Purchasing a vehicle should be a straightforward and honest transaction, but unfortunately, that oftentimes is not the case. Some auto dealers sell cars with prior damage that they fail to tell you about. If you’ve recently bought a vehicle from an auto dealer and later found out it had undisclosed damage, you may feel frustrated, confused, and unsure of your rights. Fortunately, if you’re reading this, you’ve come to the right place. Contact the seasoned New Mexico car dealership fraud lawyers here at Feferman, Warren & Mattison for an initial consultation today.
No, they cannot–at least not legally. In New Mexico, auto dealers have a legal duty to disclose material information about a vehicle, including any known prior damage, accidents, frame issues, flood exposure, or salvage title status. Failure to tell you about these conditions may constitute fraud and unfair trade practices.
Dealers are experienced in purchasing vehicles for retail sale, so they know the common signs of wreck damage on a vehicle, and they look for it when purchasing used vehicles. Dealers also review vehicle history reports through services like Carfax or AutoCheck. Many also inspect vehicles themselves or have them inspected by technicians before placing them for sale. This means they are typically aware, or should be aware, of any damage that materially affects a vehicle’s value or safety.
Under the New Mexico Unfair Practices Act (UPA), it is unlawful for a seller to make false or misleading statements or to omit important facts that could affect a buyer’s decision. The UPA also requires that a dealer provide you with a written affidavit disclosing known prior damage or alteration to a vehicle, if the cost of the repair or alteration exceeds 6% of the sales price of the vehicle. If a dealer knows that a vehicle has been in a serious accident and does not disclose that information, they may be in violation of the UPA.
Some dealers try to dodge responsibility by claiming they “didn’t know” about the damage. However, willful ignorance is not a valid defense. If a dealer failed to conduct a reasonable inspection or ignored red flags, that can still amount to a legal violation. At Feferman, Warren & Mattison, we work with automotive experts and investigators to uncover what the dealer knew, or should have known, about prior damage and alterations.
If you find out that your recently purchased car has prior damage that was not disclosed, you should take immediate action. First, you should start by gathering all relevant documents, including the sales contract, any disclosures or vehicle history reports you received, and records of repair estimates or inspections that reveal the damage. Then, reach out to an experienced consumer protection attorney.
In many cases, you may be entitled to compensation for your damage. Depending on the circumstances, you could pursue damages for diminished value. If the dealer’s conduct was particularly egregious, you may also be entitled to damages and attorney’s fees under the New Mexico UPA.
It is important to act quickly. There are time limits for filing claims, and evidence can become harder to obtain as time passes. Even if the dealer had you sign a contract that says the car was sold “as-is,” that does not protect them from liability.
At Feferman, Warren & Mattison, we have decades of experience holding deceptive auto dealers accountable. We understand how to build strong cases on behalf of consumers and are committed to fighting for justice. If a car dealer took advantage of your trust and failed to disclose serious damage to a vehicle, you have legal rights, and we can help you enforce them. Contact Feferman, Warren & Mattison today for a free consultation.
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