A lawsuit against a car dealer for selling a legally lost vehicle – example

In case a used car dealer sold to you Legally lost vehicle Without disclosing this to you as required by the Used Vehicle Sales Law, and failing to provide a proper disclosure form, You must request a transaction cancellation as soon as possible after discovering the condition of the vehicle..

If the car dealer does not agree to cancel the transaction (and in most cases the car dealer will not agree to this), there will be no choice but to file a lawsuit against the car dealer for the sale of a legally lost vehicle.

A lawsuit against a car dealer for selling a lost vehicle can, in principle, be filed in small claims court only if the vehicle is worth up to 40,000 shekels.

On the other hand, if it is a vehicle that cost you more than 40,000 shekels, you will be forced to file a lawsuit against a car dealer for selling a legally lost vehicle.Magistrate's Court.

It is important to know that in most cases such a lawsuit will last in the Magistrate's Court for more than a year. Car dealers do not tend to compromise, but on the contrary, do everything to prolong the procedure as much as possible, because as long as a verdict is not given, they are not obligated to do anything, and therefore they do everything to make it take as long as possible until a verdict is given in the lawsuit, among other things, to try to exhaust the plaintiff and try to get him to compromise for a negligible amount.

A lawsuit against a car dealer for selling a legally lost vehicle

Regarding:

The plaintiff: שם ושם משפחה, ת"ז: _______
Address _____________; Tel: ______________ 
ע"י ב"כ עוה"ד אדי בליטשטיין
13 HaHagana St., Rishon LeZion (Yaron Miller Tower, Office 501) 
Tel: 03-6427876; Fax: 077-4704697;

N G D

Defendants: 1. שם ושם משפחה, ת"ז: _____________
Address ______________ 
Tel: ___________________ 
2. קורל – תל בע"מ, ח.פ. 512676289
1 Magshimim St., Petah Tikva 

Claim

Essence of the claim:  Property damage – vehicle. 
Requested remedies: Transaction cancellation, refund, financial compensation. Amount of claim: 187,900 NIS. 
amount Court fee: 4697.5 ש"ח (2348.75 ש"ח במועד זה לפי תקנה 6(א) ופרט 1 לתקנות בתי המשפט (אגרות), תשס"ז -2007).
The existence of an additional procedure: There is no further proceeding between the plaintiff and the defendants dealing with the matters detailed in this lawsuit.

Summons

Whereas the plaintiff filed Claim It's against you, you are welcome to submit Statement of defense within sixty days From the date this invitation was presented to you.

Please note, if you do not submit Defense אזי לפי תקנה 130 לתקנות סדר הדין האזרחי, התשע"ט-2018, תהיה לתובע הזכות לקבל A verdict not before you.

The emphasis in the statement of claim is not in the original unless otherwise noted.

A concise description of the litigants

1. The plaintiff is a private individual who purchased a second-hand vehicle from defendant 1, for a total of _______ NIS.
2. Defendant 1 presented himself as a private individual, but in reality he is a car dealer who deals in second-hand cars.
3. הנתבעת 2 היא חברה המפעילה את האתר "יד 2", באמצעותו פורסמה מודעתו של הנתבע 1 למכירת הרכב נשוא כתב תביעה זה.

The reliefs requested in brief

• The Honorable Court is hereby requested to grant the plaintiff the following reliefs:
• An order ordering the cancellation of the transaction between the plaintiff and defendant 1, and the return to the plaintiff of the sum of ______ NIS.
• The 1st defendant was charged with financial compensation in the amount of _____ thousand shekels for The anguish of the soul caused to the plaintiff.
• The 1st defendant's charge for reimbursement Lawyer's fees In which the plaintiff carried, in the amount of ______ NIS.
• Defendant 2 is required to restore the advertisement that Defendant 1 published on the Yad 2 website (including any edits made to it up until the date of its removal) regarding the vehicle that is the subject of the claim, and to the extent necessary for Defendant 2 to restore the advertisement, to order Defendant 1 to provide Defendant 2 with his username on the Yad 2 website and/or any other details that will assist Defendant 2 to restore the advertisement.
• Any other and/or additional relief that the Honorable Court deems appropriate.

Summary of the facts necessary to establish the cause of action and when it arose

• בתחילת חודש _____ התובע ראה באתר יד 2 מודעה בעניין רכב ______ מדגם _______, שנת ייצור ______, יד _____, בעל מספר רישוי _______ (להלן: "composition").
• The plaintiff contacted the defendant at the number published in the advertisement – ​​________.
• After a meeting attended by the plaintiff's wife, it was agreed to purchase the vehicle for a total of ______ shekels. The transfer of ownership of the vehicle took place on ___________.
• בסוף חודש _________ התברר לתובע כי הרכב שהנתבע מכר לו הוא רכב שמוגדר כ"A complete loss according to the law.". אם לא די בכך, התברר שגם Fake speedometer, as there was a significant reduction in the number of kilometers the vehicle traveled.
• On ___________, the plaintiff's wife, Ms. _________, spoke with defendant 1 and informed him that she and the plaintiff had learned that defendant 1 had concealed an accident from them. Defendant 1 did not agree to cancel the transaction and referred the plaintiff and his wife to court.

The facts that give the court jurisdiction

1. לבית המשפט הנכבד הסמכות העניינית והמקומית לדון בתביעה זו לאור סכום התביעה ומקום מגוריו של הנתבע, בהתאם לתקנה 7(א) תקנות סדר הדין האזרחי, תשע"ט – 2018.

Details of the allegations

הנתבע 1 הוא סוחר רכבים – פרט שהוא הסתיר מהתובע ואישתו

1. Used Car Sales Law (זכאות למידע וגילוי נאות), תשס"ח-2008 מגדיר "עוסק ברכב" כך:

""עוסק ברכב" – עוסק כהגדרתו בחוק הגנת הצרכן, התשמ"א-1981, שעיסוקו מכירת רכב משומש; "

1. A consumer protection law practitioner is defined as follows:

""עוסק" – Anyone who sells property or provides a service through a business, including a manufacturer; "

1. Defendant 1's phone number is _______. Performing a search on Google, Bing or Facebook using this phone number will reveal that Defendant 1 regularly sells used vehicles.

Appendix 1: Examples of advertisements published by Defendant 1 for the sale of used vehicles.

1. הדוגמאות מדברות בעד עצמן, ואין חולק כי הנתבע 1 הוא "עוסק ברכב", ומשכך חוק מכירת רכב משומש המוזכר לעיל, חל עליו. משכך, היה על הנתבע 1 למסור לתובע Disclosure FormThis form was not provided to the plaintiff.
2. Failure to submit a proper disclosure form was recognized in the case law as a very serious defect in the provisions of the law. ראו לדוגמה במסגרת תאד"מ 23565-09-23 קורל קרן פרנקו נ' ש. שלמה מכירת רכב (2000) בע"מ (Published in Nevo, 20.7.2025):

" סעיף 4 (ב)לחוק מכירת רכב משומש (זכאות למידע וגילוי נאות), תשס"ח–2008, מקים חובת גילוי נאות המוטלת על הנתבעת. בהתאם לכך, על הנתבעת בתור מוכרת רכבים שזה עיסוקה, היה למסור בידי הנתבעת טופס גילוי מפורט וחתום לפני החתימה על החוזה.

This form is required to specify, among other things, the identity and a number The owner The vehicle's previous history; damage caused to the vehicle; mileage, and more. Failure to comply with this obligation constitutes a serious violation of the provisions of the law.

…

אי מסירת מידע שכזה עשויה להיחשב כהפרה יסודית במתכונתה בסעיף 6לחוק החוזים (תרופות בשל הפרת חוזה), תשל"א- 1970 שתוצאתה על פי חוק זה, זכותו של הרוכש להשיב לידיו את הכספים שהוא שילם למוכר עובר הרכב, ולעיתים גם זכותו לפיצויים הנובעים מהפרה שכזו."

1. The ruling also determined that submitting a due disclosure form is Grounds in themselves for a demand to cancel a transaction:

" … לאחר שהגעתי למסקנה כי הנתבע לא מילא אחר חובת הגילוי המוטלת עליו, הטעה את התובע,  ולא המציא לתובע טופס "גילוי נאות" כנדרש, ולכן התובע רשאי היה לדרוש לבטל את העסקה גם במהלך חודש יוני 2024, כחצי שנה לאחר חתימת העסקה:

…

The number of kilometers traveled by a used vehicle, הוא מידע מהותי בעסקת מכירה על ידי עוסק ברכב, ועל כן המחוקק מצא לכלול נתון זה ברשימת פריטי המידע שמוכר רכב משומש חייב בגילויים ואף הדגיש שיש למסור נתון זה "במדויק".

…

Interim Summary In light of all the above, the transaction should be ordered to be canceled..

…

I order the cancellation of the vehicle purchase transaction concluded between the parties on 08.12.22. "

ראו: ת"א 61785-07-23 Ali Saad v. Adam Atallah (Published in Nevo, 15.4.2025).

1. ראו גם פסיקת בית המשפט המחוזי במסגרת רת"ק 55719-02-24 Vadim Roitberg v. Noam Avrahami (Published in Nevo, 14.4.2024) which confirmed the ruling of the Small Claims Court, determined that It is sufficient to submit a disclosure form. As a flavor in itself For the purpose of canceling the transaction.
2. One of the ads found on the Bing search engine is of the vehicle subject to the claim Which was posted by Defendant 1 on Facebook:

1. המודעה עצמה בפייסבוק כבר איננה זמינה אך ניתן לראות כי גם במודעה זו הנתבע 1 ציין כי מדובר ברכב "שמור כחדש" ולא ציין שום דבר ביחס לתאונות ו/או שבוצעה הפחתת קילומטראז' ברכב.
2. Although the plaintiff did not see this ad, but rather another ad on the Yad 2 website, the ad on the Yad 2 website also did not mention that the vehicle was involved in an accident or that its mileage had been reduced, similar to this ad. Since Defendant 2 operates the Yad 2 website, it is requested to reproduce the ad published by Defendant 1 regarding the vehicle that is the subject of this lawsuit.
3. If Defendant 1 had advertised that the vehicle had been involved in an accident or that the mileage had been falsified and/or told the plaintiff this before the purchase, the plaintiff would have given up on purchasing the vehicle, even at a lower price.

The conduct with Defendant 1 before purchasing the vehicle and the serious findings that were discovered

• בתחילת חודש _____ התובע ראה באתר יד 2 מודעה בעניין רכב ______במדגם _______, שנת ייצור ______, יד ________, בעל מספר רישוי _______________ (להלן: "composition").
• The plaintiff contacted the defendant at the number published in the ad – _________. During the preliminary conversation, the plaintiff inquired about the condition of the vehicle and whether the vehicle had been involved in accidents, but the first defendant stated that the vehicle was in very good condition, like new.
• Based on the information that appeared in the advertisement on the Yad 2 website, and the information received from Defendant 1 in the telephone conversation, the plaintiff and his wife went to see the vehicle ________ on ___________.
• Even during this meeting, Defendant 1 did not reveal to the Plaintiff or his wife that the vehicle was involved in an accident, nor that the mileage had been falsified.
• In light of the representations that Defendant 1 made to the Plaintiff, it was agreed to purchase the vehicle for a total of _________ shekels. The transfer of ownership of the vehicle was carried out on ______________.

Appendix 2: Certificates for the transfer of ownership on ________, the vehicle license in the name of Defendant 1 and the vehicle license in the name of the Plaintiff.

• At the end of the month __________, following a conversation with a friend who told the plaintiff about the phenomenon of selling vehicles that were legally defined as a total loss, the plaintiff decided to investigate this matter in relation to his vehicle by producing an insurance claims history form.
• התובע נדהם לגלות כי הרכב שהנתבע 1 מכר לו הוא רכב שמוגדר כ"אובדן גמור להלכה". עיון בטופס היסטוריית תביעות הביטוח מגלה כי ביום ____________ הרכב היה מעורב בתאונה קשה מאוד, במסגרתה שולמו לבעל הרכב דאז תגמולי ביטוח בסך __________ ₪.
• The plaintiff continued to investigate this matter with the insurance company that insured the vehicle and received the report of the appraiser who inspected the vehicle shortly after the accident.
• דוח השמאי מציג נזקים רבים וחמורים לרכב, אך מה שצד את עינו של התובע הוא נתון בעמוד 6 לדוח (שנערך ביום _________) המפרט כי מספר הקילומטרים שהרכב נסע עד למועד בדיקת השמאי הוא ___________ ק"מ (בעמוד 4 לחוות הדעת אף רשום ________ ק"מ). התובע רכש את הרכב כאשר מד האוץ הציג קצת יותר מ-__________ ק"מ. עיון ברישיון הרכב הן של התובע והן של הנתבע 1 (ראו מצורפים לעיל) יגלה כי ביום _______ מד האוץ עמד על ____________.
• It is unclear how the vehicle in question, which was in the use of Defendant 1 prior to its purchase by the Plaintiff, was not driven at all (compare the number of kilometers indicated in the vehicle license of the Plaintiff and Defendant 1 attached above). This could indicate that a reduction in the mileage was made right around the time the vehicle was sold to the Plaintiff.

Appendix 3: Insurance claims history form and appraiser report.

• On ___________, the plaintiff's wife contacted the 1st defendant and informed him that she and the plaintiff had discovered that the 1st defendant had worked for them and sold them a vehicle after a serious accident. The 1st defendant did not agree to cancel the transaction but referred the plaintiff's wife to court.

The legal position regarding a vehicle that is a total loss according to the law

• First, as detailed above, Defendant 1 is a car dealer who did not provide the plaintiff with a due disclosure form as required by law, But even if we treat Defendant 1 as a private individual, this does not help him in light of the fact that he violated the duty of good faith by concealing material information from the plaintiff.
• The Supreme Court addressed the issue of legal loss as follows:

"אציין כאן במאמר מוסגר, כי איני רואה הבדל מהותי לענייננו בין אבדן גמור ל"אבדן להלכה", שהוא התיחסות אופרטיבית לאבדן כאילו היה "גמור" (total loss) even if there was no such thing, But massive damage that the insurance company does not consider economically worthwhile to repair.; יוזכר "רכב באבדן גמור" מוגדר בחוק הגבלת השימוש ככזה שניזוק ב-60% משוויו (סעיף 1)."

ראו: רע"א 7839/14 רבקה אהרון נ' שירביט – חברה לביטוח בע"מ ואח' (Published in Nevo, February 26, 2015). 

• also Consumer Protection Authority הביעה את עמדתה ביחס לרכבים שהוגדרו בסטטוס אבדן להלכה ("רכב שעבר תאונה and suffered significant damage"). מעבר לחומרת הנזקים שברכב, הרשות להגנת הצרכן הדגישה את הקושי של הצרכן לגלות שהרכב אכן הוגדר אובדן להלכה:

"A reasonable consumer has difficulty discovering that a vehicle has previously been legally lost.The vehicle license does not contain any information about the restoration process and the past of the Neither the vehicle nor the inspection institute, which may indicate damage to the vehicle, uses the concept of loss in legal terms. And is satisfied with a certificate of conformity, which means a legal permit for the vehicle to enter the road from a safety perspective.."

Appendix 4: The Consumer Protection Authority's position dated October 17, 2021. 

• The recent ruling summarized the difficulties that arise from failing to disclose the fact that the vehicle being sold is a legal loss, and what benefit accrues to someone who sells a legal loss vehicle without disclosing this to the buyer:

"היותו של רכב מוכרז כאובדן להלכה הוא ענין מהותי שחובה על העוסק לציינו בעת הפרסום של הרכב כאשר איני מקבל את הטענה כי לאור סיבות שונות של סיווג רכב ככזה יש לפטור מכך את העוסק.

…

And with regard to vehicles, presenting misleading or incomplete information to the consumer before presenting him with the full disclosure form is likely to mislead him in the sense of reducing his attention and alertness with respect to what is listed in the form. (עש"א ‏(‏שלום חי'‏)‏ 49649-03-24 י.ח.ד. מוטורס בע"מ נ' הרשות להגנת הצרכן ולסחר הוגן, Article 76 (7.7.2024); וראה גם: עש"א ‏(‏שלום ת"א‏)‏ 60365-09-22 דומיקאר בע"מ נ' הרשות להגנת הצרכן ולסחר הוגן , Article 16 (13.12.2023).

Therefore, the Consumer Protection Law establishes a normative threshold that applies to all those engaged in sales or service industries. In order to deal with the inherent power and knowledge gaps between the trader and the consumer, the trader is obligated to avoid misleading the consumer at a higher threshold than the threshold set in the Contracts Law and is obligated to a high level of disclosure even at the advertising stage, which is what this appeal is about. 

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In Section 8 of the Used Vehicle Sales Law It is said that "אין בהוראות חוק זה כדי לגרוע מהוראות כל דין אחר"; And in the section 41 of the Consumer Protection Law It was determined that "חוק זה בא להוסיף על כל דין ולא לגרוע ממנו".

In other words, the reciprocal provisions in these laws indicate that there is no obstacle toConsumer Protection Law which is a cognate law (Article 36 of the Law) Will add to the instructions In the law on the sale of used vehicles; ובאופן זה, חובת הגילוי בדבר הכרזתו של הרכב הנמכר כ"אובדן להלכה" תוקדם עוד לשלב המוקדם ביותר של העסקה, שלב הפרסום.

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הכרזתו של רכב כאובדן להלכה הוכרה זה מכבר על פי הפסיקה כ"עניין מהותי". הגדרת רכב ככזה אינה מלמדת בהכרח על הפן הבטיחותי אלא כי הרכב עבר תאונה משמעותית בגינה נגרמה לרכב פגיעה חמורה, שנאמדה על ידי שמאי; ועלות תיקונה גבוהה משמעותית נוכח שוויו של הרכב וממילא אף גורמת להפחתה משמעותית בערכו ועל יכולת סחירותו… לפיכך על פי חוק הגנת הצרכן על פי לשונו, עוסק אמור לגלות דבר היותו של רכב הנמכר על ידו כרכב שנגרם לו אובדן להלכה, שהוא פרט מהותי.

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האבחנה שמבצע ב"כ המערער בין רכב עם עבר בטיחותי לרכב עם עבר ביטוחי אין בה כדי לשנות את פני הדברים. על דרך הכלל, רכב שבוצעו בו תיקונים מהותיים לאחר תאונה, ללא קשר אם הם בטיחותיים או ממוניים בלבד, הוא רכב שערכו יורד משמעותית. הכרזה כ"אובדן להלכה" מהווה ישום רשמי של ירידת ערך זו והיא פרט מהותי שיש לגלותו

…

The appellant advertised on a vehicle website that it sells as vehicles that are supposedly completely in good condition, with no insurance or safety history, when in reality these are vehicles that have been declared legally lost. By violating its duty to disclose that material detail, the appellant misled potential buyers and enticed consumers to enter into a transaction when some of them may not have entered into one had they known that the vehicles were legally declared lost. The mere publication constitutes a violation of the Consumer Protection Law And the fact that she presented them with a full disclosure form when the transaction was made does not diminish or negate it.

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The appellant does not operate its business on a non-profit basis.The very fact of advertising without specifying that the vehicle was a loss was done in order to attract more and more customers to the business, and needless to say, increasing the volume of potential customers means increasing financial profits. It must be assumed that at least some of those potential customers would not have come to the appellant's lot if she had indicated in the advertisement that it was declared a total loss.... It is further argued that the appellant will have a defense to the extent that she proves that the defect or quality of the product was known to the consumer according to Section 4(a)(3) of the Law,And the customers were aware of this as they were presented with a disclosure form. יחד עם זאת כפי שצויין עצם הפרסום הוא ההפרה שבוצעה באותה נקודת זמן ולא בשלב מאוחר יותר. "

See: עש"א 28488-05-25 נטלי כהן נ' משרד התמ"ת – הממונה על הגנת הצרכן (Published in Nevo, March 26, 2026).

• As can be seen without difficulty, the law is clear, and Defendant 1 should have disclosed at the advertising stage that he was selling a vehicle that was legally a total loss.
• אמנם בשלב זה אין ברשותנו את המודעה ביד 2, אך צורפה לעיל מודעת הרכב שאותרה במנוע החיפוש בינג, ובה ניתן לראות כי הרכב תואר רכב "שמור כחדש". תיאור זה הוא תיאור מטעה, בלשון המעטה.

The legal position regarding the issue of falsification/reduction of the accelerometer

• The ruling regarding mileage falsification states that this is also a ground that stands alone, allowing the plaintiff to cancel the transaction, and demand the full payment he made for the vehicle.
• ראו לדוגמה תא"מ 2891-11-19 Sami Gilkarov v. Raz Mendelsohn (Published in Nevo, January 26, 2022):

" It is not disputed that a reasonable purchaser can rely on the speedometer registration as a binding registration. Altering the speedometer registration is a criminal offense, and as a general rule, a reasonable purchaser should not expect the seller to perform such an action.

It should also be noted that there is no doubt that the vehicle's mileage is an important and central consideration in the considerations of a reasonable buyer when considering purchasing the vehicle..

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לפיכך, הפער בין חיווי הנסועה במד האוץ לבין נסועת האמת מגלה פנים של אי התאמה, בהתאם לסעיף 11 לחוק המכר, שכן לכל הפחות עסקינן ב"נכס שאינו מתאים מבחינה אחרת למה שהוסכם בין הצדדים" (ס"ק (5)).

And more, We are interested in a hidden discrepancy.Since the plaintiff immediately notified the defendant of the non-conformity, in accordance with Section 15 of the Sales Law, He may rely on this inconsistency and cancel the agreement between them.. "

• This ruling also determined that the restitution must be full (in this case, a restitution of ________ NIS):

"נוכח האמור, התובע רשאי לבטל את ההסכם בינו לבין הנתבע, and to be entitled to a refund of the contractual consideration he paid under it."

• דוגמה נוספת ניתן למצוא במסגרת ת"א 61785-07-23 Ali Saad v. Adam Atallah (Published in Nevo, April 15, 2025), where it is stated, among other things, as follows:

"The number of kilometers a used vehicle has traveled is material information in a sales transaction by a car dealer., ועל כן המחוקק מצא לכלול נתון זה ברשימת פריטי המידע שמוכר רכב משומש חייב בגילויים ואף הדגיש שיש למסור נתון זה "Accurately".

…

As stated in our case, the information regarding the number of kilometers the vehicle has traveled is information that the legislator also found to be material and therefore required the vehicle dealer to provide complete and accurate details regarding it in the due disclosure form.

…

Neither is this true, even if the defendant gave the plaintiff the vehicle license, this does not obviate the need to submit a due disclosure form as determined by the legislature., בפרט כאשר גם בזכרון הדברים עצמו לא רשם הנתבע מספר קילומטרים כלשהו שהרכב נסע. זאת ועיקר, המחוקקלא סבר שדי בפירוט הקילומטרים הרשום ברישיון הרכב לצורך עמידה בדרישת הגילוי הנאות, ונקבע בחוק כי מידע זה צריך היה להופיע במפורש ובטופס נפרד – טופס גילוי נאות."

The damages suffered by the plaintiff

• The plaintiff purchased a vehicle for a total of ______ NIS that had been in an accident and had falsified mileage. This information was not provided to the plaintiff prior to purchasing the vehicle. If Defendant 1 had disclosed the details as required in the advertisement, Plaintiff would not have contacted him by telephone at all, and certainly would not have purchased the vehicle, even for a much lower price.
• Therefore, the plaintiff is entitled to cancel the transaction and refund the full consideration.
• The conduct of Defendant 1 caused the Plaintiff great distress. Now the Plaintiff is stuck with the vehicle and cannot even sell it. The Plaintiff estimates his distress at ______ thousand shekels.
• For the purpose of his representation, the plaintiff paid attorney's fees in the amount of _______ NIS. The plaintiff believes that he is entitled to a full refund in view of the fact that Defendant 1 did not cancel the transaction prior to filing the lawsuit, despite the plaintiff's wife's contact with Defendant 1 on ____________.

Appendix 5: A tax invoice evidencing payment of attorney fees.

In conclusion

• In light of all of the above, the Honorable Court is hereby requested to summon the defendants to a hearing before it and to rule as follows:
• the remedies detailed in this statement of claim.
• לחייב את הנתבע 1 בתשלום הוצאות משפט ושכר טרחת עו"ד בתוספת מע"מ.
• To grant any other relief that the Honorable Court deems appropriate in the circumstances of the case.

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עו"ד אדי בליטשטיין
ב"כ התובע