Law Office Of Paul DePetris
paul@newjerseylemon.com

New Jersey Used Car Sale Scams FAQS

INTRODUCTION
Read below to learn more about this topic.  Or, to receive a no cost phone consultation, call Mr. DePetris at 609-714-2020 or send him an email.  Warning – this article does not necessarily include every New Jersey court rule, code or law that may apply to your New Jersey case!  The Law Office of Paul DePetris does not guarantee that the statutes, rules, codes, files or forms on this website are the latest versions, that they lack typographical errors or that they have not changed, repealed or superseded by other laws.  Before taking any action, read all applicable federal and state source law and case law and consult with an attorney.  Court addresses, hours of operation and directions may change so check with the court in advance of mailing documents to court or going there!  Some of the webpages on this site don’t apply to all types of New Jersey cases, since there are different rules for different case types!


NEW JERSEY USED CAR SALE SCAMS FAQS
New Jersey used car dealers have legal obligations to New Jersey used car buyers.  New Jersey used car sale scams occur when a New Jersey used car dealer commits certain misconduct when selling or offering for sale a New Jersey used car.  New Jersey Used Car sale scams are frequently committed by New Jersey used car dealers and New Jersey used car dealership employees. New Jersey used car sale scams often involve a New Jersey used car dealer making misstatements or knowingly making omissions about New Jersey cars offered for sale.  There are New Jersey used car predelivery damage scams, New Jersey salvage title scams, New Jersey used car warranty scams, New Jersey used car inspection scams and New Jersey flood damaged car scams.  Don’t be a victim of a New Jersey used car sale scam!  


DO THE WORDS “AS IS” LET A NEW JERSEY USED CAR DEALER GET AWAY WITH A NEW JERSEY USED CAR SCAM?
Sometimes New Jersey Used Car Sale Scams involve violations of the new Jersey Used Car Lemon Law.   Under the New Jersey Lemon Law For Used Cars, also known as the New Jersey Used Car Lemon Law, "as is" means a used motor vehicle sold by a dealer to a consumer without any warranty, either express or implied, and with the New Jersey Used Car buyer being solely responsible for the cost of any repairs to that motor vehicle.  Simply because a New Jersey used car sale contract has the words “as is” on the contract does not mean that a New Jersey used car dealer can commit New Jersey fraud when selling a New Jersey used car to a New Jersey used car buyer.  New Jersey law does not encourage fraud in the sale of New Jersey used cars.  Instead, New Jersey law protects New Jersey used car buyers.


NEW JERSEY USED CAR PREDELIVERY DAMAGE SCAMS
New Jersey used car predelivery damage scams are some of the most common types of New Jersey used car dealer scams.  In the typical New Jersey used car predelivery damage scam, a New Jersey used car buyer buys a used car, only to later learn the vehicle was in an accident before the used car buyer took delivery of the vehicle.   The New Jersey used car dealer never disclosed the predelivery damage to the New Jersey used car buyer.   New Jersey used car predelivery damage can seriously affect a car’s value – making the car worth much less money.   New Jersey used car predelivery damage scams could support a New Jersey Consumer Fraud Act case against the New Jersey used car dealer.


NEW JERSEY FLOOD DAMAGED CAR SCAMS
New Jersey flood damaged car scams frequently come into play in New Jersey used car scams.  A New Jersey used car buyer buys a used car, only to later learn the body is severely rusted and parts are compromised.  In the typical New Jersey flood damaged car scam, a New Jersey used car dealer will sell a car to a New Jersey used car buyer without disclosing that it had flood damage.   New Jersey cars damaged in a flood and which are repairable and not totaled by an insurance company have special title requirements – the car’s title must include the words "Flood Vehicle" and must note all subsequent titles for that car.  Flood damaged cars can’t be registered in New Jersey unless the registration application includes the proper type of certificate of ownership.   New Jersey flood damage can seriously affect a car’s value – making the car worth much less money.   Following the Hurricane Sandy disaster, many New Jersey cars suffered flood damage.   In a New Jersey flood damaged car scam, the failure to disclose predelivery New Jersey flood damage can have serious consequences to the New Jersey used car buyer.  New Jersey flood damaged car scams could support a New Jersey Consumer Fraud Act case against the New Jersey used car dealer.  


NEW JERSEY SALVAGE TITLE SCAMS
Many New Jersey used car buyers fall victim to New Jersey salvage title scams.  Sometimes, a New Jersey used car dealer will sell a car to a New Jersey used car buyer without disclosing that it had a salvage title history.   New Jersey salvage titles can seriously affect a car’s value – making the car worth much less money.   Following the Hurricane Sandy disaster, the New Jersey Motor Vehicle Commission issued New Jersey salvage titles for many cars damaged in Hurricane Sandy.  If a car suffered enough damage to make it unprofitable to fix or an insurance company declared the car a total loss, the person that has the car’s title must surrender the title to the New Jersey Motor Vehicle Commission in exchange for a New Jersey salvage title.   New Jersey salvage titles can’t be registered to be driven on New Jersey public highways, other than for travel to and from a Motor Vehicle Commission inspection facility.     A New Jersey salvage title scam involves a New Jersey car being sold without disclosure that it should be sold as a salvage car.  New Jersey salvage title cars can’t be sold or transferred unless the New Jersey salvage title cars are sold as salvage with a New Jersey salvage title unless the car is repaired and passes a Motor Vehicle Commission inspection.   


NEW JERSEY CAR PRE-DELIVERY SERVICE FEE SCAMS
New Jersey Used Car Sale Scams can involve charges for pre-delivery service fees.  The following practices involving pre-delivery service fees in New Jersey car sales by New Jersey car dealers are violations of the New Jersey Consumer Fraud Act:
Accepting, charging, or obtaining from a consumer monies, or any other thing of value, in exchange for the performance of any pre-delivery service for which the New Jersey car dealer receives payment, credit, or other value from any person or entity other than a retail purchaser of the New Jersey car;
Accepting, charging, or obtaining from a consumer monies, or any other thing of value, in exchange for the performance of any pre-delivery service without first itemizing the actual pre-delivery service which is being performed and setting forth in writing on the New Jersey car sales document the price for each specific pre-delivery service;


NEW JERSEY CAR DOCUMENTARY SERVICE FEE SCAMS
New Jersey Used Car Sale Scams can involve documentary service fees.  The following practices involving documentary service fees in New Jersey car sales by New Jersey car dealers are violations of the New Jersey Consumer Fraud Act:
Accepting, charging, or obtaining from a consumer monies, or any other thing of value, in exchange for the performance of any documentary service without first itemizing the actual documentary service which is being performed and setting forth in writing on the New Jersey car sale document the price for each specific documentary service; or
Representing to a consumer that a governmental entity requires the New Jersey car dealer to perform any documentary service;
Failing to conspicuously place upon the front of the New Jersey car sales document which contains a documentary service fee, in ten-point bold face type, the following:  "You have a right to a written itemized price for each specific documentary service which is to be performed."


WHAT TYPES OF THINGS ARE ILLEGAL FOR NEW JERSEY USED CAR DEALERS TO DO WHEN SELLING USED CARS IN NEW JERSEY?
Misrepresent the mechanical condition of a New Jersey used car;
Fail to disclose, prior to sale, any material defect in the mechanical condition of the New Jersey used car which is known to the New Jersey used car dealer;
Represent that a New Jersey used car, or any component thereof, is free from material defects in mechanical condition at the time of sale, unless the New Jersey used car dealer has a reasonable basis for representation when made;
Fail to disclose, prior to sale, the existence and terms of any written warranty, service contract or repair insurance subject to transfer, known to the New Jersey used car dealer, in effect & provided by a third party. 
Misrepresent the terms of any written warranty, service contract or repair insurance currently in effect on a New Jersey used car provided by a person other than the New Jersey used car dealer and subject to transfer.
Fail to disclose, prior to sale, the existence & terms of any written warranty, service contract or repair insurance offered by the New Jersey used car dealer in connection with the sale of a New Jersey used car;
Misrepresent the terms of any warranty, service contract or repair insurance offered with the sale of a New Jersey used car;
Represent, prior to sale, that a New Jersey used  car is sold with a warranty, service contract or repair insurance when the New Jersey car is sold without any warranty, service contract or repair insurance;
Fail to disclose, prior to sale, that a New Jersey used car is sold without any warranty, service contract, or repair insurance; and
Fail to provide a clear written explanation, prior to sale, of what is meant by the term “as is,” if the New Jersey used car is sold “as is.” 


WHAT TYPE OF MINIMUM WARRANTIES APPLY TO USED CARS COVERED BY THE NEW JERSEY LEMON LAW FOR USED CARS, ALSO KNOWN AS THE NEW JERSEY USED CAR LEMON LAW?
For all New Jersey used cars sold for more than $3,000, less than seven or more model years old, that were not been declared a total loss by an insurance company and with respect to which the New Jersey lemon buyer was so advised at time of sale in writing of same and that have 100,000 miles or less, the selling New Jersey used car dealer commits a per se New Jersey Consumer Fraud Act violation unless they give the New Jersey lemon buyer a written powertrain type of warranty with certain minimum durations subject to the New Jersey used car’s mileage.
The New Jersey consumer may waive the warranty in writing via a specific type of waiver.
If the New Jersey used car dealer fails to give a written warranty required by the New Jersey Used Car Lemon Law and the New Jersey consumer does not sign a waiver as provided by the New Jersey Used Car Lemon Law, the New Jersey used car dealer nevertheless shall be deemed to have given the warranty.


WHAT PENALTIES DO NEW JERSEY USED CAR DEALERS FACE IF THEY VIOLATE THE NEW JERSEY CONSUMER FRAUD ACT?
It is an unlawful practice and a New Jersey Consumer Fraud Act violation for a New Jersey used car dealer to violate any provision of the New Jersey Used Car Lemon Law or the New Jersey car sale regulations.   The following are some of the remedies that New Jersey used car buyers may be entitled to under the New Jersey Consumer Fraud Act:
Cancellation of fraudulent debts.
Treble damages for ascertainable loss of money or property caused by the New Jersey Consumer Fraud Act Violation.
Attorney’s fee award for prosecuting the New Jersey Consumer Fraud Act Violation or defending against lawsuits by dealers to collect a fraudulent debt.
Refund of money lost due to the New Jersey Used Car dealer’s New Jersey Consumer Fraud Act Violation.


NEW JERSEY CAR INSPECTION SCAMS
New Jersey used car inspection scams involve a New Jersey used car’s failure to pass inspection within a certain time following purchase.  New Jersey used car inspection scams can involve the New Jersey used car dealer’s failure to refund money for a car that fails to pass inspection.  In certain situations, a New Jersey used car dealer has to guarantee that a New Jersey used car will pass inspection.  Many New Jersey used car buyers buy a New Jersey used car and then try to get it inspected only to learn that the New Jersey used car can’t pass inspection at a New Jersey Motor Vehicle Commission inspection station.   Repairs to a New Jersey used car to get it in shape to pass a New Jersey Car Inspection may cost thousands of dollars and time lost while the New Jersey used car is undergoing repairs.  Unless otherwise provided in the New Jersey Used Car Inspection Law, no New Jersey used car dealer shall sell at retail any used passenger New Jersey used car to be registered in New Jersey, unless the New Jersey used car meets the standards for the issuance of a certificate of approval as provided in the New Jersey Motor Vehicle Statutes.  Prior to entering into any agreement for the retail sale of a New Jersey used car, the New Jersey used car dealer shall inquire as to whether the New Jersey used car to be purchased is intended for registration in this New Jersey in the condition sold and, if so, such fact shall be specified in the written agreement between the New Jersey used car dealer and the New Jersey used car buyer and the New Jersey used car dealer, prior to execution of the New Jersey used car sale agreement, shall inform the New Jersey used car buyer of the New Jersey used car dealer's responsibilities under the New Jersey Used Car Inspection Law. Any New Jersey used car retail sale agreement may contain a provision whereby the New Jersey used car buyer waives the New Jersey used car dealer's obligation under section 2 of the New Jersey Used Car Inspection Law; provided, however, any such waiver must be separately stated in the New Jersey used car agreement of retail sale and separately signed by the New Jersey used car buyer.  The signing of such a waiver by the New Jersey used car buyer shall also serve to eliminate any criminal responsibility placed upon any New Jersey used car dealer by the New Jersey Used Car Inspection Law.  If a New Jersey used car is sold at retail and has any defect, which results in its rejection for failure to meet the standards for issuance of such a certificate of approval, in the absence of a waiver as provided in the New Jersey Used Car Inspection Law, the New Jersey used car dealer shall make, or cause to be made, all the necessary repairs, without charge, or return the full purchase price to the New Jersey used car buyer; provided that such defect or defects are not the result of the New Jersey used car buyer’s own act.  Also, any New Jersey Used Car dealer who fails to comply with the provisions of the New Jersey Used Car Inspection Law is a disorderly person.  New Jersey used car inspection scams can cost New Jersey car buyers significant sums of money as they try to get a New Jersey used car fixed to pass inspection.   New Jersey used car inspection scams may support a New Jersey Consumer Fraud Act case.

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