THIS IS PERSONAL ADVICE, NOT LEGAL ADVICE – ALL POSTS ARE FROM PERSONAL EXPERIENCE AND IN NO WAY RELATED TO MY WORK IN REAL ESTATE LAW. You should consult with an attorney before relying on any information in my post.
I have always purchased new cars. I know how to negotiate a great price for a new car, the interest rate was always a lot better for me (my credit history was newer) and I liked knowing how well the car was taken care of.
I always heard how much more sense (financially) it is to buy used. After looking at prices, I was pre-approved by my credit union for a loan. A small used car dealer contacted me right away, the credit union must have sent my information to this guy. The credit union’s car broker got involved, made the transaction smooth, and delivered the car TO me. It seemed like such an easy process. I trusted these guys because my credit union was referring them to me, I assumed I could trust them.
I recently went to carmax to sell the car. I was expecting to get at least 10k for the car. Carmax offered only 8,000! Carmax said there was reported frame damage at the last auto auction the car was sold at. I was so mad! The car salesman/owner I bought the car from told me the car had been in a “MINOR fender bender in the rear”. I was ready to let this go and take my losses until I was told when I went to a second dealership that used car dealers are REQUIRED by law to disclose certain damage to a car that they know about. When I heard this, bells went off in my head. I do not like being taken advantage of! I am in the legal field and it still happens! Imagine how many unlucky people do not know what their remedies are under the law?! This would have happened to me had I not gone to that second dealer!
After I left the dealer I started doing my research. People on the internet posted all about the SAME story I was experiencing. The shock that one finds out when they go to sell their car, only to find out the car is not worth much because of structural or frame damage that has been reported.
Then came the tedious process, trying to find an attorney to help me. After calling NUMEROUS law firms and dealing with some legal assistants (as you usually never deal with the attorney at these firms right away) who were not helpful and oftentimes incorrect, I finally found an amazing firm where I actually spoke to an attorney during the intake process. This firm specializes in this very situation: The Auto Fraud Legal Center. The attorney I interacted with, Jason Stones, was very knowledgeable (https://www.autofraudlegalcenter.com/about-2/attorneys/jason-stones/). Call him if you run into the same issue or know anyone:
1 (800) 466-5366
…..Apparently, it is hard to find a firm that deals with these types of cases, OF COURSE! I am so thankful that I found Jason and want to make sure everyone I know has a point of contact should this happen.
If a used car dealer knows of material damage and fails to disclose this, the remedy is that the entire contract is rescinded. This can mean the dealer has to take your car back! Under the Consumer Legal Remedies Act (CLRA), the dealer cannot deduct for the mileage you put on the car prior to your finding out about the fraud. The dealer that sold me my car settled with me! I feel Whole again with regard to my situation
I also learned that most damage reported on Carfax is not extensive. Carfax is actually a dealer tool! Apparently, a lot of dealers go to auto auctions and pull up CarFax to see if accidents are reported. If they are not reported on Carfax, dealers will buy the car and show customers a “clean” Carfax report even though the car was sold at the auction with frame damage (current or repaired).
YOU HAVE TO DO YOUR OWN INVESTIGATION no matter where you buy your car! Pull up autocheck.com in addition to your own Carfax report, and I would personally get a separate inspection by a reputable company before I ever buy used again.
This situation also made me think if I am in an accident, I should get a reduction in the value of my vehicle for resale purposes. Accidents that have structural damage reported make a HUGE impact on resale value. I cannot believe that CarFax, what everyone thinks as a consumer tool is actually a dealer tool! Buyer beware!
THIS IS PERSONAL ADVICE, NOT LEGAL ADVICE – ALL POSTS ARE FROM PERSONAL EXPERIENCE AND IN NO WAY RELATED TO MY WORK IN REAL ESTATE LAW. You should consult with an attorney before relying on any information in my post.
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