Joining Fraud Claims to Lemon Law Claims in the Certified Pre-Owned Context
A few days ago, I wrote about Certified Pre-Owned Vehicles and the California Lemon Law. Problems with Certified Pre-Owned Vehicles can give rise to fraud claims as well as lemon law claims. Fraud claims are generally brought against the selling dealership, but not against the manufacturer. (By contrast, lemon law cases are generally brought against the manufacturer.)
The usual scenario that gives rise to a fraud claim against a selling dealership goes something like this. Joe Consumer reads in the local circular about certified pre-owned vehicles for sale. He is interested in some of the offerings and decides to stop by the dealership that placed the ad. He meets with a salesperson, who tells him that the CPO program is one of the best there is. Each CPO vehicle has been subjected to a 112-point inspection and is almost “like new.†In fact, it’s better than new, because the vehicle has to meet exacting standards and comes with an extended “bumper-to-bumper†warranty.
Joe Consumer agrees to pay a premium for the “better-than-new” certified pre-owned vehicle and drives off the lot feeling that he’s gotten a great deal.
Within a short amount of time, however, Joe Consumer begins to notice a lot of problems with his CPO vehicle. There are some mechanical problems that the dealership cannot seem to fix and a perplexing inability to stay aligned.
Because Joe Consumer does not have time to drive all the way back to the selling dealership during the work week, he drives to the dealership close to his work. To his shock, he is informed by this dealership that the vehicle has over-spray, evidence of bondo on the quarter panel, and other signs of collision damage.
Adding to his woes, this new dealership says that they “won’t touch it†and warns that the factory warranty is probably void because of the prior collision damage.
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Related posts:
- The California Lemon Law and Certified Pre-Owned Vehicles Signs and banners publicize certified pre-owned (CPO) vehicles at big and small dealerships throughout California. What is a CPO vehicle?...