Buying a vehicle is not simply a matter of convenience, but a necessity for getting to work, taking children to school, and handling the countless responsibilities of daily life. Because of this, most buyers assume that when a dealer tells them a vehicle has a “clean title,” it means exactly what it sounds like, namely that the car is problem-free and has no concerning history. Unfortunately, this is not always the case, and many buyers only learn what that phrase truly means after they discover dealer misrepresentations. Read on and reach out to the experienced New Mexico car dealer fraud lawyers here at Feferman, Warren & Mattison to learn more. Here are some of the questions you may have:

What is a “Clean Title” Supposed to Mean?

In the simplest terms, a clean title generally means that a vehicle has not been declared a total loss by an insurance company and does not carry what is known as a branded title, such as salvage, rebuilt, flood-damaged, or junk. That being said, the phrase itself can sometimes give buyers a false sense of security, because it does not necessarily tell the whole story of a vehicle’s past. In most cases, a clean title indicates the following:

  • The vehicle has not officially been classified as salvage by an insurance carrier
  • The title does not contain major branding in the state motor vehicle records
  • Ownership of the vehicle can typically be transferred without unusual restrictions
  • The car can usually be financed or insured under standard terms

Of course, none of this guarantees that the vehicle has never been in an accident, never sustained serious damage, or never undergone significant repairs, which is where many disputes begin.

How Can a Car Have Serious Problems but Still Have a Clean Title?

This is one of the most frustrating realities that car buyers face, particularly when issues begin appearing shortly after they drive the vehicle off the lot. Title branding depends on specific reporting and insurance determinations, and many damaged vehicles are not classified as salvage, even when the damage was substantial. Some of the most common situations that can lead to confusion include:

  • Accidents or flooding that were never reported to an insurance company
  • Vehicles that were heavily damaged but repaired without being declared total losses
  • Title washing, where a vehicle is transferred between states to remove branding
  • Incomplete or inaccurate vehicle history reports

What Should I Do if I Think a Dealer Misled Me About a Vehicle?

There are steps you can take that may help protect your rights and strengthen any potential claim. If you believe your vehicle was misrepresented, you should do the following:

  • Gather all documents related to the purchase, including contracts, advertisements, and financing paperwork
  • Request vehicle history reports and prior ownership records whenever possible
  • Speak with an attorney who handles car dealer fraud and consumer protection matters

Buying a car should be an exciting experience, not one that leaves you dealing with unexpected repairs, financial stress, and unanswered questions. If you believe you were misled about a vehicle’s condition or history, please don’t hesitate to contact Feferman, Warren & Mattison for a free consultation today.