Dealers are being targeted. Across the country, attorneys are filing lawsuits over supposed verbal promises made during vehicle sales — even when there’s no written proof. These false verbal misrepresentation claims can cost dealers thousands in legal fees, wasted time, and damaged reputations.

At Auto Legal Group (ALG), we’re helping dealerships fight back. In a recent arbitration, our team won a major victory when an arbitrator dismissed a customer’s claim as “disingenuous and self-serving,” ruling that it was brought in bad faith. The message was clear: when dealers are prepared and protected, false claims fall apart.

Why These Claims Keep Increasing

Plaintiff attorneys have found a new tactic — targeting dealers with “he said, she said” accusations about:

• Prior maintenance or accident history
• Vehicle condition or repairs
• Warranties or service promises supposedly made verbally

With no solid evidence, these cases rely entirely on credibility battles. And when everything comes down to one person’s word against another, even a strong dealership can get dragged into unnecessary disputes.

Stop False Claims Before They Start

The smartest dealers don’t wait for trouble. They document every step of the sale and use tools that prove exactly what was said — and when.

That’s why more dealers are turning to DealerXT, a digital platform that creates clear records of every disclosure and acknowledgment. DealerXT allows you to:

• Record key verbal representations
• Capture customer confirmations in real time
• Store timestamped proof tied to each transaction

When you have clear documentation, there’s no room for confusion — or false accusations.

Real Protection, Real Results

Auto Legal Group has built a proven approach to helping dealers reduce risk and strengthen compliance. We know how these cases are argued, how they fail, and what documentation makes the difference.

Our goal is simple: keep dealers out of court and focused on selling cars, not fighting claims.

The Takeaway

False verbal misrepresentation claims are here to stay — but they don’t have to hurt your business. With Auto Legal Group and DealerXT, you can safeguard your dealership, protect your credibility, and stay ahead of costly disputes.

Don’t let someone’s word put your business at risk.
Contact Auto Legal Group today to learn how you can document, protect, and win before a claim ever begins.