Protecting Consumers from Undisclosed Vehicle Accident Damage
If you found the car of your dreams only to learn later that you were a victim of auto dealer fraud, you are not alone. Auto dealers continue to sell vehicles rebuilt after accidents and vehicles with undisclosed faults. Both of these things constitute auto dealer fraud and are illegal under North Carolina law.
North Carolina Auto Fraud Attorney
At The Norris Law Firm, PLLC, we help clients who have unwittingly purchased vehicles with previous accident damage that was not disclosed to them at the time of purchase. In addition to advocating for our clients' rights, we also educate them about ways they can protect themselves against undisclosed defects when purchasing a car.
Avoid Auto Dealer Fraud
Although the days of "buyer beware" are behind us in terms of the laws available to protect consumers, the vehicle buying public should certainly take steps to protect themselves when shopping for a new or used vehicle. Simple steps such as buying or requesting a Carfax Vehicle History Report on the vehicle and having an independent mechanic inspect the vehicle can save you a ton of headaches down the road. In addition, ask the salesperson whether the car was in a wreck or was damaged in some other way — although dealerships are affirmatively required to disclose damage that exceeds a certain level, the dealer is still not allowed to lie to you if it knows something about the vehicle's history and misleads you in its answer. Carfax Reports and inspections are not fool proof, but purchasers of used cars who take these actions are far less likely to be victims of auto dealer fraud.
Know the North Carolina Damage Reporting Requirements
Car buyers can also improve their chances of avoiding auto dealer fraud by knowing what the state requires dealers to report to potential owners.
- Damage to new vehicles. If the damage exceeds five percent of the manufacturer's suggested retail price (MSRP), the dealer must disclose the damage in writing.
- Damage to used vehicles. If a vehicle is no more than five model years old, the seller must disclose, in writing, damage that exceeds 25 percent of the car's fair market value.
- Damage to salvaged vehicles: If a damaged vehicle had repairs that were more than 75 percent of its fair market value, the seller must disclose this in writing to the buyer.
Failure to follow these reporting requirements may be a violation of the state's Unfair and Deceptive Trade Practices Act and the Motor Vehicles Act.
Learn How our Law Firm Can Assist You
To discuss your situation and learn how we can help you, contact the Norris Law Firm, PLLC. Call 919-805-3392 for a free initial consultation.
