In New Hampshire
we do not have specific “lemon laws” that other states have that protect
purchasers of used cars. Often, we get cases in our office where a person buys
a used car, pays for it, and then after they drive it home they discover all
sorts of problems with it. When they contact the seller, they are told all
sales are final, and no reimbursement will be given. This can be very
frustrating, especially if you are of limited means and cannot afford a car
that will need constant servicing.
In order to
prevent these issues, it is important to first remember a few key terms. Almost
always a used car dealer will sell a vehicle “as is”. By selling a vehicle “as is”, the
seller is stating that the car comes with no warranties. However, one thing
many people do not understand is that this waiver of warranties only applies to
the implied warranties known as “fitness for a particular purpose” (i.e. the
car drives like it should), and “merchantability” (which is something that
warranties that the goods are merchantable and of decent quality). By putting
the terms “as is” in any contract, this waives those warranties and they no
longer apply to the vehicle being bought. However, this does not exclude what
are called “express warranties”. Express warranties can be verbal and/or oral.
An express warranty is a specific representation of the vehicle’s quality. Examples
of an express warranty would be, “this vehicle has 100,000 miles on it”, “this
vehicle’s brakes are of good working quality”, “this vehicle’s engine is in
pristine condition and needs no work”, and so on. Things that would not be an
express warranty are what we call “mere puffery”. Examples of puffery would be “the
vehicles rides nicely”, “you’re going to look great in this car”, “you’re going
to love this car”, and so on. The thing to remember is that express warranties
are specific representations on the vehicle’s quality. Express warranties
cannot be waived by selling a car “as is” and without any implied warranties.
Knowing the difference is always integral to any used car sale case.
Another component
is New Hampshire’s statutory scheme on inspections. RSA 358-F requires a seller
to either certify that the vehicle would/did pass inspection, or the seller
must certify that the car would not pass inspection. RSA 358-F also requires that a dealer provide a written statement to any buyer that the vehicle has either
not been inspected and the written statement serves to put the buyer on notice
that they have a right to an inspection if they so choose. The other option for
the seller is to provide written notice that the vehicle would not pass
inspection, along with an itemized list of the problems of the car that need
fixing in order for it to pass inspection. This is surprisingly commonly violated
by dealers. And, if that violation is proven, it is deemed a violation of New
Hampshire’s consumer protection statute (RSA 358-A), which entitles the buyer
to double and triple damages and recovery of attorney’s fees.
At Parnell &
McKay, we have dealt with many different nefarious used car dealers that have
ripped off potential buyers. If you find yourself cheated, please contact us today and put our experience
to use on your behalf.
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