer protection divisions in Florida, Michigan, North Carolina, and Pennsylvania.
Your instinct may be to bring the car back, but doing so without legal guidance could weaken your claim. In some situations, returning the vehicle is the right move; in others, it is not. Get advice first.
When you realize a dealer may have misled you, your first instinct might be to march back to the dealership and demand they make it right. But it’s critical not to go into that negotiation alone. Dealers and their finance managers handle these disputes every day; they have a playbook for minimizing their losses, while you are likely new to this. While every state has laws against deceptive practices, securing a remedy like a full refund or damages often requires legal muscle. It’s also vital to find the right kind of lawyer. An attorney specializing in dealer fraud is different from an attorney who handles Lemon Law cases. Dealer fraud claims target the dealership’s dishonest sales practices. In contrast, Lemon Law claims—which are our firm’s specialty—are brought against the vehicle’s manufacturer for failing to fix defects covered by the warranty.
An experienced attorney can evaluate your situation, identify which laws were violated, and pursue the maximum compensation available. Most consumer protection and fraud attorneys work on contingency, so there is no upfront cost to you.
At Kahn & Associates, we handle auto fraud and consumer protection cases alongside our lemon law practice. Call us at 1-888-536-6671 or take our free case assessment.
It’s easy to get these two mixed up, but the key difference lies in who is at fault. Dealer fraud is about the dealership’s dishonest actions during the sale—like hiding accident history or manipulating financing. The problem is with the transaction and the dealer’s behavior. A manufacturer defect, however, is a problem with the car itself that originates from the factory. This is what we typically call a “lemon,” where the vehicle has a persistent issue that can’t be fixed after a reasonable number of attempts. While a dealer might knowingly sell a lemon without telling you (which can be both fraud and a warranty issue), a Lemon Law claim is specifically aimed at holding the manufacturer accountable for a defective product. These cases focus on the manufacturer’s failure to honor the warranty, not the dealer’s sales tactics, which is an important distinction as the legal strategy is different for each.
Report the dealer to your state’s Attorney General office, the Better Business Bureau, and the FTC. These reports create a paper trail and may trigger investigations.
While dealer fraud involves deception during the sales process, a “lemon” car issue stems from the vehicle itself. It’s a car with a significant manufacturing defect that just can’t seem to get fixed, no matter how many times you bring it to the shop. This isn’t about a dealer’s dishonesty; it’s about a manufacturer’s failure to deliver a product that works as it should. If you find yourself in this frustrating loop of endless repairs, you may have a lemon, and specific consumer protection laws are in place to help you.
Legally, a “lemon” is a new vehicle—like a car, truck, or motorcycle—that has a substantial defect covered by the manufacturer’s warranty that persists after a reasonable number of repair attempts. The key here is “substantial,” meaning the problem seriously impacts the car’s use, value, or safety. Think of a faulty engine or a failing transmission, not a loose piece of trim or a finicky radio. These state and federal Lemon Laws provide a legal remedy for consumers who are stuck with a defective vehicle that the manufacturer can’t seem to repair properly.
The core of any lemon law claim is a defect that can’t be fixed. This doesn’t mean the mechanic has to throw their hands up and say it’s impossible. Instead, the law defines it as a problem that remains after a “reasonable number of repair attempts” or if the car has been out of service for repairs for a certain number of days. What’s “reasonable” varies by state, but it typically means three or four tries for the same issue or a total of 30 days in the shop. If the problem continues after that, the manufacturer has failed to meet its warranty obligation, and you may be entitled to a refund or a replacement vehicle.
Lemon laws primarily cover new vehicles that are purchased or leased. However, some states extend these protections to used cars, but usually only if the vehicle is still covered by the manufacturer’s original warranty. The rules can be very specific and differ from one state to the next. For example, the Ohio Lemon Law has its own definitions for what constitutes a reasonable number of repair attempts and which vehicles qualify. It’s crucial to understand the laws in your specific state to know what rights you have and what steps you need to take to protect them.
Realizing your brand-new car might be a lemon is incredibly disheartening, but you aren’t powerless. The most important thing you can do is take organized, deliberate action. From the very first sign of a serious problem, start documenting everything. Keep a detailed log of every issue, every phone call with the dealer or manufacturer, and every visit to the repair shop. This paper trail is the foundation of a strong lemon law claim and will be your best asset as you move forward to get the resolution you deserve.
Time is not on your side when it comes to a lemon law claim. Each state has strict deadlines for reporting the defect and filing a case, so it’s essential to act fast. As soon as you suspect a recurring problem, notify the manufacturer in writing. Keep meticulous records of every repair order, noting the date the car went in, the date you got it back, and the specific complaints you made. This documentation proves you gave the manufacturer a reasonable opportunity to fix the vehicle. Don’t delay, as waiting too long could jeopardize your right to make a claim.
Trying to take on a massive auto manufacturer by yourself is an uphill battle. They have teams of lawyers dedicated to minimizing their losses. An experienced lemon law attorney levels the playing field. At Kahn & Associates, we focus exclusively on these types of cases. We know the tactics manufacturers use and how to counter them. Best of all, you pay no out-of-pocket fees or costs. If we win your case, the manufacturer is required to pay our attorney fees. With a 97% success rate in court and over $65 million recovered for our clients, we have the experience to fight for you. If you think you have a lemon, contact us for a free case assessment today.
Depending on the type of fraud and applicable laws, you may be entitled to:
The sticker price is often just the beginning of the financial headache when you’re a victim of auto dealer fraud. The problems that follow can create a ripple effect of expenses you never anticipated, from paying for tow trucks when the car breaks down to shelling out for a rental just to get to work. You might even lose wages from taking time off to deal with constant repairs. The good news is that you don’t have to absorb these costs. Consumer protection laws allow you to seek “compensatory damages” to cover these exact financial hardships. This means you can fight to recover your losses, including repair bills, rental fees, and other related expenses, to help make you whole again.
Statutes of limitations vary by state and by the type of claim. Federal odometer fraud claims must generally be filed within four years. State consumer protection claims typically have a two to six-year window. Do not delay; evidence becomes harder to preserve over time.
Yes. An “as is” sale waives implied warranties on the vehicle’s mechanical condition, but it does not give the dealer a license to commit fraud. If the dealer lied about the vehicle’s history, concealed damage, or tampered with the odometer, an “as is” label does not protect them.
Your repair costs are part of the damages you can recover. Save all receipts, invoices, and records of any money you spent addressing problems the dealer should have disclosed.
Yes. In fact, deceptive financing practices are themselves a form of fraud. If the dealer inflated your interest rate, packed your payments, or added products without your consent, you have additional grounds for a claim.
Most consumer protection attorneys work on contingency. At Kahn & Associates, you pay nothing unless we recover compensation for you. Learn more about attorney costs.
Think you were a victim of dealer fraud? Get your free case assessment now, or call 1-888-536-6671. Our experienced consumer protection team will review your situation at no cost and with no obligation.
Craig A. Kahn, founder of Kahn & Associates, has dedicated nearly three decades to protecting consumers from dishonest manufacturers and dealers. Our firm handles auto fraud, warranty disputes, and lemon law cases on a pure contingency basis.
Take our free case assessment today, or call 1-888-536-6671.
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*Disclaimer: The information contained in this Website is provided for informational purposes only, and should not be construed as offering legal advice, or creating an attorney client relationship between the reader and the author. While we aim for accuracy, the law is constantly changing and we make no guarantees regarding the completeness or timeliness of the information. You should not act or refrain from acting on the basis of any content included in this Website without seeking appropriate legal advice about your individual facts and circumstances from an attorney licensed in your state.
*Disclaimer: The information contained in this Website is provided for informational purposes only, and should not be construed as offering legal advice, or creating an attorney client relationship between the reader and the author. While we aim for accuracy, the law is constantly changing and we make no guarantees regarding the completeness or timeliness of the information. You should not act or refrain from acting on the basis of any content included in this Website without seeking appropriate legal advice about your individual facts and circumstances from an attorney licensed in your state.
Have questions about your lemon law case? Our FAQ section is here to provide clear, concise answers to the most common concerns. Take a look below to find the information you need, and if you still have questions, don’t hesitate to contact us for further assistance!
The so-called “Lemon Law” is a State law which is defines when a manufacturer has breached its written warranty and what the victim is entitled to for such a breach of warranty. Additionally, there are various other warranty laws (or Lemon Laws) in each State and on the Federal level which can be used to recover money for consumers who do not meet the strict definitions contained in their State’s Lemon Law. In most states, the State Lemon Law provides for a Full Refund or a Replacement Vehicle (less a reasonable allowance for use) and Attorney’s Fees and Costs if the consumer prevails. This is a general answer and all states differ so you should make sure to consult the laws for your particular state before taking further action.
According to Wikipedia, in the 1800s, people started using the word ‘lemon’ to describe people who were sour (or unfriendly). In American English the word was first recorded in 1909 in the slang sense of “worthless thing”. Over time, ‘lemon’ came to refer to anything that was defective or broken or which breaks constantly, particularly a car. However, in an effort to further define such a broad term, the Lemon Law attempts to define certain situations which entitle consumers to their money back or a new vehicle. In a nutshell, any defect or nonconformity, or combination of defects, which is/are not repaired within a reasonable number of attempts or a reasonable amount of time, may entitle you to Lemon Law relief. Your vehicle does NOT have to be breaking down to be considered a lemon. In short, if you are aggravated enough to be reading this you may have a lemon. This is a general answer and all states differ so you should make sure to consult the laws for your particular state before taking further action.
Almost any type of passenger vehicle is covered by the Lemon Law. This means that Cars, Trucks, Vans, Motorcycles and many other types of motor vehicles are usually covered under the Lemon Law. For Boats, ATVs, RVs and items that may not covered by the strict definitions of the State Lemon Law, other State and Federal Lemon Laws are available which do cover these products. This is a general answer and all states differ so you should make sure to consult the laws for your particular state before taking further action.
The ultimate relief in a Lemon Law Case is your money back or a new car. This is known as a “buy back” or a “repurchase.” Many State’s Lemon Laws provides for a Full Refund or a Replacement Vehicle (less a reasonable allowance for use) and mandatory Attorney’s Fees and Costs if the consumer prevails. When that occurs, the defective vehicle is returned to the manufacturer. This is usually done by returning it locally to one of their authorized dealers. This is a general answer and all states differ so you should make sure to consult the laws for your particular state before taking further action.
Should we agree to represent you, your case will be handled on a contingency basis, whereby our office will not get paid unless you get paid. You will not have to come out-of-pocket to pay our fee! Furthermore, Kahn & Associates, L.L.C. may advance all usual and reasonable costs as a part of our representation on certain cases.
Kahn & Associates, L.L.C. represents thousands of consumers every year with defective vehicles. As with most cases, over 97% of these cases settle to the satisfaction of both parties. Remember, the manufacturer would rather pay less now than risk paying a much larger amount to you, your attorney and their attorneys later.
To see if you qualify, fill out the form below or call us at 1-888-536-6671 – No Office Visit Needed!
I had a great experience with Kahn & Associates! They made the process of dealing with an extremely frustrating lemon situation painless. They have very quick response times and everyone I dealt with was very friendly and helpful. Would definitely recommend!
Kahn and Associates did an awesome job with our lemon law case! We were getting nowhere with VW Customer Service and decided to hire an attorney who specialized with lemon law cases. We couldn’t be happier with the outcome. We were able to get a full refund on our lemon VW Atlas.
What a great experience! I was on the fence about hiring an attorney for my ongoing automotive issues and continued frustration with the manufacturer. It was a very simple process and I am very grateful Kahn and Associates for helping get me a settlement!
Real Honest attorneys!!! They are the real deal! I went back and forth with them and they explained to me every step and my rights under the law! I give them 5 stars because I won!!! Yes and my check is coming to me much sooner than I thought! I was stuck ! I own a brand new car and the dealer was giving me a hard time !
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Attorney Craig A. Kahn, who has more than 20 years of legal experience in lemon law.
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Stuck with a defective car in Ohio? State Lemon Laws protect you. Get a refund, replacement, or cash settlement. Learn your rights today!
Florida Lemon Laws cover new and used vehicles. If your car’s a lemon, you deserve compensation. Let us help you fight for justice!
Michigan’s Lemon Law protects you from faulty vehicles. Don’t settle for endless repairs—claim your refund or replacement now.
North Carolina Lemon Laws ensure defective vehicles are replaced or refunded. Know your rights and take action today!
Pennsylvania Lemon Law covers new cars with repeated issues. Get the compensation you deserve. Click to learn more!
To see if you qualify, fill out the form below or call us at 1-888-536-6671 – No Office Visit Needed!
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