Ask a Legal Question
  1. #1

    Join Date
    Jun 2011
    Posts
    5
    Thanks
    0
    Thanked 0 Times in 0 Posts

    Can I Sue The Finance Company For Breach Of Contract?

    Jurisdiction / State: Arizona

    I recently traded in my 2000 Honda Accord for a 2008 Honda Accord and this was my 1st "new" car purchase. I brought my grandmother with me because she would be my cosigner for this vehicle.

    During the initial paperwork signing the car was said to be a Certified Used Honda which was the only reason I would purchase it. After signing the paperwork and receiving the car, I went back to the dealership to get the car looked over and Certified which was what the salesmen informed me was the process only to be informed that the car WASN'T certified at all.

    Needless to say I was very upset and called Honda Corporate and informed them of the disception at their dealership. After a few weeks I go back into the dealership and suddenly Honda wants to do everything they promised and be friends again.

    Fast forward to last Sunday. After years on the road I was involved in my 1st accident which totaled my vehicle. I only had liability on the car which I learned afterwards should not be.

    According to Honda Finance Corporation before they finance any vehicle they verify the car has full coverage in order to protect their investment.



    During the initial paperwork signing the salesmen asked if I had insurance. At the time I didn't and he said thats fine all we need is an insurance card to process the paperwork and you can get insurance on your own in the meantime. I told him I would just be getting liability he said that would be fine and tacked on GAP insurance to the order as well, telling me that would cover me in case of an accident. We handed him my grandmothers insurance card and the paperwork was processed. As I find out later GAP is irrelevant if you don't have full coverage on your car.

    My question is do I have a valid case to sue Honda Finance Corporation for financing the car in the 1st place when they never verified the car had full coverage beforehand?

    If Honda the dealership would have said you need to get full coverage I would have but as a first time "new" car buyer I was unaware of this fact.

    If Honda Finance would have verified before they financed the car they would have let me know you need full coverage before we can finance the vehicle. The car was never placed on my grandmothers insurance. The day I drove off with the car I got liability for the vehicle for 6 months. From previously feeling like they were trying to just get a car off the lot I feel now as if Honda Finance dropped the ball.

    It seems like if all you had to do is show them an insurance card and the finance company takes your word that you have full coverage without verifying that it would be extremely easy to fraud Honda out of vehicles.

    Any help on the subject would be greatly appreciated because I need to know if I do have a valid case before I proceed further. Thanks!

  2. Super Moderator Samaritan & Scholar
    army judge's Avatar
    Join Date
    Nov 2009
    Location
    Pago Pago
    Posts
    15,203
    Thanks
    311
    Thanked 1,602 Times in 1,580 Posts
    Quote Originally Posted by mrman1984 View Post
    I recently traded in my 2000 Honda Accord for a 2008 Honda Accord and this was my 1st "new" car purchase. I brought my grandmother with me because she would be my cosigner for this vehicle.

    During the initial paperwork signing the car was said to be a Certified Used Honda which was the only reason I would purchase it. After signing the paperwork and receiving the car, I went back to the dealership to get the car looked over and Certified which was what the salesmen informed me was the process only to be informed that the car WASN'T certified at all.

    Needless to say I was very upset and called Honda Corporate and informed them of the disception at their dealership. After a few weeks I go back into the dealership and suddenly Honda wants to do everything they promised and be friends again.

    Fast forward to last Sunday. After years on the road I was involved in my 1st accident which totaled my vehicle. I only had liability on the car which I learned afterwards should not be.

    According to Honda Finance Corporation before they finance any vehicle they verify the car has full coverage in order to protect their investment.

    During the initial paperwork signing the salesmen asked if I had insurance. At the time I didn't and he said thats fine all we need is an insurance card to process the paperwork and you can get insurance on your own in the meantime. I told him I would just be getting liability he said that would be fine and tacked on GAP insurance to the order as well, telling me that would cover me in case of an accident. We handed him my grandmothers insurance card and the paperwork was processed. As I find out later GAP is irrelevant if you don't have full coverage on your car.

    My question is do I have a valid case to sue Honda Finance Corporation for financing the car in the 1st place when they never verified the car had full coverage beforehand?

    If Honda the dealership would have said you need to get full coverage I would have but as a first time "new" car buyer I was unaware of this fact.

    If Honda Finance would have verified before they financed the car they would have let me know you need full coverage before we can finance the vehicle. The car was never placed on my grandmothers insurance. The day I drove off with the car I got liability for the vehicle for 6 months. From previously feeling like they were trying to just get a car off the lot I feel now as if Honda Finance dropped the ball.

    It seems like if all you had to do is show them an insurance card and the finance company takes your word that you have full coverage without verifying that it would be extremely easy to fraud Honda out of vehicles.

    Any help on the subject would be greatly appreciated because I need to know if I do have a valid case before I proceed further. Thanks!
    Caveat emptor, buyer beware.

    You are old enough to contract, you are old enough to know the risks.

    Sorry, I don't see anything the dealer did illegally.

    At least that is the story they will tell, if you sue them.

    I doubt that the dealership would want to see "any" insurance card.

    I've bought dozens of cars in my life.

    I've always had to show an insurance card with my name on the face, not my grandmother's.

    Caveat emptor, buyer beware!!!

    Happy Chanukkah, Christmas, & New Year!

  3. #3
    Registered User Samaritan & Scholar
    mightymoose's Avatar
    Join Date
    Sep 2009
    Location
    Hanford, CA
    Posts
    6,337
    Thanks
    2
    Thanked 601 Times in 593 Posts
    Quote Originally Posted by mrman1984 View Post
    My question is do I have a valid case to sue Honda Finance Corporation for financing the car in the 1st place when they never verified the car had full coverage beforehand?
    I am not certain that is a good argument. You knew you only had liability insurance. Their policy had nothing to do with the insurance you purchased for the car. If Honda did not require the full coverage you would still be in the same situation. Their policy should have stopped the sale, but their failure to follow their own policy does not you get off the hook for the car that you legally purchased and have responsibility for. I am guessing that another driver's insurance is not covering the loss??

  4. #4

    Join Date
    Jun 2011
    Posts
    5
    Thanks
    0
    Thanked 0 Times in 0 Posts
    Unfortunately the car was never placed on the other insurance only mine. If they require the car to be fully covered before they finance the car I just don't understand how this can occur. If I would have known I could have easily purchased full coverage. It just seems that it would be extremely easy to simply not pay the company if an accident does occur if they don't do their due diligence before financing the vehicle. It seems like this is an extremely grey area in the law because something seems not right. Has anyone else heard of anything like this occurring?

  5. #5

    Join Date
    Jul 2011
    Posts
    9
    Thanks
    0
    Thanked 0 Times in 0 Posts
    (In Ohio, at least) One of the many papers you sign in the finance office states that you have or will get full insurance on the vehicle. Shame on them for not explaining it properly, but shame on you, unfortunately, for not reading what you signed, or asking if you were unsure...

    **Sent from my OG Droid**

Similar Threads

  1. Can I sue my car dealership for breach of contract?
    By VOLLIE11 in forum Car Sales, Dealers, Repairs, Lemon Law
    Replies: 12
    Last Post: 08-09-2013, 10:29 PM
  2. can I sue for breach of contract?
    By jillalmighty in forum General Chat, News, TV, Politics
    Replies: 3
    Last Post: 11-25-2010, 05:51 AM
  3. Consumer Law, Warranties Kirby Company Breach of Contract
    By kirby in forum Consumer Law, Contracts, Warranties
    Replies: 3
    Last Post: 06-29-2010, 10:41 PM
  4. Consumer Law, Warranties Can we sue a labor union for Breach of Contract?
    By tootoolz in forum Consumer Law, Contracts, Warranties
    Replies: 1
    Last Post: 05-18-2010, 05:35 PM
  5. Sue for breach of contract as I.C. or unpaid wages as employee?
    By 6079 in forum Wage and Hour, Overtime
    Replies: 5
    Last Post: 05-26-2009, 09:51 PM

Log in

Log in