By: Robert J. Nahoum
Buying a car should be straightforward: you see an advertised price, you go to the dealership, and you buy the car at that price. But too often, New Jersey consumers are lured in by a low advertised price,—only to be told the car is “just sold,” or that the price requires a large down payment, trade-in, or add-on fees that were never disclosed. This is called a bait-and-switch, and it may violate both New Jersey and federal consumer protection laws.
If you’ve been targeted by these tactics, you may have legal remedies—including the possibility of recovering triple your damages and having the dealer pay your attorney’s fees.
What Is a Bait-and-Switch in Auto Sales?
A bait-and-switch occurs when a dealer:
- Advertises a vehicle at an attractive price to get you to visit the dealership (the “bait”), but
- Then refuses to sell you that vehicle at the advertised terms and tries to sell you a different, more expensive vehicle or adds hidden fees (the “switch”).
Common examples include:
- Advertising a car at $9,995, then saying it was “just sold” and pushing a $14,995 model.
- Advertising a price that omits mandatory dealer fees that are added only at signing (sometimes called “drip pricing”).
- Claiming the advertised price requires a large, undisclosed down payment or trade-in.
Why Bait-and-Switch May Be Illegal in New Jersey
New Jersey Consumer Fraud Act (CFA)
New Jersey has one of the strongest consumer protection laws in the country: the New Jersey Consumer Fraud Act (CFA), N.J.S.A. 56:8-1 et seq. The CFA prohibits:
- Unconscionable commercial practices
- Deception, fraud, false pretense, false promise, or misrepresentation in connection with the sale of goods or services—including motor vehicles.
Bait-and-switch advertising and sales tactics fit squarely within these prohibitions. The New Jersey Division of Consumer Affairs and the Attorney General have specifically identified “drip pricing” and bait-and-switch practices by auto dealers as potentially unlawful under the CFA.
Remedies under the CFA include:
- Treble damages (up to three times your actual financial loss)
- Mandatory attorney’s fees and costs if you win
- Contract rescission (canceling the deal and getting your money back)
The CFA also carries significant penalties for dealers: up to $10,000 per violation for a first offense and $20,000 for subsequent offenses.
Real-World Examples of Illegal Bait-and-Switch Tactics
Based on recent enforcement and case examples, illegal bait-and-switch tactics by New Jersey auto dealers include:
- Advertising unavailable vehicles: Posting online listings for cars that are already sold or not in inventory, just to get you to call or visit.c
- Hidden mandatory fees: Advertising a price that excludes required dealer fees (documentation fees, reconditioning fees, etc.) that are only revealed at signing.
- Conditional pricing tricks: Claiming the advertised price only applies if you finance through the dealer, trade in a vehicle, or make a large down payment—none of which was disclosed in the ad.
These practices are not just “aggressive sales tactics.” They may be unlawful under both state and federal law.
What to Do If You Suspect a Bait-and-Switch
If you believe you’ve been targeted by a bait-and-switch at a New Jersey auto dealership, take these steps immediately:
- Save the advertisement. Take screenshots or print the online listing, social media ad, or paper advertisement you saw.
- Document all communications. Keep emails, texts, and notes from phone calls or in-person conversations with the dealer.
- Get everything in writing. Ask the dealer to confirm the advertised price and terms in writing before you sign anything.
- Do not sign blank or incomplete contracts. Make sure all fees, charges, and terms are clearly listed before you sign.
- Contact an attorney. An experienced consumer protection lawyer can evaluate whether you have a claim under the CFA or federal law.
How Nahoum Law Can Help
At the Law Offices of Robert J. Nahoum, P.C., we represent New Jersey consumers who have been ripped off by auto dealers using bait-and-switch and other deceptive practices.
We handle cases involving:
- False or misleading advertising
- Undisclosed fees and “junk fees”
- Financing manipulation and yo-yo financing
- Odometer fraud and undisclosed vehicle damage
Because the CFA allows for treble damages and fee-shifting, we can often pursue strong claims on behalf of consumers without requiring them to pay upfront legal fees.
If you think you’ve been the victim of a bait-and-switch, contact us for a free consultation. Learn more about our auto fraud practice at: New Jersey Auto Dealer Fraud Lawyer.
At The Law Offices of Robert J. Nahoum, P.C., we regularly represent consumers who have been ripped off by New Jersey auto dealers. If you faced deceptive practices, auto loan manipulation, or unfair contract terms, visit our Auto Fraud Legal Services page to learn how we hold dishonest car dealerships accountable.
For more information about consumer rights and deceptive business practices, visit our consumer protection practice page and our auto-fraud articles.
At The Law Offices of Robert J. Nahoum, P.C., we represent New York and New Jersey consumers who have been ripped off by dishonest auto dealers. If your deal doesn’t match what was promised, you have rights—and we can help you enforce them.
For a free consultation about an auto‑fraud or deceptive‑sales issue, contact us at our Hudson Valley office or our Brooklyn location.
📞 Call (845) 232‑0202 or visit our contact page: www.nahoumlaw.com/contact