Category: Consumer Rights

When purchasing a new vehicle, understanding the importance of vehicle titles can protect you as a consumer. There are multiple classifications of vehicle titles, including a branded title. California has a thriving and vibrant automobile industry, and understanding the risks that come with purchasing a branded title vehicle can help you make an informed decision as a consumer. 

What is a Branded Title?

A branded title is a designation placed on a vehicle’s title to indicate that the vehicle has experienced significant issues that affect its value and transferability. A vehicle with a branded title may have been declared a total loss by an insurance company. The vehicle may have sustained extensive damage in an accident or have a history of severe mechanical failures. In some instances, vehicles may also receive a branded title due to severe weather damage, such as flooding. In other cases, the vehicle may have been recovered from a theft. 

Types of Branded Titles in California 

There are multiple types of branded titles, but some common categories include

:

• Salvage Title: The vehicle was deemed a total loss by the insurance company. This typically occurs when the repair costs exceed a certain percentage of the vehicle’s value.
• Rebuilt Title: This designation is issued after a salvaged vehicle has been repaired and inspected, indicating that it is roadworthy but still retains a history of significant damage.
• Flood Title: This designation indicates that the vehicle has sustained water damage, which may result in long-term mechanical issues or corrosion.

The Downsides of Purchasing a Vehicle with a Branded Title

Before purchasing a vehicle with a branded title, it’s essential to understand the potential downsides. A branded title can lower the vehicle’s resale value. Buyers are usually hesitant to purchase cars with branded titles due to the perceived risk and potential hidden issues. 

Vehicles with branded titles may have underlying safety issues caused by previous damage. If the car receives faulty repairs, they can compromise the vehicle’s structural integrity, leading to safety issues. 

Not all insurance companies will provide coverage for branded title vehicles, or they may offer limited coverage. This can affect your ability to insure the vehicle adequately or could result in higher premiums. Additionally, obtaining financing for vehicles with branded titles can be difficult. Many lenders are unwilling to finance these vehicles because they consider them higher risk. 

Finally, in California, sellers are required to tell potential buyers when a vehicle has a branded title. However, this doesn’t always happen. Buyers should carefully review the vehicle history report, conduct a thorough inspection, and ask pointed questions about the car’s past.

Contact an Experienced Consumer Rights Attorney in California 

The risks associated with branded titles can have lasting effects, from financial repercussions to safety concerns. By staying informed and vigilant, car buyers can protect themselves and make educated decisions in the auto marketplace. 

If you encounter challenges related to purchasing a vehicle in California, you’ll benefit from seeking the expertise of a consumer rights attorney. Don’t hesitate to contact California Consumer Attorneys, P.C. to schedule a consultation or call 833-Lemon-Firm and speak with a case analyst today!

Purchasing a car is often one of the most significant investments we make. Unfortunately, some newly purchased or leased vehicles turn out to be defective “lemons.” In other cases, car dealerships act unfairly or unlawfully. In California, consumers have rights when it comes to car purchases, and understanding how to assert your rights is important. Here’s a guide on how to sue a car dealership in California.

Understanding Your Rights as a Consumer

Knowing your rights as a consumer in California is essential before taking any legal action. Our state has numerous laws designed to protect consumers, including some of the most stringent consumer protection laws regarding automobile sales. These rights are grounded in various statutes, including the California Lemon Law, the Consumer Legal Remedies Act (CLRA), and others that address false advertising, fraud, and warranty violations.

Common Legal Claims Against Car Dealerships

Suing a car dealership in California can be daunting, but understanding the process can empower consumers to protect their rights. Always begin with thorough documentation and attempts at resolution. Some of the common problems with dealerships that lead to lawsuits include the following:

• Hidden Fees: Dealerships sometimes add unexpected charges during the purchase process.
• False Advertising: Misleading information about the vehicle’s condition, history, or financing terms may fall under illegal practices.\
• Breach of Contract: If the dealership doesn’t honor the terms agreed upon in the sales contract, you may have grounds for a lawsuit.
• Lemon Vehicles: If you purchased or leased a vehicle that consistently has defects or substantial quality issues, you might have purchased a “lemon” under California law. You may be able to pursue a claim for a replacement vehicle or buyback of your defective vehicle.

Steps to Take Before Filing a Lawsuit Against a Manufacturer 

Before taking action, gather all relevant documentation related to the car purchase. This includes:

• The sales contract
• Any written correspondence with the dealership
• Receipts for repairs and services performed
• Records of phone calls, including dates, times, and the names of individuals you spoke with

Before you pursue a lawsuit, you may benefit from attempting to negotiate with the car dealership with the help of your attorney. Dealerships may try to resolve complaints amicably to avoid a trial. 

The Benefits of Working with an Attorney to Prepare Your Lawsuit

If the dealership is unresponsive or unwilling to rectify the situation, it may be time to seek legal advice. An attorney can draft a formal complaint letter outlining your legal claims and give the manufacturer a chance to respond. Make sure you keep copies of this correspondence. Consulting with a consumer rights attorney will provide insight into your legal rights and options. 

If you decide to sue, your attorney can prepare a claim clearly outlining the reasons for your lawsuit against the dealership while referencing relevant regulations and laws the dealership violated. The claim should include specific details explaining how you were harmed and what compensation you are seeking.

Negotiating a Settlement with a Car Dealership in California

Once your claim is filed, you need to officially notify the dealership by serving them with the lawsuit. The dealership may settle before going to court to avoid legal costs. However, your attorney should prepare to present your case in court if settlement negotiations are unsuccessful. 

If your lawsuit goes to trial, the judge will make a ruling that may result in compensation or even an order for the dealership to take action to rectify the situation. If your claim lacks sufficient evidence or legal merit, the judge may dismiss it.

Contact a Consumer Rights Attorney in California 

If a car dealership has acted unfairly, illegally, or has sold you a lemon, California Consumer Attorneys, P.C. is available 24/7 to help you assert your rights against car dealerships.

Call 833-Lemon-Firm and speak with a case analyst today!