Purchasing a vehicle is, for many people, one of the most significant financial decisions they will make, second only to buying a home, which is why it can be especially frustrating to discover that the car you just bought has undisclosed problems, including prior wreck damage, that were not apparent at the time of sale. Drivers purchase used vehicles every day, and while many of these transactions are perfectly legitimate, others unfortunately leave buyers wondering whether they have been taken advantage of, particularly when the paperwork includes the phrase “as-is.” Read on and reach out to our New Mexico car dealer fraud lawyers to learn more about whether a dealership can knowingly sell a defective car “as-is” and how our firm can help if you’ve been taken advantage of. Here are some of the questions you may have:

What Does “As-Is” Actually Mean When Buying a Car?

There are no “as-is” vehicle sales in New Mexico. When a dealer says “as-is” they are trying to say that the dealership is not responsible for any problems with the vehicle. However, this does not give a seller the right to mislead buyers or conceal serious defects that were known at the time of sale. In addition, all vehicle sales come with at least a basic warranty that cannot be disclaimed. Some of the most important points to keep in mind are as follows:

  • A dealership may not make false statements about a vehicle’s condition, history, or reliability
  • Known defects generally cannot be intentionally hidden from a buyer
  • Federal and state laws may still require certain disclosures, including title issues or prior damage
  • Written advertisements or verbal promises may sometimes carry legal weight, even if the contract says “as-is”
  • All new vehicles come with the manufacturer’s warranty and all used vehicles come with the lemon law warranty

In other words, a dealer’s attempt to sell “as-is” does not eliminate consumer protections, particularly when fraud or misrepresentation is involved.

When Might a Dealership Still Be Responsible for a Defective Vehicle?

There are several situations in which a dealership may still be held accountable, and these situations often arise when important information was not disclosed or when the buyer was given inaccurate information. Some examples of circumstances that may give rise to a claim are as follows:

  • The vehicle had prior accident damage or a salvage title that was not disclosed
  • The odometer reading was inaccurate or misleading
  • The car could not pass inspection or be legally registered
  • The dealership made specific statements about the condition of the vehicle that turned out to be untrue
  • The trade-in is not paid off in a timely manner
  • The credit application is falsified
  • The dealer engages in false advertising

In many of these cases, buyers only discover the truth after taking the vehicle to a mechanic or attempting to register it, at which point the financial consequences can begin to add up quickly, sometimes leaving families facing bills that rival the purchase price of the car itself.

If you suspect that a dealership may have misled you, it’s important that you keep all purchase documents, advertisements, and financing paperwork, take photos or videos of the defects, obtain written repair estimates and diagnostic reports, and, finally, contact a knowledgeable attorney who can represent you and hold the car dealer accountable.

If you have further questions or would like to speak with an attorney about your case, simply contact Feferman, Warren & Mattison for a free consultation today.