Salvage Title / Full Disclosure

What is the name of your state (only U.S. law)? California

Please bear with me...

I have tried looking it up, but cannot find a direct answer. Let me briefly explain: I purchased a cheap vehicle a week ago about $600. I fully understood when I was going out to purchase a vehicle at that price that it was sure to have high miles and probably some mechanical/cosmetic issues. I was alright with that and welcomed the opportunity to take something cheap and make it nice and my own and re-sell it later. The ad says the vehicle is in excellent condition with new tires and interior $800. Long story short...the ad did not mention it and when I asked the seller about the vehicle history I was told that it had no major problems or incidents and that he performed preventative maintenance and he used it to commute (And that he owned it for 4 years). I chose to buy the vehicle and used this form: Car Bill of Sale Example for my bill of sale. I did not know that in California there is a space on the title that lists vehicle condition (hopefully it is blank, but...I later discovered this box (I had not noticed it before until my roommate pointed it out) that it looked like somebody used something to rub off the designation. Curious as to what it was, I used Carfax. SALVAGE TITLE/CERTIFICATE ISSUED. I don't know anything about what CERTIFICATE was issued (???) Now, had the seller (Private Party) disclosed that in the ad or in writing (Signed by both of us) this would be a whole different story. But, I did not know until afterwards because the title looked clean and correct (It was even difficult to notice the alteration under "vehicle condition" even after I discovered it had been removed). I wanted an around town vehicle that I could fix and sell later, but that now has changed after discovering the SALVAGE designation. I will never be able to sell this vehicle again. I will have to donate it.

So, the question is this...Can I as the buyer sue the seller for the amounts listed in the next paragraph in () due to him not disclosing in the ad or in writing that the vehicle was a salvage vehicle. The seller never gave me anything or had me sign something acknowledging the SALVAGE status. Even after directly asking him.

The bill of sale is for $200 and the original sale price was $800 so I am valuing it at that amount ($600 difference). I had planned to get the vehicle completely fixed up and I have in fact fixed the engine and the car is running good. The seller also did not provide me a current SMOG ($75 total I paid). After finding out from my roommate about the suspicious title I had to use carfax to find-out what was going on ($29.99 paid). Very worried at this point, I also sent the vehicle for a diagnosis ($124.95 plus tax paid).

I am not upset about the wear and tear issues or any damage (Unless it was caused from the event that made it SALVAGE), but I am upset that I was not fully disclosed as to the SALVAGE status and that I cannot get a decent resale amount later after I fixed it. I was lied to and the ad said Excellent Condition. A SALVAGE vehicle does not fit Excellent Condition...it was salvaged, that is not excellent no matter how much it was fixed).

Do I have any recourse against this individual. I know he completely misrepresented this vehicle and I'm upset. I could have fixed up the issues and brought it to excellent KBBook value ($1,570). Not anymore.

Please helpWhat is the name of your state (only U.S. law)?

chs6639 said:

Do I have any recourse against this individual.

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Depending on the FULL facts, you MAY have an action against him.

The following is from the California Vehicle Code:
11515(h)(1) A salvage certificate issued pursuant to this section shall include a statement that the seller and subsequent sellers that transfer ownership of a total loss vehicle pursuant to a properly endorsed salvage certificate are required to disclose to the purchaser at, or prior to, the time of sale that the vehicle has been declared a total loss salvage vehicle.
(2) Effective on and after the department includes in the salvage certificate form the statement described in paragraph (1), a seller who fails to make the disclosure described in paragraph (1) shall be subject to a civil penalty of not more than five hundred dollars ($500).

You're going to need to review ALL the documents and see if there is ANYTHING where the seller 'advised' you of the salvage condition. If not, then you should contact the seller and advise him that you know your legal rights and 'demand' that he rescind the sale. (You will not be able to recover all the other ancillary expenses you are claiming, but should get at least the sale price back). If he refuses, then you should consider filing a small claims action against him with the added $500 civil penalty.

Follow-up

As soon as I found out what had happened I did demand to have the contract voided and for the seller to just return the money and I would return the car. I spoke to him by phone and also texted him with my intentions to rescind the deal. He would not work with me after I in good faith had asked him to right the wrong.

The only documents that I have/had are this:

1. Bill of sale (see my posting for a link to a copy of the exact bill of sale that I used). On the Bill of Sale it says "As Is" but no mention of Salvage.
2. The title was taken to the DMV and the clerk accepted the altered title with the bill of sale. Although, I don't know if she even looked at the bill of sale. SHE did inform me that it was salvage, but I had already discovered that and at this point was just wanting to follow California law and submit the title within the 10 day period.

That's it...no mention of salvage in the ad, bill of sale, and the designation was removed from the title, no certificate or any signed paper by me stating it was salvage. I signed nothing that had the word salvage on it. As stated, the title did not have the designation, because it was removed.

The seller only has a copy of the bill of sale.

Title Fraud?

Also, in regards to the title, the brand of Salvage on the title was removed with some sort of abrasive. I never would have done that as I want the vehicle and have no reason to remove the designation on a title that I was giving to the DMV. It would not make any sense as the new title would have the designation of Salvage on it anyways. It is not like the DMV would not have been able to know immediately anyways when they ran the VIN (They did). Why would anybody do that knowing that? I am going to keep the vehicle period because I already am fixing it up and seller won't work with me. Plus, the diagnostic came back decent, but I was never disclosed of the salvage issue ever from the seller and that is the issue. I am really considering Small Claims, but do not know for sure what I can sue for.

Difference in listed value?
Failure to provide a current Smog?
Carfax (Directly related to the title tampering discovery)
Diagnostic (Directly related to the discovery of Carfax stating "salvage"
County failure to provide me with a disclosure of salvage status
Distress (Per code)

I don't know. I am losing my mind over something that should have been so simple. What a disaster.

You bought a $600 beater. What is the value difference with a salvage title over a clean title? $50? $75? I have seen extremely minor damage result in cars ending up with salvage titles. My SIL's 1994 car was totalled over a small dent in the right front fender. I have a car with a salvage title and it does not affect it's value. It's a restored 69 Olds 442, not a $600 beater though.

Come on, if you bought a used DVD on ebay and it turned out that it was burned to a disc and it said perfect condition, would you not be a little upset that you do not have a clean (I mean original) and legal disc?

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Totally irrelevant. Comparing apples and basketballs. Try again.

actually significant for the vehicle salvage vs. any USED condition in the market. Seriously $75...that's a laugh.

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Not on a $600. The online postings and price guides don't mean squat in your case. The only case you have is the fair market value of the car with or without a salvage title. You set the FMV when you bought it. sue for the difference.

Please only post serious comments pertaining to the law or a potential case only.