Buying a car should be an important milestone, but it can quickly turn into a frustrating ordeal if things go wrong with the dealership. Knowing when and why you might need to take legal action can help you feel more in control. 

Here are 11 reasons why consumers sue car dealerships and what rights they possess as a vehicle owner under California law. 

 

Top 11 Reasons to Sue a Car Dealership in California and How

 

Breach of Contract

A contract is a legally binding agreement, and when a dealership fails to uphold its end of the bargain, it constitutes a breach; this can happen if they misrepresent the condition of a vehicle, such as selling a car with undisclosed accident damage, refuse to honor a warranty, or add hidden fees that weren’t disclosed before signing.

 

Fraud and Deceptive Practices

Fraudulent activities are serious offenses and can lead to legal action. Examples include bait-and-switch tactics, where a dealership advertises a vehicle at a low price but then claims it’s “unavailable” when you arrive so they can steer you towards a more expensive option, tampering with the odometer to hide the car’s actual mileage, or making false claims about financing terms or the car’s history.

 

Lemon Law Violations

California’s Lemon Laws protect consumers who buy or lease defective new vehicles. If your car qualifies as a lemon, you could receive a replacement vehicle or a refund if the dealership can’t fix the issue after several repair attempts. While you might consider suing the dealership, the law usually requires you to pursue the manufacturer directly for compensation.

 

Negligence

If a dealership fails to exercise reasonable care when servicing your vehicle, it could be considered negligence; this includes performing shoddy repairs that cause more damage or being responsible for damage that occurs if a dealership employee crashes your car during a test drive. 

 

Financing Issues

Sometimes, the financing process can lead to disputes. For instance, if a dealership engages in discriminatory lending practices, such as charging higher interest rates based on race or gender or adding hidden fees to your financing agreement without prior disclosure, you may have a case. 

 

Title and Registration Problems

Dealerships are responsible for handling the title and registration paperwork, and their failure to do so can cause problems. For example, not receiving your title in a timely manner might hinder your ability to drive your vehicle legally, while incorrect title information could lead to legal issues down the road. 

 

Warranty Issues

If your vehicle comes with a warranty but the dealership refuses to honor it, you may have grounds for a lawsuit; this includes denying coverage for eligible repairs or performing inadequate warranty repairs that cause additional problems.

 

Consumer Protection Violations

California has some pretty strong consumer protection laws in place. If a dealership advertises a vehicle with misleading information or fails to disclose major issues with the car, you may be able to take action.

 

Privacy Violations

Dealerships are responsible for safeguarding your personal information. You may have a legal case if they mishandle or share it without your consent, including data breaches that result in identity theft or fraud.

 

Predatory Lending Practices

If a dealership uses predatory lending practices, like charging excessive interest rates, adding hidden fees, or simply misrepresenting a loan’s terms, you could seek legal action to rectify the situation.

 

Failure to Deliver

Once you sign a purchase agreement, the dealership is obligated to deliver the vehicle as promised. If the dealer doesn’t, or they try to provide false reasons for delivery delays, it may constitute a breach of contract.

 

How Can I Prepare to Sue a Car Dealership?

Preparation is key if you believe you have a claim against a dealership. Here’s what to do: 

Gather Evidence 

Collect all relevant documents that support your case, such as sales contracts, communication records with the dealership, and any advertisements related to the vehicle.  

Attempt Resolution

Before you file a lawsuit, you may want to try resolving the issue directly with the dealer. Reach out to higher management to discuss your concerns and/or submit a written complaint outlining your grievances. 

Consult an Attorney 

An attorney with experience in consumer protection and Lemon Law can improve your chances of success. They can evaluate your case, determine potential compensation, and guide you through the legal process. 

 

Ready to Take the Next Step? Contact Our California Lemon Law Firm!

If you think you have a Lemon Law claim, act quickly — these matters can be complex, and timing is key! At Norman Taylor & Associates, we specialize in California Lemon Law cases and are dedicated to fighting for our clients every day.

Don’t let a faulty car ruin your peace of mind. Contact us or call 818-244-3905 today for a FREE consultation and learn how we can help with your case.

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