Car-buying is one of the most common targets for consumer fraud. Learn how to spot odometer rollback, yo-yo financing, and undisclosed pre-delivery damage — and use our new and used car checklists to buy with confidence.
Tampering with a vehicle's odometer to show fewer miles than it has actually been driven — one of the oldest and most damaging forms of dealer fraud. A rolled-back odometer hides the true condition of the car and inflates its price.
Warranties and lemon laws decide what you can actually recover. Use these guides to understand what your contract really covers — and how protections vary by state.
A "third-party warranty" sold at the dealership is almost always a service contract — a promise to perform or pay for certain repairs — not a manufacturer's warranty. Understanding this distinction changes which legal claims you have when something goes wrong.
Lemon laws cover defects in a vehicle sold with a manufacturer's express warranty. A third-party service contract is not a manufacturer's warranty, so lemon law remedies (refund or replacement) generally do not apply. Some states have a "used car lemon law," but those usually require the dealer — not a third party — to provide the warranty.
Magnuson-Moss governs written warranties on consumer products. A service contract is not a "warranty" — it's a separate agreement to perform (or pay for) certain repairs. So breach-of-warranty claims don't apply; instead, you'd have a breach-of-contract claim under the contract itself. If the seller misrepresented a service contract as a "warranty" or "bumper-to-bumper" coverage, you may also have a deceptive trade practices claim.
The "your car warranty is expiring" robocall is one of the most common consumer complaints in the U.S. Many third-party service-contract sellers telemarket with prerecorded calls placed without consent — a federal TCPA violation that can entitle you to statutory damages per call.
Based on public FTC and state enforcement records. Not exhaustive. Inclusion means the company has been subject to public enforcement or widespread reports for the conduct described — not that every call from a similarly named business is illegal. Always verify current status with the FTC and your state Attorney General.
Banned from selling vehicle service contracts and telemarketing. Charged with illegal robocalls and deceptive coverage claims in Operation Stop the Calls.
$10M settlement over misleading coverage and repair-approval claims; telemarketing robocalls.
Charged in Operation Stop the Calls with illegal robocalls and deceptive service-contract sales.
Targeted in the FTC sweep for prerecorded robocalls pitching vehicle service contracts without consent.
FTC enforcement for illegal robocalls and misrepresenting the coverage as a "warranty."
Named in FTC Operation Stop the Calls for telemarketing robocalls placed without consent.
Targeted by the FTC for deceptive vehicle-service-contract robocalls.
Subject of FTC enforcement for illegal robocalls pitching extended vehicle coverage.
Florida enforcement over misleading coverage and telemarketing practices.
Step-by-step checklists you can work through on the lot. Tap each item to check it off — your progress is local to this visit.
Use this checklist whenever you're buying a new vehicle. It covers the steps that protect you from the most common dealer-fraud traps.
Disclaimer: These resources are for educational and informational purposes only and are not legal advice. Statutes, disclosure thresholds, and remedies vary by state and by the facts of your situation. Checklists are general guidance and do not guarantee that a vehicle is free of defects or that fraud has not occurred. Consult a licensed attorney for advice about your specific case.
The tools in this suite use artificial intelligence to assist with consumer law research and document drafting. While we strive for accuracy, AI can sometimes make mistakes — statutes change, citations may be outdated, and analysis may not account for every nuance of your situation. Nothing in this suite constitutes legal advice or creates an attorney-client relationship. Nothing replaces the guidance of a licensed attorney who can review your unique circumstances and provide tailored counsel. Use these tools for basic guidance and education only — for any legal decision, consult a qualified professional.