What to do if I recently traded in a vehicle that was involved in an accident?

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What to do if I recently traded in a vehicle that was involved in an accident?

I disclosed this information and it was also reported on Carfax. The dealer has now contacted me and said they have found frame damage/repair on my trade in vehicle. I was not told about this by insurance company or by the car dealers that handled the repairs. The dealer that sold me my new car now wants to speak with me regarding them auctioning my car for less money than the loan payoff amount I owed. Can they demand more money from me or is it now their issue and no longer mine?

Asked on November 20, 2012 under Business Law, California

Answers:

MD, Member, California Bar / FreeAdvice Contributing Attorney

Answered 9 years ago | Contributor

Nope. This is no longer your issue. You reported the  vehicle and if you are not a motor vehicle expert, then you had no reason to disbelieve those regarding the damage or repair status of your motor vehicle prior to trade in. Since you traded in the motor vehicle, the dealership should have fully checked out the vehicle prior to submitting for auction and since you had disclosed the accident, you have no accountability.  The contract was done and completed and the dealership must pay off your full debt and possibly seek damages from the repair shop or insurance company who didn't disclose this frame damage.


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