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The Most Common Ways Customers Are Deceived at Moscow Car Dealerships

22.05.2020Reading time: 4 minAuthor: attorney Yuriy Arutyunov

Moscow car dealerships will soon return to their usual operating hours, so the topic of deception at car dealerships will be useful to most consumers!

So, let us look at the most common schemes:

Inflated price – the price of the vehicle is higher than the average market price or the price set by the manufacturer for official dealers of the brand in question.

Customers most often encounter this scheme at so-called "grey dealers" – car dealerships that are not official dealers of the brands they sell. The scheme is based on misleading advertising offering new cars at prices far lower than those offered by official dealers, which draws a large number of customers to these dealerships. Then, while the deal is being processed, it usually turns out that the car at the reduced price is no longer available, or that some problem has arisen with it, and the customer, who has already paid a down payment and/or had a loan approved, is pressed to choose a different car. Most consumers do not know the market value of the car being offered, since they originally intended to buy a car of a different brand, and such dealerships take advantage of this.

The terms of the loan agreement do not match those agreed – a scheme for deceiving Consumers in which documents are substituted during signing.

Imposed additional services – a scheme used by both official and "grey" dealers. However, under clause 2 of Article 16 of the Law of the Russian Federation "On Consumer Protection", it is prohibited to make the purchase of certain goods (works, services) conditional on the mandatory purchase of other goods (works, services). Thus, Insurance policies and various Subscription agreements imposed at a car dealership violate Consumers' rights and are subject to termination.

Defective goods – a vehicle purchased at a car dealership must be fit for its intended purpose and comply with the terms of the Agreement, regardless of whether it is new or used. Information about defects in the goods must be communicated to the Buyer in full and in an accessible form.

The vehicle sale and purchase agreement was concluded under pressure – a scheme for deceiving Consumers in which the Buyer pays money to the Dealership's cash desk before signing the final Sale and Purchase Agreement, and is later told that the money was paid as a deposit, which is not refundable if the Buyer withdraws from the deal.

Failure to provide complete and accurate information about the goods – used cars are often sold at Dealerships with rolled-back mileage (altered odometer readings); in addition, cases of selling cars subject to restrictions on registration actions are not uncommon.

IMPORTANT TO KNOW:

First of all, when planning to buy a new car, check the basic information posted on the website of the dealership you have chosen:

For example, if the website states that the dealership is an "official dealer" of a particular brand, this information is easy to check on the official distributor's website, which always has a "dealer list" section.
In addition, any official dealer will provide you with the relevant certificate on request.

Compare prices:

Naturally, if a dealership is not an official dealer, that is not in itself a reason to brand it "grey" or accuse it of "fraud"; however, if when comparing prices you find that the prices for new cars at the dealership you have chosen are significantly lower than those offered by official dealers, this should at the very least alert an attentive consumer!

Read the sale and purchase agreement carefully:

Remember: anything said "verbally" but not stated in the agreement is complete nonsense! If, when you are buying a used car, the dealership's manager assures you that the car has no defects, has not been involved in a road traffic accident and is being sold with its "original" mileage, demand that all of this be expressly stated in the sale and purchase agreement!

If a dispute arises, contact a qualified attorney or lawyer:

In consumer protection cases, the time limits for bringing claims against the seller, as well as the collection and documentation of evidence, are of enormous importance!