Mar
09

What Is Used Car Fraud?

When buying a used car some legal rights arise in California.You are allowed to bring a lemon law claim even if the vehicle is fairly new and its original manufacturer’s warranty may still apply and will allow you to bring a lemon law claim. If the vehicle came with a dealer’s warranty, you can also bring a claim that the warranty has been violated. If the vehicle came with no warranty,that is, if it was sold “as is”or with a service contract, you may still be able to bring a claim for used car fraud.
Used car fraud is forbidden by the California Consumer Legal Remedies Act, which prohibits used-vehicle dealers and most other retailers in California from using unfair and deceptive business practices to sell their goods. That means dealers may not lie to or mislead customers. They are also legally obligated to disclose any material defect in the car, which includes a past wreck or a former life as a rental. If you ask a question, dealers must tell the truth, even if the truth is that they don’t know the answer. If dealers are advertising their cars as fully serviced and inspected, they have a legal obligation to actually inspect it, fix material defects and disclose any remaining problems. You also have the right to get the car inspected before you buy.

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One Response to What Is Used Car Fraud?

  1. Matthew Palmer says:

    Is this law consistent on a car bought in March in Tennessee? It was from a sheriff’s department on a public online auction. Nothing was mentioned that there was a salvage title. All that was stated is: “Court documents and Bill of Sale will be provided. No Title. Buyer responsible for titling vehicle in their county/state. ” (Then a general disclaimer) “GUARANTY WAIVER: All property is offered for sale “AS IS, WHERE IS.” Seller makes no warranty, guaranty or representation of any kind, expressed or implied, as to the merchantability or fitness for any purpose of the property offered for sale. The Buyer is not entitled to any payment for loss of profit or any other money damages – special, direct, indirect, or consequential.

    DESCRIPTION WARRANTY: Seller warrants to the Buyer that the property offered for sale will conform to its description. Any claim for misdescription must be made prior to removal of the property. If Seller confirms that the property does not conform to the description, Seller will keep the property and refund any money paid. The liability of Seller shall not exceed the actual purchase price of the property. ***Please note that upon removal of the property, all sales are final!”

    If they have blundered in this, I’d like to hire/retain an attorney, as the sheriff’s department is not intending on purchasing the vehicle back…let alone the $1600 travel/expenses (the vehicle is a 2005 Excursion…$11,302)

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