Tom McCutcheon – Attorney at Law
Q: I sold a car and over the weekend the transmission failed. I never had any problems with the car and I don’t believe the person that bought it did anything to the transmission that made it fail. Now the person wants their money back. I sold the car “as is”. What can I do?
David
Florence, AL
A: Between an ordinary buyer and ordinary seller as opposed to people in the business of buying and selling cars, I would advise people to be very specific about what representations are made during the sale of a car. As I have said before, if it is not in writing it is not worth the paper it is not written on.
If a “try out” period is given by the seller it should be specific as to time and miles. If a warranty is given it should be specific as to what is warranted and what is not.
In normal business usage the phrase included in the sale of a used car “as is, where is” means and is intended to mean that there is no warranty at all. The courts of this state have consistently held that absent special circumstances a car purchased “as is, where is” has no warranty and the seller has no duty to repair any problem once the transaction has been made.
A specific exception is made for the sale of a car with a salvage title. There is a statutory duty to provide the buyer with the following information in no smaller than 10 point type: “This vehicle’s title contains the designation “salvage” or “rebuilt”.” Other exceptions could include specific misrepresentations as to the car’s condition that were known to the seller and made fraudulently or willfully suppressed. Misrepresentations as to the odometer are covered under federal law and each title contains an odometer statement. Those misrepresentations have a minimum and maximum monetary penalty as compensatory damages and a jury could award punitive damages as well.
Including the phrase “as is, where is” in any bill of sale is good business unless otherwise agreed upon and in this case the result is that you do not have to give the money back.
Buckle up and drive safely.
2210 Helton Drive
Florence, Alabama 35630
Phone: 256.764.0112
Fax: 256.349.2529
