What are my rights if I traded in my car for a used one at a dealership and they asked if my car had a rebuild title and I said I did not know?

UPDATED: Feb 15, 2013

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What are my rights if I traded in my car for a used one at a dealership and they asked if my car had a rebuild title and I said I did not know?

The deal was made but now 2 weeks later they are asking for more money because they cannot sell the vehicle I traded-in because of its rebuild status. They also stated that I am obligated by law to do so. Where do I stand??

Asked on February 15, 2013 under Business Law, Florida


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

If they accepted the car as a trade-in after you told them that you did not know whether it was a rebuild title, then, assuming that you truly did not know, they should be held to the agreement and should not be able to get more money from you. That is because as long as you disclosed what you knew to them, if they elected to take the car in trade-in, you fulfilled your obligations, and their inability to sell the car is their problem, not yours.

As stated, you could be liable (e.g to pay more money) if you knew it was a rebuild title and, knowing that, claimed you did not know; in that case, you misrepresented a material fact, and so committed fraud.

Or, if the agreement of sale specifically said that if they were unable to resell your car, they could seek additional money from you, that term of the agreement would be enforceable and that could, in that case, expect you to pay more.

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