What the Dealer Needs to Tell You When You Are Buying a Car

December 30, 2012 by Jonathan Rudnick

What the Dealer Needs to Tell You When You Are Buying a Car!

The New Jersey Consumer Fraud Act must be followed when the dealer is selling a car.

1. If you ask a question the dealer must provide an honest, accurate - NON DECEPTIVE ANSWER -

If you ask if the car has been in an accident the dealer must provide an accurate answer. If the dealer states that the car was never in an accident, then you find out the car has been in an accident, the dealer provided an inaccurate answer AND it is their duty to know the accurate answer. They are liable under the NJ Consumer Fraud Act There are some other requirements but this answer is primarily accurate. Their claim that they did not know (good faith) is not a defense.

2. Their statement that the car was NOT in an accident also would constitute an express warranty. An express warranty can be created many ways, including an express statement that the car was not in an accident. The New jersey law on this point (Uniform Commercial Code NJSA 12:3-313)

3. A selling dealer has an obligation to inspect all cars before sale and guarantee that they pass inspection (some transaction permit this to be waived by customer). Some dealers even charge for this service and some get paid by the manufacturer of the car.

4. If the dealer knows there is a defect and they fail to advise you or knowingly lie to you that creates an entire separate claim for common law fraud.

5. As is clauses need to be addresses separately, as they can be a defense under certain circumstances