Key Takeaways: 

• Consumers sue car dealerships for issues like breach of contract, fraud, and failure to honor warranties. 
• California law protects buyers from deceptive practices and lemon vehicles. 
• Gathering evidence and consulting an attorney can help you successfully resolve disputes with car dealerships.

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Buying a car should be an important milestone, but it can quickly turn into a frustrating ordeal if things go wrong with the dealership. Knowing when and why you might need to take legal action can help you feel more in control. 

Here are 14 reasons why consumers sue car dealerships and what rights you possess as a vehicle owner under California law.

 

Can You Sue a Car Dealership?

Yes, you can take legal action against a car dealership if they treat you unfairly or break the law. As a consumer, you have rights that protect you from dishonest practices.

 

Top 14 Reasons to Sue a Car Dealership in California and How

 

Breach of Contract

A contract is a legally binding agreement, and when a dealership fails to uphold its end of the bargain, it constitutes a breach; this can happen if they misrepresent the condition of a vehicle, such as selling a car with undisclosed accident damage, refuse to honor a warranty, or add hidden fees that weren’t disclosed before signing.

 

Failure to Honor Trade-In Agreements

When a dealer promises you a certain value for your trade-in but doesn’t follow through, that could also be a breach of contract. Whether they lower the amount at the last minute or fail to apply the credit as agreed, you may have legal grounds to hold them accountable.

 

Fraud and Deceptive Practices

Fraudulent activities are serious offenses and can lead to legal action. Examples include bait-and-switch tactics, where a dealership advertises a vehicle at a low price but then claims it’s “unavailable” when you arrive, so they can steer you towards a more expensive option, tampering with the odometer to hide the car’s actual mileage, or making false claims about financing terms or the car’s history.

 

Unjustified Repair Charges

If a dealership charges you for repairs you never agreed to or work that wasn’t actually needed, it may also be considered fraud. You have the right to approve repairs before they’re done, and sneaky add-ons to your bill aren’t just unfair, they may be unlawful.

 

Lemon Law Violations

California’s Lemon Laws protect consumers who buy or lease defective new vehicles. If your car qualifies as a lemon, you could receive a replacement vehicle or a refund if the dealership can’t fix the issue after several repair attempts. While you might consider suing the dealership, the law usually requires you to pursue the manufacturer directly for compensation.

 

Negligence

If a dealership fails to exercise reasonable care when servicing your vehicle, it could be considered negligence; this includes performing shoddy repairs that cause more damage or being responsible for damage that occurs if a dealership employee crashes your car during a test drive.

 

Financing Issues

Sometimes, the financing process can lead to disputes. For instance, if a dealership engages in discriminatory lending practices, such as charging higher interest rates based on race or gender, or adding hidden fees to your financing agreement without prior disclosure, you may have a case.

 

Unlawful Debt Collection Practices

Aggressive or illegal tactics to collect payments on a vehicle loan can violate consumer protection laws. This might include things like constant harassment, making threats, contacting you at unreasonable hours, or trying to collect money you don’t actually owe. Dealerships and lenders must follow strict rules when it comes to debt collection, and crossing the line can give you grounds to take legal action.

 

Title and Registration Problems

Dealerships are responsible for handling the title and registration paperwork, and their failure to do so can cause problems. For example, not receiving your title in a timely manner might hinder your ability to drive your vehicle legally, while incorrect title information could lead to legal issues down the road.

 

Warranty Issues

If your vehicle comes with a warranty but the dealership refuses to honor it, you may have grounds for a lawsuit; this includes denying coverage for eligible repairs or performing inadequate warranty repairs that cause additional problems.

 

Consumer Protection Violations

California has some pretty strong consumer protection laws in place. If a dealership advertises a vehicle with misleading information or fails to disclose major issues with the car, you may be able to take action.

 

Privacy Violations

Dealerships are responsible for safeguarding your personal information. You may have a legal case if they mishandle or share it without your consent, including data breaches that result in identity theft or fraud.

 

Predatory Lending Practices

If a dealership uses predatory lending practices, like charging excessive interest rates, adding hidden fees, or simply misrepresenting a loan’s terms, you could seek legal action to rectify the situation.

 

Failure to Deliver

Once you sign a purchase agreement, the dealership is obligated to deliver the vehicle as promised. If the dealer doesn’t, or they try to provide false reasons for delivery delays, it may constitute a breach of contract.

 

How Can I Prepare to Sue a Car Dealership?

Preparation is key if you believe you have a claim against a dealership. Here’s what to do:

Gather Evidence 

Collect all relevant documents that support your case, such as sales contracts, communication records with the dealership, and any advertisements related to the vehicle. 

Attempt Resolution

Before you file a lawsuit, you may want to try resolving the issue directly with the dealer. Reach out to higher management to discuss your concerns and/or submit a written complaint outlining your grievances.

Consult an Attorney 

An attorney with experience in consumer protection and Lemon Law can improve your chances of success. They can evaluate your case, determine potential compensation, and guide you through the legal process.

 

What Evidence Do I Need?

Having the proper evidence is crucial if you’re getting ready to take legal action against a car dealership. Some important things to gather may include:

Documentation

• Sales Contracts: Keep copies of all contracts you signed.
• Communication Records: Document all interactions with the dealership, including emails, texts, and phone calls.
• Advertisements: Save any advertisements that misrepresent the vehicle or its pricing.

Repair Records

If your vehicle has had multiple repairs, keep records of all service visits, including dates, issues reported, and the dealership’s responses.

Witness Statements

If there were witnesses to any fraudulent or negligent actions, gather their statements to support your case.

Expert Opinions

An independent inspection can help document hidden problems or defects.

 

Ready to Take the Next Step? Contact Our California Lemon Law Firm!

If you think you have a Lemon Law claim, act quickly — these matters can be complex, and timing is key! At Norman Taylor & Associates, we specialize in California Lemon Law cases and are dedicated to fighting for our clients every day.

Don’t let a faulty car ruin your peace of mind. Contact us or call 818-244-3905 today for a FREE consultation and learn how we can help with your case.

Schedule my consultation

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✓ Content checked by the lemon law attorneys at Norman Taylor & Associates