Can I Still Sell a Malfunctioning Vehicle? What to Know
Not every vehicle is in tip-top shape, and that may include one that you’re considering putting up for sale. Can you still sell your truck or van even though there’s something wrong with it? Here is what you need to know.
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Can you sell a vehicle that isn’t working properly?
In theory, if you can find a buyer, you can sell almost anything. But if there’s something wrong with the vehicle, there are rules you need to follow to stay within the law. Failure to do so correctly could harm your reputation among buyers, and even open you up to legal ramifications. This might include reimbursing the buyer, and the possibility of being charged with fraud if you knowingly sell a malfunctioning vehicle without disclosing it.
What type of restrictions can you face when selling a malfunctioning vehicle?
Legal requirements can vary according to your state, so be sure you check what you need to do to stay in line with your jurisdiction. Some of these so-called “lemon laws” primarily apply to dealerships, but many states have rules for any used-vehicle transaction. These rules may require you to include a written disclosure about any mechanical issues with the vehicle.
Does selling a vehicle “as-is” absolve you of responsibility?
Advertising your vehicle “as-is” tells potential buyers the vehicle doesn’t come with any inspection certificate. Even so, that may not be enough to cover you if it’s proven you knew the vehicle had a major mechanical problem you didn’t divulge to the buyer. You must tell potential buyers what’s wrong with the vehicle. From there, it’s up to them to decide if they want to buy it anyway.
Can you sell a vehicle if it has an outstanding safety recall?
Dealerships can’t sell new vehicles if they have an open recall, but that doesn’t apply to used vehicles. However, you need to inform the buyer that the recall is in effect and hasn’t been done yet. Recalls need to be performed at a dealership that represents the brand, and by law, there’s no charge. Taking care of this prior to the sale could make your listing more attractive to those shopping since they won’t have to make an appointment for the recall in the future.
How do you determine what’s wrong with the vehicle?
In some cases, a simple explanation is all that’s needed: The engine doesn’t run, or the transmission doesn’t shift. But getting a technician to check the vehicle may be worth it. A professional can estimate the repair cost; and from there, you can decide if it’s worth it to fix it and ask more for the vehicle, or save yourself the time and trouble and sell it as-is. A technician may also find hidden problems during an inspection when selling your used truck. This can help prevent you having to defend yourself from claims that suspect you knew the problem was there but didn’t disclose it.
Can you sell a vehicle that’s been in a crash?
You can sell a vehicle that’s been repaired after a crash, but depending on the laws in your area, you may be required to disclose its history, or face repercussions from misrepresenting the vehicle. Be prepared to show the buyer everything from the repair, including the damage estimate, any documentation from the insurance company, and the itemized receipts for the repair.
What’s the difference between a salvage title and a rebuilt title?
When a vehicle is badly damaged, whether in a crash, storm, flood, or other catastrophe, the insurance company can declare it a total loss, meaning the cost of fixing it is too high for what the vehicle is worth. The vehicle then receives a “salvage” title, meaning it can’t be plated and legally driven. If someone then wants to repair it anyway and make it roadworthy, it can be converted to a “rebuilt” title. It’s legal to sell vehicles with salvage or rebuilt titles, although in some cases with restrictions, and of course with full disclosure.
Can you sell a salvage vehicle for parts?
You can, but it can depend on how and where you’re selling it. There are no issues with selling the entire vehicle to a licensed recycler, but many states have specific rules on “parting out” the truck or van and selling its components. Depending on the laws in your jurisdiction, you may have to report to the DMV that you have dismantled it; you may be limited in how many salvage vehicles or parts you can sell in a year; and there are restrictions on selling some used components such as airbags. Familiarize yourself with your local rules before you start to dismantle your salvage vehicle.
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How should you offer a malfunctioning vehicle for sale?
The essential rule is, “Be up front about everything.” In addition to mentioning that it’s “as-is,” explain exactly what’s wrong with it in your advertisement, and keep records or even a screen shot of your ad to prove that you made this clear from the start. If someone does decide to buy your vehicle, write up a document stating the issues with the vehicle and that you have made the buyer aware of it, and make sure both you and the buyer sign and date it. You might even want to run it past your lawyer first to be sure you’re protected. Then, when everything is ready to go, use our online marketplace to let buyers know what you have for sale.
Disclaimer: The information provided in this article does not, and is not intended to, constitute legal advice; instead, all information, content and materials available in this article are for general informational purposes only, and readers should contact their attorney to obtain advice regarding any particular legal matter associated with the sale of their vehicle.
Jil McIntosh
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