Are car dealers required by law to tell buyers about collision damage?

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Are car dealers required by law to tell buyers about collision damage?

The salesman told me the car had been used as a demonstrator. Last year I had some repairs done due to being rear-ended while at a stop light. The body shop told me the car had previous damage to front and rear both and it was not repaired properly. In checking I learned the car was sold new by a different dealer in another town.

Asked on March 30, 2012 under General Practice, Texas

Answers:

FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Under the laws of all states in this country al salesperson for a car dealership is required to disclose all material matters about a car being sold that are known to a potential buyer that would affect the desirability and/or price paid for the vehicle. If the seller fo the car to you knew about the vehicles problems and failed to disclose such to you with respect to the collision damage, such material facts should have been disclosed.

Failure to do so is "concealment", a species of fraud.


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