does an auto dealer have to disclose hail damage on a used vehical

UPDATED: Sep 30, 2022

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does an auto dealer have to disclose hail damage on a used vehical

I purchased a 2014 truck from Medved Autoplax in August 2016, I went to trade in and they tell me I have hail damage… we haven’t had any hail since but claim they didn’t know. Now they are offering to fix it for free but I feel I’m damaged, nor would have purchased the truck at the price I paid. What are my legal rights?

Asked on April 14, 2017 under Business Law, Colorado


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 5 years ago | Contributor

IF the dealer knew of the damage and failed to disclose it, that may have been fraud (the intentional misrepresentation of a material, or important, fact, done to induce, or cause, you to buy the vehicle). If so, then this could provide a basis to recover, by a lawsuit if necessary, compensation, such as the different in value between what you did pay and what you should have paid, had the damage been known. 
However, it is only fraud if they knew of the damage--it is not a misrepresentation to not disclose what you are unaware of. Therefore, you would have to show in court, if you sued, that they did in fact know, or logically must have known under the circumstancs, of the damage. If they did not know, they would not have been liable.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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