Leased vehicle came with a accident. dealer or broker never disclosed

This is a very interesting thread, here is my experience. see can you pick some use out from it.

  1. I was just recently acquired a G63, and the dealer disclose up front, that the unit was damaged at VPC, is actually not a big deal, its just a bumper, and they had replace a brand new one. and they had lower the price about 30k mark up compare to the current market price.

  2. This week, i was try to buy a used car from one of the franchise dealer in NY, and when i called. they told me that if i would pay the car in full, they have to charge me extra 10%. And i had seen this situation happens 3 4 times in NY state dealer already.

My suggestion is, you have to ask yourself first,

  1. do you want to get yourself into a lengthy court battle with dealership. ( I had done it before, it cost me nearly 38k attorney fee, and 3 years. but my situation was a little different than yours, and i did that just because i couldn’t take the fact that dealership thinks that they can bully whoever they want)
  2. Check with carvana, see how much they would pay for your car. i notice carvanna had been pretty aggressive on buying used car and price( compare to others). maybe the price that they offer is more than you current buy out?
  3. for your next car, maybe try to buy from other state. my personal experience with NY state dealer just had never good.

Hope you can find some use from my experience, good luck.

2 Likes

Three problems you may face:

  1. Third party purchase if you used a broker. Depending on the state, you maybe a considered a second owner.
  2. Every state has some type of damage disclosure. Now based on your state of purchase, you will need to find out what that is.
  3. You will also need to prove negligence on either/both the broker/dealership’s part.

Most if not all states specify a broker may not own the asset they are ‘brokering’.

Example -

2 Likes

They are typically only required to disclose above a certain amount.
For NY:

  • New Car Damage Disclosure: General Business Law § 396-p(5)(a)
    Dealers are required to disclose prior damage when the cost of repairs exceeds 5% of the suggested retail price.
1 Like

Plenty different! The lease was obtained by fraud in the inducement. The Lessee was blameless for the damage and likely wouldn’t have leased the vehicle for the payment and terms that he accepted, if at all.

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