Private Seller Lied About The Car: What Are My Rights?

Used Cars Are Sold “As-Is”

The first thing you should be made aware of if you’ve purchased a used car is that used cars are sold on an “as-is” basis. That means, regardless of just about anything the seller does or says, there’s little legal recourse even if a used car that was sold as “excellent” turns out to be a lemon. Rare exceptions to the as-is clause apply if the seller offered some sort of warranty on your purchase.

Used car dealerships occasionally offer warranties, too. However, if you purchased from a private seller, you may not have any legal path to take.

Common Problems With Private Car Sellers

The most common issues buyers run into when purchasing from private car sellers include:

Ending up with a “lemon,” which is a faulty car.
Being misled about a vehicle’s quality or performance.
Finding out that the seller has a lien on the title.

To help you understand what options you have, let’s walk through each of these common scenarios in detail.

The Seller Made Misleading Statements

If you buy a lemon from a dealer, you’re entitled to compensation under the Federal Trade Commission (FTC)’s Used Car Rule. However, this regulation — like most that apply to dealers — doesn’t apply to private car sellers.

If a private seller made misleading statements that persuaded you to buy the car, you may qualify for compensation or a refund in Small Claims Court. Of course, in the Supreme Court of law, it can be tough to prove what a seller actually said. It will likely be declared hearsay, and it will be dismissed.

Even with proof of misleading statements, like the used car’s listing, things like “it runs great” are subjective and won’t hold up, even if the car broke down shortly after you purchased it. Buyers should be cautious when relying on information provided by the seller, as it may not always be accurate.

Ultimately, used cars that don’t have warranties simply don’t come with any guarantees. In the eyes of the law, a used car buyer is accepting the vehicle as-is, with very little weight given to what the seller tells them about it.

The Seller Didn’t Have a Free and Clear Title

Different laws will empower you to file a claim if the seller still owed money on the car and didn’t tell you about it or the seller didn’t have the right to sell the car (that is, they aren’t the registered owner). This constitutes fraud and potentially wire fraud if the seller made these claims using the internet or telephone communications.

When a vehicle is sold, the title is transferred from seller to buyer. This process is typically handled by a dealership, but can also be done by an individual. In some cases, however, the title may not be properly transferred. This can happen if there are liens on the vehicle or if the seller did not actually hold the title at the time of sale.
In other words, if there are liens on the car title or the seller didn’t hold the title at the time of the sale and you’re now unable to register the car and/or facing the risk of repossession, all of these things give you possible legal recourse.

Other Circumstances and Issues

Unfortunately, if your situation doesn’t fit any of the above descriptors, you have little legal protection. Private sellers simply don’t have to comply with most laws that impact dealerships. They’re completely exempt from most laws that govern auto dealers, meaning they don’t have to include a “buyer’s guide” or other disclosures.

However, that doesn’t mean you should give up if you run into some legal issue. You can still reach out to the seller and work to resolve the problem.

Bought a Car From Private Seller—What Are My Rights?

Buying a car from a private seller can be a great way to get a good deal on your next vehicle. However, it is important to know your rights as a buyer before you make any purchase.

If you bought a car from a private seller, you have very few legal protections. In most states, there is no requirement that private sellers disclose any information about the vehicle’s history or condition. As a result, it’s important to do your due diligence before making any purchase.

Get the car inspected by a qualified mechanic, and make sure to get a copy of any repair records if available. It’s also a good idea to run a background check on the car’s VIN number to see if it has been in any accidents or had any other significant issues.

In most states, there is a “cooling off” period after you purchase a car from a private seller. The cooling-off period gives consumers time to reflect on their purchase and make sure that it is something that they truly want. In many cases, the cooling-off period lasts for three days. This means that, if you have buyer’s remorse, you are able to cancel the sale within that time frame.

During this time, you can have the car inspected by a mechanic to make sure that it is in good condition. If you find any problems with the car, you can back out of the sale and recover your down payment.

While private sellers are not required to provide a warranty on their vehicles, this does not mean that they cannot sell the vehicle with a warranty. If you, however, buy a car from a private seller that didn’t provide a warranty, that means that if something goes wrong with the car, you will be responsible for the repairs.

Keep in mind that even if you do find out that the car has serious problems, you may not be able to get your money back from the seller. In most cases, private sales are final, so it’s important to be sure that you’re comfortable with the purchase before signing on the dotted line.

How to Get a Refund or Compensation

If you feel that you were truly misled and persuaded to purchase the vehicle based on false statements, you do have the option of pursuing compensation or a refund, but you first have to ask yourself:

When did the problem appear? How long has it been since you purchased the car?
Did the seller make false claims prior to you agreeing to purchase it? Did they make these claims verbally to you, in writing, or in advertisements?
Was the seller intentionally dishonest in an attempt to sell you the vehicle?

The burden of proof falls on the buyer in these situations, and you’ll need to prove that the false statements persuaded you to purchase the vehicle. You also need to prove how the vehicle is different from what the seller told you, and you need to prove a substantial difference. Finally, you need to demonstrate how these differences led to you losing money and how much money you lost.

Refund Laws For Private Sales

As you may have guessed, proving false statements isn’t easy and most people will conclude that the legal fees just aren’t worth it. However, there are instances where specific laws offer added protection, like if:

The seller deliberately changed the odometer and misrepresented the car’s mileage.
The seller didn’t have the right to sell the car (stole it, owes money on it, and so on).
The seller misrepresented the vehicle’s age, condition, or history (maybe they sold a car with a salvage title, for instance, without telling you that the title was salvage).

The above examples show the type of gross misrepresentation that may hold up in court if you have the proper proof. Comparatively small things, though, like transmission failure or engine problems, likely won’t get you far since it’s tough to prove that: (1) these problems did exist, (2) that the seller was aware of them, and (3) that the seller intentionally hid them from you.

It’s important to remember that you have the same rights when buying from a private seller online as you do when buying in person. This means that you should always get a Bill of Sale, and if you have any doubts about the vehicle, you should seriously consider a vehicle history check.

Invest in the Right Used Car

Purchasing a used car can be daunting. After all, you don’t want to end up making a mistake that could cost you down the line. It’s important that you do your research into any used car you’re considering, understanding the year, make, and model and inspecting the car yourself to see its condition and how it drives.

Being misled by a private seller is disheartening, to say the least. That’s why at PrivateAuto we offer tools and resources to help buyers like you make smart investments with confidence. From ready-to-sign state documents to identity verification, secure messaging, and more, PrivateAuto will help make your next used car purchase a breeze. Browse used vehicles for sale.

Experience the PrivateAuto Advantage

Avoid scams, keep personal information private, and guarantee funds with PrivateAuto. Fast, convenient car transactions. Get started today.

FAQ On Private Party Car Sales

California’s lemon law does not apply to private sales. The law is designed to protect consumers who purchase vehicles from a licensed car dealer, and it does not cover transactions between individuals. This means that if you purchase a car from a friend or family member, you will not be covered by the lemon law.

California’s lemon law specifically provides that only people who buy warrantied vehicles from a dealer can benefit from the lemon law. In other words, the lemon law does not apply to a used vehicle purchased from a private seller even if the used vehicle was purchased while a manufacturer’s warranty was still in effect.

Is there a lemon law in Illinois for used cars?

The purchase of any used car, truck, or SUV in Illinois is covered under the federal Magnuson-Moss Warranty Act, more commonly known as the Lemon Law. This law provides consumer protection for those who have purchased a vehicle that does not meet the manufacturer’s promised level of quality or performance. The lemon law applies to both new and used vehicles, making no distinction between the two.

In order to take advantage of the protections afforded by the lemon law, consumers must first notify the manufacturer of the problem with their vehicle. If the manufacturer is unable to repair the vehicle after a reasonable number of attempts, they may be required to provide a refund or replacement vehicle.

While the lemon law does not specifically mention used cars, it does apply to any vehicle that is covered by a warranty. As such, Illinois consumers who have purchased a used car with a warranty may be eligible for relief under the lemon law if they encounter problems with their vehicle.

Does NYS lemon law apply to private sales?

In New York State, the Lemon Law applies to new and used motor vehicles that are sold or leased by a dealer. The lemon law does not apply to vehicles that are purchased from a private individual. When you purchase a vehicle from a private individual, you are still protected by consumer law. This means that if the vehicle has a manufacturing defect, you may be covered by the state’s warranty law or the federal Magnuson-Moss Warranty Act

Does Iowa’s lemon law apply to private sales?

Both the Lemon Aid Law (General Laws Chapter 90, Section 7N) and the Lemon Law (also known as the Used Vehicle Warranty Law) apply to the private sale of used cars.

The Lemon Aid Law requires dealerships to provide customers with a list of any known defects for any used car that is covered by the law.

The lemon law, on the other hand, provides protections for consumers who purchase used vehicles that turn out to be lemons.

Under the law, consumers are entitled to a refund or replacement vehicle if their car has significant defects that cannot be repaired after a reasonable number of attempts.

If you think you may have purchased a lemon, it’s important to contact an experienced attorney who can help you navigate the lemon law process. Your attorney will be able to provide you with legal advice, explain what are your legal options, and work with you to develop a legal strategy that is tailored to your individual case.

Does Michigan lemon law apply to private sales?

Yes, private party sales are covered under the Michigan Lemon law Act 87 of 1986. The Michigan Lemon law Act 87 covers any defect or condition that impairs the use or value of the new motor vehicle to the consumer or prevents the new motor vehicle from conforming to the manufacturer’s express warranty.

Is it illegal to sell a car without disclosing problems?

Unless a car is sold “as is,” the seller must disclose any known defects before the sale is final. If the seller does not do this and the buyer discovers a hidden defect after taking possession of the vehicle, the buyer may be entitled to rescind the purchase or seek financial compensation for the repair costs.

In some cases, the buyer may even sue for fraud if the seller deliberately misrepresented the condition of the vehicle. As a result, it is always in the seller’s best interests to be upfront about any problems with the car. Not only will this help to avoid legal troubles down the road, but it also increases the chances that the sale will go through smoothly.

Can you sue someone for lying about a car?

If you believe that you have been lied to about a car that you purchased from a private seller, you may be able to take legal action.

The most common issue that arises from private car sales is that the vehicle is faulty in some way. Other problems can include the seller misrepresenting the make, price, quality, or performance of the car.

It is important to remember that private sellers are not bound by the same laws as dealerships when it comes to selling cars. This means that they do not have to comply with the Consumer Guarantees Act (CGA) or the Fair Trading Act (FTA). However, this does not mean that you cannot attempt to contact the seller to resolve the issue.

If you were persuaded to buy a car based on misleading statements from the seller, you may be able to get a refund or compensation under the Contract and Commercial Law Act (CCLA). If you find yourself in this situation, it is advisable to seek legal counsel to discuss your options. A lawyer can provide you with legal information and help you understand your rights.

Jacob Andra

Contributing Author

Jacob Andra is an entrepreneur, author, and technology expert living in Salt Lake City, Utah. As a stakeholder in PrivateAuto, Jacob is passionate about how our technology is bringing peer-to-peer car sales into the 21st century. When he’s not working, Jacob can be found playing pickleball, climbing mountains, or spending time with his family.