QuestionHi Ron, We bought a 2000 NIssan Altima back in feb 2005. Found out it was a reconstructed title by accident. Have a loan on it. We paid 10,500 for it. The dealer said that they didn't know that it had a reconstructed title. What is the car worth and what should we do about it? Thanks for you help. Jane
AnswerGood Morning, Jane,
Please accept my apologies for the unusual delay in responding. Unexpectedly, I was out of my office traveling for a few days and didn't have my computer with me.
Ok, it took four phone calls to finally get to the right department of transportation person who could give me part of your answer. But first, let me tell you that laws vary by state; what applies to Texas dealers is not necessarily what applies to auto dealers in your state. I recommend you contact your state DOT office who is responsible for auto dealer licensing and control for further information.
In Texas, automobile dealers are required to divulge if a vehicle title is ‘reconstructed’. However, required or not, they may not always do so. Other than just choosing not to tell you, one of the ways some dealers get around this is to offer the vehicle for sale ‘as is’, which is typically the way pre-owned vehicles that are out of warranty are offered. If you purchase a vehicle like this the dealership will ask you to sign a document stating, in part, that you are purchasing the vehicle in the exact condition as it is on the lot, and with no other implied warranties other than as specified in the document. If the vehicle in question has a reconstructed title, you may be inadvertently agreeing to purchase something you don’t, but should know about.
Now here’s where it gets sticky. If the dealer is legally obligated to divulge that a vehicle has a reconstructed title, but doesn’t, and you sign an agreement to purchase the vehicle ‘as is’, is the dealer liable? In my opinion, which is not a legal opinion, they are. In your case, the dealer is in the car sales business; they are expected to know if a title is reconstructed. Do you have any legal recourse? Now you need to consult with an attorney to answer this. You may like the vehicle, and maybe there’s nothing wrong with the way it drives, but when you try to sell it, it won’t be worth the same amount as a comparable Nissan that didn’t have a reconstructed title.
Jane, regardless if the failure to disclose the reconstructed title was accidental or intentional by the dealership, my suggestion is that you at least have a consultation with an attorney about this, just to know what your options or alternatives are.
Finally, here’s what I recommend for future purchases of pre-owned vehicles:
1. Always have an independent mechanic look the vehicle over.
2. Always obtain an independent report on the vehicle title, such as through CarFax.
3. Always be suspicious of what a dealer is trying to sell you. I’ve seen them in action, and I’ll tell you that they are not working for you and your best interest.
Hopefully this will help get you started in the right direction, Jane.
Good luck!
Regards,
Ron
Author and Creator, $ave Thousand$ Buying Your Next Car: Confessions of a Former Car Salesman.
www.Make-Me-Smarter.com
