How to Get the Best Possible Outcome By Suing a Car Dealership

Not every car dealer is honest and upstanding. Some are known for deceptive sales practices, fraudulent disclosures, contract breaches and title issues. Suing a dealership becomes necessary when you can’t get anywhere on your own, but you must understand your legal rights before proceeding.

Suing car dealerships requires you to collect all the evidence regarding the case and work with a qualified attorney. You need to prove that they acted improperly by engaging in fraud or violating your consumer protection rights. The vehicle dealer may be required to give you compensation in the form of money, additional repair costs or a vehicle replacement.

The Lemon Pros have the experience needed to get your money back from the car dealers. Our practice area is solely focused on defective vehicles and fighting against the Californian car dealerships or manufacturers. Contact us today for a free case evaluation.

In this post, we cover the reasons you may need to sue a dealer and explain the process. We also look at the potential outcomes and explain why having a lawyer can make a significant difference in the process.

Common Reasons for Suing a Dealership

Consumer fraud is among the top reasons to sue a dealership, but auto fraud can occur in several different ways, which apply to both new and used cars.

• Deceptive Sales Practices: If there have been false or misleading statements made in advertising or hidden fees you weren’t told about, you may have a case. Any bait-and-switch tactics are also pursuable, whether they substituted a more expensive vehicle for the advertised special or offered much less for the trade-in than what you were promised.
• Fraudulent Disclosures: If a dealership is aware of known issues with the car, there’s a responsibility to report them to potential buyers. This practice is especially important when selling cars as-is.
• Contract Breaches: The sales and finance contracts are legally binding agreements. If there are any violations of these terms by the dealership, you have the right to sue.
• Odometer Fraud: Rolling back odometers is a federal crime, but it is done to misrepresent the mileage of a vehicle. It can be challenging to prove that a dealership is responsible for the rollback or auto fraud unless you have the vehicle's history report.
• Title Issues: If the dealership refuses to transfer ownership of the vehicle or sells it without the proper title, you will be able to sue. Once all the paperwork is complete, California law requires the dealer to transfer the title into your name within 30 days, whether it is a new or used car.
• Lemon Law Violations: The dealership is not allowed to sell a lemon car that can’t be fixed without disclosing it to the buyer. However, the dealer can sell the car as long as the defects are fully disclosed, most often noted on the vehicle history report.

All of these are also valid for a complaint with the state’s Attorney General, the Federal Trade Commission (FTC) and your local Better Business Bureau (BBB).

Can You Sue a Car Dealership?

After making a car purchase, there are several grounds for filing a lawsuit against the dealer:

Consumer Protection Laws: California offers robust protection with the Consumers Legal Remedies Act that prevents unfair and deceptive acts. There’s also the California Lemon Law that prevents dealers from selling defective vehicles. From a federal standpoint, you have the Federal Trade Commission Act that prohibits unfair practices and the Truth in Lending Act that ensures clear disclosure in financing. There’s also the Fair Credit Billing Act that prevents dealers from unfair billing practices.

Warranty Violations: An express warranty is one that has clearly stated protections, such as the 5-year/50,000-mile new car warranty. In contrast, the implied warranty isn’t stated but assumed under the Uniform Commercial Code. When there’s a violation of express or implied warranties, the Song-Beverly Consumer Warranty Act (state) and Magnuson-Moss Warranty Act (federal) both provide consumer protection.

Fraudulent Misrepresentation: When the car’s history or reliability is not what the dealership implied, they could be held responsible for fraudulent business practices. Many of the previously stated laws also apply to consumer fraud.

Unfair Trade Practices: Dealers can be held responsible for misleading advertising, bait and switch tactics, misrepresentation of the new or used car, failure to disclose vital information or high-pressure sales techniques, all of which are punishable under the previous regulations.

How to Sue a Car Dealership

You have legal options if the dealership hasn’t been honest or has failed to honor its requirements. Here are a few steps to take if you wish to seek compensation:

1. Attempt Resolution With the Car Dealership

It’s crucial that you contact the dealership directly before taking legal action. You want to outline the issue and offer a proposed solution to the problem, whether you want additional repair costs covered or are looking for a refund.

A formal demand letter should be sent if the initial communication fails. This letter should be sent via certified mail and may include an independent inspection report of the car, the original purchase or lease agreement and the steps you plan to take if the case isn’t resolved.

2. Collect All Relevant Evidence

If you have a bad car, you need to gather evidence to support your claim. Start by getting together the purchase or lease agreement outlining the down payment and future installments. You also want the warranty paperwork and maintenance records.

If you have proof of the misleading statements or other illegal practices you are claiming, this evidence must be included. Any communication with the dealer or manufacturer will also prove to be invaluable in a legal case.

3. Decide on the Type of Lawsuit

You have a couple of different options available when suing the car dealer, both of which apply to the purchase or lease of a new car or used vehicle.

• Small Claims Court: If the claim is under $10,000 as an individual, you can file in small claims court. This is a simpler, less expensive route, but also limits the amount you can claim. Additionally, individuals may not file more than two small claims court cases exceeding $2,500 per calendar year.
• Civil Court: For larger claims (such as with new cars) or more complex issues (such as fraud or breach of contract), you may need to file in civil court. This case will involve more formal procedures and higher costs, but also requires dealers to pay out more if the claimant wins.

4. Consult With a Lemon Law Attorney

You should never be stuck with defective cars or be misled into believing something that isn’t true. A Lemon Law lawyer is best equipped to spot delivery scams and other types of fraud. By showing your relevant documents to an experienced attorney, you will know what your rights are and what you might be entitled to.

The Lemon Pros have won millions in compensation for clients. Our team of professionals knows how to fight the manufacturers and dealerships. You don’t need to pay anything upfront for a consultation. Contact us today to get started.

5. File the Lawsuit

Once it’s time to move forward, you want to complete all of the required forms for your lawsuit. There may be a cost involved with filing the forms, but they are minimal. Just make sure you file in the correct jurisdiction, which is something a lawyer would take care of for you.

6. Serve the Dealership With Legal Papers and Prepare for Court

A notice of lawsuit will need to be given to the dealership. Again, the best person to handle this is the attorney.

While you await a court date, it’s best to prepare. If you are working with a lawyer, you will practice what the trial will look like. You also need to make sure that all of your documentation is ready to show, such as any relevant repair estimates, a record of previously performed repairs (including the date and location of service) and the original purchase agreement.

Potential Outcomes of Suing Car Dealerships

Consumers will face multiple outcomes, depending on how the case pans out:

• Victory: Ideally, you want to achieve victory in your case. When the court rules in your favor, the dealership may have to provide some form of compensation, either in the form of a refund, additional repairs, vehicle replacement or a Lemon Law buyback. The dealer may also have to pay incidental costs and attorney’s fees.
• Loss: Sadly, there’s a chance that the court can rule against you. This typically happens because you don’t have enough supporting evidence to prove your case. When this happens, you may be responsible for paying the dealership’s legal fees.
• Settlement: The court may prefer that you settle out of court and agree on a settlement. A Lemon Law settlement can vary between $5,000 and $100,000, depending on the situation.

To ensure the best outcome possible, it’s better to have a qualified attorney on your team. The dealership is more likely to settle when a deal is brokered by a lawyer.

What Kind of Lawyer Do I Need to Sue Car Dealers in California?

A Lemon Law lawyer's particular purpose is to get compensation for cars that have been sold with unrepairable defects. Lemon Law attorneys review the case to determine eligibility and contact the manufacturer to establish a settlement.

A breach of contract lawyer works with clients who can’t get the dealer to abide by the contract. When dealing with cars, it’s best to choose a breach of contract attorney who specializes in this field, as many work in general law instead and may not have the necessary knowledge to win against a big dealership.

An auto fraud lawyer deals with deceptive practices, such as when a car has been in an accident and it wasn’t disclosed or when the agreement that clients are asked to sign isn’t what was agreed upon. This is also the lawyer you need if the odometer was rolled back to hide the higher mileage.

A car warranty lawyer helps to navigate warranty disputes with dealerships. The car warranty lawyer has a similar purpose and intention as the Lemon Law lawyer.

Need an Expert Lemon Law Lawyer for Suing a Car Dealership?

There are many reasons to sue a car dealership, especially if you are unable to drive your vehicle because of their neglect or deception. While it’s best to research the car dealership you plan to work with to ensure they have earned high reviews and carefully review all of the paperwork before you sign it, there are times when fraud cannot be prevented. If you face any issues with a dealership, it’s best to seek guidance from legal counsel to see what your rights are.

The Lemon Pros understand the ins and outs of suing a dealer and have immense success earning exceptional payouts for clients. As the best Lemon Law attorney in California, we get the dealerships to respond with serious offers. Contact us today for your free case evaluation.

FAQ

Can You Sue a Dealership For Selling You a Bad Car?

Yes, not only can you sue the dealership for selling you a lemon, but you can also report them to the state’s DMV and Consumer Affairs to protect other customers from the same issue.

How Much Does Suing a Car Dealership Typically Cost?

If you are fighting a dealership over a lemon car, you may not have to pay anything upfront. Many lawyers work on a contingency basis, meaning they only get paid if you win your settlement. Contact us for a free consultation to see what you are entitled to.

How Long Do I Have to Sue a Car Dealership?

There’s a statute of limitations when dealing with a lemon car. The defect must first occur within 18,000 miles or 18 months of taking ownership of the new vehicle. However, you have four years to file the Lemon Law claim. With every other case, the timeframe may be different, so it’s best to speak with a qualified attorney.

How Do I File a Claim Against a Car Dealer?

Start by gathering all your repair records, purchase documents, and warranty details. Then, notify the dealer or manufacturer in writing about the defect and give them a chance to fix it. If the issue isn’t resolved, you can file a claim under the California Lemon Law. You may want to consult a Lemon Law attorney because they often offer free consultations and don’t charge unless you win.

What Are Mistakes to Avoid In a Small Claims Court Hearing?

Before heading to court, make sure you are prepared. Gather all your necessary documents and be ready to stick to the facts. Don't miss any deadlines or required paperwork, and make sure you always respect the judge, even if you don't agree with the ruling.

How Do I File a Complaint With the Better Business Bureau?

Visit the BBB website and search for the dealership you are having trouble with. Complete the online complaint form and attach your supporting evidence. Track the resolution process to see how the dealer responds.