Reasons to Sue a Car Dealership: Typical Causes and Suing Guide (Updated)

Reasons to Sue a Car Dealership

There are several reasons to think about if you’re thinking of suing a car dealership. In certain circumstances, it may be necessary to defend your consumer rights, even though it’s not the best. We’ll go over the reasons to sue a car dealership and the causes of action against a California auto dealership. Is it legal to sue a car dealership for excessive prices?

Typical Causes of Car Dealership Lawsuits

1. Reasons to Sue a Car Dealership: Violation of the Agreement

Also, If your auto dealer fails to fulfill your contract, you may face a small claims court case. Misrepresentation of terms, withheld information, dishonest business practices, etc about a new car are common issues in the car industry.

2. Ignorance

There are also several reasons to sue a car dealership, including negligence if the dealership utilized defective parts. And also failed to maintain your vehicle, caused damage to it, or failed to maintain it correctly.

3. Deception or Fraud

Suiting can also be motivated by concealing damage or faults in a vehicle, and lying about its history and condition. To make misleading statements about the terms of the financing, or to deceive car buyers.

Therefore, before purchasing a car, carefully reading the history report on it can provide you with important details about its past. It will also tell you how the automobile is doing and assist you in making the best financial choice.

4. Violations of Consumer Protection

You and other consumers are shielded from dishonest company activities by federal and state consumer protection laws. You also have the right to file a damages lawsuit if the vehicle dealership breaks any of these laws. These topics can include things like complaints from customers, purchase pricing concerns, or sales tax.

The car dealership may be liable under your state’s lemon law if you purchased a car that is constantly in the shop and cannot be fixed.

Also, if your automobile is still under warranty, many dealerships will take 30 days to fix it. These thirty days don’t need to be consecutive.

5. Problems with Warranties

You may be able to claim for both your expenses and additional damages if you purchased an automobile that was supposed to be protected by warranty but it breaks down and requires expensive repairs. The conditions of your contract and any applicable state laws will dictate the specifics of your claim as the buyer of the vehicle.

6. Not Disclosing

You might have a strong case for a lawsuit if a car dealer willfully misleads prospective purchasers to persuade them to buy a vehicle based on exaggerated claims or neglects to reveal a known flaw. Your capacity to sue will depend on many factors, including the contract you signed, the intricacies of your state’s laws, and the character of the dealer you bought from.

7. Refusal to Return

Should the dealer decline to accept your return after promising a “cooling off” period, “no questions asked” return, or any other phrase suggesting you can change your mind, you may have a strong case for filing a lawsuit.

Suing A Car Dealership: A Guide

Furthermore, there are a few actions you might take to try to settle a disagreement you have with an automobile dealership:

Reasons to Sue a Car Dealership: Assemble All Pertinent Documents

The sales contract, maintenance logs, finance paperwork, and any correspondence you’ve had with the dealership may be included in this.

Reasons to Sue a Car Dealership: Try to Address the Problem Straight with the Dealership

Strive to find a mutually agreeable solution by having direct conversations with the dealership to settle disagreements.

Reasons to Sue a Car Dealership: Ask a Lawyer for Advice

You could consult a lawyer if you feel that your rights have been infringed or if you are unable to settle the matter with the dealership directly. A lawyer can guide you toward the best course of action and help you understand your rights and alternatives, but keep in mind that there will be legal fees!

Make a Complaint to a Government Organization

You can register a complaint with a government organization like the Department of Consumer Affairs or the Better Business Bureau if you think the vehicle dealership has engaged in dishonest business practices or broken any laws protecting consumers.

Customers can file Lemon Law lawsuits against automobile dealerships on a contingency fee basis, with the attorney not receiving payment until the case is successful. Those who cannot afford to pay legal fees upfront may find this to be a good alternative.

Causes of Action Against a California Auto Dealership

In California, you have rights regarding dishonest and misleading tactics used by auto dealerships. It’s time to act if you believe that you have been deceived. The first thing you should do is hire an attorney, especially since the dealership probably has legal representation.

To boost your lawsuit chances, ensure you have sufficient evidence of the dealership’s actions when submitting it. You’ll save money and time with this method. A skilled lawyer will examine the specifics of your case and construct the strongest possible lawsuit to defend your rights.

Due to the unscrupulous practices they have employed for many years, auto dealerships have earned a bad reputation. Should you fall prey to such tactics, make sure they are held accountable. You may also have a good basis to sue an automobile dealership.

Is It Legal to Sue a Car Dealership for Excessive Prices?

Yes, a car dealership may be sued for overcharging; however, under specific circumstances, lawsuits about new cars are typically admissible, not pre-owned vehicles.

Manufacturers typically place a sticker on the vehicle with the Manufacturer’s Suggested Retail Price (MSRP), which car dealers are not allowed to take off.

A customer has the legal right to initiate a lawsuit against an automobile dealer who overcharges them and removes the MSRP label from the vehicle.

If the stated price differs from the final sale price, the customer may bring a lawsuit against the car dealer under the Truth in Lending Act.

It is possible to sue an automobile dealership if you did not sign the sales agreement, in which case it is presumed that you accepted all of the terms of the sale, including the final price.


What Are a Vehicle Dealership’s Shortcomings?

  • Outdated technology could be one of the other disadvantages.
  • High initial costs for recently opened dealerships.
  • There are not enough sales representatives.
  • Service technicians with little experience.

Can a NJ Auto Dealership Be Sued?

Additionally, dealerships are required by law to make obvious and transparent disclosures regarding the features, specs, pricing, and performance of the cars they sell. A customer may also bring a lawsuit against an auto dealership for violating the NJCFA to get damages and other remedies.

In Ontario, How Do I File a Lawsuit Against a Car Dealership?

Furthermore, using EasyCourt, you can construct your Ontario Small Claims Court Plaintiff’s Claim forms online. You may then submit your claim in person at the Small Claims Court or by mailing the completed forms to the Small Claims Court along with payment.


Purchasing a car can be a big financial commitment, so it’s important to know your rights as a customer. While many auto dealerships conduct their business with honesty and openness, some could use dishonest pricing tactics, hidden costs, or other unethical methods that force clients to pay more than they had originally agreed upon. Knowing your legal options is essential when you find yourself in such circumstances.

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