Sun Sentinel Broward Edition

Auto-related scams run rampant in Florida

State ranks 3rd worst in US; here are tips to avoid fraud

- By Ron Hurtibise

Paying inflated prices for simple auto repair jobs. Using cheap parts for repairs. Selling useless extended warranties. Charging higher-than-necessary interest rates for loans.

These are a few of the ways auto-related scams are victimizin­g consumers, who face a much higher likelihood of being defrauded in Florida than most other states, according to a new report by Tampabased insurance price comparison website Clearsuran­ce.

The report, based on an analysis of complaints to the Federal Trade Commission in 2020, found that Florida ranked as the third-worst state for auto-related fraud in 2020, with 337 complaints per 1 million residents, behind only top-ranked Nevada (346) and Delaware (338).

“Unfortunat­ely, these results hardly surprise me. Fraud flourishes in Florida, it seems,” said Joshua Feygin, a Hollywood-based attorney who specialize­s in claims against auto dealers.

Massachuse­tts reported the lowest number of complaints — 15 per 1 million residents, followed by Kansas (73) and Rhode Island (76).

The two most likely ways consumers get scammed are at repair shops and dealership­s, the report found. While a majority of these types of businesses are honest, services provided by them tend to involve complexiti­es that provide plenty of opportunit­ies to entrap consumers who might be confused or uninformed.

“Unless you are a savvy mechanic or lease expert, it is easy for scammers to slip in confusing technology to add on fraudulent charges,” the report says.

Complaints that Clearsuran­ce used for its analysis include what it calls “soft fraud” cases, including deliberate scams

and deceptive business practices.

The FTC defined auto-related cases as: “Misleading or deceptive claims regarding auto prices, financing, leasing or warranties; repair/maintenanc­e issues with newly purchased used or new cars, including dissatisfa­ction with service provided by auto mechanics; price fixing and price gouging concerns against gas stations and oil companies; etc.”

Common ways that auto repair shops scam their customers include making unnecessar­y repairs, inflating prices for simple repair jobs, using cheaper counterfei­t parts, charging for unused repair parts and faking malfunctio­ns, such as “finding” oil leaks.

Dishonest dealership­s, the report found, will hide unnecessar­y products or services in their leases, lie about a customer’s credit score to justify charging more, charge extremely high interest on loans, sell useless extended warranties, and charge for vehicle prep work that the manufactur­er already did, such as vacuuming and washing the car and removing protective plastic.

How to avoid getting ripped off

Protecting oneself from overcharge­s or outright ripoffs unfortunat­ely takes work by the consumer. Here are a few tips to avoid being victimized:

■ Before buying a used car, it’s critical that consumers check the vehicle’s history through a service like Carfax.com, which can reveal service and crash histories and whether the odometer has been rolled back, and VinCheck.com, a free service from the National Insurance Crime Bureau that can reveal whether the car has been reported as stolen or titled as a salvage vehicle.

N■ ever hand over money for a car you haven’t seen or driven. When in the car, look at the odometer and see if the mileage correspond­s with the wear and tear you see. If the odometer reading is low, you should expect little wear and tear. Also, look for dirt, mud or rust under carpet or seats, as they could indicate that the car was in a flood.

■ At dealership­s, always demand that price quotes or any other promise be put in writing. “Oral promises or guarantees are unenforcea­ble and may as well have never happened,” Faygin said. Also, consumers should never leave a dealership without having a clear countersig­ned copy of the financing agreement or lease agreement they entered into with the dealer. “Dealers are obligated to provide consumers with a copy of every document that has their signature.”

■ Check out customers’ comments about repair shops on social media sites and the Better Business Bureau’s website. “If an auto shop or dealership has any history of hiking up prices or fraudulent dealings, doing a bit of research beforehand will usually reveal this,” the report said.

■ Always request a written estimate for repair work and make sure to check the “I request a written estimate box” so you will get a second written estimate and have to approve it if the final repair bill is going to be at least $100 more than originally estimated, Faygin said.

■ Ask the mechanic to let you see any replaced parts. “Some mechanics will tell consumers they can’t show them the parts because they have to return them for core deposits,” Feygin said. A core is a part that can be rebuilt or recycled for future sale. Mechanics (and consumers) can typically get a discount off the replacemen­t part by sending back the core. “While it’s true mechanics get money back for core exchanges (mostly for reusable parts like calipers and alternator­s), they usually have a reasonable period of time to return the part.”

 ?? COURTESY ?? Excessive charges by auto dealers are among consumer complaints that made Florida the third-worst state for auto-related fraud, according to a new report by Clearsuran­ce, an online auto insurance price comparison website.
COURTESY Excessive charges by auto dealers are among consumer complaints that made Florida the third-worst state for auto-related fraud, according to a new report by Clearsuran­ce, an online auto insurance price comparison website.

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