Consumer Law: Used Car Purchases
- Does the dealer have to tell me if there is something wrong with the car?
- Is the Dealer required to disclose whether the vehicle is a "salvage vehicle"?
- How can I protect myself against false statements?
- If my car breaks down or needs repair after I buy it, what can I do?
- Consumer links related to car repair
Does the dealer have to tell me if there is something wrong with the car?
Maybe, under a law passed by the 1997 Nevada Legislature (which can be found at NRS 482.3666-36667), if the odometer registers 75,000 miles or more, the dealer must conduct a reasonably thorough inspection of the vehicles engine and drivetrain. The dealer must disclose to you in writing any defects which were discovered or should have been discovered during the inspection.The drivetrain of the vehicle includes the transmission, drive shaft, torque converter, differential, universal joint, constant velocity joint, and all other systems components that transfer power from the engine to the wheels.
The dealer does not have to inspect and disclose defects outside the engine and drivetrain. You should therefore inspect these other parts of the vehicle yourself or better still, take it to a mechanic. Other parts include tires, heater, air conditioning unit, electrical system, radio, radiator, battery, etc.
If the dealer does not inspect and disclose defects of a vehicle with an odometer reading exceeding 75,000 miles it is safest not to buy. You may report the dealers failure to the Enforcement Division of the Nevada Department of Motor Vehicles and Public Safety (DMV) at 688-2440. DMV has the power to fine the dealer up to $2,500 after three (3) unresolved complaints. If you suffer any damages as a result of the dealers failure to inspect and/or disclose defects you may sue as a victim of consumer fraud to recover your damages. See N.R.S. 41.600.
If the used car which you are considering has less than 75,000 miles on the odometer, the dealer is not required by Nevada law to inspect the vehicle or disclose any defects. You should, therefore, have the car inspected by a mechanic prior to deciding whether to buy it. Some new car dealers, for the brand you are buying, will inspect a used car for free, even if you were not buying the used car there. For example, if you have picked a used Toyota to buy, call the local Toyota dealer to see if they offer free inspections. If not, call a mechanic. Many charge only about $30.00 for this service.
[Return to top] Is the Dealer required to disclose whether the vehicle is a "salvage vehicle"?
Yes, effective October 1, 2003, dealers must (a) disclose in writing any information that the dealer knows or reasonably should know concerning whether the vehicle is a "salvage vehicle" before executing a contract of sale or a long-term lease; (b) provide a copy of the disclosure to the buyer; and (c) retain the written disclosure in his records. A "salvage vehicle" means a motor vehicle that at any time has been declared a total loss vehicle, flood-damaged vehicle, non-repairable vehicle or had "salvage" or a similar word placed on any title issued for it. Moreover, a dealer shall not remove or conceal a marking on a title which indicates that the vehicle is a salvage vehicle.If you are harmed by a dealer who violates the new law, contact an attorney immediately. Violators may be charged with a crime and ordered to pay restitution to the victim. A person who violates the new law, with the intent to defraud, is liable to any purchaser or lessee of a motor vehicle who is harmed by that violation for either three times actual damages, $5,000 or actual damages plus any punitive damages allowed by the court, whichever is greater. If you win a lawsuit, you can recover costs plus reasonable attorney's fees.
How can I protect myself against false statements?
Regardless of the mileage on the odometer the dealer should not make fraudulent misrepresentations regarding the condition of the car i.e. statements which the dealer knows to be untrue. Under revisions to N.R.S. 598.0915, which were passed by the Nevada Legislature in 1999 & 2001, it is considered to be a "deceptive trade practice" if a dealer knowingly makes any false representation in a transaction or knowingly falsifies an application for credit relating to a retail installment transaction. These laws apply to used car sales and if a dealer violates them, the consumer may sue the dealer for "consumer fraud" under N.R.S. 41.600. If successful, a court could award the consumer both actual damages and attorney fees. Punitive damages under N.R.S. 42.001,et seq. could also be awarded.In Nevada, vehicle dealers and brokers must post a $50,000 bond. Under a change adopted by the 2001 Nevada Legislature, N.R.S. 482.345 and N.R.S. 482.3333 were amended to require that the undertaking on the bond includes any breach of a consumer contract and deceptive trade practice in addition to the previously covered fraud and fraudulent representation .
It is difficult to prove false statements especially if you later sign a contract stating that you are buying the vehicle as is or with all defects. It is best to have another person present as a witness to your conversations with the dealer. It is also wise to read all documents before signing and to insist that any spoken promises about the car's condition or the dealer's obligation to repair defects are placed in writing. If the dealer will not put his promises in writing they may not be enforceable by a court.
[Return to top] If my car breaks down or needs repair after I buy it, what can I do?
Whether or not the dealer has any responsibility to repair your vehicle depends upon whether the vehicle is covered by a warranty. Warranties may be express (meaning that the terms are spelled out (i.e., expressed by the dealer to you- usually in writing) or implied (meaning that a law imposes or implies a warranty even when the dealer has not given one). Dealers often attempt to sell a vehicle as is (meaning there are no warranties either express or implied).Express warranties. In an express warranty a dealer lets you know exactly what types of repairs are covered, how long the warranty lasts and the cost covered. For example, a dealer might agree to cover _ of the costs of necessary repairs to the engine and drivetrain for the first 1,000 miles or 30 days following purchase, whichever comes first.
Under the federal Magnuson-Moss Act (15 U.S.C. 2301-2312), express warranties must be full or limited. Full warranties require repairing defects within a reasonable time without charge and allowing the consumer to choose either a refund or replacement if the item cannot be repaired.
Express warrantees must be clearly disclosed and must state:
- who can enforce it.
- what is covered (i.e. what parts, service, etc.)
- how long it lasts.
- the consumers duties.
- whether any informal dispute or settlement mechanisms are available.
- whether implied warranties are limited.
- any rights under state law.
- whether a warranty card must be returned.
Implied warranties. Unless disclaimed with clear language like as is or with all faults a used vehicle is sold subject to two warranties which are implied by the law. They are the IMPLIED WARRANTY of MERCHANTABILITY and the IMPLIED WARRANTY OF FITNESS FOR A PARTICULAR PURPOSE.
A car is MERCHANTABLE if it is of minimally adequate quality at the time of sale and is fit for the normal use of a car, i.e. driving on the roads. This warranty may be waived if you inspect the car and buy it any way.
The law also implies a WARRANTY of FITNESS FOR A PARTICULAR PURPOSE. If the seller has reason to know the purpose for which you are buying your vehicle (example: to get to and from work) and that you are relying on the sellers skill and judgment in helping you select a car to fit that purpose then you may be covered.
A seller may have a defense to any of your breach of warranty claims if you did something to cause the problem with your vehicle. If for example, you wreck it, fail to change the oil, take it off road, fail to keep coolant in the radiator, etc. you may be held responsible for problems.
Express warrantees for vehicles with over 75,0000 miles. Starting 10-01-97 you may be entitled to a new type of express warranty required by Nevada law. These warranties must be given in sales of used vehicles with odometer readings exceeding 75,000 miles by dealers who have incurred three unresolved complaints with DMV. NRS 482.36662. Check with DMV at 688-2440 to see if your dealer has 3 violations.
- Such express warranties must contain a statement that if operation of the vehicle becomes impaired due to a defect in a part of the engine or drivetrain the dealer shall, with reasonable promptness, fix the defect or get it fixed by someone else.
- The duration of the express warranty depends upon the mileage on the vehicles odometer at the time of purchase. NRS 482.36663.
Mileage to purchase Length of Warranty
75,000 -- 80,001 miles 30 days or 1,000 miles
80,001 -- 85,001 miles 20 days or 600 miles
85,000 -- 90,001 miles 10 days or 300 miles
90,001 -- 100,001 miles 5 days or 150 miles
100,001 and above miles 2 days or 100 milesThe time periods do not run (i.e. they are tolled) while the vehicle is in possession of the dealer or is otherwise inoperable (not running). Dealers who do not comply with this new law may be sued for damages for consumer fraud under N.R.S. 41.600(2)(c). If the dealer is guilty of fraud you may seek punitive damages in addition to actual damages. N.R.S. 42.005. If your claim for damages is less than $5,000.00 you may file suit in Small Claims Court without an attorney. Washoe Legal Services has a packet entitled "Representing Yourself in Small Claims Court" that is available upon request.
For further information contact:
Washoe Legal Services, Inc.
650 Tahoe Street
Reno, Nevada 89509
(775) 329-2727
FAX: (775) 324-5509You may also obtain assistance by calling:
Consumer Affairs Div. of the Nev. Dept. of Business and Industry (Reno)
688-1800Consumer Affairs Div. of the Nev. Dept. of Bus. & Industry (statewide)
1-800-326-5202Bureau of Consumer Protection of the Nev. Atty. General's Office (Carson City)
687-6300Bureau of Enforcement of the Nev. Dept. of Motor Vehicles (Reno)
688-2440
[Return to top] Consumer links related to used car purchases
The following web sites may provide additional information or assistance regarding consumer law:American Bankruptcy Institute (ABI) Consumer Information Center
http://www.abiworld.org/consumer/A.htmlBetter Business Bureau
http://www.bbb.org/Consumer Law Page (Alexander Law Firm)
http://consumerlawpage.com/Fair Debt Collection (FTC)
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htmNational Association of Consumer Advocates (NACA) Home Page
http://www.law.umkc.edu/lawresources/naca/naca-home.htmNational Consumer Center
http://www.consumerlaw.org/index.html
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