What if the dealer misrepresented the vehicle's history or prior use?
Florida law requires dealers to disclose material facts about a vehicle's history and prior use. A dealer who misrepresents or conceals prior accidents, flood damage, rental or fleet use, or other material history violates FDUTPA and may be liable for your damages plus attorney's fees.
Florida Statute § 501.976 lists specific misrepresentations that are per se violations of FDUTPA when made by a licensed motor vehicle dealer. These include misrepresenting the prior use of a vehicle — for example, failing to disclose that a vehicle was previously used as a rental car, a taxi, a police vehicle, or a fleet vehicle. They also include misrepresenting the vehicle's condition or history, including prior accidents, damage, or repairs.
A common scenario: the dealer sells a vehicle as 'clean' or 'one owner' when in fact it was involved in a significant accident that was repaired before the sale. The dealer may have obtained the vehicle at auction with a damage disclosure, or may have had the vehicle inspected and found prior damage. If the dealer knew about the damage and failed to disclose it, that is fraud.
The existence of a Carfax or AutoCheck report showing no accidents does not protect the dealer. Many accidents are never reported to insurance and do not appear on vehicle history reports. A dealer who knows about prior damage from their own inspection, from auction records, or from any other source is required to disclose it regardless of what the vehicle history report shows.
The measure of damages in a prior-damage case is typically the diminished value of the vehicle — the difference between what you paid and what the vehicle was actually worth given its true history. In cases involving significant structural damage, this can be a substantial amount. You may also be entitled to the cost of repairs if the undisclosed damage caused mechanical problems.
If you suspect your vehicle has undisclosed prior damage, have it inspected by an independent mechanic or body shop. A trained eye can often identify prior repairs that were not disclosed. Preserve all documents from the sale, including any representations the dealer made about the vehicle's history, and contact an attorney to evaluate your claim.