Buying a car from a lot – can a transaction be canceled if defects were hidden in the vehicle?

Is buying a car from a lot worth it?

קניית רכב ממגרש עשויה להקל על רוכש הרכב משום שהוא מגיע למקום שנראה לרוב כמקום גדול "ומסודר" שעליו אפשר לסמוך בעסקה משמעותית כמו עסקה לרכישת רכב.

Most car dealers will offer you deals that you find particularly attractive, such as the option to pay for the vehicle in monthly installments through external financing (an option that does not exist when purchasing a vehicle from a private individual) and a promise to buy the purchase back and trade-in at any time in the future.

Usually, it is these promises that convince car buyers to make a deal with a car dealer because there is seemingly no risk in such a deal and there seem to be only advantages when buying a car from a lot.

In practice, the reality is a bit different (at least in some cases) and there are quite a few Rogue car dealersFor this reason, it is very useful to know how to prepare Complaint against a car dealer.

Buying a car from a lot increases the risk of buying a legally lost vehicle.

Our office is coming Daily Many inquiries from buyers who purchased a vehicle from a lot were promised mountains and hills. The buyers, of course, believed the car dealer and did not take the vehicle for inspection at a vehicle inspection institute (among other things, to save a few hundred shekels for an inspection). The buyers also did not bother to perform Checking the vehicle's insurance history (It only costs 10 shekels) But as soon as they wanted to sell the car, it was discovered that the car they were sold to was Legally lost vehicle, and very far from the value at which they purchased the vehicle. Buying a legally lost vehicle It means a significant financial loss.

In our experience, buying a car from a lot significantly increases the chance that you will be sold a legally lost vehicle because car dealers always try to maximize their profit, and some (of course not all) purchase vehicles that have been declared legally lost cheaply in order to sell them at a high price to the customer, and of course without disclosing to him the details that must be disclosed according to the law. Used Car Sales LawAnd of course without having the customer sign Disclosure Form.

Every new or used car buyer needs to know – Failure to disclose in the sale of a vehicle And hiding defects or accidents from the buyer may lead to filing a Lawsuit against a car dealer and a demand to return the vehicle (Canceling a new car deal or Canceling a used car transaction).

In addition, the vehicle purchaser will be entitled to receive financial compensation (which can also be very significant), as well as Ruling on reimbursement of legal costs.

Buying a car from a lot increases the risk of purchasing a car with faults.

Another type of inquiry that comes to our office concerns buyers who, after purchasing a vehicle from a lot, discover after a very short time (sometimes even while driving from the lot to their home) that various lights come on indicating various faults in the vehicle, or that the vehicle suddenly does not drive at all.

What characterizes these cases is that in all of them the car dealer promised the customer that the vehicle was in full working order, and the customer did not bother to check the maintenance history, which could have raised red flags regarding the vehicle's mechanical integrity.

It should be understood that in at least some cases, the vehicles sold at used car lots come from customers who tried to sell the vehicle themselves, but were unsuccessful because the vehicle suffered from some defect (sometimes a very significant defect – but hidden and not always easy to identify). To solve the problem, those owners of damaged vehicles come to the car lot and sell the vehicle at a loss or make a trade-in deal. In these situations, the car dealer will resell the vehicle (sometimes after making minor repairs to the vehicle) for a price significantly higher than the price at which he bought it.

בחלק לא מבוטל מהמקרים שמגיעים למשרדנו מדובר בגברים או נשים שמעולם לא קנו רכבים בעבר, וכלל לא יודעים אילו בדיקות מקדמיות עליהם לבצע על מנת להקטין את הסיכון שברכישת רכב פגום, ולמרות זאת החליטו לבצע את הרכישה, בסכום שרחוק מלהיות זניח, בתקווה שהכל יהיה בסדר (כי סוחר הרכבים "התחייב" שהכל תקין).

These types of cases may be a little more complicated to handle because it must be proven that the car dealer was aware of the defect or defects. Unlike a situation where a vehicle is sold as a loss, when a vehicle is sold with defects, there is always a chance that it was a coincidence and the dealer was truly unaware of the defect that was discovered in the vehicle.

However, if the purchaser of the defective vehicle has information that can help prove the car dealer's knowledge of the defect in the vehicle, even in these cases he will be able to demand cancellation of the transaction, receive financial compensation, and reimbursement of legal costs.

What do you do if a malfunction or hidden defect is discovered after buying a vehicle from a lot?

If any problem is discovered after buying a car from a lot, you should first review the information presented to you regarding the matter. The vehicle before purchase (As long as they are in your possession). For example: You may have the ad published online by the car dealer that did not state the defect in the car. Sometimes car dealers stick a sheet on the car (or put a small sign) detailing the main features of the car, and you may have taken a photo of this sheet. It is important to read and understand exactly what was presented to you before making the purchase.

Additionally, it is important to check whether you have any correspondence or recorded conversations with the car dealer at the stage when you were interested in the car and asked him about the car. You will likely not find in this correspondence any reference from the dealer to the fact that the car has a defect, otherwise you probably would not have purchased the car.

It is also important to check what documents were provided to you, and what exactly you signed. If it is a used vehicle, it is important to check whether the car dealer signed a disclosure form with you. If a proper disclosure form was not provided to you and there is indeed a material defect in the vehicle, this may significantly increase your chances of winning in court.

The next step is to contact the car dealer and inform them in writing or via a recorded conversation that there is a defect in the car that was not revealed to you at the time of purchase. It is very important that these inquiries be made in writing (for example, via WhatsApp) or via a recorded conversation for the purpose of documentation that may be used against you in court.

If you cannot reach an agreement with the car dealer, you will need to contact Automotive Lawyer Experienced to examine your case and explain to you exactly what you should do at this stage.

It is very possible that in these cases you will send on behalf of the lawyer Warning before filing a claimAs part of this warning, the car dealer will be given a final opportunity to accept the buyer's claims to cancel the transaction, otherwise a lawsuit will be filed against him, and it is very likely that in these cases the court will require the dealer to pay both monetary compensation and legal costs (in addition to the amount paid by the buyer for the vehicle).

If the car dealer rejects the claims or ignores the letter completely, there will be no choice but to file a lawsuit against him in order to obtain verdict That will force him to act as you wish.

In the past, our office submitted תביעה נגד חברת טרייד מוביל בע"מ Because she concealed an important detail from the customer – the engine of the vehicle he purchased from her had been replaced. Details of this type must be disclosed to the buyer in advance so that he can decide whether or not he is interested in purchasing a vehicle in which the engine has previously been replaced.

In conclusion

Buying a car from a salvage yard may turn out to be a problematic transaction, especially if the car buyer discovers that the car has defects or malfunctions that were hidden from him, or if it is discovered that he was sold a legally lost vehicle (a vehicle after a significant accident whose value is usually significantly lower than a normal vehicle).

Car dealers are required by the Used Vehicle Sales Law to have the customer sign a due diligence form, in which they must detail any defects they know about in the vehicle (including whether the vehicle is legally a loss). A car dealer who does not have the buyer sign such a form is facing a problem.

A customer who discovers that he was sold a legally lost vehicle or a vehicle with defects that were not disclosed to him can demand cancellation of the transaction, financial compensation, and also reimbursement of legal costs.

The wisdom in these cases is to act correctly and quickly. You need to collect all the necessary evidence and documents to submit them within the framework of the Financial claim or Civil lawsuit To the court. This is the only way you can increase the chance of canceling the transaction and receiving the remaining remedies.

Frequently asked questions about buying a car from a lot