Top 4 Risks Auto Dealerships Face

Owning a business can be stressful, with many obstacles to success. Auto dealership owners particularly face a difficult time when making their business work. Stereotypes illustrate cars salesman as individuals who would do or say anything to make a sale. While this may not be true, it taints the perception of many about the auto dealership and their owners. If you are a car dealership owner, protect yourself and your business from risk factors by hiring a qualified civil litigation attorney.

Common Risks for Auto Dealerships:

1.Violations of rules and regulations – Auto dealerships must adhere to many rules, including consumer rights and safety regulations. Because some car dealerships must import vehicles and sell them, there are multiple rules to follow. Having an attorney review your transactions and plans can help protect you from any violations and prevent future lawsuits.

2.Questions of conduct – All business owners must follow ethical codes of conduct when they deal with potential buyers. They must be honest in the merchandise they sell. For example, a dealer must alert buyers whether the car is being sold “as is” or if it comes with a warranty. If a person finds fault with an auto dealer’s code of conduct, they may bring forth a lawsuit. Having a lawyer can help you save your reputation and business.

3.Trade-in fraud – Used auto dealerships in particular must protect their business from trade-in fraud. If an individual sells an auto dealership their car, they may claim later that they were not paid the correct value of the vehicle. A civil litigation attorney can help you protect yourself from false allegations of trade-in fraud.

4.Lawsuits from buyers – Auto dealerships have the potential to face many lawsuits. From disgruntled customers to consumer safety checks, owners must always be alert. That is why a lawyer can help provide appropriate legal representation and peace of mind.

At Chung & Ignacio, Attorneys at Law, our civil litigation lawyers have the skill and qualifications necessary to protect your business. If you own an auto dealership, contact us today for a free consultation.

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