Can an effectively USED car be sold as new if the sale was reversed?

Question

Long story short, I bought a new car after being told it had many features it did not have. Over the course of 1 month and 500 miles of driving, I discovered I had been lied to - and the car also began to have transmission issues (unrelated to the seemingly poor sales practices).

They encouraged me to "trade-in" my NEW vehicle for a very reduced price and tried to bait and switch me from my new car into a used car with more of the equipment that was SUPPOSED to be in the car I had already purchased. I said no deal, of course, and eventually the dealership refunded every cent I had paid for fees and everything (which despite their claims to the contrary, says to me that they were up to something no good).

My question is, does the reversal of sale give them the right to sell an effectively used vehicle (I had it for over a month and put more than 500 miles on it) as a new one?

They have it listed on their website as new right now, for the same sticker and dealer discounted price as when it was actually new. Also, before anyone asks, I know it i the same car because the VIN matches.

If this isn't ok for them to do, does anyone know who I would contact to flag this dealership? They were very crooked and I feel bad for the next person who gets suckered by their unethical practices.

Answer 1

The car can be resold as new - if and only if the car was never titled.  Once the car receives a title the dealer no longer has the Manufacturer's Statement of Origin (MSO).  A titled car is always a used car.  A car sold with the MSO is a new car, and can be sold as a demonstrator, program car, or company car.  The miles on the car make no difference.  I worked for a dealer that gave us demos as incentive.  If we sold x number of new cars in one month, the next month we could drive a new car with a dealer tag.  Those cars often had 4000 miles when sold as a new car.  State laws may vary, but the state I was in at the time did not require us to disclose 'unwound' deals.

Answer 2

Sorry, as soon as the front wheels leave the dealer's lot, it's now a used car. Even if you circled the block and drove it back saying you changed your mind, too bad, it's now used, and the value has dropped a few thousand. If they are advertising it as new, they're committing a crime, false advertising. I'd call the BBB (better business bureau) or the attorney general on them.

Answer 3

The car is an "unwind". It's neither new or used. The car is no longer new since you took possession of it and it was registered to you. However, the contract was backed out by the dealer before you gained title to it. An unwind is also subject to a 10 cents per mile discount from the original sale price.

So legally, the car has been registered but never titled, making it NOT new. Which also means it's not used either. Once again, because there was no title issued.

An unwind cannot be advertised or sold as new. It must disclosed that it is an unwind. If this dealer is doing so, they are committing fraud and should be reported immediately to the BBB. A deceptive dealer like this will have its license revoked very quickly.