Buying a vehicle that turns out to have significant defects can be devastating, especially when you return to the selling dealer and they say for the first time, we sold that vehicle to you “as is”. In spite of hidden language within the sales contract that may seek to disclaim any warranty, you may have legal options when defects or misrepresentations were made when the vehicle was purchased.
Fraudulent and Deceptive Conduct
An “as is” label does not protect sellers from fraud. For example, if the odometer has been tampered with or the mileage inaccurately reported, you may have an option for legal remedy. State and Federal law prohibits odometer tampering, and any attempt to deceive a buyer about the mileage can result in statutory damages under the Federal Odometer Act.
For more information on odometer fraud, visit the National Highway Traffic Safety Administration’s Odometer Fraud page.
State Unfair and Deceptive Acts and Practices (UDAP) Laws
Most states have consumer protection laws—known as UDAP statutes—that protect against deceptive or unfair practices during the sale of goods, including used and new cars. If a dealer conceals defects or engages in unfair practices, they could be held liable even when selling a car “as is.” UDAP laws are meant to protect consumers from deceptive conduct, and sellers cannot hide behind the “as is” clause if they engage in such conduct. Each state has its own variation of UDAP laws, so it’s important to check local laws or seek professional guidance for your state.
A good place to start is your state’s agency that enforces its UDAP. Often, this is a division within the state Attorney General.
Types of Deceptive Conduct
Deceptive conduct can occur through false advertising, verbal misrepresentation, or written or oral failure to disclose known defects. Unlike warranty claims, fraud claims are often immune to “as is” disclaimers. Even though proving fraud can be challenging and requires investigation, it can open up the potential for punitive damages.
Cancelling (Revoking/Rescission) the Purchase
In some situations, courts may allow a buyer to cancel the purchase contract if serious defects are discovered after the purchase. It is important to notify the seller promptly with a written notice to cancel and return the vehicle when the defects are substantial.
State-Specific Laws that Restrict “As Is” Sales
Many states have laws that provide protection and require certain conditions to be met in order to sell a car “As Is.” In Arizona and other states, the seller must disclose the known poor conditions. In states with such laws, buyers may still have recourse to address significant repair issues discovered shortly after the sale.
Warranties
Even if a dealer disclaims all responsibility by selling a car “as is,” a manufacturer’s warranty may still apply. If the vehicle is relatively new or falls under certain extended warranties (such as those related to emissions control), the buyer might still have the right to repairs or compensation. This is particularly relevant for certified pre-owned vehicles, which often come with manufacturer-backed warranties and advertised pre-sale inspection.
The Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act may provide a pathway to recovery. Even when a car is sold “as is,” if there’s a valid manufacturer’s warranty or if the dealer made express warranties about the vehicle (such as a verbal promise regarding its condition), this federal law might apply. The act also allows for the recovery of attorney’s fees in successful claims. For more details, visit the Federal Trade Commission’s Magnuson-Moss Warranty Act page.
Service Contracts and Extended Warranties
If the buyer purchases a service contract or extended warranty from the dealer, the “as is” disclaimer may not apply. Generally, under the federal Magnuson-Moss Warranty Act, sellers cannot disclaim implied warranties if they sell you a service contract. Determining whether or not the seller sold the warranty can be an issue that is not clear and may require the help of legal counsel.
Lemon Law Protections
These laws typically apply when a new or used vehicle repeatedly fails to meet basic quality and performance standards. Although these laws vary significantly by state, they might allow buyers to receive a refund, replacement vehicle, or compensation for repairs, even when a car is sold “as is.” For more information, visit your state’s Department of Consumer Affairs website or check the National Consumer Law Center’s guide to state lemon laws.
Get Legal Help
While the phrase “as is” can make buyers feel powerless, it doesn’t necessarily close the door on all potential remedies. Fraud, misrepresentation, and state-specific consumer protection laws may still offer avenues for relief. Understanding the application of the state and federal laws requires guidance from someone experienced in this area, and we suggest you seek legal guidance if you believe you’ve been wronged in a used car purchase.
To explore your options, search for an attorney who specializes in consumer protection or automotive warranty law. While the steps outlined here may provide some basic insight, professional advice is crucial to effectively addressing specific legal concerns.
The National Association of Consumer Advocates has an attorney search option. It allows you to find an attorney in your state who focuses on vehicle warranty and fraud law. You can also visit your local attorney bar association to find an attorney.
The information provided does not, and is not intended to, constitute legal advice; all information is for general informational purposes only. This information may not constitute the most up-to-date information. Links provided are only for the convenience of the reader, A. Ferraris Law, PLLC, and its members do not endorse the contents of the third-party references.
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