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Need Help- Used Car Accident Disclosure from Dealership

4.2K views 9 replies 9 participants last post by  Green Egg  
#1 ·
Allright guys and girls- need some help here. Heres the story:

Last March I bought two VW Touaregs from a local VW dealership. 2007 V6 Touareg with a 2 year warranty and a 2006 V8 Touareg. Both bought within 48 hours of each other. Recently traded in the 06, no issues. Took the 2007 V6 down today to look at new Jeeps and while I was test driving I had them run it through an appraisal. When they came back the trade in offer was way lower than expected and yes my expectations were reasonable from edmunds. They then proceeded to tell me that they would have happily offered more but they were stuck at that offer because it was a vehicle that had been in an accident back in 2008. This is when I **** my pants. They handed over the Auto Check and sure enough it was true. Then then took me out to their body shop where they showed me on the vehicle that sure enough it had been COMPLETELY repainted due to an accident. This accident was not disclosed to us when we purchased the vehicle back in March of 2012.

Last month I paid the vehicle off to the tune of $21,988 obviously before knowing anything about this accident.

After I left the Jeep dealership I went straight to the VW dealership and found the GM. I told him that I just had one of the two vehicles that I purchased from the dealership appraised and it came back that it had been in a major accident. I told him that it was not disclosed to us when we bought the vehicle. He took me in his office and then went and grabbed the file from the sale. Sure enough, sale was made with no accident history whatsoever. He was actually very helpful and promised a resolution to this situation. He asked for me to give him until monday morning to get to the bottom of this and then we shook hands and I was on my way.

Here are the facts:

Car was just paid off for 21998
Blue book retail on it currently is 17500-18500
Trade in is 15500-16500 between edmunds, kbb and nada
Jeep offered me 14000
I have the car listed on auto trader for 16900

The VW Dealership is aware of all of the above numbers.

I would not have purchased this vehicle if I had known that it was in an accident and on a side note, we would never have bought the second one either as it came in off a trade as we were closing the deal on the 07.

So what should my expectations be from the dealership as far as making this right?

As I see it the dealer has 3 options:

1. Tell me to go pound sand and hope that I don't lawyer up
2. Buy the car back from me for a mutually agreed price that makes both of us happy
3. Offer a cash compensation for some amount that may or may not make up for the amount I am loosing on my trade in due to this accident

Any help or suggestions in this matter are much appreciated. Thanks.
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#2 ·
In my opinion they may tell you to pound sand! They have several ways out of this. They can tell you the previous owner did not disclose, therefore they did not know. Maybe the seller sould to them at night and it was raining? They can tell you they never pulled a Carfax or Auto check as it may not be required, stupid on their part. Or the previous owner may say it was repainted becasue the flock of acid dropping crows crapped all over it and it was repainted. Or they knew the limit of the damage and therefor they did not have to disclose it. I would check on the state laws on what needs to be disclosed. The dealer buyer may have bought it elsewhere where disclosure is not required. I'm guessing you did not pull the background either? Other wise you may not have bought the vehicle. I can't tell you how many peole buy on emotion vs, doing their homework.
 
#3 ·
Not sure about NM, but in PA dealers are not *required* to disclose a prior accident. Only required to disclose if salvage vehicle. Was vehicle VW certified? I don't think VW allows cars with prior accident to be certified. If it was certified, you have a good case for compensation. If not, I don't think the dealer is required to do anything.
 
#4 ·
don't take this wrong because I am not educated enough to give an accurate opinion but I believe they will tell you to pound sand because they can. The big guy usually wins. Everything is about money, please keep us updated as it is a very eye opening thread, thanks!

I hope you do well on this
 
#7 ·
Sucks big time. No Carfax or similar report when you first purchased? I know Carfax doesn't always show complete history but its a good start. I would never take a dealer's word on a car's history and would request a Carfax or something similar.

Good luck to you. Hope you get something.
 
#8 ·
CARFAX and Auto Check get their information from public records and from dealers who belong to both parties and report to them. Lots of stuff can be left off especially lemons! Another story on that later!

With used prices so high and used being in demand you can bet there is going to be stuff missing to get those higher prices and profit margins bigger.

Great concept but the fox is watching the hen house!

When buying used I cannot stress enough to go over the vehicle with a fine tooth comb. If you do not know enough about a vehicle I would suggest hiring a certified inspector that does not have any ties to a garage or the selling party. If buying a VW from a VW dealer ask to see service records. They won’t reveal the previous owner, but they will give you the records. If they won’t show you that’s a red flag. Due diligence really is the key here. Never buy at night, when raining, sleeting or snowing, under pressure, ect... All of these and more can impair your sight and mind when looking at a vehicle. If you have to buy at night or inclement weather, ask if the vehicle can be brought in under florescent lights where you can go over it. Paint jobs can be easily seen under this type of light and stand out like a sore thumb. Many new facilities have pre delivery bays where you can go over the vehicle.

With the above said good luck to you!
 
#9 ·
So lance, you did not do a check on carfax etc by yourself before you bought either of these vehicles I imagine? Like others said, if the dealership does ANYTHING, i would be surprised, but at the same time, also accept it and move on. I have never heard of a dealership going that far on an old sale.
 
#10 ·
OP: Did you ask about accidents or prior history? Is there a state law in NM about disclosure of material facts? If you can answer yes to at least one of these then you have something.

Otherwise, I think you have a not too expensive ($2,500 on the high end) lesson. Many, including myself, have paid far higher prices to learn a lesson.