Are we liable to a car dealership for repairs needed on a trade-in?

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Are we liable to a car dealership for repairs needed on a trade-in?

I recently traded in a car and leased a new one. After the deal was completed, the dealership called me stating that they were unhappy as they found some mechanical problems with our trade-in. We were unaware of this prior to completing the deal.

Asked on March 27, 2014 under Business Law, New York

Answers:

S.L,. Member, California Bar / FreeAdvice Contributing Attorney

Answered 7 years ago | Contributor

You are not liable to the dealership for not disclosing mechanical problems of which you had no knowledge.

The dealership can't prove fraud on your part because you didn't have any knowledge of the mechanical problems.  The dealership should have checked out the car and found any mechanical problems before entering into the agreement with you.  Since the dealership didn't do that and you had no knowledge of the mechanical problems, you can enforce the terms of the contract (trade-in agreement) against the dealership.


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