Protections Under The New Vehicle Damage Disclosure Act
Consumers buying a new car do not usually expect the car to have problems. They are therefore surprised if their car develops a problem, and may wonder if they are covered under Pennsylvania Lemon Law. Not every new car sold in Pennsylvania is covered under the Lemon Law, and sometimes the owner of a new car has to find protection under the New Vehicle Damage Disclosure Act.
The New Vehicle Damage Disclosure Act covers vehicles that are considered new because they have not been previously titled to a consumer. This would include demonstrator cars, or cars that are used at the dealership for test driving. These cars are technically new even though they have thousands of miles on them.
Cars that were previously titled or otherwise defined as used cars under Pennsylvania law are not covered under the law. However, there are other Pennsylvania laws that may be applicable in situations involving used cars. This is why used car buyers should not simply give up, and should instead consult with an experienced used car fraud attorney.
Under the New Vehicle Damage Disclosure Act, the retailer or dealer is required to notify a buyer if the retailer or dealer did repairs on the vehicle before selling the vehicle to the buyer. The retailer or dealer has to disclose the repairs if they cost more than five hundred dollars or cost more than three percent of the manufacturer’s recommended retail price of the car. The threshold amount for repairs is calculated based on market prices for parts and labor as the retailer charged at the time of the repair.
The disclosure is supposed to properly inform the buyer of the damage to the car and any repairs that were done, whether the repair was covered under the manufacturer’s warranty, and whether the repairs affect the general warranty of the vehicle.
If this disclosure is not made, the car buyer can seek compensation from the retailer who sold him the car. A violation of the New Vehicle Damage Disclosure Act is also considered a violation of the Unfair Trade Practices and Consumer Protection Law. This opens up the possibility that the dealer can be held liable for higher monetary damages for not informing the buyer of the prior damage to the car.
Buyers to whom dealers are not required to make a disclosure are not protected under the New Vehicle Damage Disclosure Act. The buyers are not allowed to cancel a sale agreement with a dealer based on a failure to disclose. However, depending on the nature of the damage, the car buyer may have a different case against the dealer.
Contact Us for Legal Assistance
If you purchased a new or used car Pennsylvania, and have realized that your car has damage that you suspect pre-existed your purchase, you may have a claim against the retailer or dealer. To find out more about how you can seek compensation from the retailer or dealer, contact an experienced used car fraud attorney from the Philadelphia law firm of Louis S. Schwartz, Attorneys at Law.