What can I do about an unreported accident on a car history report?

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What can I do about an unreported accident on a car history report?

I recently purchased a -car from a dealer with clean CarFax report. The next day I met with accident where the fault is with other party and they agreed to give diminution value. But when they ran ISO report, it shows that the car was involved in 5 accidents before. However, none of them reported to carfax. So the insurance company is saying that previous damage 10,500 is more than current damage $9370 hence there is no diminution value for my car. However, I am losing my car value because of others fault. How do I proceed with this case to get my diminution value?

Asked on August 9, 2016 under Accident Law, Kentucky

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

The prior owner(s) of the car--the one(s) who sold it to the dealer--have no connection to you and are not liable to you for the sale of the car to you after they had sold (or traded) it to the dealer.
The dealer is not liable unless you can show the dealer had knowledge of the accidents (notwithstanding the CarFax report) and hid that knoweldge from you in selling you the car: in that case, the failure to disclose the accidents would likely constitute fraud, and give you grounds to sue for compensation. Even if they did not have actual knowledge, if you can show any reasonable dealer in their position should have known of the accidents, that *may* be enough--people cannot use "willful blindess" to avoid fraud liability. But you still need to show they did not know or logically must have known; if they did not know and reasonably would not be expected to know, they did nothing wrong and are not liable.
CarFax is very hard to hold liable. You'd have to show that they deliberately or unreasonably carelessly did not report negative information about the car. But they do not investigate cars themselves; they compile information from credit reports, accident  reports, etc. If they sources they draw from are wrong or incomplete, they are not responsible.


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