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  1. #1
    Join Date
    Nov 2012

    A Dealer did not disclose rental car! what to do

    I bought a used car from dealer with no warranty. Car started having problem right away. I brought to a different dealer and they told me car was a previous rental. The dealer I bought from never disclosed. Do I have any recourse? I am in California.. San Francisco

  2. #2
    Join Date
    Nov 2012

    Re: A Dealer did not disclose rental car! what to do

    Since you bought the vehicle from a California dealer, Title 13 California Code of Regulations, section 260.02 applies, which states:
    ( B ) Former taxicabs, rental vehicles, publicly owned vehicles, insurance salvage vehicles and revived salvage vehicles shall be clearly identified as such if the previous status is known to the seller.

    So that gets you half-way there. If they KNEW it was a prior rental, they MUST disclose.

    Step 2: Did the dealership know? This is an easy item if you purchased the vehicle recently. Effective July 1, 2012. What happened? California law now requires dealerships to obtain a National Motor Vehicle Title Information System (NMVITIS) report before a used vehicle is offered or displayed for sale. (CarFax is one of the approved services ) If the report indicates the vehicle has been “junked” or “salvaged,” or has a “salvage title” brand, then the dealer is required to post a “WARNING” disclosure on the vehicle – on a red card with specific language.

    If you bought the car since July 1, 2012, then the dealerhsip is required to pull this informaiton.

    Next - regardless of when you bought the vehice, go pull a carfax and see if it indicates it was a rental car. If so, then the dealership has imputed knowledge (and probably actual knowledge) that the vehicle was a rental vehicle - provided you purchased the vehicle after July 1st. The dealership must pull this report and know its contents.

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