Am I Safe From Lawsuits?
5 Ways to Prevent Demand Letters
Demand Letters Against Dealers:  1 7 0 4 3

Customer Lawsuits & Demand Letters are Exploding

Lawsuits are Increasing

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What We Offer

The Ultimate Protection Against Fraud

"I didn't sign." "That wasn't me." “I never saw this form.” False claims are among the top reasons why dealerships get sued.

Our tablet automatically captures photos of the customer's face during the signature process. Safely store all your deals and data to access them whenever and wherever to fight back false customer claims.

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We Put Our Money Where Our Mouth is.

If a DealerXT Member, who uses ALI.3's artificial intelligence, is served with a filed formal lawsuit or a filed claim in arbitration in California, then DealerXT will pay up to $5,000 (Five-Thousand Dollars) in attorney's fees incurred by the Dealer XT Member in defense of the lawsuit or claim in arbitration (“XT Guarantee”)*

*The following conditions will apply:

  • Any amounts paid by DealerXT in attorney's fees will be paid only to the law firm of Auto Legal Group, LLP. The XT Guarantee does not cover the payment of any costs such as filing fees, court fees, depositions, or expert fees.
  • Any CLRA Demand Letter must be submitted to Auto Legal Group, LLP within twenty 20 days of service of the CLRA Demand Letter.
  • The vehicle that is the subject of the consumer claim (“Subject Vehicle”) had been processed through the DealerXT Lawsuit Prevention Software's (“DealerXT System”) ALI.3 AI System, and integrated with Carfax and/or Autocheck.
  • The DealerXT Member's membership with DealerXT is current. The DealerXT Member has no outstanding payment balance of more than thirty (30) days as of the date a lawsuit or arbitration is filed against the DealerXT Member, and/or the DealerXT Member subscription to DealerXT System had not been previously terminated.
  • The DealerXT Member signs up with Auto Legal Group, LLP for an ALG Legal Plan Contract prior to the expiration of twenty (20) days from receipt of a CLRA Demand Letter and within twenty (20) days after receipt of a lawsuit. Additional fees will apply. Please see and request details.
  • The DealerXT Member and relevant staff who were involved with the processing of the Subject Vehicle through the DealerXT System had completed at least one live in-person or virtual training session on how to use the DealerXT System.
  • The transaction for the Subject Vehicle was properly submitted as a "Completed Deal" in the DealerXT System, including but not limited to submission of all information required to be completed in the process, such as clear photographs of the vehicle and buyer/co-buyer, signatures by the buyer/co-buyer, accurate and complete disclosure of information regarding the condition and history of the vehicle, with copies emailed to the customer's correct email address at the time of the sales transaction.
  • The DXT Member did not intentionally conceal or misrepresent any material information to the buyer/co-buyer.
  • If the Subject Vehicle was purchased at auction, The DXT Member had reviewed and disclosed pertinent information in any auction condition report or auction announcement to the buyer/co-buyer prior to sale of the vehicle, through The DealerXT System.
  • The XT Guarantee payments are applicable to claims or lawsuits solely for the Consumers Legal Remedies Act (or “CLRA”) and failures of disclosure. The XT Guarantee does not apply to claims or lawsuits that include claims for Lemon Law, Song Beverly Act, Magnuson-Moss, and/or Automobile Sales Finance Act.
  • The XT Guarantee applies solely to attorney's fees incurred by The DealerXT Member for legal representation by Auto Legal Group, LLP, and not attorney's fees of any Holder (finance company) or Bond company (surety).
  • The XT Guarantee applies solely to actions filed in California.
  • All claims for redemption of The XT Guarantee must be made via email to within two weeks of receipt of a CLRA Demand Letter.
  • You may redeem The XT Guarantee only once per two (2) calendar year periods from the date the DealerXT Member first receives a CLRA Demand Letter.
  • DealerXT reserves the right to amend, modify, or terminate The XT Guarantee program with 30 days' notice. The continued use of The DealerXT service constitutes acceptance of the new The XT Guarantee program.

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5 Ways to Prevent Demand Letters

Be one step ahead of the game and learn how to prevent the most common ways California Car Dealerships get sued in 2021.

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