Dealer Fraud: Non-disclosure of Vehicle Condition

Dealer Fraud: Non-disclosure of Vehicle Condition

Every post in this blog is created to make you more informed and protected from hundreds of dealer fraud tricks. If you have noticed, recently we’re discussing our sample cases, so that it becomes more evident to you what you can face and how you can get out of it with the help of a professional lawyer.

How did it start?

On or about March 31, 2007, our client visited Century West BMW to purchase a vehicle for personal and family use. Getting interested in the subject vehicle, he inquired the salespeople into its condition and history. The latter assured our client that the vehicle was in excellent mechanical condition and had no damages or defects, was fully equipped with Dinan accessories and was covered under the original manufacturer’s warranty, which was valid for four (4) years/50,000 miles. Considering all these our client purchased the car for a cash price of $49,795.00. Additionally, Century West BMW offered our client an extended warranty, which would extend the manufacturer’s warranty by an additional two years or 100,000 miles.

Evidence of dealer fraud

Our client discovered that he is defrauded, when he tried several times to repair his car taking it to the authorized dealers of BMW of North America, LLC. . Each time, our client was informed that the repairs would not be covered under the warranty due to the installation of the after-market Dinan parts. Then, he discovered that the extended warranty did not cover certain original BMW parts. Our client has spent a lot of time and a total of $6,384.86 on performing repairs and maintenance on the subject vehicle, which should have been covered under the manufacturer’s warranty as promised. Additionally, authorized dealers of BMW have refused to perform the emission recall campaign (08E-A03) because removing and replacing the Dinan parts and software would not be covered under the warranty.

In early 2010, our client received the notice of registration renewal from the California Department of Motor Vehicles (“DMV”) which required a Smog Certification to be performed. For a long time he couldn’t get one due to the installation of the after-market super charger.

In fact, on or about August 11, 2010, Century West BMW confirmed that Smog could not be performed due to the installed super charger and so repairs, installations, and adjustments would be required. Overall, our client has spent in excess of $150.00 in attempting to obtain a Smog certification for the subject vehicle, but to no avail. As a result, our client was forced to file Planned Nonoperational (PNO) status with the DMV and the subject vehicle has not been operable since then.

Affirmation of dealer fraud

It has become apparent that the subject vehicle was sold to our client by Century West BMW with a supercharger kit that is illegal in California. The supercharger was for off road use (racing) only, and was not legal for installation on vehicles intended for street use in the State of California. Century West BMW has further conceded to the foregoing facts in its offer to rescind the contract. However, Century West BMW’s offer has fallen short of making our client whole in that it includes a deduction for the usage and fails to compensate for the damages our client has incurred in repairing the subject vehicle.

Conclusion

At no time during the sales process did the salesperson or anyone else disclose to our client the fact that the subject vehicle was equipped with a supercharger kit that is illegal in California, thereby precluding it from passing Smog or the amount of money it would cost to alter the vehicle to make it legal for street use in California. Furthermore, our client was never informed that such after-market accessories have a detrimental effect on the warranty of the subject vehicle and that our client would be responsible for the repairs. Rather, our client was assured that the subject vehicle was legal for street use, covered by the warranty and was induced into purchasing it. Our client reasonably relied on these fraudulent misrepresentations and omissions to his detriment and completed the purchase transaction.  Had our client been informed about the foregoing material facts, he would not have agreed to purchase it.

Recovery

Due to the diligent work of our professional lawyer Hovannes Margarinan he got cash recovery in an amount equivalent to a refund of the original purchase price and the legal fees and expenses incurred.

If you feel to be defrauded of any kind of dealer fraud trick never hesitate to take the phone and call 818.990.0418, here defending your rights are in the first plan of our professional lawyers.