car purchase (ebay) undisclosed damage

[abc123abc]

What is the name of your state? Texas
Purchased the car online via ebay from a dealership in CedarRapids, Iowa.

During communications prior to the purchase, I asked the sales person if there has ever been prior damage to the car (2 times). He told me no, it was nearly brand new. The car only has ~8000 miles on it.

So fast forward to this week , 1 month later. I have the car in the body shop getting a bumper buffed out because someone backed into me in a parking lot. The body shop owner notices that there has been some repair work done to the car already. As we start looking closer, we can tell that there has been major repair - the entire rear , the rear quarter panel, possible the doors on the driver side , the mirror, and there's even misalignment of the front section. The body shop owner estimated the damages in around the 5 or 6k range. Shouldn't this have shown up on carfax? Shouldn't the insurance company have reported this?

To make a long story longer, previous to the purchase I tried to the best of my ability to check this car out. I ran the equifax car check report that ebay provides, I was sent the carfax report from the dealership, and none of this damage showed up or I would not have purchased the car. I got a decent price on the car, but not the kind of price I should have gotten had I known the car was previous wrecked.

My first step was to contact the salesperson and request them to buy the car back from me. I have not heard back from him yet (this was yesterday). Legally, is there anything else I can do? Is there any sort of buyer protection for cases like this? Would I pursue laws in Iowa, or would Texas (my home state) laws protect me in some way?

Thanks,
/gC

 

[Crazed98]

I don't know if you can do anything from a legal standpoint but about the carfax report just because the car was in an accident it doesn't mean the insurance company was notified.

Most people want to steer clear of reporting accidents so their insurance doesn't go up.

What I am guessing is he was rear ended and the person who hit him maybe knew a mechanic who would fix it for the guy cheaply.

 

[djohnson]

carfax isn't a guarantee and doesn't promise it. You had the responsibility to check it out before purchasing with your own mechanic. Maybe they will be nice, but I doubt it.

 

[dallas702]

Carfax (or Ebay, too) usually has a $5000 guarantee that if they failed to report a material defect in the car they will pay up to that $5K. Look at the ad listing and the Carfax wording.

Fortunately, you are working with a dealer who should have been able to identify the damage. That's their job. That's why they are considered "professionals". You may very well have a claim against them if they choose to ignore you. Just a guess, but I'll bet they will make some kind of offer...then fire their inspector/adjustor.

 

[Crazed98]

Carfax (or Ebay, too) usually has a $5000 guarantee that if they failed to report a material defect in the car they will pay up to that $5K. Look at the ad listing and the Carfax wording.

That is bs. Maybe if they fail to report something that had gone through insurance companies or the dealer. But there is no way carfax would be able to know of any accidents on cars that were never reported. Those accidents were never on record so there is no possible way of knowing.

 

[dallas702]

Actually, I use Autocheck. Each has a different guarantee, but both cover certain expenses or losses if they have missed or missreported the condition of a car. You have to read the "contract" for each, but the coverage is there. Hopefully the dealer will stand up and do the right thing, or OP has the right to sue them for materially misrepresenting the car.

 

[abc123abc]

Actually, I use Autocheck. Each has a different guarantee, but both cover certain expenses or losses if they have missed or missreported the condition of a car. You have to read the "contract" for each, but the coverage is there. Hopefully the dealer will stand up and do the right thing, or OP has the right to sue them for materially misrepresenting the car.

Well, I used autocheck also. I read the disclaimer and it looks like they will only work with you if the title was branded and they didn't report it. I may have misread it though - I will read it again just to be sure.

I contacted the dealer and they were unwilling to work with me. Actually the manager, I guess the GM , was snide and very condenscending. He hid behind rhetoric and basically said I'm SOL.

Do I need to get a Texas lawyer, or do I need to get an Iowa lawyer to get this resolved?

Thanks,
-/gC

 

[racer72]

Do I need to get a Texas lawyer, or do I need to get an Iowa lawyer to get this resolved?

Iowa can be warm this time of year, dress lightly. Makes you wish you bought locally, doesn't it?

 

[abc123abc]

Iowa can be warm this time of year, dress lightly. Makes you wish you bought locally, doesn't it?

Warm? Dude. I live in Houston, TX. It was probably the heat that got to me , which allowed me to purchase this car without having it inspected first.

/gC

 

[dallas702]

Well, that sucks!

While looking at Cedar Rapids (or, other Iowa) lawyers, you might want to look up the number for their local TV stations. Most stations have these "consumer complaint" programs where they try to help people who have been ripped off. If nothing else, you might be able to expose this dealership for the sloppy rats they are. This car must be almost new to have only 8K on the clock. As "pros" these guys should have known about the damage. It would be interesting to see what they gave the prior owner in trade. In fact, I think you can contact the prior owner through VIN/DMV records. If he tells you the dealership was aware of the damage you will have some leverage. Even without, if you send them a demand notice asking for damages, or to undo the deal, that will put them on notice and you can start legal action. It is possible that you could go to small claims court and recover the difference in value (wrecked vs. not wrecked). The bigger question is: is the car safe?

 

[abc123abc]

Those are some excellent suggestions dallas702 and I'm very appreciative. I think the car is safe, but to be honest, that will always be a question in the back of my mind. By chance, I spoke with another salesperson from a dealership located nearby who said the dealership in question (Pat McGrath Chevyland) is known for such tactics and he gets customers on occasion who try to trade their damaged cars in. I think I may have one of the previous owners, the original I think, because he wrote his name and number in the owner's manual.

/-gC

Well, that sucks!

While looking at Cedar Rapids (or, other Iowa) lawyers, you might want to look up the number for their local TV stations. Most stations have these "consumer complaint" programs where they try to help people who have been ripped off. If nothing else, you might be able to expose this dealership for the sloppy rats they are. This car must be almost new to have only 8K on the clock. As "pros" these guys should have known about the damage. It would be interesting to see what they gave the prior owner in trade. In fact, I think you can contact the prior owner through VIN/DMV records. If he tells you the dealership was aware of the damage you will have some leverage. Even without, if you send them a demand notice asking for damages, or to undo the deal, that will put them on notice and you can start legal action. It is possible that you could go to small claims court and recover the difference in value (wrecked vs. not wrecked). The bigger question is: is the car safe?

 

[dallas702]

Aha...a possible golden needle in the haystack. Just be sure you approach the former owner in such a way that he doesn't feel like he is being a target. If he got a lowball trade in (low book MINUS repair or estimated lower resale value) from the dealer; or if he can verify the dealer knew of the damage, you have some solid ground. You may even get the regional GM rep to intervene.

Persist!