Attorneys frequently receive questions regarding defective used cars. All too often, people purchase a used vehicle with verbal assurances that everything works fine and that it will be quite reliable, only to discover that neither is the case. What can you do when this happens to you?
Lemon Laws
Many consumers mistakenly believe that used cars will qualify for lemon law protection. Unfortunately, that is not the case in most instances. While lemon laws exist in every state to protect the purchaser of a new car, most problem vehicles turn out to be the used cars. Only six states have lemon laws pertaining to used cars (Connecticut, Massachusetts, Minnesota, New Jersey, New Mexico, and New York). In those states, the law provides a statutory warranty that guarantees the vehicle will work within certain parameters. If it does not, the dealer usually gets a chance to make repairs, and if that fails to cure the problem, the dealer must make a refund.
Unfortunately, these laws only pertain to new cars or cars bought in one of the six states identified above. For everyone else, there are very few statutory protections for used car buyer. As a result, most rights for relief from the sale of a defective car exist within the sales contract and the common law.
Sales Contract
When buying a used car, you may notice a vehicle information sheet in the window. It probably lists the make and model of the vehicle, the features installed, and then it may say something like “AS-IS,” “Limited Warranty,” or “Factory Warranty.” These labels explain exactly what the dealer is offering by way of a guarantee that the vehicle is in good working order.
In other words, if the vehicle is sold “as is,” that means that the buyer purchases the vehicle with the understanding that there is no warranty or guarantee that the vehicle will work for any length of time. As soon as the paperwork is signed in an “as is” transaction, even if the vehicle never starts again the dealer will not be liable to the buyer absent some sort of fraud or other extenuating circumstance.
If the vehicle is sold with a “limited warranty,” that means the dealer (or sometimes a third party) guarantees that some aspects of the car will continue to operate for a set period of time or miles. This guarantee usually does not apply to things outside of the drivetrain of the vehicle. So, flat tires, parts of the body falling off, a defective air conditioner, or broken luxury functions (like power door locks or windows) will not typically be covered. But, a problem with the engine or transmission that prevents the vehicle from starting or driving down the road usually will be. However, the window of time during which a vehicle is covered by a limited warranty is often quite small (normally 30 to 90 days).
A sale with a vehicle still under “factory warranty” means that the maker of the vehicle still guarantees that it will operate for a period of time or distance. Check to find out how much of the factory warranty remains and what it covers before making a purchase.
Fraud
The other possible cause of action when sold a defective used car is fraud. Dealers often know about defective conditions, but unscrupulous sales people will lie about these defects in order to make the sale. While an “as is” sale may absolve the dealer of most liability, if its personnel actively concealed the truth or said something that turned out not to be true about the condition of the vehicle, they may have committed fraud.
Different states have different laws regarding fraud, some statutory and some based solely on common law. Generally speaking, one must show that there was a misrepresentation made knowingly by the defendant (the car dealer) and that the plaintiff (the buyer) reasonably relied on that misrepresentation and suffered a loss. Thus, if a dealer knows that a car has a serious defect, but tells a buyer that it “runs great” or has been “checked by a mechanic who said everything is perfect,” and that induces a buyer to purchase the vehicle, a fraud may have been committed.
In some cases, fraud may be prosecuted criminally, so you may want to speak with the local police or prosecuting attorney’s office. In other instances, it is a civil action, which you can file yourself. Speak with an attorney regarding your case before making any demands from the dealer or filing a lawsuit in order to ensure that you have complied with all relevant time and notice provisions, and that you have not overlooked any available sources of legal relief. You can find an attorney by visiting HG.org and using the attorney search feature.
