Must an Auto Dealer Disclose a Vehicle’s History?


A man in suit and tie with his arms crossed.

By: Robert J. Nahoum

If you’re shopping for a used car, you may be wondering whether a dealership is required to disclose if the car has been in an accident. The answer is, as with most things, it depends on the circumstances.

Under New York law, dealerships may be required to disclose information about a car’s history if that information would affect the car’s value or safety. This can include information about previous accidents, as well as any damage or repairs that may have been made as a result of those accidents.

However, the extent of the dealership’s disclosure obligations can vary depending on whether the car is being sold “as is” or with a warranty. If the car is being sold “as is,” the dealership is generally not required to disclose anything beyond what is visible to the naked eye. This means that if the car has been in an accident, but the damage has been repaired and is not visible, the dealership may not be required to disclose that information.

On the other hand, if the car is being sold with a warranty, the dealership is required to disclose any known defects or problems with the car, including any previous accidents or damage, if those defects of problems relate to a system in the car that is covered by the warranty. This is because the warranty is intended to provide protection to the buyer, and the buyer needs to know what they are getting into before they make the purchase.

It’s worth noting that while dealerships are required to disclose information about a car’s history if it affects value or safety, they are not required to investigate or research the car’s history themselves. This means that if the dealership doesn’t know about a previous accident or other issue, they may not be held liable for failing to disclose that information.   There are some limited exceptions to this rule. For example, if the car had previously been used as a renal or taxi, this history must be disclosed.

If you’re concerned about a car’s history and want to make sure you’re getting a good deal, it’s always a good idea to do your own research. You can request a vehicle history report, which can provide information about previous accidents, damage, and repairs. However, vehicle history reports like Carfax.com are not fool proof and are only as good as the information being reported.  The safest and most reliable independent research you can do is to have the car inspected by a trusted mechanic before making the purchase.

A dealership is sometimes required to disclose information about a car’s history if it affects value or safety, but the extent of their disclosure obligations can depend on whether the car is being sold “as is” or with a warranty. If you’re shopping for a used car, it’s important to do your own research and ask specific questions about the car’s history to ensure you’re making an informed decision.

If you think a car dealer has illegally misled you about a vehicle’s history, call an experienced consumer protection attorney familiar with auto fraud to discuss your options.

The Law Offices of Robert J. Nahoum, P.C
(845) 232-0202
www.nahoumlaw.com
info@nahoumlaw.com

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