5 Legitimate Reasons to Sue a Car Dealership

Buying a new car can be incredibly exciting, whether new to you or straight off the assembly line. However, hassle-free car dealerships are hard to come by. There has long been a list of shady practices that consumers have complained about when doing business with car lots, and these can be legitimate reasons to sue a car dealership.

Read on for a detailed analysis.

Introduction

Car dealerships want to make the sale – and people need cars. Therefore, car dealerships will always see customers. Unless customers find a private seller, most will end up here. What happens when things go wrong? If the car doesn’t work or needs a clear title? If you were made to believe the car had a warranty, but it wasn’t honored?

While you may not always have legal recourse, there are five legitimate reasons to sue a car dealership. Let’s talk about them.

1. Warranty Issues

When you buy a new vehicle, you expect it to run properly. So, you are grateful for the warranty when it doesn’t. But what happens if you take it in for repair only to find that it doesn’t have a warranty and you are responsible for all the repair costs? Warranty issues are one of the most common reasons to sue a car dealership.

Take a close look at the contract you signed when purchasing the car. And carefully read the information about the warranty. If you have a warranty, you can sue the car dealership and get compensated for the repair costs.

Watch out, though. If you purchased your car “as is,” there is no warranty, and you would ultimately be responsible for the repair cost. This is why it is so important to read contracts before you purchase – especially used cars thoroughly.

2. Breach of Contract

Contracts are a massive part of buying a car. If you have ever made the purchase, you know all about the pages and pages of tiny writing that would likely take you hours to read. Yet, most people hear an explanation of the document from the finance person and then sign the document.

Reading through these contracts is always a good idea as you could encounter some surprising information there. They can be confusing and contain many different clauses – and it is a good idea to understand what they mean.

If the dealership breaches a contract, you may be able to sue. Discuss this with your lawyer to confirm the contract was breached.

3. Proof of Fraudulent Behavior

Sometimes fraud can be hard to uncover, and other times, it is very blatant. But it is time to contact an attorney if you have come across this and have questioned whether or not you are legitimately dealing with fraud. Can you prove that your car dealership engaged in fraudulent activity?

A few examples of fraudulent behavior at the car dealership that you may be able to sue for include:

• Changing the odometer
• Convincing you that you have to purchase optional features by stating they aren’t optional
• Claiming the warranty offers protections that it doesn’t
• Assessing a lower value to a trade-in
• Yo-yo financing
• Advertising a low price on a vehicle and then telling customers that the deal was only on a particular car they no longer have – and then convincing them to buy a more expensive car

There are so many fraudulent practices that you may encounter at a car dealership. And coming forward to hold them accountable is essential.

4. Unable to Return

It is common for many people to think that they can return a car within three days if they want to due to a 3-day cooling off period. However, this is often not the case. Unless it expressly states you have these three days in your contract, you should never assume that you do.

If you have been advised that you can return it – and the dealer won’t honor the return, you may have grounds for legal action. Even if it doesn’t state a return policy in the contract, but you were led to believe you could return the vehicle, you may have a case.

Discuss the details with your attorney to make sure you have a case. A lawyer with experience will be the best to go over your options.

5. Failure to Disclose

Car dealerships want you to buy their cars. And sometimes that means they will tell you what you want to hear to make it happen. For instance, if the used car you were going to buy had water damage or frame damage, would you buy it? Probably not. That’s why it is so common for them not to disclose information.

But, failing to do so could land them in a lawsuit.

This also applies to things the seller tries to say or do that mislead you – and ends with you purchasing a car. It isn’t fraud, but these actions are deceitful, devious, and illegal.

Reasons to Sue a Car Dealership in California

In California, you have rights against car dealerships’ fraudulent and deceptive practices. If you feel that you have been cheated, then it is time to take action. Hiring an attorney should be your first step – especially because the dealership will likely have a legal team.

When you file your lawsuit, you want to ensure that you have enough proof of what the dealership did to have a good chance of winning your case. That way, you save your time and money. An experienced attorney will take the details of your case and put together the most substantial lawsuit to fight vigorously for your rights.

Car dealerships have received their reputations due to the shady tactics they have used for decades. If you are a victim of these practices, don’t let them get away with it. You very well may have a legitimate reason to sue a car dealership.