Buying a legally lost vehicle Without the seller explicitly disclosing this defect to the buyer, even before the transaction is made and the funds are transferred, this is a deception that in most cases will lead to a situation of Canceling a used car purchase transaction.
Can be submitted Lawsuit against a car dealer for selling a lost vehicle Legally or even against an individual. Each of them has the obligation to disclose to the buyer that they are selling a legally lost vehicle.
This article will detail the provisions of the law and the relevant court rulings that may assist you after buying a legally lost vehicle.
It is important to know that there is no law prohibiting Selling a legally lost vehicleIf the seller has disclosed to the buyer the fact that the vehicle is a legal loss, and the buyer has decided that he is still interested in purchasing the vehicle, even if the list price is required, or even above the list price, there is no problem with that. As long as there is transparency and the buyer knows exactly what he is buying, he is entitled to pay as much money as he wants (just as the seller is entitled to demand any amount he wants for his vehicle).
What is a legally lost vehicle?
Legally lost vehicle It is a vehicle that has been in a major accident and the repair cost increases to almost 60% of the value of the vehicle. If the vehicle is insured by the insurance company, the insurance company will not bother to repair the vehicle and will simply sell it AS IS to another party (usually a used car dealer).
The car dealer will repair the vehicle (sometimes in the areas) cheaply and put the vehicle up for sale in his car lot. In the vast majority of cases, these vehicles are not repaired according to the manufacturer's instructions or using original and new parts, in order to save as much as possible on the repair of the vehicle. The cheaper the repair, the more the car dealer will profit on the vehicle, when it is sold.
From the many inquiries that regularly come to our office, it appears that Sale of a legally lost vehicle by a car dealer This is very common. The vast majority of inquiries to our office indicate that car dealers do not inform customers that the vehicle is a legally lost vehicle, and in a small number of cases, car dealers do not inform the customer verbally that they are about to purchase a legally lost vehicle, but the agreement contains a hidden clause among many other clauses stating that the vehicle is a legally lost vehicle.
"טריק" זה שבו נוקטים חלק מסוחרי הרכבים הוא דוגמה מצוינת למדוע It is very important to read the contract carefully before signing it., because in such situations, canceling the transaction is not always a simple task.
Buying a legally lost vehicle from a car dealer
Buying a legally lost vehicle from a car dealer constitutes a violation of specific legislation relevant to second-hand vehicle sales transactions by car dealers, and the courts treat this very severely.
The relevant law that is supposed to prevent buying a legally lost vehicle from a car dealer (without the buyer's knowledge) is Used Car Sales Law, which is known to most of the public as Due Disclosure Law.
One of the provisions of the Used Vehicle Sales Law states that the vehicle dealer must deliver to the buyer Disclosure Form:
The vehicle dealer must provide the disclosure form to the buyer before the transaction is completed (before the purchase agreement is signed and before the funds are transferred). Our office has not yet encountered a single case in which the vehicle dealer acted in accordance with the law and provided this form before the transaction is completed.
בנוסף, על סוחר הרכבים לפרט בטופס זה כל פגם שקיים ברכב. שימו לב שבטופס כתוב "למיטב ידיעת העוסק". סוחרי רכבים רבים נעזרים בכיתוב זה וטוענים לאחר קניית רכב אובדן להלכה שהם כלל לא ידעו שהרכב הוא בסטטוס זה, ולכן לשיטתם אין להטיל עליהם אחריות כלשהי.
לצערם הרב של סוחר הרכבים טיעון זה נדחה בבתי המשפט. כך לדוגמה בפסק דין מחודש אוגוסט 2024 (תאד"מ 10168-03-23):
Section 4 of the law requires the seller to provide the buyer with a full disclosure form, which includes comprehensive information about the vehicle, including details of any significant accidents the vehicle has been in, any significant repairs that have been made to it, the ownership history, and any other information that may affect the value or safety of the vehicle. This disclosure obligation is broad and comprehensive, and reflects the legislator's view that in transactions of this type, where information gaps are significant, the seller - who is usually the stronger and more sophisticated party - should be held responsible for providing the buyer with all relevant information.
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הפסיקה הרחיבה והעמיקה את חובות הגילוי בעסקאות מכר, תוך הדגשת חשיבותו של עקרון תום הלב והגנה על הצרכן. בפסק הדין המנחה ע"א 8068/11 Uri Eini v. Chen Shifris (11.2.2014) (להלן: "My eyes matter") קבע בית המשפט העליון כי יש להעדיף את עקרון "יזהר המוכר" על פני "יזהר הקונה". בית המשפט הדגיש את פערי הכוחות והמידע בין המוכר המקצועי לבין הקונה הפרטי, וקבע כי על המוכר מוטלת חובה מוגברת לגלות כל מידע מהותי על הרכב.
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בהמשך לגישה זו, הפסיקה הרחיבה והעמיקה את היקף חובת הגילוי החלה על מוכרי רכב משומש. בע"א (מחוזי ת"א) 36233-11-22 סטאר מוטורס בע"מ נ' קלר כהן שור (29.1.2023) (להלן: "Star affair"), The court emphasized the seriousness of the breach of the duty of disclosure and ruled that such a breach constitutes grounds for rescission of the transaction due to deception under Section 15 of the Contracts Law. The court clarified that the seller of a used vehicle is subject to an increased duty of disclosure due to the information gaps between him and the buyer, and that this duty applies even if the seller was not aware of the actual inconsistency. This rule expands the scope of the seller's liability and strengthens the protection of the buyer, while recognizing that the professional seller is in a better position to discover and ascertain material information about the vehicle.
In the case before us, the application of these laws requires a careful examination of the defendant's conduct as a professional seller. העובדה שהרכב הוכרז כ"אובדן להלכה" היא ללא ספק מידע מהותי שהיה על הנתבע לגלות לתובע. גם אם נניח שהנתבע לא ידע על כך בפועל, הלכת סטאר מוטורס מטילה עליו אחריות לברר ולגלות מידע כה משמעותי. הסתרת מידע זה, בין אם במכוון או בשל רשלנות, עשויה להוות הטעיה המצדיקה את ביטול העסקה. זאת, בהתאם לעקרון תום הלב ולחובת הגילוי המוגברת החלה על מוכרים מקצועיים של רכב משומש.
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אי מסירת טופס גילוי נאות בהתאם להוראות סעיף 4 לחוק מכירת רכב משומש מהווה הפרה של חובה חקוקה מצד הנתבע. חובה זו נועדה למנוע בדיוק מצבים כגון זה שלפנינו, שבהם מידע מהותי אודות הרכב אינו מועבר לקונה. בהקשר זה, יש לתת משקל מיוחד לעקרון "יזהר המוכר" שנקבע בפסיקה, בפסק דין עניין עיני, המדגיש את חובתו המוגברת של המוכר המקצועי לגלות כל מידע מהותי על הרכב. העובדה שהרכב הוכרז כ"אובדן להלכה" היא ללא ספק מידע מהותי שהיה על הנתבע לגלות לתובע, גם אם לא היה מודע לכך בפועל, שכן כסוחר רכב מקצועי, היה עליו לברר מידע זה.
It is important to know that if you discover in retrospect that you were sold a legally lost vehicle, it is important to immediately contact a lawyer who specializes in the automotive field so that he can immediately notify the car dealer of the cancellation of the transaction, and if necessary, file a claim as soon as possible. Lawsuit against a car dealership who sold you the vehicle or Lawsuit against used car dealer In person. In these cases, you must not delay because it may harm your chances of claiming.
Buying a legally lost vehicle from a private individual
Buying a legally lost vehicle from a private individual is much less common than buying a legally lost vehicle from a car dealer. If a private individual sells a legally lost vehicle, it is usually after he himself purchased the vehicle from a car dealer and the car dealer does not inform him of this.
Unlike car dealers, an individual selling their vehicle is not required to provide the customer with a full disclosure form. However, this does not mean that after buying a legally lost vehicle from an individual, there is nothing to do.
If a private seller did not inform you that he sold you a lost vehicle, you are legally entitled to demand cancellation of the transaction, just like with the car dealer.
Even in this case, if the private seller is not willing to cancel the transaction, you should contact a lawyer to have him issue a Warning letter before taking legal action and notification of transaction cancellation.
Even in these cases, it is recommended not to delay because this may reduce the chances of success in court.
Is it possible to legally prevent buying a damaged vehicle?
Buying a lost vehicle generally occurs because the buyer does not have the relevant information regarding the vehicle's status, but this does not mean that the buyer cannot obtain the relevant information with minimal effort and zero financial investment.
All the buyer has to do is ask the seller to produce the Vehicle insurance claims historyThis is an inspection that can only be performed by the vehicle owner and costs only 12 shekels.
The form you receive after payment will detail all the accidents the vehicle has been in and that have been reported to the insurance companies. If in one of the accidents the vehicle was declared a total loss, you will see this explicitly and prominently on the form.
In conclusion
Buying a vehicle that is legally lost without the seller detailing this material defect to the buyer constitutes a violation of the law and court rulings.
Before buying a damaged vehicle, the seller must explicitly inform the buyer of this. If the seller did inform the buyer of this, and the buyer agreed to purchase the vehicle, there is no legal problem.
Buying a legally lost vehicle from a car dealer is a violation of the Used Vehicle Sales Law, if the seller did not provide the buyer with a proper disclosure form before the transaction, which explicitly states that the vehicle purchased is in legally lost status.
also A private individual is obliged to disclose to the purchaser That he is selling him a legally lost vehicle.
If, after purchasing a legally lost vehicle, it is discovered that this is the status of the vehicle, the purchaser must immediately contact a vehicle lawyer to send a notice of cancellation of the transaction and submit a claim. A lawsuit against a car dealer for selling a legally lost vehicle If necessary.
