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Purchased used vehicle with undisclosed damage

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FilthiCasual

Junior Member
Apologies for wall of text: tl;dr found undisclosed damages that need to be fixed on certified used car from dealership and should still be protected under implied warranties. I have evidence and testimonial that supports my side that it was sold to me in a damaged state. what are my options? State: Texas

I purchased a used vehicle that had a clean Carfax from my local Texas Toyota dealership March 3rd. 2 weeks later, I was involved in a minor low-speed accident that was my fault, with the point of impact on the front right of the car.

After taking it to the shop, it was discovered during tear down that my vehicle had other damages clearly not related to the accident (i.e. radiator bent in a way that could not have been caused by an accident, the airbag sensor on the side opposite the point of impact not working, broken plastic components, signs of access, etc). Obviously, the insurance will not cover this, and the repair shop agrees that they were not sustained during the accident I caused.

My insurance adjuster later found that my vehicle had a previous accident prior to purchasing it, with information obtained through a service other than Carfax (CCC), saying it had damage to the front left of the car - consistent with the damages found during the damage inspection. All of these damages could not have been reasonably found without taking off the front bumper and shroud that covered the area. The repair shop refuses to ignore these extra damages since it is a major liability to them and my safety.

On my sales contract, there is a box saying that "Unless the seller makes a written warranty, or enters into a service contract within 90 days from the date of this contract, the seller makes no warranties, express or implied, on the vehicle, and there will be no implied warranties of merchantability or of fitness for a particular purpose." I assume this is the "As-Is" disclaimer many people talk about with these things. However, I purchased a maintenance agreement (Toyota Autocare) and vehicle service agreement (Mechanical Protection Plan) at the time of sale, which I'm sure is the "service contract" in that clause, so I have reason to believe that I can still make claims for implied warranties.

From my understanding, this car was sold to me with undisclosed damages, and had damaged components that compromised the safety of the vehicle (e.x. broken airbag sensor). It was sold to me advertised as accident-free, even though it did in face have a prior history. These damages should have been found since they claimed to have done 100+ point inspection prior to sale. Clearly I was given something that is of inferior quality.

My intention is to hold the dealership accountable for repairs of damages that I did not cause (the insurance company is already covering the parts that I did cause) or seek reimbursement for repair costs. So far, the dealership is saying "there's nothing we can do" and are pointing to the Carfax saying they didn't know.

With this information, what are my options moving forward? Do I need to seek legal representation?
 
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Zigner

Senior Member, Non-Attorney
On my sales contract, there is a box saying that "Unless the seller makes a written warranty, or enters into a service contract within 90 days from the date of this contract, the seller makes no warranties, express or implied, on the vehicle, and there will be no implied warranties of merchantability or of fitness for a particular purpose." I assume this is the "As-Is" disclaimer many people talk about with these things. However, I purchased a maintenance agreement (Toyota Autocare) and vehicle service agreement (Mechanical Protection Plan) at the time of sale, which I'm sure is the "service contract" in that clause, so I have reason to believe that I can still make claims for implied warranties.
ToyotaCare is a maintenance plan, not a service plan. The mechanical protection plan probably doesn't cover this, but review the policy and see what it says.

From my understanding, this car was sold to me with undisclosed damages, and had damaged components that compromised the safety of the vehicle (e.x. broken airbag sensor). It was sold to me advertised as accident-free, even though it did in face have a prior history. These damages should have been found since they claimed to have done 100+ point inspection prior to sale. Clearly I was given something that is of inferior quality
Earlier in your post, you stated All of these damages could not have been reasonably found without taking off the front bumper and shroud that covered the area.. The 160 point inspection doesn't include them pulling off bumpers, etc. (https://www.toyotacertified.com/160-point-inspection)

My intention is to hold the dealership accountable for repairs of damages that I did not cause (the insurance company is already covering the parts that I did cause) or seek reimbursement for repair costs. So far, the dealership is saying "there's nothing we can do" and are pointing to the Carfax saying they didn't know.

With this information, what are my options moving forward? Do I need to seek legal representation?
How do you intend to get past the point where the dealer claims not to know, based on the Carfax report?
 

FilthiCasual

Junior Member
Thank you for taking time to reply to my thread, Zigner.
My plans as far as a course of action was to take advantage of the implied warranty of merchantability; that the vehicle would do what it is supposed to do.

ToyotaCare is a maintenance plan, not a service plan. The mechanical protection plan probably doesn't cover this, but review the policy and see what it says.

Earlier in your post, you stated All of these damages could not have been reasonably found without taking off the front bumper and shroud that covered the area.. The 160 point inspection doesn't include them pulling off bumpers, etc. (https://www.toyotacertified.com/160-point-inspection)

How do you intend to get past the point where the dealer claims not to know, based on the Carfax report?

Since the mechanical protection plan is a service plan, I was hoping that this would allow me to take advantage of the implied warranty, since the dealer would not be able to hide behind the "as-is" disclaimer in my sales contract. I am under the assumption whether or not the preexisting damaged areas are expressly covered would not be the issue in this situation.

Could I not hold the dealer accountable for preexisting damages to the vehicle, regardless of whether or not they knew about it? I have evidence that the damages existed before/at the time of sale, and thus a breach of warranty of merchantability.
 

Zigner

Senior Member, Non-Attorney
Thank you for taking time to reply to my thread, Zigner.
My plans as far as a course of action was to take advantage of the implied warranty of merchantability; that the vehicle would do what it is supposed to do.




Since the mechanical protection plan is a service plan, I was hoping that this would allow me to take advantage of the implied warranty, since the dealer would not be able to hide behind the "as-is" disclaimer in my sales contract. I am under the assumption whether or not the preexisting damaged areas are expressly covered would not be the issue in this situation.

Could I not hold the dealer accountable for preexisting damages to the vehicle, regardless of whether or not they knew about it? I have evidence that the damages existed before/at the time of sale, and thus a breach of warranty of merchantability.
If they didn't know about it then you can't hold them liable for it. Your service contract has specific terms that you agreed to. Anything beyond that is outside the scope of any warranty.
 

FilthiCasual

Junior Member
Apologies for the late reply.
Upon further review of my situation, I agree that I cannot exercise any warranty in my case.

As a follow up, do you think I can make can I make a case for mutual mistake in our sales contract and rescind the agreement, since both parties were under the impression that the car was accident free?

Thank you again for your time.
 

Zigner

Senior Member, Non-Attorney
Apologies for the late reply.
Upon further review of my situation, I agree that I cannot exercise any warranty in my case.

As a follow up, do you think I can make can I make a case for mutual mistake in our sales contract and rescind the agreement, since both parties were under the impression that the car was accident free?

Thank you again for your time.
Nope - that's what "as-is" means.
 

xylene

Senior Member
1. I'm at a loss how the SRS (airbag) system light was not on with a faulty sensor.

2. I think you might have had a much more favorable situation to negotiate with the dealer if you yourself had not been in an accident.
 

FilthiCasual

Junior Member
The irony is that it was the accident that gave my mechanic reason to remove the front bumper, giving access to that airbag sensor. There were no signs that anything was off when I operated it.

As to why the srs light was not on, I have no idea. Unless my repair shop is pulling a fast one on me - however the damages are consistent with a that prior history report my adjuster sent me.

I think my situation is just bad luck at this point - I'm thinking about taking the loss and just paying for repairs that arent covered by insurance or warranty.

I appreciate everyone's input so far and hopefully my situation helped shed light on others' who are in a similar spot.
 

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