Any rights in TN for purchasing a 'buyback/lemon' with a branded title which the dealership did not disclose?

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Purchased a used car from a reputable dealer in town only to find out while trying to sell it that it is a lemon law buyback with a branded title. The dealership claims they weren't 'informed' about the 'branded' information, and were sent a copy of the title with a 'sticky over the spot where this information would have been'. They also said that they purchased another car from the same wholesaler to find out the same information and lost $12K. They are saying, 'well we were dup'd too', but they took a chance of frauding another customer by continuing business with them. Do I have any rights here at all? They want me to plunk down $4000+ to get out of this.

Attorney Answer

1
Ronald Burdge ·
In the car business this practice is sometimes called "lemon laundering" and it goes on more often than most people think. I don't buy what the dealer is telling you. Besides, if there was a stickie post it note on the title, that would very likely have been removed when they got the title because the dealer then had to go process that title into one that had their own dealership name on it. On top of that, whether they were "informed" or not has nothing to do with what they "informed" you of when you were buying it from them. If the dealer was duped, then they have the right to go back on the person they bought it from too, but that also has nothing to do with you. The real question is whether or not the dealer told you the truth about the vehicle. Many states have a law that says if you buy a motor vehicle and then get the title later and there's some kind of brand on it (like the lemon law or odometer rollback, etc) then you may have the absolute right to cancel the sale if you try to do it within a short time after learning of the branded title. Regardless of that, your facts sound like the dealer is likely liable to you for at least your damages (the loss in value of the vehicle) if not more. To find out what your legal rights are for sure, you need to talk to a Lemon Law attorney near you. Try calling your local attorney bar association and asking for a referral to a Lemon Law attorney. Or, you can also look for one on this National List of Lemon Law Attorneys located here: http://www.ohiolemonlaw.com/locate-a-local-attorney.shtml (attorneys do not pay to be listed here and most of them are members of the National Association of Consumer Advocates, the only national organization of Consumer Law attorneys). You can find out more about laundered lemon cars here: http://www.ohiolemonlaw.com/laundered-lemons.html
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