What is a legally lost vehicle?
A legally lost vehicle (or a vehicle A complete loss according to the law.) is a vehicle that has suffered damage close to 60% of its value. On the other hand, a Total Loss vehicle is a vehicle that has been rendered unusable or has suffered damage of 60% or more of its value. The person who determines whether a vehicle is a legal loss or a Total Loss is appraiser certified.
Damage close to 60% of the vehicle's value indicates a serious accident. And it is not at all certain that repairing the vehicle after such an accident will return the vehicle to a safe and proper condition. It is not impossible that someone who is driving a legally lost vehicle is actually driving a dangerous vehicle that may actually endanger his life, all without the knowledge of the vehicle owner. Another problem with these vehicles is that it is not at all clear who actually repaired the vehicle (most vehicles in this condition are repaired in the fields and not according to the manufacturer's instructions - which increases the concern that the vehicle is dangerous to use and unsafe).
The problem with lost vehicles is that they are generally vehicles that have been in serious accidents (sometimes with Damage to the vehicle chassis), but all those involved (the vehicle owner, the insurance company, garages, appraisers, used car dealerships) have an interest in not disabling the vehicle. A disabled vehicle (Total loss) does not allow for continued use, it must be taken to a scrapyard and the vehicle license must be deposited with the Ministry of Transportation.
Insurance companies prefer that vehicles not be defined as a total loss but rather as a loss in law because in these cases they will not always have to pay the full amount of financial compensation specified in the insurance policy to the vehicle owner. The appraisers on behalf of the insurance companies have an interest in providing the insurance companies with the service that serves the insurance companies, and therefore they sometimes cooperate and in borderline cases may define a vehicle as a total loss in law and not Total loss.
Insurance companies may even assist the car owner in selling the vehicle, and again, because this serves them, as the sale price will be deducted from the amount the insurance company will have to pay the car owner. After the vehicle is sold, it will go to some garage that will make money from repairing it.
after Vehicle repair The vehicle may end up in the lot of a used car dealer who will sell it to an innocent customer, sometimes without informing the customer that the vehicle is legally a lost item.
Pay attention – There are Used car dealers who specialize in selling legally lost vehicles And even when selling a vehicle, customers are made to sign that the customer knows that the vehicle is a legal loss. A customer who does not understand the meaning of this term and who signs all the forms may find himself in serious legal trouble, and will not necessarily be able to cancel the transaction.
Selling a legally lost vehicle Usually leads to a huge profit for the car dealer and a significant loss for the innocent buyer.
Why a lost vehicle is technically a dangerous and unsafe vehicle?
After the sale of vehicles that have been in serious accidents, which are defined as vehicles in legal loss status, they are transferred, in most cases, to the Palestinian Authority territories, where they are repaired (it is unclear how and under what supervision) and returned to the roads. In a very large number of cases, these vehicles are not safe to drive, and there is even a probability that most or some of them will not pass the annual test.
באגף התנועה קוראים לרכבים אלה "Mashtuba" (רכבים בעלי ליקויי בטיחות חמורים ותקלות מכניות במערכות קריטיות ברכב) והם מוגדרים כ"פצצה מתקתקת".
The bottom line is to avoid at all costs a situation where Buying a car that has been in a serious accidentIf you are still considering purchasing a total loss vehicle, you will need to obtain an appraiser's opinion detailing whether the vehicle is in good condition and safe to drive.
What to do to avoid purchasing a legally lost vehicle?
לעיתים קשה לזהות רכב שהוכרז אובדן להלכה בעת רכישת רכב יד שניה משום שעבודת השיפוץ היא כה טובה שעין של לקוח תמים לא תמצא ליקויים. מסיבה זו תמיד תדרשו לקבל את היסטוריית הטיפולים של הרכב ואת דו"ח תביעות הביטוח, אותו ניתן להפיק בעלות של עשרה שקלים באתר מרכז הסליקה של חברות הביטוח או אתר INFOCAR.
אם תראו בדו"ח התייחסות לסטטוס אובדן להלכה תוותרו על הרכב גם אם הוא יוצע לכם בהנחה משמעותית. אם יש תאונות "קלות" לא תמיד כדאי לוותר על הרכב ובמקרים אלה כדאי להתייעץ עם איש מקצוע מטעמכם (ולא מטעם המוכר שמנסה לשכנע אתכם לקנות את הרכב).
Whenever you purchase a vehicle from a car dealer, you should make sure that the car dealer provides you with Disclosure FormIf a disclosure form is not provided to you, you may have grounds to demand Canceling the vehicle purchase transactionIn most cases, the car dealer will refuse the demand and there will be no choice but to submit Lawsuit against a car dealer due to the sale of a legally lost vehicle without disclosing it in accordance with the provisions of the law.
This is an example of a due disclosure form:
Another thing you should be careful about, especially before purchasing expensive vehicles, is having the vehicle inspected by a vehicle inspection center. Of course, the inspection should be performed before purchasing the vehicle, not after purchasing the vehicle. Keep in mind that inspection centers also do not always detect all defects, and most of them even state this explicitly on the inspection order form, so it is very possible that you will not be able to make claims against a vehicle inspection center that did not detect a defect, even if it is significant.
An example of a significant malfunction that is not even checked at some vehicle inspection centers is the issue of airbags. You may purchase a vehicle with airbags that are not active/malfunctioning and not even know about it.
If you are buying a used car from a car lot, check to see if the lot has a Facebook or Google page. Sometimes you will find that used car dealers have received particularly negative reviews and opinions from previous customers. In these cases, you should consider avoiding making a purchase from that car lot.
Our office deals with filing Lawsuits against car dealers.
Is it legal to cancel a transaction to purchase a damaged vehicle?
As part of any second-hand vehicle purchase transaction, and it doesn't matter whether it's a purchase from a private individual or a car dealer, the seller Must Inform you of any defect in the vehicle, especially when there is a significant defect such as a serious accident that led the insurance company to declare the vehicle a legal loss or a legal total loss.
If the seller has not disclosed this essential detail to you, you should contact them as soon as possible. In writing After you discover this and demand the cancellation of the transaction (even if the transaction was made a long time ago).
Most likely, the seller will not agree to cancel the deal and will provide you with many excuses. The most common of which is that the seller did not even know that the vehicle was legally lost. In such a situation, you must file a lawsuit with the court as soon as possible so that the court orders the cancellation of the deal (on the same day). Claim They also demand financial compensation and restitution. Legal expenses).
The longer you delay, the more difficult it will be to your advantage and the more difficult it will be to convince the court to order the cancellation of the transaction.
In conclusion
It is important to know that a person who purchased a vehicle is legally considered to have lost Without his knowledge can (and should) go to court by filing a lawsuit and demand the cancellation of the transaction, receive his money back, and in addition demand and receive financial compensation (which can reach significant amounts). It is very important to use the services of Automotive Lawyer Experienced in this field who is familiar with the relevant nuances of the law and case law. Claims of this type are often are not suitable for resolution in a small claims case.
When purchasing a vehicle from a private individual or Car dealer You should always have your vehicle inspected at a vehicle inspection center. And in addition At the insurance companies' clearinghouse (a short online check that takes a few minutes and costs only 10 shekels). These checks will reduce the chance that someone will be able to sell you a vehicle that is legally lost (or worse – a vehicle that is a total loss).
It is not always easy to identify a vehicle that has been in serious accidents. Don't let a vehicle that looks good on the outside fool you. The exterior appearance does not guarantee that the vehicle is in good condition or has not been in serious accidents in the past. If you purchase a vehicle from a car dealer, always be sure to request a full disclosure form. If the dealer does not provide you with this form and it turns out that he sold you a vehicle that is a total loss, it will be much easier to file a lawsuit in court and demand that the transaction be canceled.
In general, it is recommended that you never purchase vehicles that have been in serious accidents, even if the price offered is very low. There is a high probability that you will not be able to sell the vehicle in the future or that you will encounter many problems/malfunctions while you own the vehicle, which will force you to pay a lot of money, and waste a lot of time, to get to the garages.
Another notable disadvantage is that if you have comprehensive insurance and an accident occurs that results in you receiving insurance benefits, the insurance company will pay you a much lower amount given the fact that you own a vehicle that is technically a total loss.
If you are sold a legally lost vehicle without being told about it before purchase, it is very important to contact the seller in writing as soon as possible after you discover this, and demand that the transaction be canceled. If the seller does not cancel the transaction, you must file a claim as soon as possible to cancel the transaction, receive financial compensation, and reimburse legal costs.
Frequently asked questions about a legally lost vehicle
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Is it worth purchasing a legally lost vehicle at a low price?
In the vast majority of cases, it is not advisable to purchase a vehicle that is a total loss, even if it is sold to you at a very low price. These are vehicles that have been in significant accidents and may have safety defects. Furthermore, you may have to invest a great deal of time and money to address all the defects caused to the vehicle in the accident or accidents it has been through.
Ultimately, you will also have great difficulty selling this vehicle because few people will agree to purchase a legally lost vehicle.
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I was sold a legally lost vehicle without my knowledge. Can I cancel the transaction?
These are very common cases. The way to cancel a transaction in these cases will almost always require filing a Civil lawsuit and hire the services of Automotive Lawyer.
The courts tend to accept claims and cancel transactions in cases where it is proven that the seller did not inform the buyer that he was selling a vehicle that was legally a total loss. -
How long does it take to file a lawsuit to cancel a transaction in the event that a vehicle is sold as a loss?
Typically, trials in this area last no less than a year.
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What should I do after I find out that I was sold a legally lost vehicle?
The first thing you should do in this case is to immediately contact the seller and inform him that you demand to cancel the transaction because he did not disclose to you that the vehicle had been in an accident (it does not matter even if it was a minor accident).
Chances are the seller will not agree to cancel the deal. In this situation, you must not delay and should immediately contact an automotive lawyer to file a claim.
