Auto Dealer Fraud Law

Auto Dealer Undisclosed Damage

Key Takeaways

  • Dealerships in most states have a duty to disclose vehicle accident damage.
  • A vehicle history report may not show the entire vehicle history and could miss a serious accident.
  • Get an independent vehicle inspection to look for possible vehicle damage before buying a used car.

Most consumers who buy a used car have to rely on what the car dealer tells them. You can only see what’s on the outside and have no idea about the vehicle’s history. If you ask the dealership about prior accidents or vehicle damage, don’t just take their word for it. Some used car dealers don’t disclose prior damage to increase the vehicle sales price.

Get an inspection before buying a used vehicle. This can help you avoid buying a damaged car and losing your money. If you have legal questions about undisclosed vehicle damage, talk to a vehicle fraud lawyer about your legal options.

Do Car Dealers Have To Disclose Auto Damage?

In most states, car dealers must disclose known damage to a vehicle. But this disclosure duty can vary by state. Some states only require disclosure if the damage affects the retail value beyond a certain percentage. Other states only require disclosure for damage to new cars or trucks.

For example, car dealers in North Carolina only have to disclose damage in older used cars if it exceeds 25% of the fair market value. Dealers must also disclose flood damage history and rebuilt vehicles.

California has some of the strongest consumer protection laws. California lemon laws require dealers to disclose in writing material accident damage. The dealership has to be honest if a car buyer asks them about prior accidents. Car dealers also have to attach a Federal Trade Commission (FTC) Buyer’s Guide to all used vehicles.

When Is There No Duty To Disclose Vehicle Damage?

Dealerships may not have to disclose vehicle damage if they were unaware of the damage or the damage wasn’t identified in an inspection. Not all states require a vehicle safety inspection to sell motor vehicles. States like California require a complete vehicle inspection. These dealers must make the inspection available to buyers. Talk to your auto fraud lawyer about whether dealerships in your state require a full safety inspection.

How Can You Find Out if a Used Car Has Undisclosed Damage?

When making such a large purchase, you should do your due diligence to make sure you know the vehicle’s history. Don’t rely on the used car dealership’s promises. They could be lying about frame damage, rolling back the odometer, or other misrepresentations.

To avoid getting scammed by the car dealership, get an independent vehicle inspection from a mechanic you trust. Before buying the car, tell the dealership you want an independent vehicle inspection. An auto mechanic can check for signs or prior damage. Your inspector can also let you know about other concerning issues and what repairs you may need soon.

A vehicle history report can also help you get a better idea of previous owners and accidents. AutoCheck and Carfax reports can inform you about prior accidents, repairs, and the number of previous owners. However, these reports aren’t always accurate. History reports may not have information that was never reported. You should still get an independent inspection for peace of mind.

Can You Sue a Dealership for Selling a Damaged Vehicle?

A dealership that misrepresents a vehicle may have committed fraud. Fraud involves making material misrepresentations that you rely on when buying a car. A common law fraud lawsuit can help you recover money for vehicle repairs or a refund of the sale price.

If the dealership made a guarantee about the vehicle’s condition, you may also have a breach of warranty claim. Some state laws allow for punitive damages or attorneys’ fees for used vehicle fraud cases. Talk to your lawyer about what legal action you can take for dealership fraud.

Can an Auto Fraud Lawyer Help After Buying a Damaged Vehicle?

If you bought a vehicle with undisclosed damage, you should hold the dealership accountable for their actions. This can help you get your money back after a fraudulent car deal. It can also help other buyers avoid getting ripped off.

Talk to a dealer fraud lawyer for legal advice in your case. An auto fraud lawyer can contact the dealership to get them to return your money and your trade-in vehicle. If the dealership doesn’t give you your money back, your lawyer can file a fraud claim against them in court. Contact a dealership fraud lawyer to understand your legal options after buying a car with undisclosed damage.

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