Buying a used car really shouldn’t feel like a gamble; however, unfortunately, many people only discover a vehicle’s troubled past after the paperwork is signed and the problems begin. Hidden accident damage can turn what looked like a reliable purchase into a safety risk and a major headache. If this has happened to you, you most likely have several questions, including whether it’s illegal for a car dealer to hide prior accidents. Continue reading and reach out to the New Mexico car dealer fraud lawyers here at Feferman, Warren & Mattison to learn more. Here are some of the questions you may have:

Is a car dealer required to disclose prior accidents?

Yes. The law prohibits deceptive and unfair trade practices, and that includes misleading consumers during vehicle sales. There are specific requirements for the disclosure of prior accident damage. Some of the ways in which a dealer may violate the law are as follows:

  • Failing to disclose a vehicle’s accident history
  • Failing to conduct a pre-sale inspection for accident damage
  • Advertising a car as safe, reliable, or accident-free when it is not
  • Altering, omitting, or downplaying known damage to influence a buyer’s decision
  • Selling a vehicle with undisclosed structural damage or prior airbag deployment

Essentially, if a prior accident affects the vehicle’s value, safety, or expected lifespan, hiding that information can cross the line into illegal conduct.

How can a dealer hide prior accidents from buyers?

Some dealers rely on the assumption that buyers will not dig too deeply before purchasing. Others take more active steps to conceal the truth. These tactics may not be obvious at first, especially to someone who does not buy cars often, but some of the most common methods we see include:

  • Providing incomplete or outdated vehicle history reports
  • Claiming ignorance about prior damage despite access to inspection or auction records
  • Making false verbal assurances
  • Repairing damage cosmetically while leaving structural problems unresolved

What can a buyer do if a dealer hid an accident?

Discovering hidden damage after a purchase is, of course, frustrating, but buyers aren’t powerless; the law allows injured consumers to take action when they are misled during a transaction. Some potential remedies can include:

  • Financial damages for repair costs, diminished value, or related losses
  • Additional penalties if the dealer’s conduct was intentional or egregious

If you suspect a dealer hid a prior accident, there are potential paths to legal recourse, and our firm is here to help you explore them. Please don’t hesitate to contact Feferman, Warren & Mattison for a free consultation today so we can discuss your case.