They’re counting on you not to read the paperwork closely.
I represent buyers and lessees of cars, trucks, SUVs, RVs and motorcycles against the dealers that sold or leased them. Dealer fraud covers the scams and plain dishonesty that happen in the sale, financing or lease of a vehicle: a deal changed after you drove off, products you never agreed to, a history the dealer hid, a signature you never made. From my office in Miami, I handle dealer cases throughout Florida.
On this page
- What to do now
- Dealer cases I’ve handled
- Common dealer fraud practices: yo-yo financing · add-ons · hidden history · trade-in payoffs · forged paperwork · bait-and-switch · odometer fraud
- Your paperwork, explained
- What you may be able to recover
- How these cases work and what they cost
- FAQs
What to do now
- Save the ad, the listing, and every text, email and chat with the dealer. Screenshot anything online before it changes.
- Get a copy of every page you signed. If a lender bought your contract, ask the lender for its copy too.
- Ask the dealer to put its explanation in writing: what it says changed, and what happens to your deposit and trade-in.
- Get advice before you sign replacement paperwork or stop making payments. Read what I tell clients about stopping payments.
- If the dealer says you have to return the car, find out quickly what your paperwork requires. Don’t ignore the demand.
Dealer cases I’ve handled
I’ve handled many cases against new and used car, truck and motorcycle dealerships, the manufacturers behind them, and the finance companies that buy their contracts. A few of them:
- Buyers who were told their financing was fully approved, paid nonrefundable deposits, drove the car home, and then had it repossessed on the claim that the financing was denied.
- Buyers promised one interest rate by text, kept waiting for hours, and then handed contracts at more than double the rate.
- Trade-ins dealers never paid off.
- Odometer fraud.
- Deals with forged documents in the deal file.
- Certified pre-owned warranties a dealer and manufacturer claimed had expired when they hadn’t, while asking buyers to split the covered repairs.
- Lease-termination fees the leases didn’t allow.
- Lemon-law claims against manufacturers in Florida’s arbitration program.
In one dealer case, a financing bait-and-switch, the dealer kept my clients’ down payment and repossessed the car on manufactured grounds of default. I took the claims through a three-day arbitration hearing to a total final award of $572,409, which included statutory damages and my clients’ attorney’s fees and costs. Please note that prior results do not guarantee a similar outcome. Each case depends on its own facts and circumstances.
Common dealer fraud practices
These are seven shady practices and scams I see all too often.
Yo-yo financing and spot delivery
Yo-yo financing starts with a spot delivery: you sign, you drive home, and then the dealer calls to say your financing fell through and you must sign a new contract on worse terms or bring the car back. Delivering a car before the financing is final isn’t banned in Florida. Whether what follows is lawful depends on what you signed and what the dealer did. The dealer crosses the line if it has you sign a contract that doesn’t match the deal you made, raises the price after accepting your contract, or leaves terms blank to fill in later (Fla. Stat. § 501.976(9), (15); § 520.07(1)(a), (7)). It also crosses the line if it took your deposit before the contract was binding without a written receipt saying whether, and on what conditions, the deposit was refundable (§ 501.976(10)).
Where to look. Find the right-to-cancel clause (explained below) and check whether you signed it. Then find your deposit receipt.
What the dealer will say. “Your financing fell through. Sign the new contract or bring the car back.”
What the law allows. If the car was repossessed or sold without following the rules in Florida’s Uniform Commercial Code (“UCC”), the law allows a buyer who bought it for personal use at least the finance charge plus 10 percent of the principal, whether or not other loss is proved (§ 679.625(3)(b)).
Add-ons, GAP and payment packing
Payment packing is a shady sales practice: the dealer quotes a monthly payment with room built in, then fills the room with a service contract, GAP waiver, etching or maintenance plan you didn’t ask for. A dealer may charge you only for add-ons you actually bargained for and bought, and each one has to be listed in the contract (Fla. Stat. § 501.976(11); Fla. Admin. Code R. 69V-50.001(4)).
An add-on you agreed to and now regret is a cancellation question, and you may not need a lawyer for it: Florida lets you cancel a vehicle service contract within 60 days for a full refund, less any claims paid and a fee of no more than 5 percent; after that, you’re owed at least 90 percent of the unused portion, less any claims paid (§ 634.121(3)). An add-on you never agreed to, or were told was required, may be a claim under Florida’s Deceptive and Unfair Trade Practices Act (“FDUTPA”) (§ 501.976(9), (11)).
Where to look. On your financing contract, compare the monthly payment with the one you were quoted. If it’s higher, the itemization (explained below) will show what was added.
What the dealer will say. “You signed for it. It’s optional, and you can cancel it.”
Hidden accident, flood, salvage or rental history
A Florida used-car dealer doesn’t have to list every past accident, but it can’t misstate a vehicle’s previous use or its condition (Fla. Stat. § 501.976(3), (4)). A dealer that knowingly sells a former rental, a rebuilt wreck, a manufacturer buyback or a “flood vehicle,” meaning one that was a total loss from water damage, must have the title branded and tell you in writing before the sale (§ 319.14(1), (2)).
There are limits. A dealer isn’t civilly liable for a brand missing from the title it received unless it actively concealed the car’s prior use or condition (§ 319.14(9)), and the requirements end for a former lease vehicle once it has passed through a private owner, and for a manufacturer buyback once it has passed through a private owner and reached 36,000 miles or 34 months, whichever is later (§ 319.14(10)).
A car can have flood damage without a flood-branded title. Whether the dealer is liable for that damage turns on what it told you about the car’s condition (§ 501.976(3)–(5)). The dealer’s own purchase and auction records sometimes show what it knew.
Where to look. Check the title for a word like “salvage,” “rebuilt” or “flood,” and the Buyers Guide (explained below) for whether the dealer sold the car as is. Compare the history report the dealer showed you with a current one.
What the dealer will say. “We didn’t know, and you bought it as-is.”
A trade-in the dealer never paid off
Florida gives a dealer 10 working days after it takes ownership of your trade-in to pay off your loan on it (Fla. Stat. § 319.24(5)(a)). Until it does, the old loan is still in your name: the lender keeps billing you, and missed payments can land on your credit report.
Where to look. On the itemization (explained below) or your buyer’s order, find the payoff the dealer agreed to make; on your old lender’s statements, check whether it was ever paid.
What the dealer will say. “The payoff is in process.”
What the law allows. You may be able to recover the payoff and the harm the delay caused, and every licensed Florida dealer must post a $25,000 bond or letter of credit that can answer for that loss (§ 320.27(10)).
Forged or altered paperwork
A contract changed after you signed it, or signed while it still had blanks, violates Florida law, and the claim is against the dealer (Fla. Stat. §§ 501.204(1), 501.976(9); § 520.07(1)(a), (7)). An electronic signature binds you only if it was your act; the signing platform’s records (time stamps, device, IP address) are how that gets proved (§ 668.50(9)(a)). If you never signed the agreement to arbitrate, whether one exists is a question for a court to try (9 U.S.C. § 4).
One trap: if you signed an acknowledgment that you received a copy, the law presumes the contract had no blanks (§ 520.07(7)), so the proof has to come from your copy, your texts and the signing records. In my experience, records that hurt a dealer’s position sometimes go missing, and most deal documents send disputes to arbitration, where discovery is limited. That’s why I move early to preserve the dealer’s file.
Where to look. Compare your copy of the contract with the lender’s copy, page by page, and ask for the e-signature audit trail.
What the dealer will say. “You signed electronically. The system shows it.”
What the law allows. For a willful violation of Florida’s motor vehicle finance law, the law allows an amount equal to the finance charge and any delinquency fees, plus attorney’s fees and costs (§ 520.12(2)).
Bait-and-switch pricing and junk fees
Bait-and-switch is the rip-off most buyers recognize: a price, rate or payment that changes between the ad, the handshake and the contract. A dealer can’t raise the price after accepting your order or contract, except in a few situations the statute lists (Fla. Stat. § 501.976(15)).
Dealer fees. A dealer may charge for predelivery preparation, but every document that lists the charge must print this sentence: “This charge represents costs and profit to the dealer for items such as inspecting, cleaning, and adjusting vehicles, and preparing documents related to the sale.” (Fla. Stat. § 501.976(18)). Its advertised price has to include its own fees; only taxes, tag, registration and title fees may be left out (§ 501.976(16)). A dealer may add its own fee for electronic filing or a temporary tag (§§ 320.03(10)(d), 320.131(9)(a)), but that is the dealer’s fee, not the state’s. On a financed purchase, it may charge for taxes and government fees only to the extent they are actually paid for those purposes (Fla. Admin. Code R. 69V-50.001). I often see “government” fees on a buyer’s order that are well above what the tag agency actually charges, and keeping the difference can be a deceptive practice. Florida sets no dollar limit on a dealer’s own fees, so what makes a fee challengeable is how it was disclosed, described and agreed to, not just its size.
Leases. Federal law limits early-termination and similar lease charges to amounts that are reasonable in light of the lessor’s actual or anticipated harm (15 U.S.C. § 1667b(b)). A turn-in fee the lease itself doesn’t allow is a breach of the lease, and can be a FDUTPA claim.
Where to look. Compare the ad with your buyer’s order, and look for line items such as “dealer fee,” “electronic filing” or “market adjustment.” Compare the rate you were promised by text or email with the annual percentage rate on your contract (explained below). Compare the fee lines on your buyer’s order with the tag agency or tax collector receipt.
What the dealer will say. “The online price required dealer financing.”
What the law allows. Florida’s misleading-advertising law allows a buyer who relied on a false ad to recover damages, and it awards attorney’s fees to whichever side wins (§ 817.41(6)).
Odometer fraud
Tampering with an odometer is illegal under federal law on any vehicle, whatever its age (49 U.S.C. § 32703). In Florida it is also a crime, and a dealer violation you can sue over under FDUTPA (Fla. Stat. §§ 319.35, 501.976(12)).
Where to look. Check the mileage and warning boxes on the odometer disclosure statement (explained below) against service, inspection and auction records.
What the dealer will say. “We relied on the mileage the prior owner gave us.”
What the law allows. A federal minimum recovery plus attorney’s fees when the dealer acted with intent to defraud (49 U.S.C. § 32710).
Your paperwork, explained
Five parts of your paperwork, with made-up example figures.
The Truth in Lending Box
On a financing contract written by the dealer, these disclosures appear before you sign, usually grouped in boxes near the top (15 U.S.C. § 1638(a), (b)(1); 12 C.F.R. §§ 1026.17(b), 1026.18).
Example only: a $29,398 amount financed at 9.9% for 72 months ($543.14 a month).
| As printed on your contract | Example | What to check |
|---|---|---|
| ANNUAL PERCENTAGE RATE The cost of your credit as a yearly rate. | 9.90% | The interest rate on your loan, stated as a yearly rate (with any loan fees folded in). Compare it with the rate you were promised by text, email or on the buyer’s order. A higher rate here is how a rate switch shows up. |
| FINANCE CHARGE The dollar amount the credit will cost you. | $9,708.08 | Think of it as the interest on your loan, in dollars, over the whole loan, plus any loan fees such as a loan processing fee. A small change in the rate moves this number by thousands. |
| Amount Financed The amount of credit provided to you or on your behalf. | $29,398.00 | Higher than the price minus your down payment? The itemization below shows what was added. |
| Total of Payments The amount you will have paid after you have made all payments as scheduled. | $39,106.08 | Normally your monthly payment times the number of payments. A different final payment or an irregular schedule changes the math. |
| Total Sale Price The total cost of your purchase on credit, including your downpayment of $5,000. | $44,106.08 | What your purchase costs on credit, including your down payment and everything added to the loan. |
| Your payment schedule will be: | 72 monthly payments of $543.14 | Does the monthly payment match the one you were quoted? If it’s higher, find out why: an added product, a higher rate, a longer term or another changed amount. |
The Itemization
A list, on your financing contract or on a separate sheet, of what makes up the amount you’re borrowing (Fla. Stat. § 520.07(3)). Most Florida dealer contracts lay it out in the numbered lines below.
Example only, matching the box above.
| Line, as printed on the contract | Example | What it means |
|---|---|---|
| 1 Cash Price (including sales tax) | $30,000.00 | The agreed price of the car, with sales tax. |
| 2 Total Downpayment | $5,000.00 | Your net trade-in plus cash and any other credit. |
| Gross Trade-In Allowance | $14,000.00 | What the dealer credited for your trade-in. |
| Less Pay Off Made By Seller | −$11,000.00 | What the dealer agreed to pay your old lender. This is the payoff to track if your old loan stays open. |
| Equals Net Trade In | $3,000.00 | Allowance minus payoff. If you owed more than the trade-in was worth, it counts as $0 toward your down payment, and the shortfall is moved into line 5J as a “prior credit balance,” which means it’s financed. |
| + Cash | $2,000.00 | Cash you paid up front. |
| 3 Unpaid Balance of Cash Price | $25,000.00 | Line 1 minus line 2. |
| 4 Predelivery Service Fees | $998.00 | The dealer’s own fees. Every document that lists them must print the sentence “This charge represents costs and profit to the dealer for items such as inspecting, cleaning, and adjusting vehicles, and preparing documents related to the sale.” |
| A Predelivery Service Charge | $799.00 | Dealer preparation. Florida sets no cap, but it must carry that sentence and be included in the advertised price. |
| B Electronic Registration Filing Fee | $199.00 | The dealer’s fee for filing your title and registration electronically. It is the dealer’s fee, not the state’s. |
| 5 Other Charges Including Amounts Paid to Others on Your Behalf (Seller may keep part of these amounts) | $3,400.00 | Add-ons, taxes and government fees. “Seller may keep part” refers to add-ons such as a service contract: the dealer can be paid a share of what you pay for them. Government fees are different (see E–I). |
| D Optional Gap Contract | $900.00 | Optional protection for the gap between what you owe and what the car is worth if it’s totaled or stolen. |
| E–I Government fees and taxes | $0.00 | Left out of this example. These are set by the state, and the dealer may charge them only in the amount actually paid to the government. If the dealer wants to be paid for its own work, like preparation or electronic filing, that belongs on line 4 as the dealer’s own fee, with the required sentence. Compare these lines with your tag agency or tax collector receipt. |
| J Other Charges: to [service-contract company] for Service Contract | $2,500.00 | Optional. Check that you actually agreed to it. Some contracts include it in the cash price instead, so compare with your buyer’s order. |
| J Other Charges: to [old lender] for Prior Credit or Lease Balance | $0.00 | Where negative equity from a trade-in goes. |
| 6 Loan Processing Fee Paid to Seller (Prepaid Finance Charge) | $0.00 | If charged, it counts as part of the finance charge, not the amount financed. |
| 7 Amount Financed (3 plus 4 plus 5) | $29,398.00 | Should match the Amount Financed box. |
The Right-to-Cancel Clause
Many deals where you drive home before the financing is final include a clause, or a separate form you sign, saying the sale depends on the dealer selling your contract to a lender on the terms written. If it can’t, the dealer may cancel the deal, usually within a stated period, and the clause sets out what happens to the car, your down payment and your trade-in.
The Buyers Guide
The sticker posted on a used car on a dealer’s lot (16 C.F.R. § 455.2). It shows whether the dealer is selling the car as is or with a warranty, and what any warranty covers. It becomes part of your contract and overrides anything in the contract that says otherwise (§ 455.3(b)). It does not show accident history or title problems.
The Odometer Disclosure Statement
A signed statement of the mileage, given when ownership of most vehicles changes hands; some older vehicles are exempt (49 U.S.C. § 32705; 49 C.F.R. §§ 580.5, 580.17). The seller states the mileage and checks whether it is the actual mileage, has rolled past what the odometer can display, or is not the actual mileage.
What you may be able to recover
Most dealer claims run through FDUTPA. It allows a buyer who lost money because of a dealer’s unfair or deceptive practice to recover actual damages, usually measured by the difference between the value of what you were promised and the value of what you got (Fla. Stat. § 501.211(2)). FDUTPA does not allow treble or punitive damages. The court may award attorney’s fees and costs to whichever side wins, so the fee rule cuts both ways (§ 501.2105(1)). Some of the laws above allow more, and where a practice carries its own remedy, its section says so. More on what consumer statutes let you recover.
How these cases work and what they cost
I explain each step of a consumer case, from documents and a written demand to arbitration or a lawsuit, on my Consumer Protection page.
I handle dealer cases on a contingency fee, an hourly rate, a hybrid of reduced hourly plus a percentage, a flat fee for an initial evaluation and assessment (for dealership and financing disputes, where the first step is a careful review of your paperwork), or another alternative fee arrangement. On a contingency fee, you will not owe me any attorney’s fee or costs unless there is a recovery. On an hourly or hybrid arrangement, the hourly fees are owed whether or not there is a recovery, and you may be responsible for case costs I advance even without a recovery. More on how I structure fees in consumer cases.
Motor Vehicle Dealer Fraud FAQs
Can I sue a car dealership in Florida?
Yes. If a dealer lied to you about the car, the price or the financing and you lost money because of it, Florida’s Deceptive and Unfair Trade Practices Act allows you to sue for actual damages (Fla. Stat. § 501.211(2)). If your purchase papers include the dealer’s § 501.98 notice, Florida requires a written demand to the dealer, sent by U.S. mail or a national carrier, return receipt requested, at least 30 days before you sue or arbitrate (§ 501.98). A complaint to the state can lead it to act against the dealer and seek money for consumers, but it is not your own damages claim and doesn’t stop your deadline (§§ 501.207(1)(c), 95.051(2)).
How can I tell if a dealer ripped me off?
Compare what you were promised with what you signed. Check the annual percentage rate against the rate you were quoted, the itemization against the add-ons you agreed to, the cash price against the ad, and the title and Buyers Guide against what the salesperson told you about the car. A gap between the promise and the paper is where a claim usually starts.
What kind of lawyer do I need to sue a car dealership?
A lawyer who sues dealers, reads retail installment contracts and deal files line by line, and is ready to take the case through arbitration or trial. When I take a dealer case, I handle it myself.
Is it worth suing a car dealership?
Often, yes, because several of the laws that apply let the winner recover attorney’s fees. Under Florida’s Deceptive and Unfair Trade Practices Act that cuts both ways: the court may award fees to whichever side prevails (Fla. Stat. § 501.2105(1)). I’ll tell you whether a case is too small before you commit to anything.
Is yo-yo financing illegal in Florida?
Not necessarily. Whether it is unlawful depends on what you signed and what the dealer did. Florida law forbids having you sign a contract that doesn’t match the deal you made, raising the price after the dealer accepted your contract, and leaving terms blank to fill in later (Fla. Stat. § 501.976(9), (15); § 520.07(1)(a), (7)).
The dealer says my financing fell through. Do I have to sign a new contract?
No one can make you sign a new contract, but what happens if you don’t depends on what you signed the first time. Before you sign anything new, get a copy of every page you signed and the dealer’s answer, in writing, on your deposit and trade-in.
Can a dealership take a car back after you signed a contract?
Only in limited situations. If your paperwork made the sale conditional on financing, the answer turns on what that condition says. Otherwise, a creditor may repossess without going to court only after a default, and only without a breach of the peace (Fla. Stat. § 679.609). Before you stop paying to force the issue, read what I tell clients about stopping payments.
What’s different about a buy-here-pay-here dealer?
At a buy-here-pay-here lot, the dealer that sells you the car is also your lender: it writes the retail installment contract and keeps it, and you make your payments to the dealer (Fla. Stat. § 520.02). The same Florida dealer rules apply (§ 501.976), and the dealer owes you the Truth in Lending disclosures directly (15 U.S.C. § 1638(a)). Florida caps the finance charge according to the car’s age (§ 520.08); if a dealer willfully charges more, the law allows you to recover the whole finance charge and any late fees, plus attorney’s fees and costs (§ 520.12(2)). Many of these cases turn on repossession: before selling a repossessed car, the dealer must send you notice, and every part of the sale must be commercially reasonable (§§ 679.610(2), 679.611).
Can a buy-here-pay-here dealer put a repossession on my credit?
Yes. If the dealer reports to the credit bureaus, it must report accurately (15 U.S.C. § 1681s-2(a)), and a repossession can generally remain on your credit reports for up to seven years (§ 1681c(a)(5)). Federal and Florida law generally don’t require a dealer to report your on-time payments, and many buy-here-pay-here dealers don’t.
The dealer added a warranty or GAP I never agreed to. What can I do?
You may have a claim: an add-on you never agreed to violates Florida’s Deceptive and Unfair Trade Practices Act (Fla. Stat. § 501.976(9), (11)), and a dealer can’t make GAP a condition of your loan (§ 520.07(11)). Start by listing every product you didn’t ask for.
Do dealerships have to tell you if a car has been in an accident?
Not always. Florida doesn’t require a used-car dealer to list every past accident, but it can’t tell you the car has no damage unless it inspected the car and believes that in good faith (Fla. Stat. § 501.976(5)). On a new car, the dealer must disclose damage it knew about if the repair cost more than 3 percent of the sticker price or $650, whichever is less (§ 501.976(19)).
The dealer never paid off my trade-in. What now?
The dealer is already late if 10 working days have passed since it took ownership of your trade-in (Fla. Stat. § 319.24(5)(a)). Get a statement from your old lender showing the loan is still open, and look up your trade-in by VIN on the state’s free Vehicle Information Check, which shows whether a lien is still recorded on the title. Then put the dealer on written notice that the payoff is overdue. Don’t sign a new deal to “fix” it.
The dealer forged my signature or changed the contract after I signed. What do I do?
You may have a civil claim against the dealer: a contract altered after you signed it, or signed in your name, is an unfair and deceptive practice under Florida’s Deceptive and Unfair Trade Practices Act (Fla. Stat. § 501.204(1)), and an electronic signature binds you only if it was your act (§ 668.50(9)(a)). Forgery with intent to defraud is also a felony (§ 831.01), but a police report doesn’t replace your claim.
The price in the ad was lower than the price in the contract. Is that illegal?
Often, yes. In Florida, a dealer’s advertised price has to include every fee you must pay except taxes, tag, registration and title (Fla. Stat. § 501.976(16)). Optional products you chose to buy don’t count.
Can I sue over a rolled-back odometer?
Yes. If a dealer broke federal odometer law with intent to defraud, the law allows you to recover three times your actual damages or $10,000, whichever is greater, plus attorney’s fees (49 U.S.C. § 32710).
Can you return a car after buying it from a dealership in Florida?
Not because you changed your mind. Florida has no cooling-off period for buying a car from a dealer, and the federal cooling-off rule doesn’t cover it (Fla. Stat. § 501.021(1); 16 C.F.R. §§ 429.0(a), 429.3(a)). You may be able to undo a sale if, for example, the dealer misrepresented the car or the deal, a conditional sale’s condition failed, the lemon law applies, or you haven’t taken delivery and haven’t received a copy of the contract (§ 520.07(1)(c)).
Does Florida have a lemon law for used cars?
Sometimes. Florida’s lemon law covers new vehicles sold in Florida, but its protection passes to a later owner for the rest of the 24 months after the vehicle was first delivered, if the defect is reported within that time (Fla. Stat. §§ 681.102(4), (9), (14), 681.103(1), 681.115). It does not cover motorcycles, mopeds, off-road vehicles, trucks over 10,000 pounds, or the living quarters of an RV. Once those 24 months have run, a remaining factory, certified pre-owned or written dealer warranty may be enforceable under federal law (15 U.S.C. § 2310(d)).
If I’m not the right lawyer
Not every bad deal is fraud. A price you agreed to, a rate you accepted with everything disclosed, or a breakdown in a car nobody misrepresented can be a bad bargain without being a claim, and I’ll tell you which one you have. If your problem belongs with a legal aid office or a class action already underway, I’ll tell you that too.
Call or text me at (305) 926-9452 or send a message below. Bring your paperwork.
Dedicated trial advocacy for the injured, exploited, and abused.
Contact Me
Every inquiry comes to me, and I review each one personally.
Contacting me through this form does not create an attorney-client relationship.
Please do not send confidential or time-sensitive information through this form.