Guarding Against Deceptive Car Sales: Understanding Your Rights in Used Car Purchases

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When it comes to buying a used car, the road can sometimes lead to unexpected and unwanted detours. A recent case adjudicated in Richland County, South Carolina, gives a good reminder of the illegal practices that can be used on unsuspecting buyers. The case involved Midlands Honda, which was handed a $2.38 million punitive verdict for its failure to disclose the true condition of a vehicle sold at auction.

​Recognize the Red Flags

The case centered around a 2003 Honda Civic that was sold as a seemingly intact car but was actually a “clipped” vehicle. “Clipped” refers to a car reconstructed using some very controversial methods after being wrecked. Putting this type of vehicle back on the road creates huge safety risks because of the potential structural weaknesses. Awareness of these types of practices is your first shield against fraud.

DEmand Full Disclosure

Midlands Honda conducted a 159-point inspection certified by Honda, yet the car was sold without any mention of its reconstructed status. Later, when the buyer found out about the damages, the dealership refused a refund, only offering a trade-in deal. Ultimately, the law requires a complete and transparent disclosure of a vehicle’s history before finalizing any purchase. Always ask for a detailed report and verify its accuracy.

​Know the Legal Requirements

​Our firm represented the Plaintiffs.  We were reminded how important it is for buyers to fully understand the laws regarding vehicle sales. The law requires dealerships to inform potential buyers of any significant past damage.The dealership failed in this duty by incorrectly reporting that the vehicle had not been wrecked or reconstructed.

​Legal Recourse is Available

The substantial punitive damages award in this case reflects how seriously the state takes these types of fraudulent practices. It serves as a deterrent to other dealerships that might consider deceiving buyers about a vehicle’s condition.

If you find yourself facing a similar situation where the vehicle you’ve purchased has undisclosed or hidden damages, remember you have avenues of recourse. Engaging with a knowledgeable South Carolina consumer law attorney who specializes in lemon laws and auto fraud can get you the help you need so that you aren’t stuck with an unsafe vehicle. We are ready to advocate on your behalf and make sure deceptive sellers are held accountable.

​Purchasing a used car should not be a leap into the unknown. By being informed, vigilant, and ready to seek legal help when necessary, you can protect yourself from falling victim to fraudulent car sales practices. If your car purchase takes a wrong turn, contact us to set up an appointment with Steven Moskos and explore your rights under South  Carolina's consumer laws.