California Auto Fraud: Know Your Rights
Did a car dealer hide damage, change your financing after you drove off, or pack your loan with add-ons? California law gives car buyers real protections. Learn how they work, then request a free case review if you think they apply to you.
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Common Types of Dealer Fraud
If any of these happened to you, California law may give you options. Our guides explain how.
Yo-Yo Financing / Spot Delivery Scam
Dealer calls days later claiming financing fell through, demanding more money or the car back.
Undisclosed Prior Damage
Vehicle was in an accident or had frame damage that was hidden from you at the time of sale.
Odometer Fraud
The actual mileage was rolled back or falsified to make the car appear newer than it is.
Payment Packing
Hidden fees, inflated prices, or unwanted products secretly added to your loan.
Salvage Title Fraud
Dealer sold you a rebuilt or salvage vehicle without proper disclosure.
Bait and Switch
Advertised price or vehicle was changed after you arrived at the dealership.
What California Law Can Provide
The Consumers Legal Remedies Act (Civil Code § 1750 and following), the Automobile Sales Finance Act, and federal odometer law give car buyers several possible remedies. What applies depends on the facts of your purchase.
Not sure if this applies to you?
Read the free guides
Yo-yo financing, odometer fraud, hidden damage, and the new 3-day right to cancel
Browse Car Buyer GuidesFree Car Buyer Rights & Dealer Fraud Guides
Plain-language answers to the questions people ask most, with links to the laws behind them.
Yo-Yo Financing in California: The Dealer Called You Back. Now What?
Yo-yo financing (also called spot delivery) is when a dealer lets you drive off before your financing is final, then calls you back days later saying the deal fell through and pressures you into a worse contract. You don't have to sign a new contract. If the dealer cancels the deal, you're generally entitled to get your down payment and trade-in back when you return the car.
Read the guideCar Buyer Rights & Dealer FraudCalifornia's New 3-Day Right to Cancel a Used Car Purchase (CARS Act)
Yes, for many used cars. Starting October 1, 2026, the CARS Act requires California dealers to give buyers and lessees of used vehicles priced at $50,000 or less a three-day right to cancel. You can't have driven it more than 400 miles, and the dealer can charge a capped restocking fee. The dealer must refund you within 48 hours.
Read the guideCar Buyer Rights & Dealer FraudOdometer Fraud: How to Spot It and What to Do
Odometer fraud is when a vehicle's mileage is rolled back or misreported to make it seem worth more. Under the federal Odometer Act, a person who tampers with or misstates mileage with intent to defraud can be liable for three times your actual damages or $10,000, whichever is greater, plus attorney's fees. You generally have two years to sue.
Read the guideCar Buyer Rights & Dealer FraudThe Dealer Didn't Disclose Accident Damage. What Are Your Rights?
If a California dealer told you a car had no accidents, or hid damage it knew about, that can be a violation of the Consumers Legal Remedies Act and fraud by concealment. Remedies can include canceling the deal, damages, and attorney's fees paid by the dealer if you win.
Read the guideCar Buyer Rights & Dealer FraudThe Dealer Didn't Tell You the Car Had a Salvage Title
California dealers must pull a federal NMVTIS title history report before offering a used car for sale. If it shows the car was salvaged, junked, or has a title brand, the dealer must post a red warning on the car and give you the report on request. If a dealer hid a salvage or branded title, you may be able to cancel the deal or recover damages.
Read the guideCar Buyer Rights & Dealer FraudYour Car Was Repossessed in California. What Are Your Rights?
After repossessing a car, a California lender must send a Notice of Intent to sell at least 15 days before selling it, within 60 days of the repossession. That notice must explain your right to redeem the car, and usually to reinstate the contract by catching up. If the notice is missing or defective, the lender generally can't collect a deficiency balance from you.
Read the guideCar Buyer Rights & Dealer FraudDeferred Down Payments ("Pick Payments") on California Car Loans
California lets a dealer defer part of your down payment, sometimes called a "pick payment," but only until the due date of your second regular installment, without a finance charge, and only if the contract shows the deferred amount and it appears in the payment schedule.
Read the guideCar Buyer Rights & Dealer FraudWhat Is a Salvage Title? What It Means When You Buy a Used Car
A salvage title means the car was once damaged badly enough (by a crash, flood, fire, or theft) that an insurance company or owner decided it wasn't worth repairing. A salvage car can be rebuilt, inspected, and registered again, but the title stays branded for good, and the car is usually worth much less and can be harder to insure and finance.
Read the guideHow the Free Case Review Works
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Learn your rights
Read our free car buyer guides to understand what California law says about your situation.
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Use the form or call us. Share the basics: the vehicle, the dealer or manufacturer, and what went wrong.
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If it looks like you may have a claim, we connect you with Consumer Action Law Group, an independent consumer protection law firm, which may handle it or refer you to another attorney.
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