Legal Question in Consumer Law in California

Consumer Dealership problem with new lease and old lease

15 months ago I was in an auto accident, my insurance repaired 5 month old car at a cost of $25k in repairs alone (the payout was $30k). 1 year later I want to upgrade to an '06 model at same dealership that repaired my original car. I told the sales manager I was in an accident and their shop repaired it. I spent 2 days negotiating a deal that I ended up backing away from because I thought they were giving me too little for my trade in because it was in an accident. A week later I decided to go for the new car and I went back and they honored the original deal. During the document signing phase I also told the finance manager that the car was in accident but it was repaired by their dealership if that was a problem, he said no. Yesterday I get a call from the General Sales Manager who said that I signed an indemnity agreement which states ''vehicle does not have frame damage and if it does that I have to pay the ACV''. He said the car has frame damage and that we can swap the cars back and unwind the deal or I can pay $5k more to keep the deal. Here is my concern: After all the negotiation and me telling them the car was worked on they never once checked. Also, how can it have frame damage if they repaired it? Do I have any rights?


Asked on 2/10/06, 9:08 pm

1 Answer from Attorneys
Daniel Harrison Berger Harrison, APC

Re: Consumer Dealership problem with new lease and old lease

If that dealership conducted the repairs, they should be charged with full knowledge of the condition of the trade in. They shouldn't be able to claim ignorance. Notwithstanding, the contract language may prevail. It will be a battle over the contract language and the argument that the dealership knew of the condition of the car when they entered into the deal. However, since the dealership is willing to just unwind the deal, they may win. How long have you driven the new car?

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Answered on 2/11/06, 12:31 pm


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