Does a used car dealer have to disclose that a vehicle has been in an accident?

Answer 1

In the US licensed car dealers must disclose whether a car has a "salvage" title, which means an insurance company has decided that a damaged vehicle is a total loss -- in other words, not worth fixing.

The damage could have been caused by many things other than an accident, such as flood damage, hail damage or vandalism. Sometimes stolen cars that have been recovered after a certain period of time also are given a salvage title. Specific rules for salvage vehicles vary among states.

Otherwise, there is no obligation for sellers to disclose that a vehicle has been in an accident or been damaged -- it is "buyer beware." However, if a seller declared that a vehicle had NEVER been in an accident, suffered flood damage, etc., and a buyer subsequently found that such damage had occurred previously (and could prove it), the seller would be liable for fraud.

The best way to learn whether a car has been in a major accident, or given a salvage title (which may subsequently have been converted or "laundered" into a clean title), is to check the vehicle's history report. Companies such as Carfax and Experian provide such reports, which also can reveal odometer fraud, for a fee.

The reports are only as good as the information they obtain from motor vehicle agencies, emissions test stations, insurance companies and other sources, so they're not foolproof. But they're a lot better than nothing. Also, the auto report companies guarantee to buy back cars within a certain period of time if the information they provide turns out to be incorrect.

Some dealers and sellers provide free vehicle history reports from a vendor. Other dealers and sellers should be willing to provide a vehicle's VIN number so you can purchase your own report. If a seller refuses to do so, or won't show you a copy of the vehicle's title, walk away from the purchase.

In the UK vehicles are categorised A through D and X.

Cat A = crush immediately. Cat B must not be returned to the road but parts can be sold. Cat C reparable significant damage, cost to repair possibly greater than book value. Cat D non-structural repairable, mostly less than book but written off by insurer. Cat X reparable minor damage.

Dealers are obliged to declare the category and it is also declared on the vehicle registration document.