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Dealerships may try to hide test drive damage

On Behalf of | Jul 8, 2024 | Dealer Fraud

It is generally advisable to test drive a vehicle before making a decision to purchase it. Unfortunately, not everyone is safe and respectful during test drives. Some people are very aggressive drivers and could potentially damage a vehicle that belongs to a dealership.

The dealership might then try to hide the signs of damage from others considering the same vehicle. Even brand-new vehicles on a dealership lot could potentially have issues caused by previous test drives. Particularly when dealerships have taken steps to cover up the signs of test drive damage, a new owner may have reason to hold the dealership accountable for misrepresenting the condition of what should be a brand-new vehicle.

What test drive damage is possible?

All kinds of unfortunate incidents can occur during a test drive. There could be issues with the brakes, shocks, struts or frame. Some people get into crashes that cause cosmetic issues or structural damage to the frame of a vehicle. Others could damage internal components or the underside of the vehicle by not driving aggressively and unsafely.

In theory, dealerships have insurance that can help them repair damaged vehicles. Even if they do make repairs, they typically need to disclose those repairs and any noteworthy damage. That is especially true with vehicles that buyers perceive as being brand-new. Regardless of the origin of the damage, the dealership has a responsibility to disclose that damage to the potential buyer. The failure to do so might constitute dealership fraud.

How do dealerships hide issues?

The most common way that dealerships hide test drive damage is a basic failure to disclose. They assume that the buyer may not notice anything until they have already signed the papers and taken the damaged vehicle home. The dealership may gamble on the possibility that the buyer doesn’t try to hold the company accountable later.

Other times, dealerships may actively try to hide damage. They may perform minor cosmetic repairs to cover up the signs of a fender bender involving a brand-new vehicle without actually addressing the structural damage that the crash caused.

Both undisclosed defects identified after the purchase and obvious cover-ups could provide the basis for a fraud-related lawsuit against the dealership. Car buyers who acquire vehicles with damage caused by test drives may have the option of requesting a replacement vehicle, compensation for the value of the damages or repairs to the vehicle from the dealership.

Discussing the surprise issues found in what should have been a brand-new vehicle with a skilled legal team can help buyers decide if taking legal action is the right choice in their case.

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