Federal and Florida law both prohibit vehicle dealers from misrepresenting either the mechanical condition of a vehicle, the terms and conditions of the sale or whether there is a warranty for a vehicle they sell. Federal law applies in all states in the U.S., including Florida.
A legal consultation in Florida with a Florida lawyer would help a person understand federal and Florida law regarding negligent and intentional misrepresentation in connection with vehicle sales.
If an individual has relied on a false or misleading claim when buying a faulty vehicle or entering a sales transaction that turned out not to be as represented, they may have a claim against the automobile dealer that sold them the vehicle.
In general, there are two types of claims which are related to deceptive automobile sales practices, including:
- Intentional misrepresentation
- Negligent misrepresentation
Suing a car dealership for misrepresentation may be possible in certain circumstances. If an individual has already purchased a vehicle on the basis of representations that later prove to be false, given the condition of the vehicle, they may have a cause of action against the car dealer.
Eligibility: Florida law does not block specific groups of people from filing a misrepresentation claim against a car dealer. Any buyer who suffered a financial loss due to a dealer’s false statements may have a case.
Both Florida residents and out-of-state buyers can sue if the sale happened in Florida. The buyer must show they relied on the dealer’s claims and that those claims were false. Speak with a Florida attorney to find out if your situation meets the legal requirements.
In order to sue a car dealership for misrepresentation, the individual must show:
- The car dealer omitted communicating or misrepresented material facts regarding the vehicle.
- The individual suffered a financial loss as a result.
- The individual would not have purchased the vehicle if they were aware of the material facts at issue.
In order to prove these issues, the individual will need to show that they inquired about the condition of the vehicle and that the salesperson denied there were any issues with the vehicle. An eyewitness to the misrepresentation would be extremely helpful to an individual’s case.
What Are Some Common Car Dealer Lies in Florida?
Vehicle sales people and dealers might make a wide variety of statements in order to try and entice a potential customer into buying a vehicle quickly. They might make these statements in the course of pitching any type of vehicle, a car, an SUV, or a pick-up truck.
Such statements as the following are not unusual:
- The dealer can lower their monthly costs.
- They are providing the lowest interest rate that is available on the market today.
- The accident report is trustworthy.
- The price is non-negotiable.
- That fee cannot be waived.
- The extended warranty is needed on this purchase.
- We will give a great deal on the trade-in.
- This deal is only good for today.
It is important for an individual in the market for a vehicle to buy their vehicle only when they feel that they thoroughly understand the terms and conditions on which they are making the purchase, and they have negotiated a price that works for their budget. Statements and tactics such as those above are often used to pressure potential customers into making purchases quickly.
An individual who plans to borrow the money to finance their purchase of a vehicle should also apply for auto loans at several lending institutions, e.g., banks and credit unions, and make arrangements to borrow the money from the one that offers the best terms before they start shopping for their new vehicle.
What Are the Types of Auto Dealer Misrepresentation Claims in Florida?
There are two main categories of automobile dealer misrepresentation including a flagrant misrepresentation and a failure to disclose material facts. These types of misrepresentations often occur in the following situations:
- The dealer has altered the odometer.
- The dealer says that a vehicle has certain features or options when it does not.
- The dealer refuses to honor a warranty when they should.
- A dealer claims that the customer’s issue is outside of the warranty coverage when it is not.
- The dealer inflates the price of the vehicle so the buyer pays more than the advertised price.
- The dealer does not disclose information regarding the history of the vehicle, such as:
- Accidents
- Known defects
- Insurance losses
- Frame damage
- The dealer claims that the buyer’s financing was not approved and that they need to bring the car back, referred to as “yo-yo financing.”
Risks/Penalties: A car dealer found liable for misrepresentation in Florida may face several penalties. Courts can order the dealer to pay actual damages, which cover your financial losses. In cases of intentional fraud, the court may also award punitive damages to punish the dealer.
Under FDUTPA, the dealer may have to pay your attorney’s fees and court costs. Florida regulators can also suspend or revoke the dealer’s license. In serious cases, the state may bring its own enforcement action.
What Is Fraudulent Misrepresentation Under Florida Law?
Fraudulent misrepresentation can be defined as any kind of false statement or lie about facts that is used to trick an individual into a transaction. The misrepresentation may occur in any of several ways, including the following:
- Written words
- Spoken words
- Gestures or body motions, such as a nod
- Through silence or inaction.
Fraudulent misrepresentation is often raised in connection with contract law issues. An example of intentional fraudulent misrepresentation occurs when a party purposefully makes a statement which is false to the other party for the purpose of inducing them into signing the contract.
For example, if an automobile dealer lies regarding the accident history of a used vehicle in order to get an individual to sign a purchase contract, this may be considered fraudulent misrepresentation.
How Do I Sue a Car Dealer for Fraudulent or Negligent Misrepresentation in Florida?
Process/Steps: Take action right away after spotting a misrepresentation. Save all paperwork from the sale, including the contract, financing documents, and any ads or texts from the dealer. Get a vehicle history report through Carfax or AutoCheck. Write down what the salesperson said and when. Keep records of any repairs needed because of the issue. Then contact a Florida auto fraud lawyer to review your options before deadlines to act run out.
Fraudulent misrepresentation has six elements. In order for an individual to succeed with a lawsuit for damages for fraudulent misrepresentation, they must prove all 6 elements.
The elements a plaintiff must prove to sue a car dealership include the following:
- That the car dealer made a false representation.
- It is important to note that representations typically involve a direct statement but any speech that is intended to communicate a fact or create an impression or belief may be considered a representation.
- The car dealer was aware that the representation was false or made the representation recklessly without knowing if it was actually true at the time it was made.
- The car dealer made the representation with the intent that the victim would rely on it.
- The victim who purchased the vehicle relied upon the representation.
- It was reasonable for the victim to rely upon the representation.
- The victim suffered measurable economic damages as a result of relying upon the false representation.
Timelines: Florida sets deadlines for filing a misrepresentation lawsuit against a car dealer. Most fraud and FDUTPA claims must be filed within four years from the date you discovered the problem. If you wait too long, the court may throw out your case even if you have strong proof. Some claims tied to written contracts may have different deadlines. Talk to an attorney quickly to find out which deadline applies.
Evidence: Strong cases need more than just the purchase agreement. Helpful documents include vehicle history reports like Carfax or AutoCheck, repair records, dealer ads or online listings showing the claims made, loan paperwork, and texts or emails between you and the salesperson. Photos of the vehicle’s condition before and after the sale also help. If anyone went with you to the dealership, their statement may support your story.
Proving all of these elements in court may be challenging and would require the aid of a skilled lawyer. A lawyer is best equipped to identify and collect evidence of the car dealer’s deceptive statement, obtain witnesses to testify regarding the deception, and advocate for the victim in court.
What Is Negligent Misrepresentation Under Florida Law?
Negligent misrepresentation in a contract setting occurs when an individual states a fact without verifying whether or not it is true. Negligent misrepresentation is a civil wrong as is intentional misrepresentation.
Negligence involves an individual’s duty to act reasonably in a given situation. If an individual is a victim of negligent misrepresentation, they may be able to sue for money damages in a court of law.
In order to prove negligent misrepresentation, the victim must prove the following elements:
- The defendant, or individual being sued, made a representation in connection with a contract.
- That representation was false.
- That representation was made either without reasonable grounds to believe it was true or carelessly. It does not have to be shown that the misrepresentation was made intentionally.
- The victim reasonably relied on that representation
- The victim’s reliance on that representation was the direct cause of harm to the victim.
A representation is a statement, such as “the brakes work just fine,” that can be proven to be true or false. Reasonable reliance is how an individual with ordinary intelligence and common sense would believe upon hearing or reading the representation. If the individual would not believe the representation, there was no reasonable reliance.
Although fraudulent misrepresentation and negligent misrepresentation may seem similar, they are different. With intentional fraudulent misrepresentation, an individual knowingly makes a false statement with the intent to mislead or deceive.
A negligent misrepresentation, on the other hand, only requires that the person who makes the misrepresentation has failed to exercise the reasonable care or competence that was needed to communicate information that was true.
Another option a victim would have would be to sue for breach of contract and contract damages. One possible remedy for breach of contract is rescission, which basically means undoing a contract transaction. In contract rescission, a vehicle buyer could win a return of the money they paid for the vehicle and would return the vehicle to the seller.
State Variations: Florida gives buyers more protection than federal law alone. The Florida Deceptive and Unfair Trade Practices Act (FDUTPA) allows buyers to recover actual damages and attorney’s fees from dealers who use unfair or deceptive sales tactics. State law also lets regulators suspend or revoke a dealer’s license for misrepresentation.
Florida requires dealers to disclose specific items, like prior damage and warranty terms, before completing a sale. These state protections often give buyers stronger remedies than federal law on its own.
Costs/Fees: Filing a lawsuit against a Florida car dealer comes with costs. Court filing fees in Florida circuit courts often run between $400 and $500, depending on the county. Other expenses can include service of process fees, deposition costs, and expert witness charges if your case needs a mechanic or appraiser to testify.
Many auto fraud lawyers work on contingency, meaning they only get paid if you win. FDUTPA also allows winning buyers to recover their attorney’s fees from the dealer.
The Importance of Hiring a Lawyer: Handling a misrepresentation case on your own is hard. You must prove every part of the claim, including that the dealer knew the statement was false and that you reasonably relied on it. Dealers often have lawyers and insurance adjusters working against you. Gathering evidence, taking depositions, and arguing motions in court takes training and time.
A Florida auto fraud lawyer knows how to push back against dealer defenses and can often find violations you missed. Going it alone can mean losing a case you should have won.
Should I Consult a Florida Auto Fraud Attorney?
It is essential to have the assistance of a Florida auto fraud lawyer to help with issues you may have with misrepresentations you may have been told when you bought your vehicle. Your attorney can review your case and determine if you have a claim for intentional or negligent fraudulent misrepresentation.
Or, if you have sold a vehicle and are now accused of making misrepresentations regarding that vehicle, your attorney can advise you about how to defend yourself if there is a lawsuit or possibly avoid a lawsuit altogether.
