Purchasing a used vehicle may sound cost-efficient and effective for many individuals. In addition, it is a great way to save some money, especially when buying your dream car. However, with this excitement may come additional challenges and complications that many people may be unaware of. Oftentimes, when individuals see the word “as-is” on a vehicle, they assume they have no legal rights if the car begins to malfunction. Understanding what “as-is” means and the steps to take when dealing with an inadequate vehicle is important for your next purchase.
Explaining “As-Is”
When a vehicle is sold "as-is," the seller usually denies responsibility for future repairs after the sale is completed. In most cases, the buyer accepts the vehicle in its current condition, including any visible or hidden defects that may later become visible. However, "as-is" does not give a dealer unlimited protection from liability. California law still places obligations on licensed dealerships, especially when it comes to honesty, disclosures, and compliance with consumer protection laws.
California’s Lemon Law: An Overview
Many people believe California's lemon law only involves brand-new vehicles. However, it is important to note that certain used vehicles may still qualify for lemon law protections if:
- The manufacturer's original warranty is still in effect
- The vehicle is sold as a certified pre-owned (CPO) vehicle with warranty coverage
- The manufacturer issued a written warranty that remains active
- Repairs are repeatedly unsuccessful while the vehicle remains under warranty
Whether a particular vehicle qualifies depends on its warranty status and the specific facts surrounding the repairs.
Legal Protections
Even when purchasing a vehicle "as-is," consumers may still have legal protections in specific instances.
Misrepresentation
If a dealer knowingly makes false statements regarding the following, the buyer may have legal remedies separate from warranty claims.
- Accident history
- Mechanical condition
- Prior ownership
- Flood damage
- Mileage
- Title status
Odometer Fraud
Federal and California laws prohibit tampering with odometers or knowingly providing false mileage information.
Failure to Disclose Known Problems
Licensed dealerships may be required to disclose certain known facts affecting a vehicle's value or safety. Examples of this may include:
- Salvage branding
- Major structural damage
- Flood damage
- Airbag deployment
- Title branding
- Frame damage
If a dealership fails to disclose certain information, it could create various legal problems.
CPO
Many buyers mistakenly assume every dealership vehicle receives warranty protection. Certified Pre-Owned (CPO) vehicles are different because they often include the following.
- Manufacturer inspections
- Extended warranties
- Limited repair coverage
- Additional consumer protections
A true CPO vehicle may provide greater protection than a standard "as-is" used vehicle. Consumers should carefully review all warranty documents before signing a purchase agreement.
Problems after Buying a Car
Unfortunately, some issues may not become visible until days or weeks after the sale. Examples of this may include:
- Engine failure
- Transmission problems
- Electrical system defects
- Suspension damage
- Brake failures
- Cooling system leaks
- Oil consumption issues
- Hidden collision damage
- Water intrusion
- Air conditioning failure
While not every mechanical problem creates legal liability, documenting issues promptly can become important if conflicts arise.
Service Contracts: An Overview
Many dealerships sell optional service contracts during financing. Unlike manufacturer warranties, service contracts are separate agreements that may cover certain repairs after the sale. Coverage varies significantly depending on the following.
- Contract terms
- Covered components
- Deductibles
- Repair facilities
- Exclusions
Understanding service contracts is crucial to ensuring you are aware of important documents you may be signing in the future.
Preserving Evidence
If problems develop shortly after purchase, buyers may wish to preserve documentation and evidence including:
- Purchase agreement
- Window sticker
- Warranty paperwork
- Repair invoices
- Inspection reports
- Text messages
- Emails
- Advertisements
- Financing documents
- Photographs of vehicle condition
Keeping organized records may help clarify what representations were made during the transaction.
What to do Before Purchasing a Used Vehicle
Consumers can reduce risk by taking several precautions before purchasing. Individuals should consider the following before purchasing a used vehicle.
- Obtaining an independent mechanical inspection
- Reviewing the vehicle history report
- Asking whether any manufacturer warranty remains
- Reading every warranty document carefully
- Confirming title status
- Reviewing recall information
- Asking about previous accidents
- Keeping copies of all advertisements and sales materials
Taking the steps listed above may ultimately help buyers better understand the vehicle before purchasing it.
Personal Injury Attorneys
When individuals purchase a used vehicle, they are often met with additional complications and challenges. Oftentimes, many issues involve warranty coverage, undisclosed vehicle history, or other consumer protection laws that may require the help of a legal professional. A qualified personal injury attorney may review the facts of your case, speak to insurance companies, and help you understand your rights throughout your personal injury claims.
How KAASS LAW Can Help
KAASS LAW understands the challenges victims face when dealing with a used car. Our legal team will guide you through the claims process and help you understand the necessary steps to recover. We understand that every case is unique and each represents its own facts and legal considerations; therefore, it may be best to speak to a qualified attorney to have peace of mind moving forward. Call KAASS LAW today.