Lawsuit of the Month - October 2022

Dealer XT 01 Nov 2022 5 min read

Just because a vehicle's history report shows no accidents doesn’t necessarily mean it’s enough to protect you from a lawsuit. A California car dealer was recently contacted by one of their customers through their attorney regarding previous damage they claim wasn't revealed on the initial disclosure form—and now he’s demanding after 2 years of driving the car that the dealership take the car back (rescission) and refund all the customer’s money paid PLUS $7,500 in attorney fees and costs!

Check out this real-life demand letter sent to a California car dealership previously. In this case, the vehicle was a 2015 Chrysler 300: 

The vehicle history report showed that the vehicle had no accidents.

The customer’s lawyer argued that the dealership had failed to disclose prior damage to the vehicle and is demanding the remedies above.

In order to avoid such costly claims, it is important for dealerships to have mitigation strategies that can minimize heavier and more costly legal proceedings. Whichever platform you use for this purpose should always disclose relevant information that is applicable to used cars.

If you are a dealership and you are not doing this, you may want to start! 


Contact our Lawsuit Prevention Team to know more (408) 216-7422