New Jersey Car Salesmen: Pay Plan Fraud

Many car salesmen are also victim of dealership fraud. They have a pay plan that is in writing. Despite the simplicity of the pay plan (commissions as a percentage of profit), the dealership inflates the cost of vehicles to reduce their pay. They will add on various questionable costs to the “cost” of the car. Much of this is hidden from the salesman: pack, used car kitty, lot fees, bruise fees, dent fees.

Dealerships will also claim that a product such as GAP or ETCH cost a certain amount, which is false.

Car salesmen are left with few options because they risk being blackballed out of the industry. Turnover is very high at most dealerships, and this is part of the reason.

In my Middletown New Jersey law office I handle many Consumer Fraud and Fraud cases, including those representing salesmen against dealerships for whom they previously worked. All inquiries are kept completely confidential.

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