Protection — Fraud Prevention
Know What
They're Doing.
Real tactics used against buyers. Named, explained, and countered — because knowing you're being scammed is the first step to walking away.
The Reality
This isn't paranoia.
This is pattern recognition.
Every tactic on this page has a name. Once you know the name, you can see it coming. You're not being difficult. You're being smart.
Document Explainer — The Pink Slip
This document is your
only proof you own the car.
A California Certificate of Title — called the “pink slip” — is the legal document that proves vehicle ownership. Without it in your name, the car is not legally yours, no matter what you paid. Click the numbered pins to learn what each section means.
Click any numbered pin to learn what that section means
At the Dealership
Red Flags That Should Make You Pause.
Know Your Rights — California & Federal Law
The law is already on your side.
Most buyers don't know what dealers are legally required to do. Here's what the law actually says — in plain English — and exactly what to say when they try to ignore it.
01
Federal — Truth in Lending Act (TILA)
Your APR must be disclosed before you sign. No exceptions.
The dealer is required by federal law to show you your Annual Percentage Rate, the total finance charge, and the total cost of the loan before you sign anything. On a $15,000 loan, the difference between 7% APR and 30% APR is over $8,000.
02
Federal — FTC Used Car Rule
Every used car must have a Buyers Guide in the window.
By law, every used car on a dealer lot must display a Buyers Guide sticker disclosing whether it has a warranty, what the warranty covers, or that it's sold "as is." The FTC can fine dealers up to $51,744 per missing sticker.
03
Federal — Motor Vehicle Information Act
Odometer rollback is a federal felony.
The dealer must provide a written odometer disclosure at the time of sale. Cross-reference the number on the contract with the physical odometer, the Carfax report, and any service records. All three must match.
04
Federal — Fair Credit Reporting Act
If they pull your credit, you're entitled to see exactly what they found.
Dealers must give you a written disclosure showing your exact credit score, which bureau provided it, and how it affected your loan terms. Know your number before you walk in.
05
California — AB68
You can undo the purchase within 2 days — but you have to buy this right at signing.
California does not have an automatic cooling-off period. However, every licensed dealer must offer you a 2-day contract cancellation option on used cars priced $40,000 or less. It costs $75–1% of the purchase price plus a restocking fee if used — but it gives you a legal exit.
06
California — AB68
Interest rate markups are capped. The dealer can't charge whatever they want.
California law caps dealer interest rate markups: max 2% on loans over 60 months, max 2.5% on shorter loans. Getting pre-approved at a bank or credit union before you walk in removes this leverage entirely.
07
California — AB68
Every add-on must be listed separately with its own price. No bundling.
Any financed item must appear as a separate line item. The dealer must show your monthly payment with and without each optional item. One big bundled number presented as "the payment" is a California law violation.
08
Prohibited
They cannot require an add-on as a condition of financing.
No dealer can require you to purchase GAP insurance, an extended warranty, paint protection, or any other add-on as a condition of getting your loan approved. If a finance manager implies you "have to" take an add-on to qualify — that's a lie, and it's illegal.
You walked in knowing nothing. Now you know everything.
If It Already Happened
What to Do After a Scam.
- →Document everything immediately. Dates, times, names. Save all texts, emails, and contracts.
- →File with your state DMV. Most states have consumer protection divisions for automotive fraud.
- →File with the FTC. reportfraud.ftc.gov — complaints build the database used to pursue enforcement.
- →Contact the manufacturer. Franchised dealerships have parent oversight. They take complaints seriously.
- →Consider a consumer protection attorney. Many work on contingency — you pay nothing upfront.
- →Leave an honest public review. Google, Yelp, BBB. You're protecting the next person.