Misrepresentation / Fraud? in new car purchase

[SFNat]

I do know that car dealers will cloud the truth to make the sale, but am curious if I have a legal leg to stand on to get out of this contract based on lies.

State: California

On 10/18, I purchased a 2008 Mazda CX-7 Touring. I had negotiated the purchase price and specific vehicle (2008 CX Grand Touring) over the phone and scheduled an appointment to pick up the car and finalize the paperwork. The salesman had guaranteed that they had acquired the car from the "warehouse". It turns out they didn't have the car in stock and couldn't get it from a neighboring dealer. So, after finalizing price and beginning paperwork, they came to us with a whopper of a lie. They told us the GT had $1800 of body damage from a scrape against a column in the garage. They stated the car had been repaired but they were "required by law" to disclose the damage. We were blown away, this turned out to be the last GT in the Bay Area and we thought it was damaged.

Based on this lie, we ended up buying a lesser model from them, a 2008 CX Touring. Because they had to bring the car from the "warehouse", we weren't able to see the car until the next day, after we had filled out all the paperwork. On inspection, it had body damage. The front bumper had sustained impact, there were scratches and it had cracked near the grill. It also had 90 more miles than listed on the sales paperwork.

We discussed the new problem and agreed to pick up the car after they had replaced the bumper. They then told lies and stated we had to sign the due bill (receive the car) in order for them to replace the bumper. Then they tried to give us an invoice to "repair OR replace font bumper" when we were clear that we would only accept it if the bumper was totally replaced. We omitted the "repair" from the due bill and signed for the car.

It turns out that the higher model GT, which we originally came to purchase, was not damaged or in the warehouse, but in possession of another dealer in the Bay Area who would not transfer it to the Mazda dealership. There are specific features of the GT model that we cannot get in the Touring, and this is directly due to their lying about the condition of the other car.

We have asked the dealership to release us from the contract based on the fabrication and they have offered approx. $300 in "scheduled service" instead. We would like to purchase the GT model we wanted from the other dealership. I've sent a letter by Federal Express to the owner of the dealership, Kent Putnam, requesting this as well and have received no response.

1. Can this lie be considered fraud or breach of contract?
2. Can the body damage on the car they sold to us be used as a breach of contract?

Thanks.


SFNat

 

[Michael Wechsler]

In my opinion, yes. It is called "bait and switch" and a violation of law. Additionally, you made a deal for a specific car which they claimed they had but did not. From what you tell me, there is no reason a separate dealership has to sell you a car since they were not a party to your deal - at least not that I can see.

Bait and switch is a common technique to induce a customer to come into the store and buy something else when they thought they had a deal to purchase what they reall wanted. You can read through this section and perhaps print it out to let the dealership know you want your money or they can expect a great deal of trouble from you and an authority:

California BUSINESS AND PROFESSIONS CODE
SECTION 17500-17509


17500. It is unlawful for any person, firm, corporation or
association, or any employee thereof with intent directly or
indirectly to dispose of real or personal property or to perform
services, professional or otherwise, or anything of any nature
whatsoever or to induce the public to enter into any obligation
relating thereto, to make or disseminate or cause to be made or
disseminated before the public in this state, or to make or
disseminate or cause to be made or disseminated from this state
before the public in any state, in any newspaper or other
publication, or any advertising device, or by public outcry or
proclamation, or in any other manner or means whatever, including
over the Internet, any statement, concerning that real or personal
property or those services, professional or otherwise, or concerning
any circumstance or matter of fact connected with the proposed
performance or disposition thereof, which is untrue or misleading,
and which is known, or which by the exercise of reasonable care
should be known, to be untrue or misleading, or for any person, firm,
or corporation to so make or disseminate or cause to be so made or
disseminated any such statement as part of a plan or scheme with the
intent not to sell that personal property or those services,
professional or otherwise, so advertised at the price stated therein,
or as so advertised. Any violation of the provisions of this
section is a misdemeanor punishable by imprisonment in the county
jail not exceeding six months, or by a fine not exceeding two
thousand five hundred dollars ($2,500), or by both that imprisonment
and fine.