If a car is damaged in an accident to the point of being considered a total loss by the insurance company, the dealership must disclose this information to the next buyer. Just as if a car has been in a previous accident, has frame damage, or was previously a lemon law buyback, a dealer must disclose the total loss status of a vehicle in writing. This written disclosure would then have to be signed by the purchasing party in order for the sale to be legally finalized. Dealerships that do not disclose that a car was written off as a total loss are subject to lawsuits for auto fraud.
Some total loss vehicles appear to be in working condition, and can even drive without issues for long periods of time. This is not always the case, and actually the exception to the rule. Why would a dealer fail to disclose this information? The answer is simple – by misrepresenting that the vehicle is in better shape than it actually is, they can sell it for more than it’s actually worth. Would you pay the same amount for a vehicle whether is was in great shape or if you knew that it had been in a bad accident?
When a car is totaled, or given a total loss title, it means that it would cost more to repair the vehicle than it is worth. While some problems with the car may be fixed to once again make it drivable, the car often still has many issues that effect it value and performance.
Did the Dealer Disclose That the Car Was Totaled?
There are a number of different things that a dealer must legally disclose to a buyer when selling a car. If the car was totaled in an accident and deemed a total loss by the insurance company – the dealer must disclose this information in writing, and acquire signatures proving that they did so. Often time, dealerships do not always play by the rules so always be aware when you at the car dealer.
If a dealership fails to tell you about the history of the vehicle, especially if the car was considered to be a total-loss, you have every right to cancel the contract and get your money back. It is not surprising that if a dealer is scammy enough to sell a total loss car without disclosure, then they probably aren’t going to cancel the contract without a fight.
Hire an Auto Fraud Attorney to Fight for You
You can argue with the dealership all day and not get results in some cases. They are often stubborn, and think that the law is on their side when it really is not. If you were sold a car that was deemed a total loss, but this information was not disclosed, you need to hire an auto fraud attorney immediately. Call today for a free consultation to get started.