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I was surfing the net for interesting stories pertaining to auto fraud and I am never shocked. I guess there is this well-known chain of oil change stores in California that was allegedly taking some shortcuts. It appears that they were recommending services that were not needed according to this news story.
 

 

I guess the issue is: how do you protect yourself form this type of conduct?
Get a second opinion or even educate yourself on the work that is being performed? This is a very though thing to recommend. Who has the time to make sure they are not taken advantage of when they get an oil change? The only way to really make sure is to do it yourself.
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During litigation in the American Arbitration Association I discovered that North Plainfield Nissan sold Maintenance Agreements and offered these agreements with the sale of used cars. The price was not disclosed in any of the purchase agreements and there was no documentation that was given to the claimant.

If you have purchased a car from North Plainfield Nissan and you have questions about the transaction I would review the documents for no fee.

The Law Office of Jonathan Rudnick is a law firm in Middletown/Red Bank that litigates claims against car dealerships.

I recently litigated a case against North Plainfield Nissan using the American Arbitration Association. The litigant alleged that she was overcharged for the car and also that there were certain misrepresentation made pertaining to the financing.

During the arbitration it was disclosed that my client had “purchased” a “maintenance plan” for about $1,200. She testified that this was never disclosed to her and that she was unaware of the benefits of the plan, which included free oil changes.

The arbitrator found in the claimant’s favor and awarded a return of the $1,200 plus interests and costs BUT the basis is unknown because he did not award fees or triple the damages as required under NJ law for Consumer Fraud.
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The Honorable Mark Sullivan J.S.C. found that Acura of Ocean committed consumer fraud when they failed to accurately disclose damage on the lease of a new car.

The client leased a new car from Acura of Ocean and was told that there was a paint chip that had been repaired. The truth was that the vehicle had been vandalized and there was much more damage to the car, none of which was disclosed.

The Judge tripled the damages under the Consumer Fraud Act and provided for an award of counsel fees as required under the law.
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Many times vehicles are sold with known frame or other types of body damage. Dealers are required to disclose material facts to purchasers. Damaged vehicles are probably valued at 25-80% of the price you have paid and possibly nothing if the prior damages was severe. Safety concerns are aways an important issue, on top of the monetary losses.

These cases are more common than you think. There are actually special auctions that only sell damaged vehicles to dealers. Some are even owned by insurance companies. I have litigated many cases where Certified Used Cars have been sold in a damaged condition despite an extensive 100-point inspection.
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Manufacturers frequently have problems that need to be fixed on a wide-scale basis. If you remember, a few years ago there were Kia Sephia brake problems that resulted in a recall. This is not that uncommon, unfortunately.

Ford just issued on the Explorer: a new risk of fire in Ford SUVs has prompted a recall from the Ford Motor Corp. Ford is recalling about 1,500 2008 Explorer, Explorer Sport Track and Mercury Mountaineer SUVs equipped with the 4.6 liter engine and 6R transmission.

A bolt securing the oil cooler line fittings at the transmission may not have been tightened sufficiently at the Ford assembly plant. If the bolt loosens, the transmission cooler lines can leak fluid onto the vehicle’s catalytic converter, posing the fire risk.
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I would have to say that it is worth the money BUT you really need to understand the limitations of CARFAX so you don’t get burned. CARFAX operates like any other database: garbage in, garbage out. It is only as good as its source of information. If you look at a CARFAX and it does not show an accident that does not mean that the car was not in an accident. It only means that the CARFAX database does not show an accident.

CARFAX does not have access to CLUE (Comprehensive Loss Underwriting Exchange), which is a huge database maintained by the insurance companies of all claims paid on autos – both property damage and bodily injury.
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Most reputable car dealers are a members of NADA, National Association of Auto Dealers. You might find this hard to believe, but there is actually a code of ethics for dealerships. Here it is:

1. ADVERTISING

This dealership is committed to advertising its products and services in a clear, conspicuous and accurate manner that fully complies with applicable legal requirements. This includes disclosing credit terms in accordance with the federal Truth in Lending Act and consistent with state and local law.
2. FINANCIAL SERVICES

Implicit in these standards is the requirement that NADA members comply fully with all federal, state, and local laws governing their businesses.

At this dealership, the finance and insurance professionals will at all times…

* Disclose fully to customers the costs, terms, and contractual obligations of credit and lease transactions. Documents will be written in a simple, plain, and unambiguous manner to the extent permitted by federal and state law.
* Offer optional insurance or other optional products in a clear and informative manner. Any purchase of such a product must reflect a voluntary choice by the consumer.
* Advertise financial services products in a clear and non-deceptive manner.
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Car salesmen have one goal: sell you a car and take as much of your money as possible. There are all types of unflattering terms that are insulting, and they describe customers. Before you buy or lease your next car you need to know this.

1. Bumping — Raising what the customer says he wants to pay for a car (“If Mr. Customer says he only wants to pay $250 a month, just say, ‘up to …?’ He’ll probably bump himself up to $300.”)

2. Closer — An experienced salesperson who is brought in to make the customer agree to the dealership’s terms.

3. The feel of the wheel will seal the deal – the idea that if customers test drive a car, they will fall in love and buy it.
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