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 Consumer Blog: Car Dealer Issues

Texas Auto Fraud and Prior Undisclosed Damage

Thursday, April 28th, 2011
Used Car Lot on Maui.

Image via Wikipedia

When you buy a car from a Texas used car dealer, you’re inherently at a disadvantage in terms of what you know about the car versus what the dealer knows. A car might look to be in good shape (no dents or dings, a new paint job), and it might handle well on the test drive, but the dealer knows something you don’t: The car was wrecked in a crash or damaged in a flood.

Cars that have been in serious accidents are sometimes sold at auction for parts. Sometimes, unscrupulous dealers pick up these cars for cheap, perform minor cosmetic repairs to make them look like new, and sell them to unknowing buyers without disclosing the car’s history.

There’s no law against selling a car that has been damaged and repaired, but the dealer needs to disclose this information if he knows it. When a car dealer affirmatively misrepresents or fails to disclose a known material fact (a fact that would have affected your decision to buy the car if you had known about it), this is a violation of the Texas Deceptive Trade Practices Act. This basically means that if a car dealer knows that a car has been damaged, he must disclose this information to you, and may not tell you that the car hasn’t been damaged.

If you have purchased a used car with prior damage that the dealer failed to disclose, Texas auto fraud lawyer Dean Malone may be able to help you get the compensation you deserve.

- Guest Contributor

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