Lawsuit against Used Car Dealer

  1. State Files Lawsuit Against Used Car Dealer 


The New Jersey Attorney General filed a lawsuit against two “Buy Here-Pay Here” auto dealerships and their owner for allegedly unconscionable and deceptive lending practices.

The complaint alleges that defendants sold high-mileage, used autos at grossly inflated prices with excessive down payments; financed the sales through in-house loans with high interest rates and “draconian” terms that created a high risk of default; and then repossessed and resold the vehicles over and over again to different consumers in a practice they refer to as “churning.” The defendants also allegedly engaged in deceptive advertising, failed to disclose the damage and/or required substantial repair and bodywork required for used motor vehicles, and failed to provide consumers with complete copies of signed sales documents, including financing agreements. The complaint alleges that these practices violated the New Jersey Consumer Fraud Act, the New Jersey Motor Vehicle Advertising Regulations, the Automotive Sales Regulations, and the state Used Car Lemon law and regulations. New Jersey Attorney General files suit against used car dealer


2. Sources

Automobile dealer fraud overview

Typical mistakes in lemon law trials 

Have you been deceived in a used car transaction.


Caller about Do Not Call List


Common Mistakes Handling Fraud Claims



1. Not Clearly Explaining the Claim

The defendant is involved in a fraud and you provide a complicated explanation that the Court does not fully understand.   Your claim is likely to be dismissed (probably with leave to re-file once).  See

2. Assuming that justice will be done.

Many scheme  continue with skilled counsel, until the collapse finds limited funds and unpaid claims.  The skilled SEC believed Madoff and not his accuser.  Simply because a wrong has been committed do not assume that the Court will address it; you need to prove your claim clearly and convincingly.

3.  Lumping the defendants together

Saying the defendant willfully and deliberately conspired to defraud the plaintiff making multiple false statements resulting in the substantial losses set forth above- is not going to do it.   In a fraud case, you need to identify what each defendant did.  Each will pretend not to understand what it is alleged to have done wrong and a vague complaint will again be subject to dismissal


Welcome to Our Blog

This site contains material about laws, cases, and claims under the lemon law and other statutes.  We offer a free telephone consultation so please contact us if you are having problems with a defective vehicle.  Here is an overview.


1. Requirements under Lemon Law

“I think my car is a lemon.”  Many consumers have checked mileage and time periods but unfortunately there is more.   In practice, the law requires proof of a defect or problem — simply saying you are dissatisfied or worried about the car’s safety or reliability may not be enough.   In New Jersey administrative claims, an expert may be needed; otherwise, the manufacturer will presents its own representative to say the car is performing within specifications, no codes display, and the problems alleged involve characteristics of the car.   If the problem has been fixed, the case will lose in the lemon law administrative court and should be settled or filed elsewhere.


2.  Consumer Fraud and Other Claims

“I have a defective car, but checked and I don’t meet lemon law guidelines.”  You may still have a claim because there are a number of laws that can apply.  The New Jersey Consumer Fraud Act prohibits deception, fraud, and unconscionable conduct.  Express warranty claims involve the failure of the company to perform the warranty it provided.  Unless a car was sold as-is, there is an implied warranty that the car is reasonably fit.