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Frequently Asked Questions
I'm having all kinds of problems with a used car I bought from a dealership. Is there anything I can do?
This sort of thing is a common problem. We hear the same concern from a reader almost every day. It is the reason that all buyers of used vehicles should take it upon themselves to do a title search on the vehicle before buying -- this will tell you if the vehicle has been salvaged (totaled in a crash) at the very least. Always take any used car to a 3rd party service technician to have complete diagnostics done. Unfortunately people lie and these steps are the only ones that will protect you.
All buyers of used cars must, at the very least, have the seller sign a document stating that they have disclosed all known problems with the vehicle. There is a suggested format in the Used Car Buying Guide. This document also has a clause that allows you to return the vehicle within a specified time frame if you are dissatisfied with the results of your evaluation.
For purchases from a licensed dealership, always require at least a thirty day/1,000 mile warranty. This provides legal rights for a later claim for breach of warranty. Private sellers usually agree to the sale on an "as is" only basis. This is the greatest risk of all. For most buyers, paying more at a licensed dealership may provide less risk. But not necessarily.
The most disturbing thing is if there was damage that was not disclosed, as this is a requirement in most states. The laws related to disclosure in automotive sales differ in every state. You will need to contact the Department of Motor Vehicles (or whatever it is called in your state) and ask them what the laws are. Conversely, you can visit your local Consumer Affairs Department. Also, if you are a member, you can call your local AAA office and ask for advice and a title search.
Start by doing a title search at the DMV and determine if the seller was the one that crashed the car. If the seller did crash it or bought it salvaged -- as many people who fix up cars in their garages and then resell them do -- then you have proved that they must have known about that preexisting condition and you can then confront the seller with the lack of disclosure and ask them to take the car back and refund your money in full.
If the seller doesn't comply then you will likely have to file a lawsuit or get the assistance of an attorney. If you determine that the seller is regularly in the business of repairing and reselling vehicles you may find that fraud and/or racketeering laws in your state relate.
Document whatever you do and any conversations or promises you are party to. It is best to have a witness to any of these conversations, and record what was said as soon after as possible. Take notes. If you can get the selling to confirm in writing any promises or claims they've made, all the better. Keep your files simple and in order. Remain calm but be assertive.
The laws on contracts and redress vary from state to state, and municipality to municipality. You should first approach the dealer calmly and ask them to resolve the situation. If they are affiliated with a manufacturer, call the local zone or region and ask for their consumer advocate or ombudsman. Then, you can take it up with local business and advocacy groups, and there are often some who will intercede in your behalf, and at least register your complaint. State and county consumer offices and your state Attorney General's office can also offer assistance. You can file a lawsuit, either in small claims (limits vary) or with the help of an attorney. This may be more expensive than the car is worth or the damage costs to repair, and often you will not recover attorney's fees.
If large amounts are involved you should meet with an attorney experienced in consumer and automotive fraud/warranty issues. Most lawyers have relatively low consultation fees, say $100 per hour for an initial consultation. (That's low!) Spending a few dollars on a problem where thousands have been invested makes good sense, most of the time.
Four sources of specialized lawyers are:
- State and county/city bar associations
- National Association of Consumer Advocates, Boston, MA
- Center for Auto Safety, Washington, DC
- Another attorney knowledgeable of others law practices in your area.
Additionally, if the seller is somehow in the business of selling vehicles for profit, then with proper documentation you might be able to get one a local news anchors/consumer advocate to help you.
The National Highway Traffic Safety Administration (NHTSA) wants to hear about safety defects through their Hotline or website. So if the problems are safety related -- not just general maintenance problems or wear and tear -- register a complaint with them as well. You can check the large NHTSA databases with complaints, investigations, and technical service bulletins on their website at http://www.nhtsa.dot.gov/cars/problems/. Also technical service bulletins are available on the NHTSA site. This helps consumers know if the problem they are experiencing is common.
