What is Previous Rental Nondisclosure?

Previous rental nondisclosure involves advertising and/or selling a rental car or a previous taxi without providing the purchaser with proper information about the vehicle’s condition i.e. not disclosing the fact that the vehicle in question has been used as a rental or a taxi car.

Previous rental nondisclosure is punishable by law. According to the California Vehicle Code, no dealership has the right to advertise or sell a vehicle that has been used as a demonstrator, taxicab, lease vehicle, executive or service car, unless it is clearly indicated in the advertisement that the car has been used previously for one or all of the above-mentioned reasons. Moreover, according to the California Code of Regulations, all the advertisements of a vehicle should include the facts about the car’s previous use and ownership accurately and comprehensibly.

The dealership must inform the car buyer about the car’s previous life not only in the advertisements or orally, but also in the written form. This means that the purchase contract should contain all the information concerning the vehicle’s previous use and ownerships, titles, registrations, accidents, frame or slight damages, etc.

The cars sold on an “as is” basis can also be covered by the Californian law if there is previous rental nondisclosure there.

You will now ask: what encourages car dealerships to sell cars practicing previous rental nondisclosure fraud? The answer is that previous taxi, limousine, rental and demonstrator cars have vey high mileage on them, besides they may have excessive wear and tear on them, too. These factors play a huge role on the vehicle’s purchase price reducing it up to 60%. So, now it is obviously clear why many dealerships try to conceal the information about the car’s previous use.

If the dealership practices previous rental nondisclosure fraud, then the consumer can require restitution and compensation for the trouble and inconveniences he/she has suffered because of the unethical conduct on the part of the dealership.

The Law Offices of Hovanes Margarian deal with auto dealer fraud cases including previous rental nondisclosure fraud. If you have a similar case, then call us 24/7 at 818.990.0418 for your free phone consultation.