What To Do If A Dealership Sells You A Bad Used Car

On July 22, 2023
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Author - Steve Momot

Buying a car from a dealership can be an exciting experience. However, that excitement can quickly turn to frustration if you discover the car you purchased has significant problems.

As a former used car dealer, I’m well aware that paying for a faulty, damaged, or defective vehicle by a dealer is an unfortunate situation many car buyers face.

So, I created the article below to address what to do if a dealership sells you a bad used car.

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The Prevalence of Bad Used Car Sales

Unfortunately, being sold a “bad car” by a dealer is quite common.

According to the Better Business Bureau, over 9,000 complaints are filed against car dealers each year over faulty vehicles.

Issues range from undisclosed damage, faulty mechanical components, rolled back odometers, and beyond.

Dealerships have a responsibility to properly inspect cars before sale.

However, some dealers intentionally conceal issues to offload problem vehicles quickly. Others fail to do proper inspections, leading to unintentional bad sales.

Regardless of intent, being sold a seriously faulty vehicle can leave buyers frustrated and out thousands of dollars in repair bills.

Used Car Lemon Laws By State

If the car you purchased is certified “lemon“, state lemon laws can provide powerful consumer protections. Lemon laws allow buyers to return seriously defective vehicles for a replacement or refund. Each state has different lemon law criteria. Some key examples:

State	Coverage	Coverage Period
Alabama	New vehicles	1 year / 12,000 miles
California	New and used vehicles	18,000 miles or 2 years
Florida	New and leased vehicles	2 years / 24,000 miles
Georgia	New and leased vehicles	2 years / 24,000 miles
Illinois	New and leased vehicles	1 year / 12,000 miles
Indiana	New and leased vehicles	18 months / 18,000 miles
Kentucky	New and leased vehicles	12 months / 12,000 miles
Maine	New and leased vehicles	3 years / 18,000 miles
Maryland	New and leased vehicles	2 years / 18,000 miles
Massachusetts	New, leased, and used vehicles	N/A

Consult a lemon law attorney to determine if your state offers protections. Lemon laws can provide strong remedies if your car qualifies.

Why An Attorney Is Crucial

Attempting to negotiate a return or refund from a dealer without legal representation is often very difficult. Dealerships will typically deny any wrongdoing and refuse buybacks unless compelled by law.

An experienced attorney levels the playing field. They know your legal rights and how to build an airtight case by collecting repair records, filing complaints with agencies like the BBB, and negotiating firmly for your rights under consumer protection laws.

While using an attorney does cost money, not doing so often ends up being more expensive in the long run between repair costs, lost time and aggravation. An attorney can typically recover their fees from the dealership if successful.

Bad Car Dealership Scenarios & Next Steps

If you’ve been sold a faulty, damaged or defective car by a dealership, here are some common scenarios and steps to take:

Scenario	Step 1	Step 2	Step 3
Undisclosed Damage	Order Vehicle History Report	Consult Injury Attorney	Hire Auto Fraud Attorney
Faulty Transmission	Document Issue & Repairs	Check Warranty Status	Contact Lemon Law Attorney
Rolled Back Odometer	Order Vehicle History Report	File BBB Complaint	Consult Auto Fraud Attorney
Engine Issues	Review Lemon Laws	Maintain Repair Records	Contact Lemon Law Attorney

Undisclosed Accident Damage

If a dealership fails to disclose previous accident damage or frame repairs, you likely have grounds for a case. Your next steps should be:

Order a vehicle history report to document damage
Consult a personal injury attorney regarding harm from driving an unsafe vehicle
Hire an auto fraud attorney to recover financial damages

Faulty Transmission

A mechanical issue like a faulty transmission can quickly leave you with a useless vehicle. To exercise your rights, you should:

Fully document the issue and repair attempts
Determine if the vehicle is still under warranty

Hire a lemon law attorney to recover losses if the warranty applies

Rolled Back Odometer

If you learn the dealership has altered the mileage displayed on the odometer that is odometer fraud. To address it:

Order a vehicle history report to document true mileage

File a complaint with your state Attorney General
Consult an auto fraud attorney to pursue legal action

Persistent Engine Issues

An engine that continually stalls, leaks oil, or has chronic issues may qualify your vehicle as a lemon. Take these steps:

Review lemon law criteria for your state
Maintain detailed repair records
Hire a lemon law attorney to recover losses

Before you sue the dealer, here are some alternatives you can consider:

Negotiating With The Dealer

Discuss the issues with the dealers calmly and logically. Offer reasonable solutions like them covering a portion of repair costs. This occasionally leads to resolutions.

Reselling The Vehicle

Depending on the severity of the issues, you may be able to resell the car to an individual or wholesaler. This allows you to recoup at least some of your costs.

Reporting Them To The BBB

File a complaint with the Better Business Bureau detailing the dealership’s actions. This creates a public record and may compel them to offer a resolution to avoid a damaged reputation.

However, most severe cases do ultimately require legal action to achieve a full resolution.

Keep Detailed Documentation

The strength of your case depends on documentation. Be sure to keep detailed records such as:

Sales contract
Loan documents
Warranty agreements

Promises made by sales staff
Vehicle history reports
Repair invoices

Service center work orders
Communications with the dealer

Thorough documentation proves your claims and provides your attorney with what they need to build a compelling case.

In Summary

Being sold a defective, damaged or faulty vehicle can be incredibly frustrating. If this occurs, stay calm and take the necessary steps to exercise your consumer rights. Consult lemon law and auto fraud attorneys, file official complaints and collect documentation. With persistence and professional help, you can typically reach a fair resolution.

Sources For This Article:

Steve Momot - Author

Steve, a seasoned expert in the automotive industry, formerly held a car dealer license in Florida. With extensive experience spanning across car trading and mechanical work, he founded Autohitch. His mission? To guide both buyers and sellers through the intricate maze of car purchasing, ensuring a seamless and informed experience. Outside of the automotive world, Steve has a passion for fishing and capturing the beauty of nature through photography.