Understanding the New Motor Vehicle Damage Disclosure Act: Your Rights as a Consumer

Definition & Meaning

The New Motor Vehicle Damage Disclosure Act requires that motor vehicle dealers inform buyers in writing about any damage or repairs made to a new vehicle before the sale. This includes any damage that may have been repaired or replaced, regardless of whether the vehicle has returned to its original condition. The purpose of this act is to ensure that purchasers are fully aware of the vehicle's history before taking ownership.

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Real-world examples

Here are a couple of examples of abatement:

(Hypothetical example) A buyer purchases a new car from a dealership. The dealer fails to disclose that the vehicle had been in a significant accident and had repairs done. After the sale, the buyer discovers the damage and can file a complaint under the New Motor Vehicle Damage Disclosure Act.

State-by-state differences

State Disclosure Requirements
California Requires disclosure of any damage over a certain dollar amount.
New York Mandates disclosure of any prior damage regardless of cost.
Texas Similar to New York, requires full disclosure of any damage.

This is not a complete list. State laws vary and users should consult local rules for specific guidance.

Comparison with related terms

Term Definition Difference
Vehicle History Report A report detailing a vehicle's past, including accidents and repairs. Focuses on historical data rather than mandatory disclosures at point of sale.
Unfair Trade Practices Deceptive or fraudulent business practices. The act is a specific regulation under this broader category.

What to do if this term applies to you

If you believe you were not informed about prior damage to a new vehicle, you should:

  • Review your purchase documents for any disclosures.
  • Contact the dealer to discuss your concerns.
  • Consider filing a complaint with your state's consumer protection agency.

For assistance, explore US Legal Forms for templates that can help you draft necessary documents.

Quick facts

  • Typical fees: Varies by state and dealer.
  • Jurisdiction: Consumer protection law.
  • Possible penalties: Fines and legal action against dealers.

Key takeaways

Frequently asked questions

Contact the dealer and consider filing a complaint with consumer protection authorities.