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- Read Our Report - 
Rip-Off Nation:
Auto Dealers' Swindling of America

Car-dealer fraud is plaguing our country. The tactics being used are so sly that even informed consumers who do their homework are being taken for hundreds, and often thousands, of dollars.

These scams add many millions of dollars each year to the profits of car dealers at the expense of consumers. While some profit is necessary, consumers are being ripped off beyond reasonable need through the sale of useless add-on products and services, the unnecessary markup of vehicle prices, the hidden inflation of loan terms and by other means described in our report.

Evidence from recent litigation, industry insiders and consumer complaints show that these practices are not restricted to a few areas or dealerships. Further, it is very likely that deceitful trends are spreading as more and more dealerships become part of major conglomerates.

Public Citizen does not believe that graft is necessary for auto dealers, as an industry, to remain economically viable. We also do not belive that that all -- or even most -- dealerships are corrupt. Dealers should work with law enforcement to root out corruption where it exists and should commit to creating a transparent, accountable and consumer-friendly sales and financing process.

   Join our listserv on auto dealer fraud - click here
Contact Us
News
  • Click here to read our listserv messages
  • Consumers in Arizona, represented by attorneys C. Brian Meadors and Kevin L. Hickey, recently filed suit against a fraudulent auto dealership.  Click here to read the full complaint.
  • Public Citizen urges support for consumer protection bill - read more here
  • Public Citizen sends letters to five states with most complaints - read more here
  • North Carolina Attorney General's Office announces investigation into Sonic Automotive Group
Consumer Information
  • To read Public Citizen's fact sheet Auto Purchasers’ Top Five Defenses Against Yo-yo Financing Cons and Other Dealer Scamsclick here
  • Visit Remar Sutton's www.autoissues.org to learn more about mandatory arbitration and buyers tips
  • Visit www.consumersunion.org for more information on vehicle reliability and shopper education
  • Visit the Center Auto Safety www.autosafety.org to learn about lemon laws and vehicle defects
  • To get hints on purchasing a new or used vehicle, visit the State Driving Law website
Additional Information
  • To read the Truth in Lending Act, click here
  • To read the Fair Credit Reporting Act, click here
  • Visit the National Whistleblower center at www.whistleblowers.org to learn more about whistleblower protection laws