There are lots of reasons you may opt to buy a vehicle in a private sale. It could be the very car or truck you’ve had your eye on, for a great price. Maybe it’s tricked out exactly as you want it, and you know all those extras would cost big money if you had to get them done yourself. If you’re thinking about buying a vehicle privately or have already done so, the old saying “buyer beware” can apply to some of these “as is” transactions. If the vehicle becomes problematic, a lemon law attorney can review your situation to see if you can pursue a compensation claim.
What’s the Warranty Status?
One of the best scenarios you can get into with buying a vehicle via private sale is if it still has some remaining manufacturer’s warranty. Not all private sale vehicles have a remaining warranty, however. It’s also key to review the warranty information carefully, if there is still coverage, because it can change when it’s transferred from one owner to the next. For example, Hyundai originally provides a 10-year/100,000-mile powertrain warranty when you buy the vehicle. That warranty becomes a 5-year/60,000-mile warranty for subsequent owners.
There are several points that your lemon law attorney can review regarding your private sale vehicle purchase, such as:
- If pursuing compensation under state lemon laws, determining if the vehicle qualifies as a lemon (substantial defect that impacts the use, safety, or value; plus specific allowed manufacturer repair attempts and additional requirements per your state’s laws).
- Warranty applicability: is the manufacturer’s warranty still in force, and if so, what is the status? Does it cover the issues your vehicle is exhibiting?
- Were the problems with the vehicle actually manufacturer’s defects that were determined to be present during the warranty period?
- Was the vehicle taken in to be repaired during the warranty period and the repairs were unsuccessful, leaving the problem to continue? Any disclosures the seller can provide will be helpful.
- All documentation provided to you by the original vehicle owner that can help support a claim.
- Any additional warranties, such as a third-party warranty, that your attorney can review for its terms and potential protections.
Get an expert review of your legal rights under a private vehicle sale. Allen Stewart, P.C., provides a free consultation so you can present your claim to our lemon law attorneys. Schedule your consultation now by calling 866-440-2460 or contact us online.
Potential Protections Under State and Federal Laws
State lemon laws usually cover new or certified pre-owned vehicles bought from dealers, or in some cases used vehicles bought from dealers (have your attorney explain the laws in your state). When it comes to private sales, your attorney will review your state’s laws, and if there is a remaining original manufacturer’s warranty, especially if the defect was found to be present or began, during the manufacturer’s original warranty. If these criteria are met, and your state’s laws support it, you could have a potentially valid state lemon law claim, depending also on the warranty’s terms.
For more information on arbitration and other frequently asked lemon law questions, click here.
Where you may also have an opportunity to pursue compensation for your malfunctioning private sale vehicle is under the Magnuson-Moss Warranty Act (MMWA). The MMWA applies to consumer products, including cars, with written warranties. If your car, purchased in a private sale, still has a remaining manufacturer’s warranty, you may have recourse under the Act. It requires the manufacturer to honor the warranty terms, potentially covering repairs or replacement if the defect persists after reasonable repair attempts.
Please note: It’s vital to have your lemon law attorney take into account all the potential state lemon law and federal law implications, and advise the best way forward to pursue compensation, if that is deemed possible in your situation.
What About Third-Party Warranty Protections?
The first thing your lemon law attorney will do, upon reviewing your third-party warranty (should you have one), is to identify if it is legitimate. Unfortunately, there are scammers who sell fake or misleading warranties, so determining if the warranty is good, and whether it comes with various restrictions, is the first priority. For example, scammers may contact you when your manufacturer’s warranty is about to expire. This may seem like a genuine opportunity to sign up for an extended warranty (also known as an auto service contract).
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Some third-party warranties are legitimate, and if the company that provides them breaches the terms, your attorney may be able to pursue a claim. There is no hard and fast answer for these issues, and it’s best to consult your attorney to have them review your specific situation.
Need help learning about potential scams? Get the FTC’s insights on how to spot auto service contract scammers.
Key point: your lemon law attorney can review your private sale and third-party warranty against the above-mentioned MMWA. The attorney may pursue your claim via MMWA by:
- Determining if the Warranty Terms Were Made Clear: The MMWA requires that the warranty provider (the third-party company) clearly disclose the terms, conditions, and limitations of the warranty in simple language. This includes what repairs are covered, the duration, and any exclusions.
- Enforcement of Warranty Obligations: If the third-party warranty provider fails to honor the warranty, the MMWA allows you to seek remedies, potentially including legal action for breach of warranty.
The Magnuson-Moss Warranty Act can protect you by ensuring a third-party warranty is honored according to its terms, but it won’t cover the car’s condition from a private sale or create new warranties. Depending on the nature of the claim, your attorney will determine how the MMWA may apply in your case.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
A Case by Case Basis
As we mentioned, not every vehicle sold privately will have original manufacturer’s warranty coverage remaining. It is a good thing to look for should you buy a car from a private seller. In our list of Warranty Status items above, your lemon law attorney will take a close look at your claim in totality; what the problem is; was the vehicle taken to be repaired without success; and was there applicable original manufacturer warranty coverage. When you add in that your vehicle was purchased privately, and that warranty terms could have changed when you took possession of the vehicle, you can see that these situations can be complex. That’s why it’s best to consult an experienced lemon law attorney. Lemon law attorneys face these issues all the time and can determine how the law applies to your particular case.
Allen Stewart, P.C. Provides Expert Lemon Law Representation
Everyone’s situation is different, and buying a vehicle from a private seller may fit your needs vs. buying one from a dealer. If you’ve purchased a vehicle privately and issues are cropping up, a lemon law attorney may be able to help you pursue a claim for compensation.
Allen Stewart, P.C. provides extensive experience winning lemon law cases in Texas, California and New York, and across the country. Private sales may or may not be situations where you can gain compensation, and we have the knowledge of all potential scenarios so you can find out if, and how, we can represent you.
You may wonder if you need a lawyer. The complexities of private sale transactions are exactly the reason a lemon law attorney’s experience can be invaluable. There could also be fraud claims that could be pursued, depending on your situation. Contact us today. Our initial consultation is free, and thanks to federal law, our clients pay nothing out of pocket.
Schedule your consultation with Allen Stewart, P.C. now by calling 866-440-2460 or contact us online.