Do I have a case? If so what would you do?

Question

I bought a car from a dealership today that was listed as new. I thought it would go smooth because I knew what I wanted and I had been coordinating with the salesman for over 2 months, I really took my time. I traded in a vehicle and paid the remaining balance of 15000.00 in cash. While explaining the owner's manual to me the salesman pulled a piece of paper from the binder and balled it up very quickly, it looked like temporary registration but I didn't get a good look. While driving home I happened to notice that the car had 1600 miles on it and thought that's odd for a new car but really didn't think too much about it until I got home and found a new purchase agreement from another buyer and GAP insurance paperwork on it that was a month old? I have a new car agreement plus the other buyers paperwork. Do I have a case here? What should I do?

Answer 1

You don't have a case if it had never been titled.  Shame on the dealer though for not being upfront with the mileage.  How they got that way or details of a prior deal that fell through is none of your concern.  They don't have to share that with you.

I sell GM vehicles so I don't know the programs of other manufactures in regards to warranty, but we are required to input the actual miles on the car at the time of delivery so the warranty can take effect at that point.  EX.  A car with 36,000 warranty coverage will be extended to 36,051 if it has 51 miles at delivery.  It sounds like they owe you an additional 1575 miles on your coverage.  

Go get 'em!!!

Answer 2

The buyers order should have listed the miles, and whether it was new, used, or a demo.  Also on the contract that you signed, it should be stated new, used, demo.  If nothing states this, go to the dealer and try to work something out with them.

Answer 3

If your application for title lists the car as "new" and the resulting title indicates the vehicle was purchased "new", then the vehicle was not previously titled (or your State's DMV computers would have caught it when they imputed the VIN number).  Legally speaking "new" status has nothing to do with the number of miles on a vehicle, only if it has been previously titled.  

What a court primarily looks at is purchase agreement, which constitutes a contract between yourself and the dealer.  If the dealer verifiable did not fulfill the  obligations spelled out on your purchase agreement, then you have a case.  (this assumes that a dealer representative signed your purchase agreement... if not your in a legal gray area.

So here is your possible recourse.

If your purchase agreement indicates a new vehicle but your title says it was used, there is no contest.  A dealer would never be dumb enough to go into court... they would lose and buy the vehicle back and be lucky not to end up paying punitive damages.  

You also said that your purchase agreement indicates 24 miles but the vehicle actually had 1600 (The application for title and subsequently the actual title should also reflect the 1600 miles.)  

According to your purchase agreement you contracted with the dealer to purchase a vehicle with 24 miles on it.  They breached the terms of their contract with you when they delivered (likely a different vehicle) with 1600 miles to you.  You absolutely have legal recourse over this.

The dealership management may give you a hard time, but if you show a willingness to pursue this legally (and the dealership management has any sense) you should be able to work one of two options.  Either they get you another car (at exactly the same deal) with a LOT nearer the agreed to 24 miles.  Or, if you are agreeable, to cut you a check back as compensation for the additional mileage.   30 cents a mile is not unreasonable.

If the dealer won't budge in trying to make up for their mistake, I would absolutely see an attorney...  and find a different dealer.

Hope this helps,

Mark H.

Answer 4

If the car has never been titled, it's still considered a new car, even with some miles on it. Didn't you look at the odometer before you bought it? What most likely happened was a previous sale fell through.