Buying a car from a car dealer – what to do if there are problems after purchasing a car?

Problem after buying a car from a car dealer

The first thing you should do after discovering a problem after buying a vehicle from a dealer is to check whether you have all the transaction documents (for example: memorandum of understanding, purchase agreement, Disclosure Form(Copy from the vehicle ad – if you found the vehicle online) and read them very carefully.

Many buyers do not read the purchase documents carefully before making the transaction and are forced to discover in retrospect that the car dealer wrote things in these documents that he did not bother to tell them in practice. The many inquiries that come to our office indicate that in many cases car dealers sell to customers Legally lost vehicle Without disclosing this verbally, but in the purchase documents this matter is mentioned in one of the last sections. It is important to know that it is possible Cancel a used car purchase transaction In these cases, however, this will require filing a lawsuit in court. The courts rule in these cases in favor of the buyer., especially after Buying a legally lost vehicle Without all legal provisions being complied with by the car dealer.

These documents may also refer to other defects in the vehicle, such as known and sometimes serious faults in the vehicle. Of course, this matter is also not disclosed to the customer verbally and is often hidden at the end of one of the contract documents.

תמיד חשוב לזכור שבעת קניית רכב מסוחר אתם לא מתנהלים במצב שהוא "שווה כוחות". לרוב, סוחר הרכבים יהיה מנוסה מכם במכירת רכבים ויצליח לשכנע אתכם לרכוש רכב במחיר מלא (ולעיתים מעל למחיר המחירון) גם אם יש ברכב פגמים רבים.

For this reason, it is very important to know exactly what you agreed to in the contract. Only after you have managed to understand all the terms of the agreement can you decide on an appropriate course of action to deal with a problem after buying a car from a dealer.

Documenting every conversation/correspondence after buying a car from a car dealer

Car dealers with special types. Before buying the car, they will be your best friends. In most cases, after buying the car and receiving the money for the car, they will not want to invest any more time in you, and if you have received verbal promises from them, without putting things in writing, there is a high chance that these promises will not be realized in practice. It is very common to fall into the trap of Rogue car dealers.

For these reasons, it is important to document every promise or contact made to the car dealer, especially if a problem arises after buying a car from a dealer.

Documentation of promises can be done through recording conversations, but a simpler and more preferable way is through WhatsApp correspondence. The reason WhatsApp correspondence is preferable to recording conversations is that if it is necessary to submit Civil lawsuit or Financial claim Against the car dealer, you will not have to pay a transcription company to transcribe your conversations with the car dealer (no judge will sit and listen to all your conversations with the car dealer).

If a problem arises after buying a vehicle from a dealer, it is very important to contact the dealer as soon as possible and ask him why he did not disclose to you that the defect you discovered existed. For example: If you discovered after buying a vehicle from a dealer that the vehicle sold to you is a legal loss vehicle, inform the car dealer in a WhatsApp message that you discovered the status of the vehicle, and ask him directly why the car dealer did not disclose this detail to you.

If the car dealer admits in correspondence or in a recorded conversation that he did not disclose to you the existence of the defect you discovered before purchasing the vehicle, this admission will significantly increase your chances of success in court.

On the other hand, if the car dealer claims that he revealed to you that the defect existed before you purchased the car, it will be necessary to perform additional tests and cross-check data. For example: In such a situation, it is worth checking whether the defect is detailed in the due disclosure form. If the defect is not detailed in this form, the dealer will have difficulty proving his claims in court.

Sending a warning letter after buying a car from a car dealer

In most cases, after a defect is discovered in the vehicle, you will not reach an agreement with the car dealer. In the vast majority of cases, the dealers will not agree to cancel the deal, and at most will offer you a trade-in deal on their lot. As part of such a trade-in deal, you will probably need to add money to purchase and receive another vehicle.

In these cases, there is no choice but to initiate legal action to minimize your damages. In the first step, it is worth sending the dealer Warning letter Before taking legal action from a law firm. Everyone, including car dealers, takes a letter from a law firm more seriously than a letter written and sent by a private individual. In many cases, car dealers understand that if a person has hired the services of a lawyer, it means that he definitely intends to go to court.

However, because vehicles cost a lot of money and because car dealers are often reluctant to part with these significant sums, a warning letter will not usually result in a transaction being canceled. However, this letter may be helpful to you after you file a claim. Claim To prove in court that you did everything possible to avoid filing a lawsuit, and therefore you are also entitled to a refund Legal expenses.

Filing a claim after buying a car from a car dealer

If after buying a car from a car dealer you were unable to solve the problem that arose, there will be no escape from preparing Complaint against a car dealer and filing the claim in court. It is important to understand and know that car dealers also do not like to go to court because this also causes them significant costs (cost of Lawyer's fees) and a considerable waste of time. It is important to know this because this could be the reason why the car dealer will try to reach a settlement with you after filing the claim. A settlement that the dealer was not even willing to consider before filing the claim.

Another thing to consider is that you should seek the services of an experienced lawyer when filing claims against car dealers. Choosing a lawyer who is not experienced in these matters may significantly reduce your chances of success in court (just as not every doctor knows how to treat every medical problem, not every lawyer knows how to properly handle claims against car dealers).

There may be cases where, in order to be successful within the framework Lawsuit against a car dealer You will need to submit Expert opinion. An expert opinion is necessary to prove matters that require expertise. A judge is an expert in Israeli law, but he is certainly not an expert in the field of automobiles or in the field of appraisals. Therefore, to prove that you were sold a defective vehicle and that the defect significantly reduces the value of the vehicle, you may need to attach an opinion from an appraiser who will assess the damage, the cost of repairs, and the value of the vehicle in the condition in which it was sold to you. This does not mean that an expert opinion must be submitted in every claim against a dealer. This depends very much on the specific circumstances of each case.

In the vast majority of cases, a lawsuit against a car dealer will be filed To the Magistrate's Court But in cases where the transaction does not exceed 37.5 thousand shekels, it may be possible to consider filing a lawsuit in small claims court.

In the past, our office filed on behalf of a client תביעה נגד חברת טרייד מוביל בע"מ Because she concealed a material detail from him regarding the mechanical condition of the vehicle. Material details and defects in the vehicle must be disclosed to the buyer in advance as part of a due disclosure form.

In conclusion

קניית רכב מסוחר היא לא תמיד חוויה נעימה, ולכן כדאי מראש לדאוג לתיעוד מלא ובכתב של כל הבטחה שניתנה לכם על ידי סוחר הרכבים, אחרת אתם עשויים לגלות "הפתעות" בעתיד.

If you discover a problem after payment and after the vehicle has been transferred to your ownership, first read all the contract documents, including the due disclosure form, to make sure that the car dealer did not add details that he hid from you.

Then, contact the car dealer in writing or by recorded conversation and inform him that you have discovered a defect that he did not disclose to you. If the car dealer does not agree to cancel the transaction, you will need to contact a lawyer who is familiar with the conduct and claims against car dealers in order to begin legal action.

In most cases, it is worth considering sending a warning letter from a lawyer. Car dealers treat these letters differently than a letter sent by a private individual. However, it is important to know that even after a warning letter from a lawyer, the car dealer will not rush to cancel the transaction.

In the vast majority of cases, there will be no escape from filing a lawsuit against the car dealer. As part of the lawsuit, various remedies can be sought, such as cancellation of the transaction, financial compensation, and reimbursement of legal costs.

Frequently Asked Questions About Buying a Car from a Car Dealer