How to File a Complaint Against a Car Dealership (50-State Guide)

Did you visit a car dealership to buy your dream car but have a bad experience with the car or the sales team? Did they sell you a faulty car or refuse to transfer the title? In this article, we guide you on how to file a complaint against the car dealership and additional steps you can take. 

You are likely not alone in the type of complaint you have against the car dealership. Here are some common complaints against car dealerships we see: 

• Mechanical issues right after purchase: You bought a car, and the engine started having problems the next day.

• False advertising or lying about the car's history: The dealership told you the car was never in an accident, but that wasn’t true.

• Refusing to honor a warranty: You bought a warranty with the car, but when the car had mechanical problems, the dealership or warranty company refused to pay for repairs.

• Not refunding your money: You canceled an extended warranty, and the dealership promised a refund but never gave it to you.

• Not giving you the title: You bought a car, but the dealership or seller didn’t provide the title documents you need to prove ownership.

• Auto fraud: The dealership advertised a car at a low price and then inflated the car’s price.

Before filing a complaint against the car dealer, collect all important documents and information to help strengthen your complaint.

• Review and understand your car dealership contract, reports, or service agreements. By carefully reviewing these items, you are confirming that you are right and the car dealership is in the wrong.

• Make sure you document everything. Keep records of all communications, meetings, and any relevant documentation. Try to have as much information as possible in writing, as this will be part of your evidence, should you need it. 

• Photographs: Collect photos or videos showing issues with the car.

• Receipts and emails: Save any communication (emails, texts, etc.) with the dealership and their team and receipts for payments made.

• Limitations and disclaimers: Dealerships often include disclaimers about what they are not responsible for. Understand these limitations before proceeding with a complaint.

• Make sure the dealership is legally allowed to operate by checking its license with your state's regulatory agency.

Before filing a complaint, try and communicate directly with the car dealership about your concerns. This often clears things up.

Start with informal communications: communicate your concerns through email or phone. Make sure you keep copies of the emails and texts and also write down dates and times of every phone call with notes for each call (for example, “On September 28, 2024, at 11:30 am, called Mr. Elvis Jones to discuss the issues raised and he said he would get back to me promptly”).  

Escalate to more formal communications: If communicating via phone or email with the car dealership doesn’t work, consider sending a demand letter. A demand letter is a formal letter that explains what happened and asks the car dealership to fix the problem. It can be one of your most important tools in getting the justice you deserve.

Here are some reasons why you should consider sending a demand letter to the car dealership:

1. A demand letter signals to the car dealership that you are serious about the issue and willing to take action to resolve it. Many problems are resolved by simply sending a demand letter.

2. If you end up filing a small claims lawsuit against the car dealership, the judge in your case may ask if you tried to resolve the problem out of court. By sending a written demand letter, there is a record of your attempt to resolve the problem out of court that you can include in your evidence. 

3. A demand letter will also help you organize your facts and evidence and create a timeline of events. This will help you remain consistent and factual as you go through the steps to resolve your complaint. 

If the car dealership continues to ignore your requests even after you have tried communicating with them, consider also leaving reviews on all review platforms available, like the Better Business Bureau, Yelp, Trustpilot, and Google Reviews. Consumers tend to check reviews when engaging with different businesses, and if the car dealership cares about its online reputation, then this may be a powerful avenue for getting your complaint resolved.   

Why is the Better Business Bureau important?

The BBB is a non-profit that serves as an intermediary between car dealerships and consumers. It’s not a government agency and cannot force the car dealership to resolve a disagreement with you. 

Reasons why some companies respond to BBB complaints 

• If the car dealership is accredited with the BBB and doesn't respond to a BBB complaint, its accreditation may be revoked, and the complaint becomes part of its BBB profile.

• The complaint will become part of their BBB profile even if the car dealership is not accredited with the BBB.

• BBB reviews provide other consumers with confidence when engaging with a car dealership. Car dealerships do not want negative BBB complaints.

How to file a complaint with the Better Business Bureau (BBB):

1. Go to the Better Business Bureau website.

2. Click the button “File a Complaint.”

What to Expect Once you Submit your Complaint to the BBB:

• The BBB will forward your complaint to the car dealership within 2 business days.

• The car dealership will be asked to respond within 14 days, and a second request will be made if a response is not received.

• You will be notified of the car dealership’s response when the BBB receives it (or notified that they received no response).

• Complaints against car dealerships are usually closed within 30 business days.

• BBB may not act on your complaint.  Some users have expressed frustration with the Better Business Bureau (BBB) for not taking action on their complaints. It's important to note that the BBB is not a government agency and does not have legal authority. Its influence comes from the potential impact of lowering a business's rating. If a business doesn't place much importance on its BBB rating, it may not be inclined to address complaints effectively. Here are some Reddit and Quora threads for insights into the BBB complaint process.

Learn more about whether it is worth filing a complaint with the BBB. 

If contacting the car dealership directly and sending a demand letter did not achieve the desired results, you might consider filing a complaint with your state's government agency that oversees car dealerships. Each state has its own consumer protection agency or similar authority.

However, it is important to understand that these state agencies may not take any action, and your only other option may be to file a lawsuit in small claims court. 

Here are links to the consumer protection agencies or authorities where you can file a complaint against a car dealership in each state:

Other Resources  

If you work for a state regulatory agency and need to update the link in the table above or provide consumers with additional information, please contact us at [email protected]. 

In addition to filing a complaint with a state agency, you can consider filing a complaint with the car manufacturer depending on the type of complaint you have. 

If the financial damage is significant and the car dealership or the state consumer protection agency does not resolve the issue, consider taking them to small claims court.  

Small claims courts provide a way to resolve disputes quickly and efficiently. Each state has a limit on how much you can sue for. Not sure of your state’s limits? Read our Guide to Small Claims Court Limits in All 50-States.

Before suing in small claims court, ask yourself these questions:

• Do you have strong evidence to support your case?

• Have you contacted the other side directly?

• Have you tried other ways to resolve the issue, such as sending a demand letter or filing a complaint with the state government agency?

• Is the amount of money you are claiming within your state’s small claims limit?

Depending on the case, you may want to consult an attorney to discuss your options. 

Remember, just because a car dealership did not address your concern, it does not mean that they acted illegally. It is up to a judge to decide whether the car dealership  should reimburse you for your claim.

As you prepare your small claims case, it is of utmost importance that you show the judge that you acted in good faith and that you tried to resolve the issue out of court. 

Another important point is to check the background of the car dealership you are filing a lawsuit against. See if there are other complaints or lawsuits filed against them for similar situations (this shows a pattern of abuse).

Learn more on how to sue in small claims court in our 50-State Guide to Small Claims Court.