Odometer and dealer sticker did not reflect true mileage on used car

October 27, 2015 16:00 by Consumer Ed

Dear Consumer Ed:  

I bought a car at a used car dealership. The sticker on the window read “89,000 Miles” and the odometer reflected the same number.  The paperwork the dealer gave me had the same mileage but also had “TMU,” which means “true miles unknown.”  I now want to return the car because I discovered through an AutoCheck vehicle report that the car actually has 300,000 miles on it.  The dealer is saying I can’t return it. Help!

Consumer Ed says:

Under these circumstances, you may have limited options in returning or refunding your vehicle if, as appears to be the case, the dealer correctly disclosed information regarding the vehicle mileage. Federal law requires sellers to disclose the miles on the odometer, and, if the seller knows that the odometer reading is different from the number of miles the car has actually traveled, include a disclosure indicating the true miles are unknown.   It appears that the dealer who sold you this car made the appropriate disclosure to ensure that you knew the 89,000 miles odometer reading was inaccurate. 

You may still have some recourse, however, if you can show that the dealer knew the actual vehicle mileage at the time of sale.  If the dealer knows the real mileage, then he or she must disclose that number and is not lawfully able to hide a higher odometer reading by using the “TMU” designation.  

Clearly, at some point, the vehicle odometer was altered.  Although not necessarily suggested by these facts, it is possible the dealer may have unlawfully manipulated the odometer reading.  AutoCheck may be helpful in determining the approximate time the odometer discrepancy occurred.   If the appearance of this discrepancy coincides with the dealer’s purchase or acquisition of the vehicle, this could suggest the dealer unlawfully altered and/or replaced the odometer and then disclosed the mileage as “TMU” in an effort to cover its actions.  The law prohibits sellers from changing the odometers in this fashion and misusing the “TMU” disclosure.  Both of the instances above would be an unfair and deceptive practice under the Georgia Fair Business Practices Act as well as under applicable federal law.  You may have a claim under these laws if you can prove the dealer engaged in these practices.

With very few exceptions, however, purchasing a used car is an activity that is almost always at the buyer’s risk.  Unless you can show that the dealer knew the real vehicle mileage or altered the odometer to begin with, you may be stuck with your higher-mileage vehicle.  You can visit the website of the Department of Law’s Consumer Protection Unit at www.consumer.georgia.gov to learn more about your rights in these situations or to file a complaint against the company.

 

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Used car dealer won't refund money for faulty vehicle

August 6, 2015 21:41 by Consumer Ed

Dear Consumer Ed:  

I bought a car at a used car dealership.  When I drove off the lot, I noticed the transmission slipping. When I took it to my mechanic, he said the car needed a new transmission, which would cost about $2,000. I took the car back to the dealership, but they said I purchased it “as is,” and they refused to give me my money back or to repair it.  What are my rights?

Consumer Ed says:  

When a car is sold “as is”, the car is sold in its current condition, which means the buyer accepts the car with all known and unknown problems at the time the car is purchased.  So, if something goes wrong or breaks down after you purchase the car, the cost of any repairs is almost always the buyer’s responsibility.  Generally, unless the dealer made a representation about the condition of the vehicle that he knew to be false, “as is” pretty much covers the dealer on any faults the car has.

Contrary to popular belief, there is no “cooling off” period when it comes to car purchases. Further, when cars are sold “as is”, verbal promises usually don’t apply (see the exception above).  

However, there is information that offers buyers some protection, and which is required by law to accompany every sale of a used car by a dealer.  It is contained in the Federal Trade Commission’s Buyer’s Guide, which must tell you:

 

  • whether the vehicle is being sold “as is” or with a warranty;
  • what percentage of the repair costs a dealer will pay under the warranty;
  • that spoken promises are difficult to enforce;
  • to get all promises in writing;
  • to keep the Buyer’s Guide for reference after the sale;
  • a brief description of the major mechanical and electrical systems on the car, including some of the major problems you should look out for; and
  • a reminder to ask to have the car inspected by an independent mechanic before you buy. 

 

Whenever you purchase a used car from a dealer, you should receive the original or an identical copy of the Buyer’s Guide that appeared in the vehicle that you bought.  The guide must reflect any changes in warranty coverage that you may have negotiated with the dealer.  It also becomes a part of the sales contract, and overrides any contrary provisions that may be in the contract.  If the dealer promises to repair the vehicle or cancel the sale if you’re not satisfied, make sure the promise is written on the Buyer’s Guide. If the promises are not written on the Buyers Guide, you will have a hard time getting the dealer to make good on his word.  

Consult your copy of the Buyer’s Guide to determine if the vehicle was in fact sold “as is.”  If the dealer failed to provide a Buyer’s Guide or to indicate that the car was being sold “as is,” with no warranty, you may have recourse against the dealer and may be able to return the vehicle.

For more information on purchasing a used car, visit www.consumered.com


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Can a dealership claim a deposit is non-refundable if it's not in writing?

May 27, 2015 13:28 by Consumer Ed

Dear Consumer Ed:

Can a dealership claim a deposit is non-refundable if there was no written agreement and those terms are not explicitly written on their website?

Consumer Ed says: 

Generally, verbal contracts for transactions that are more than $500 are voidable (such agreements are usually required to be in writing).  However, if there were any circumstances that would make your oral agreement enforceable, the terms of such an agreement would be found in your discussion with the dealer.  You don’t indicate how you came to pay the dealer this deposit.  Even though there was no written agreement, a deposit can be understood as either money paid in anticipation of delivery of the vehicle or, under some circumstances, money paid to the dealer for its services rendered in finding you a car.  The dealer is likely taking the latter stance. However, if the terms under which you paid the deposit did not specify whether it was a deposit or a charge for the dealer’s services, the likely presumption is that you were paying the funds in anticipation of the sale going through; that is, as a deposit.  If you also agreed that the funds would be returned in the event the sale fell through, then the dealer should be required to refund the money.

Given this information, if you believe that the dealer in this case has no right to keep your deposit, you have several options.  First, you should write a letter to the dealership clearly explaining the situation and requesting a full refund of your money.  You could also submit a complaint to the Better Business Bureau (www.bbb.org) to receive help obtaining a resolution and to warn other consumers about the dealership’s practice.  You can also submit a detailed complaint to the Georgia Department of Law’s Consumer Protection Unit (www.consumer.ga.gov), which is responsible for investigating violations of the Fair Business Practices Act.  If the dealer continues to refuse to refund your money, you may also want to speak with an attorney regarding possible actions you could take.  The State Bar of Georgia (www.gabar.org) provides information to help you locate an attorney in your area that can assist you.

To avoid such pitfalls in the future, before you start shopping for a car, make sure you select a reputable auto dealer.  You can research dealerships through the Better Business Bureau’s website, www.bbb.org, to help you avoid doing business with companies that use these tactics.  When purchasing a vehicle,do not take possession of it until your financing has final approval from the lender.  Rather than obtaining financing at the dealership, consider applying for financing through your bank or credit union before you start shopping.  This will allow you to know in advance that you are approved for the loan and it will make negotiations much easier.  You should also require that the dealer put everything in writing.  If you are going to place a deposit with a dealer, you should obtain or yourself create a written document stating the purpose of the money and under what circumstances you are entitled to a partial or full refund.

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