What an 'As Is' Clause Actually Does
When a Florida car dealer sells a vehicle 'as is,' the clause operates as a disclaimer of implied warranties. Under Florida's version of the Uniform Commercial Code, an 'as is' sale means the buyer takes the vehicle in its present condition, without any implied warranty of merchantability or fitness for a particular purpose. The buyer assumes the risk that the vehicle may have defects.
That is the full scope of what an 'as is' clause does. It disclaims warranties. It does not disclaim fraud. It does not permit a dealer to make false statements about the vehicle's condition. It does not permit a dealer to conceal material information that would affect the buyer's decision to purchase. Courts have been consistent on this point: a warranty disclaimer and a fraud defense are entirely separate legal concepts.
Florida Statute § 501.976(11): The Dealer's Disclosure Obligation
Florida Statute § 501.976(11) makes it an unfair or deceptive act for a motor vehicle dealer to fail to disclose, prior to sale, any material information about the vehicle that the dealer knows or should know, and that the consumer would consider important in deciding whether to purchase the vehicle. This is an affirmative disclosure obligation — the dealer does not get to wait for the buyer to ask the right question.
The statute specifically applies to prior accident damage, flood damage, frame damage, odometer discrepancies, and any other condition that materially affects the vehicle's value or safety. A dealer who knows a vehicle was in a significant accident and says nothing has violated § 501.976(11) regardless of whether the contract contains an 'as is' clause.
FDUTPA and the Fraud Exception to 'As Is'
Florida's Deceptive and Unfair Trade Practices Act (FDUTPA), codified at § 501.201 et seq., provides an independent basis for liability when a dealer engages in deceptive conduct. A FDUTPA claim does not require proof of intent to deceive — it requires proof that the dealer engaged in a practice that was likely to mislead a reasonable consumer. An 'as is' clause in the contract does not negate a FDUTPA claim based on pre-sale misrepresentations or omissions.
Florida courts have consistently held that the 'as is' clause cannot be used as a shield against fraud claims. The reasoning is straightforward: if a dealer makes a false statement or conceals a material fact to induce the buyer to sign the contract, the buyer's consent to the 'as is' clause was itself obtained by fraud. A contract provision obtained through fraud cannot be used to immunize the fraud that produced it.
What the Dealer Must Disclose Even in an 'As Is' Sale
Under Florida law, a dealer selling a vehicle 'as is' must still disclose: prior accident damage that the dealer knows about; flood or water damage; frame or structural damage; odometer discrepancies or rollbacks; prior use as a rental, taxi, police, or government vehicle if that use materially affects value; and any other condition the dealer knows about that a reasonable buyer would consider material to the purchase decision.
The dealer's knowledge is key. If the dealer's own inspection records, auction run sheets, or prior repair orders show damage that was not disclosed, those documents are powerful evidence of a knowing concealment. Dealers who buy vehicles at auction receive condition reports that describe prior damage. If the auction condition report shows frame damage and the dealer sold the vehicle without disclosing it, the 'as is' clause provides no defense.
Damages and Attorney's Fees
A successful FDUTPA or § 501.976 claim entitles the consumer to actual damages — typically the difference between what the consumer paid and the actual value of the vehicle in its true condition — plus attorney's fees and costs. The fee-shifting provision is significant: it means a consumer with a legitimate claim can retain an attorney without paying out of pocket, because the dealer pays the fees if the consumer prevails.
In cases involving intentional fraud, punitive damages may also be available under a separate common-law fraud claim. Florida courts have awarded substantial punitive damages in auto dealer fraud cases where the evidence showed the dealer had a pattern of concealing damage from buyers.
What Documents Should I Save?
- Buyer's order and retail installment contract
- Any written representations about the vehicle's condition made before the sale
- CarFax or AutoCheck vehicle history report
- Independent mechanic or body shop inspection report
- Photographs of the damage you discovered
- Repair estimates or invoices for the damage
- Any auction condition report or prior inspection records you can obtain
- Text messages and emails with the dealer