What Is Vehicle Fraud?

Vehicle fraud occurs when a dealership knowingly conceals material defects, misrepresents the vehicle's condition, or makes false promises about warranties and repairs. This is not a minor sales disagreement. It is fraud and New Jersey law provides strong protections for consumers who discover they have been deceived.

Many consumers believe they are stuck with a defective vehicle once they sign the papers. This is false. If a dealership hid a problem or lied about the vehicle's history or condition, you have rights and we have recovered damages for clients in exactly these situations.

 

Common Vehicle Fraud Schemes

 

Dealerships engage in fraud in predictable ways. Understanding these tactics will help you recognize whether you have been deceived:

 

• Hidden Mechanical Defects. A transmission that fails soon after purchase, an engine with undisclosed problems, or major component failures that a reasonable inspection would reveal or that the dealership actively concealed.

 

• Hidden Contract Terms and Unauthorized Fees. Contracts that include unanticipated fees, terms not discussed during the sale, documentation charges not itemized, or motor vehicle fees incorrectly assessed or not refunded as promised.

 

• False Warranty Claims. Promises that a vehicle is 'certified' or covered by an extended warranty, or that a warranty will cover specific repairs, when in fact coverage is limited or nonexistent.

 

• Flood Damage or Water Intrusion. Vehicles damaged by flooding, hurricanes, or accidents are sometimes cleaned up and resold without disclosure. Electrical problems, rust, and mold can appear months later.

 

• Salvage or Rebuilt Title Hidden. A vehicle branded as 'salvage' or 'rebuilt' because it was previously totaled should be disclosed. Many dealerships sell these vehicles without mentioning this critical history.

 

• Odometer Fraud. Mileage rolled back to make a high-mileage vehicle appear newer and lower-mileage than it actually is. This directly affects vehicle reliability and resale value.

 

• Undisclosed Accident History. A vehicle involved in a prior accident with structural damage, frame damage, or hidden repairs is not the same vehicle. If the dealership knew and did not disclose it, that is fraud.

 

Your Rights Under New Jersey Law

New Jersey's Consumer Fraud Act (N.J.S.A. 56:8-1 et seq.) provides powerful protections for vehicle fraud victims. If a dealership or seller committed fraud, you are entitled to:

• Treble Damages. You recover three times the actual damages you suffered. If a hidden defect cost you $10,000 to repair, you can recover $30,000 if you win at trial.

• Mandatory Attorney's Fees and Costs. The law requires the dealership to pay your attorney's fees. You should not have to pay out of pocket to hold them accountable.

• Recovery of Actual Damages. Beyond treble damages, you can recover compensation for repair costs, diminished vehicle value, transportation costs, and other out-of-pocket harm.

 

When Do You Have a Claim?

Not every vehicle problem is fraud. But if a problem was present at the time of sale and the dealership knew about it and did not disclose it, you likely have a claim. The timing matters: most of our clients discover the defect within the first month of ownership.

 

Key questions to ask yourself:

• Was this defect present when I bought the vehicle?

• Did the dealership know about this problem and fail to disclose it?

• Did the salesperson make promises or representations that turned out to be false?

• Are there undisclosed fees, contract terms, or warranty limitations in the paperwork?

 

Why Rivers Law Firm

We are trial lawyers. We do not settle every case for pennies on the dollar, and we do not pressure clients into accepting inadequate offers. We prepare every vehicle fraud case as if it is going to trial, because we are willing to try it. Our experience in the courtroom and our knowledge of New Jersey consumer protection law mean we recover real damages for our clients.

 

Contact Us

If you purchased a vehicle and discovered hidden defects, fraud, or undisclosed problems, call us. Most initial consultations are free. We work on contingency for qualifying cases, meaning you pay nothing unless we recover damages for you.