Law Articles

Return to Law Dictionary Index

Automotive Fraud

Undisclosed Prior Collision

The most frequent complaint involving used cars is that it was involved in a wreck and the dealer did not tell the purchaser. If the dealer knows of a material defect, he is under an obligation to tell you. But don't leave it up to the dealer to tell you, ask them. Ask the sales person where they bought the car, who previously owned it, if the car has been inspected for safety, if it was a rental or in a wreck.

The dealer has the responsibility to tell you the truth. If they do not know, then they have the responsibility to either say they do not, or investigate for the answer. The most important factors are what you asked the dealer and what they told you.

Very often the dealer will inform the customer that the car has been fully serviced and inspected. If the car is fully serviced and inspected, then the dealer has assumed an obligation to 1) actually look at the car, 2) repair the problems revealed by the inspection, and 3) disclose what they learned in the inspection and servicing. This often does not happen.

Prior Rental Car

Rental car fleets typically sell cars when the manufacturer's warranty expires. They are usually sold at an auction and bought by major dealers. Minnesota requires that the rental history shall be identified as such. Failure to do so may be fraud.

The more you find out about a car, the better. Ask many questions and get an independent mechanical inspection before you purchase. You have the right to it and many mechanics who will come out to the lot to do an inspection. If the dealer says anything; first, it is against the law, and second, it is probably a sign of what to expect with this dealer in the future.

Odometer fraud

Despite much publicity about rolled back odometers it is as common as ever. Information from the Department of Motor Vehicles can be very helpful in determining if the odometer has been rolled back. Go to the DMV and fill out a Request for Information form. Request certified copies of all documents on record.

What to do if you have a problem?

1. Register a compliant with the DMV Investigations Unit at the nearest office. The DMV does take complaints seriously, and if they get enough complaints about problem dealers, they will take action.
2. Notify the dealer. Often the dealer will remedy the situation if presented with the facts.
3. Get the facts. If the problem is collision damage, have the car inspected and get a written report of the inspection. If the problem is the odometer, get the documents that show the tampering.
4. Consult an attorney.

Return to Consumer Law

Return to Law Dictionary Index