Understanding Legal Rights if a Car Dealer Does Not Disclose Vehicle Status
Ashley, as a consumer, you are absolutely within your rights to question the decisions and practices of car dealers. If a car dealer did not disclose that your vehicle was a total loss or had a salvaged title at the time of purchase, and if this information was not reported to the bank who loaned you the money, you may have a valid legal case. This article will explore the rights of consumers in such a situation and provide guidance on potential legal remedies.
Understanding the Legal Framework
The Consumer Legal Remedies Act (CLRA) in California is a comprehensive consumer protection statute that applies to the sale of vehicles where the dealer fails to disclose material conditions of the car. This act has a three-year statute of limitations but can be tolled until the consumer discovers the damage.
Legal Remedies and Timeline
According to lawyer Lou Liberty, you have several avenues for recourse:
Consumer Legal Remedies Act (CLRA): You can seek compensation under the CLRA, which covers the sale of the vehicle where the dealer failed to disclose the material condition of the car. This act has a three-year statute of limitations, but the statute is tolled until you discovered the damage. Fraud: You could also sue for fraud, which has a three-year statute of limitations from the date you discovered the damage. Finance Company Responsibility: The finance company that purchased the contract and whom you are making payments to is responsible for the dealer's actions. The finance company has a separate dealer agreement regarding the sale of salvaged title vehicles. So, the dealer violated that agreement with the lender, so you could try to get the finance company to give you all your money back or sue both of them.It's also important to note that the title had likely been "washed" prior to your purchase. Title washing is a deceptive practice where the vehicle is titled as a salvaged vehicle, then sold, and the title is re-branded to appear clean. This can leave the vehicle history dirty while the title looks clean.
Why Did It Take So Long to Discover?
It's crucial to understand why you just found out about the vehicle's status. If the title was unbranded and the dealer did not know, it's a less likely scenario to have a case against the dealer. Dealers do not create or brand titles, they receive them from the previous owner. If the state where the vehicle was last registered didn't know about the prior designation, it would be clearly stated on the title and registration.
Consult with an Attorney
It is highly unlikely that you have a case against a dealer after five years, but it's always advisable to consult with a lawyer. If you suspect the dealer did not know about the vehicle's past, they may not be liable. However, if the dealer had knowledge and intentionally did not disclose the information, they could be held responsible.
A Real-Life Scenario
A former dealership employee shared a similar story. A beautiful Hyundai Genesis, Carfax and title clean, was sold by the dealership. A few weeks later, the customer returned, revealing that the car had been in two previous accidents deemed salvaged. Despite the thoroughness of Carfax, some information might not be reported to them, leading to instances of title washing.
Final Thoughts
Given the complexity of car sales and the potential for misleading information, it's always prudent to perform comprehensive vehicle history checks and be aware of the legal protections available to consumers. If you are in a similar situation, seek legal advice to determine your options. If you feel the vehicle was fine when the dealer had it but frequent issues arose, they may have a valid defense.