Lawsuit against a car dealership – a lawyer explains when you can sue and win

A lawsuit against a car dealership can be divided into two main situations: a lawsuit after purchasing a new vehicle and a lawsuit after purchasing a used vehicle. In each of these situations, there are many cases in which a lawsuit can be filed in court and various remedies can be sought.

This article will detail the most common situations, but of course there may be other situations you may encounter.

Attorney Eddie Blitstein has been representing plaintiffs against car dealerships that sold new or used vehicles for over 15 years. Need professional legal advice in a lawsuit against a car dealership? Contact our office.

Lawsuit against a car dealership for selling a defective new car

Like any other product, it is very possible that even if you buy a new car, you will receive Damaged vehicleThe defect can manifest itself immediately after purchasing and receiving the vehicle, and sometimes it is a defect that worsens over time and leads to a situation where the vehicle is forced to repeatedly come to the garage. In particularly serious cases, the vehicle is forced to stay in the garage for a very long period of time for repair, thus creating a situation where the customer not only does not enjoy the vehicle, but the vehicle loses its value due to the long period of time it spends in the garage.

In one of the cases handled by our office, a client purchased a new vehicle from a well-known company, but after a few days, the metal part connecting the wheel to the vehicle's chassis broke during the trip, and only by a miracle did the client manage to avoid an accident that could have caused his death.

In another case handled by our office, a client purchased a very luxurious vehicle, but shortly after receiving the vehicle, the vehicle continued to break down and he had to come to the garage nearly 20 times over a period of about two years. The number of visits is extremely unreasonable, especially when it is a luxurious vehicle that was purchased new.

In these cases and other cases where a customer is given a damaged vehicle, a claim can be filed against the car dealership that sold the vehicle to the customer, and demand Transaction cancellation, even if a long period of time has passed since the customer received the vehicle.

A lawsuit against a car dealership after the vehicle was not repaired for a long period of time

These cases can be divided into two possible situations: 1. The car dealership is the official importer of the vehicle. 2. The car dealership is the parallel (unofficial) importer of the vehicle.

In most cases, when you purchase a vehicle from a car dealership that is the official importer of the vehicle in Israel, that dealership will also operate a network of garages on its behalf for the purpose of repairing the vehicle and performing routine maintenance on the vehicle. In other cases, that car dealership will operate garages through other companies with which it has contracted to provide maintenance and repair services for the vehicles it sells.

On the other hand, when it comes to a car dealership that is a parallel importer, it will usually not have any garages at all to service the vehicles it sells, and those who will provide the warranty and actually service the vehicle purchased from a parallel importer are the official importer's garages.

תביעה נגד סוכנות רכב
Automotive Lawyer Eddie Blitstein explains lawsuit against car dealership

Our office has already filed quite a few lawsuits against car dealerships that are the official importer and also car dealerships that are receiving importers for cases in which a purchased vehicle had a defect covered by the manufacturer's warranty, the vehicle arrived at the garage for repair, but could not be repaired because there were no spare parts in stock, and for this reason the customer was sometimes forced to wait several months (the most extreme case we handle is of a customer who had to wait for a spare part for six months, during which time his vehicle was in the garage, and he did not receive a replacement vehicle).

In cases where the customer is forced to wait a very long time to receive spare parts to repair his vehicle, a lawsuit can be filed against a car dealership and also demand cancellation of the transaction.

However, it is important to understand whether the car dealership is the official importer or the car dealership is the parallel importer. The reason for this is that in cases where you purchased the vehicle from a car dealership that is a parallel importer, you should consider including the official importer in the claim, if it is the one that operates the garage where your vehicle was located, or the company that operates the garage on behalf of the official importer.

The reason for this is that you cannot demand cancellation of a transaction from the garage (because you did not purchase the vehicle from the garage, and therefore you are suing the car dealership), but the garage has liability regarding non-compliance. Vehicle repair In a reasonable time, so it is likely that the garage will also have to compensate the vehicle owner.

תביעה נגד סוכנות רכב חדש
A lawsuit against a car dealership requires consideration of the identity of the relevant defendants.

Lawsuit against a car dealership for selling a used car and concealing details

To date, our firm has handled countless lawsuits against car dealerships that sold used vehicles and hid (misrepresented) information from customers (for example, the company טרייד מוביל בע"מ), all with the aim of increasing the value of the car in the eyes of the customer so that the car dealership can make more money.

המקרים הנפוצים ביותר בהם ניתן להגיש תביעה נגד סוכנות רכב שמכרה רכב משומש:

  1. Selling Legally lost vehicle – This is a vehicle that has been in an accident, usually a serious one. Even a vehicle inspection institute cannot tell you whether the used vehicle you are about to purchase is a legal loss vehicle. To check this, you must contact the website Infocar (A fee of only 10 shekels for the service).
  2. Vehicle defects – It is not always possible to discover every defect in a vehicle, so if defects were hidden from you, you can file a claim against a car dealership, especially if they were not disclosed to you. Disclosure Form.
  3. Vehicle mileage falsification (Accelerator pedal) – Many sellers reduce the number of kilometers the vehicle has traveled in the vehicle display, in order to present to the customer that it is a vehicle that has hardly been used or has been used relatively little. The less the vehicle has traveled, of course, the higher its value. Mileage fraud cannot be detected by inspecting the vehicle at a vehicle inspection institute.

If you are interested in filing a lawsuit against a car dealership that sold you a used vehicle, it is very worthwhile to do some preparatory work before actually filing the lawsuit. In the first step, make sure that you have all the relevant forms for the transaction (vehicle purchase agreement, disclosure form, financing transaction forms, etc.). It is also important to make sure that you have saved all correspondence with the car dealership representatives. In addition, try to locate the car dealership's ad, if the vehicle was advertised for sale online. All of this may be of great help to you even before filing a lawsuit against a car dealership, but especially after filing the lawsuit.

After discovering a defect in the vehicle you purchased, do not delay. First, contact the car dealership in writing and notify them of the cancellation of the transaction (it is recommended to use the services of a lawyer who specializes in this field at this stage). If you receive a negative answer, file a lawsuit against the car dealership as soon as possible.

The remedies that can be claimed in a lawsuit against a car dealership

As part of a lawsuit against a car dealership after purchasing a new or used vehicle, three main remedies can be sought:

  1. Transaction cancellation – returning the vehicle and receiving the amount paid for it back.
  2. Financial compensation – for example, for Mental anguish, expenses incurred by the vehicle owner, etc.
  3. refund Legal expenses – Example payment Lawyer's fees, payment of court fees, payment for Expert opinion, etc.

In most cases, it is possible to combine the remedies and not have to focus on just one remedy. That is, it is possible to demand within the framework of Claim One is also the cancellation of the transaction, both monetary compensation and reimbursement of legal expenses. On the other hand, you do not have to demand all of these remedies together and you can focus on one (or more) remedy. Of course, everything depends on the circumstances of the case relevant to you. Usually, the fewer remedies the claim includes, the simpler the case will be, and the higher the likelihood of concluding the claim faster.

Because there may be difficulty Correct the claim During the process, even before filing a lawsuit against a car dealership, it is very advisable to consult with a lawyer who is familiar with representation within the framework of Lawsuits against car importers and car dealerships, in order to understand exactly what can and should be claimed in your individual case.

עורך דין תביעות רכב אדי בליטשטיין
Need professional legal advice in a lawsuit against a car dealership? Contact Attorney Eddie Blitstein

In conclusion

A lawsuit can be filed against a car dealership that sold a new vehicle, just as a lawsuit can be filed against a car dealership that sold a used vehicle.

In most cases, you can claim three main remedies: cancellation of the transaction, monetary compensation, and reimbursement of legal costs.

In cases where you purchased a vehicle from a car dealership that is a parallel importer and in situations where your vehicle has not been repaired for a long time even though it is still within the warranty period, it is appropriate to consider including the garage that was supposed to service the vehicle in the same claim.

A lawsuit against a car dealership is not a simple matter. It is highly recommended that you seek the services of a lawyer who is familiar with these types of lawsuits.

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Lawsuit against a car dealership
Lawsuit against a car dealership
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Attorney Eddie Blitstein

He has extensive experience and proven success in complex civil and financial lawsuits against the most powerful and largest entities in Israel and abroad.

You can read many recommendations from previous clients of the firm and articles about us in the media at the bottom of the page.

Our firm provides the highest level of legal services to companies and individuals, in Hebrew, English and Russian.

Attorney Eddie Blitstein represents plaintiffs and defendants only in claims in amounts exceeding NIS 100,000.

Our office does not accept clients who wish to pay a fee based on percentage or success.

For professional legal representation, call now 03-6427876
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