Q: I bought a nice used car from a well-known dealership, and paid cash. It has a 60-day limited warranty, although the make of the car is from another manufacturer. Shortly after driving, the engine light went on. I returned the car and they have a list now of items that could cost up to $7,000 to fix. The dealership that sold me the car is in touch with the manufacturer and claims the manufacturer is the one to fix it, not them. I am getting a major runaround, including one guy suggested I bought it “as is” but there is nothing that says so. Any suggestions?
G.T., Torrance
A: First suggestion, do not lose your cool. Think it out, make a record and take deliberate steps.
If it was not purchased “as is,” then that is a ploy. Even if it was, “as is” that does not permit trickery, willful concealment or affirmative representation. You also indicate you have a 60-day limited warranty; what all does it cover?
Next, California Civil Code Section 1795.5 sets forth that when a dealer sells a used consumer good with an express warranty, the implied warranty cannot be disclaimed and generally lasts for at least 30 days (up to three months depending upon mileage).
You may wind up with grounds to rescind the deal. This means you give them back the car, and in turn they give you back your money. Civil Code Section 1689 has a list of bases upon which to rescind, including if your consent was given by mistake, or as a result of fraud, or if the consideration fails (you paid a fair price but in reality got a hunk of junk).
Research indicates you can file a complaint with the California Department of Motor Vehicles Investigations Division (see the response below), which regulates licensed dealers, and with the California Department of Consumer Affairs.
The Lemon Law, which provides remedies when you buy a “lemon car” as defined thereunder primarily applies to new vehicles sold with a manufacturer’s warranty, but also to some used vehicles if still covered by the manufacturer’s new vehicle warranty or a qualified certified warranty when sold. Again, review the warranty you were provided.
If there is a lawyer you could consult with who would afford you time without charge or simply a modest/reasonable charge, that could be helpful as well.
Q: Are used car dealers here in California regulated by anyone?
F.H., Los Angeles
A: The principal regulator is the California Department of Motor Vehicles, in particular its Investigations Division. Here is an online link to the investigations division: dmv.ca.gov/portal/locations/investigations-offices.
Another agency to consider is the California Attorney General. (The A.G.’s website is oag.ca.gov/consumers.) California’s Unfair Competition Law (B&P Code Section 17200 et. seq.) might be useful. The A.G. seeks to protect consumers from fraud and similar misconduct by businesses.
Your local city attorney or district attorney should not be ruled out, depending upon the circumstances.
The California Bureau of Automotive Repair could be helpful if the issue focuses on the repair work. Online: ca.gov/departments/137.
The Federal Trade Commission is at the national level, but deals with deceptive and unfair business practices as well, which can include automobile dealers. The basic online link is ftc.gov.
Of these options, the DMV Investigations Unit would be my first choice.
Ron Sokol has been a practicing attorney for more than 40 years, and has also served many times as a judge pro tem, mediator, and arbitrator. It is important to keep in mind that this column presents a summary of the law, and is not to be treated or considered legal advice, let alone a substitute for actual consultation with a qualified professional.