Legal Question in Consumer Law in North Carolina

Here is the NC statute:

� 20‑71.4. Failure to disclose damage to a vehicle shall be a misdemeanor.

(a) It shall be unlawful for any transferor of a motor vehicle to do any of the following:

(1) Transfer a motor vehicle up to and including five model years old when the transferor has knowledge that the vehicle has been involved in a collision or other occurrence to the extent that the cost of repairing that vehicle, excluding the cost to replace the air bag restraint system, exceeds twenty‑five percent (25%) of its fair market retail value at the time of the collision or other occurrence, without disclosing that fact in writing to the transferee prior to the transfer of the vehicle.

(2) Transfer a motor vehicle when the transferor has knowledge that the vehicle is, or was, a flood vehicle, a reconstructed vehicle, or a salvage motor vehicle, without disclosing that fact in writing to the transferee prior to the transfer of the vehicle.

If the car was 5 model years or newer AND the damage exceeded 25% of the fair market value of the car, was this disclosed to you in writing? Review your sales documents carefully. If they do not mention this, you may have a problem and in that case, you may want to seek out legal counsel.

To establish fair market value, contact a car dealer appraiser or go online and compare thre price of a car without damage versus the price of a car with repaired damage. Get a written appraisal - you will need it to establish your case against the dealer. If its under 25%, then there is no violation.