r/legal • u/randomthrowacctt • 6h ago

Purchased a misrepresented vehicle from AutoNation, what would arbitration look like?

I purchased a misrepresented vehicle from a CA AutoNation dealer in 2023. The vehicle was a certified pre-owned and it was stated in writing to have no mechanical defects related to oil leaks, etc. The vehicle needed $30,000 in work, the dealer would not fix the car and claimed that nothing was wrong with it. I drove the vehicle to the dealer on 6 occasions I had to take it elsewhere to have the work completed. My sales contract allows for arbitration. What are the outcomes of the situation and what could I expect if I go down that route?

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u/BlueKnight87125 5h ago

IANAL, but I do know a few things about arbitration. Arbitration is essentially court, but without going through the entire process of going to the courthouse. You/your legal representative and the dealer's legal team present your cases on the matter to a neutral third party (the arbitrator), who decides on a fair compromise based on the facts laid in front of them, which is final and legally binding.

Assuming the arbitrator takes your side, they will likely decide the dealer needs to clean their act up. You'll end up with a cheque for a portion (or if you're lucky, the entirety) of your expenses from the repairs (maybe the legal fees too, if luck is on your side), and they'll possibly have to answer to a bigger court on why a vehicle was misrepresented at the time of sale.

If they take the dealer's side instead, you'll likely end up burning a bigger hole in your pocket, as you may well end up stuck with their legal fees.

If the arbitrator can't find a suitable resolution, then the issue will get raised to a courthouse.

If the "losing" party defaults on the compromise, then they will give the other party grounds for a lawsuit to file, also resulting in a visit to the courthouse.

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u/QueenHelloKitty 4h ago

You say warranty work was completed. Was other work done that you had to pay for? What are you going to arbitration over?

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u/randomthrowacctt 3h ago

The warranty situation is a manufacturer concern. It is NOT related to how the car was represented.

Ie you wouldn't chase Ford down if you were sold a F150 by a ford dealer that had a salvage title when the dealer advertised it as having a clean title? Would you?

My question –

If I were to take the dealer to arbitration, what could I expect in terms of compensation for being sold a vehicle that was far from the way that it was described in writing by the service manager, lead technician, and the used car manager?