how to decide if i should use a lawyer or go to small claims court against a uzed car dealership

by Celestine Grady 6 min read

Lawyers are generally not allowed in small claims which helps keep the costs of suing low. You can also speak to a lawyer if you think the car dealership may owe you a lot more than the small claims limit. Most consumer fraud lawyers will provide you with a free consultation to determine if they can take your case.

Full Answer

Can I sue a used vehicle dealer?

Successfully suing used vehicle dealers can be tricky. Unlike new vehicle dealers, who are usually somewhat dependent upon their reputation in the community for honesty, a fair percentage of used vehicle dealers don't have a good reputation to start with and survive by becoming experts at self-protection.

Can a business handle a case in Small Claims Court?

Most businesses can also handle minor issues in small claims court if your state allows it. Depending on the state you live in, the amount of money you ask for in your case may need to be under $2,500 (Kentucky) or could be as much as $25,000 (Tennessee). Most states' limits fall in the middle of those amounts.

How do I file a complaint against a used car dealer?

In many states, the department of motor vehicles licenses used car dealers and can be very helpful in getting disputes resolved, particularly where your complaint is one of many against the same dealer for similar practices. Also, contact your district attorney's office.

Do I need an attorney to file a small claims lawsuit?

You do not need an attorney to file a claim or start a lawsuit. Most businesses can also handle minor issues in small claims court if your state allows it. Depending on the state you live in, the amount of money you ask for in your case may need to be under $2,500 (Kentucky) or could be as much as $25,000 (Tennessee).

What can I do if a car dealer ripped me off?

File an official complaintIf you have concerns about false advertising, you can report the dealership to the Federal Trade Commission.If there was a problem with your contract or your loan terms, report the dealer to the consumer protection office in your state.More items...•

How do you decide to sue?

research whether the person you're trying to sue might be able to claim some kind of legal defense or even immunity. research similar cases to find out what kind of compensation you might reasonably expect. collect all necessary documentation and evidence to help prove your side of the case.

How do I sue a car dealership in Texas?

Filing a ComplaintFor the fastest processing of your complaint, go to the Motor Vehicle Dealer Online Complaint System.Following the directions, provide a copy of the sales contract and other documents you may have received from the dealer.More items...

Do I need a lawyer for small claims court?

You do not need a lawyer for small claims court, and some states don't even allow you to have one. Read an overview of your state's small claims court laws first. There are many advantages to seeking legal help from an attorney, but you would likely have to pay attorney's fees.

What are good reasons to sue?

Here are 11 top reasons to sue someone.Compensation for Damages. A common form of this is monetary compensation for personal injury. ... Enforcing a Contract. Contracts can be written, oral or implied. ... Breach of Warranty. ... Product Liability. ... Property Disputes. ... Divorce. ... Custody Disputes. ... Replacing a Trustee.More items...

Can I return a used car to a dealership?

Problems with cars bought from dealers (For a used car, “satisfactory quality” takes into account the car's age and mileage.) You have a right to reject something faulty and you're entitled to a full refund within 30 days of purchase in most cases. After 30 days, you lose the short-term right to reject the goods.

Can I return a used car to a dealership in Texas?

Under Texas Law, you do not have 3 days to cancel the purchase like you may with some transactions the dealer is required to register and title the vehicle in your name within 30 days, regardless of if you owe money on the vehicle to the dealer or another financier.

What is the lemon law in Texas for used cars?

The Texas Lemon Law is a state law administered by the Texas Department of Motor Vehicles that helps consumers who buy or lease new motor vehicles and have repeated problems getting their vehicles properly repaired under the manufacturer's original warranty.

How to file a small claims lawsuit?

Filing a lawsuit against the accused party is a straightforward process. Remember, you go to small claims court when all attempts to resolve the issue with the other party have failed. The steps for filing a claim in small claims court are as follows: 1 Document the steps you’ve taken to settle the issue. Ensure you send a demand letter via a suitable delivery system. 2 Determine whether the court has jurisdiction to hear your case. 3 Visit the court in question to get the forms you need, or download them online. 4 Pay the small claims court costs. These are recoverable if you win. 5 Calculate the value of your exact damages. Ensure that the amount in question meets the maximum and minimum threshold in your jurisdiction. 6 File your claim within the time limit specified in your state’s statute of limitations. 7 Gather all your evidence and prepare to present it to the judge on the court-appointed date.

What is warranty in car?

A warranty refers to an assurance extended to you by a merchant. To pursue this type of claim, you have to show that the merchant has breached the warranty and you have suffered monetary loss as a result. For instance, a new car you purchased suffers mechanical problems while still under a valid warranty.

Is it intimidating to represent yourself in court?

Representing yourself in court is undoubtedly an intimidating process. However, if you gather the correct information, evidence, and anything else that is deemed necessary to strengthen your case, you’ll likely get the outcome you desire. Be sure to do your research first and, if you can afford it, let a lawyer handle it for you.

What to do if you decide to take a small claim?

However, if you decide small claims isn’t the best course of action, or if you fear you might not win your case, there are other options. Maintain some sort of communication with your customer and try settling for a lesser amount — getting paid something is sometimes better than nothing at all.

What do you need to do before filing a small claims claim?

Before making a decision to file a claim in small claims court, you need to make sure that you can prove your case and “win.”. The person who wins doesn’t necessarily have all their documents in a row; you need to present your case as if you are trying to make friends with the judge. The judge typically awards the victory to ...

How much does it cost to file a small claims claim?

You will want to review your specific statute of limitations again for your state, but typically, the cost for filing a claim in small claims can save you a lot of money because you don’t have to pay an attorney. Typically there are minimal costs: 1 Fees to file your case (filing fee typically around $75-$100) 2 Fees to process service on your defendant (typically around $50 per defendant)

What to do when a defendant does not respond to a court order?

This is an awesome situation. When a no-response happens, all you have to do is contact the court and ask to schedule a hearing to secure a default judgment. If the defendant does file an answer, you can respond to their answer, or call the county clerk and ask them to schedule a hearing.

How to show respect to a judge?

It needs to be business formal and professional; showing respect to the judge is of utmost importance. Be sure to wear closed toed shoes, and make your hygiene is tip-top, making you look put together. Be prepared: Practice what you’ll say in court to yourself or to someone else to hear how you present.

What happens if the defendant shows up in court?

If the defendant does show, they will then have their turn to present the case. Stay quiet and do not interrupt. You will give time to respond to what they say, but wait your turn. After both sides have presented their case and evidence has been viewed, the judge will render their decision.

Can you pick and choose between accounts?

Just keep in mind you have to report your entire customer aging; you are not able to pick and choose between accounts. One last action you can take — and sometimes you may want to do this sooner than later — but turning your balance over to a collection agency may be able to get a response when you’ve been unable to.

How to sue a car dealer?

To successfully sue a used car dealer, you must be able to prove that: 1 you suffered a financial loss (this is not hard if you had to pay for repairs), and 2 the dealer is legally responsible for your damages.

What happens if a car breaks after you take it out of the lot?

Argue fraud. If the car broke almost immediately after you took it out of the used car lot, you can file in small claims court and argue that you were defrauded.

What is implied warranty?

There are two types of implied warranties. One type–the implied warranty of fitness–means that the vehicle is warranted to work for a particular purpose (say, consistency). The more common implied warranty is for merchantability.

Do used car dealers have a good reputation?

Unlike new vehicle dealers, who are usually somewhat dependent upon their reputation in the community for honesty, a fair percentage of used vehicle dealers don't have a good reputation to start with and survive by becoming experts at self-protection. The principal self-protection device employed by used vehicle dealers is ...

Can you sue a used car dealer?

To successfully sue a used car dealer, you must be able to prove that: you suffered a financial loss (this is not hard if you had to pay for repairs), and. the dealer is legally responsible for your damages. This second point is often harder to prove. Almost surely, the used car dealer will testify that he or she had no way ...

What happens if you lose a car dealer?

if you lose, the court could order you to pay some of the dealer's legal costs. it's complicated and a lot of work for you, especially if you don't have a lawyer. it usually takes a lot of time. if you win but the dealer doesn't pay, it's up to you to try to collect the money. Reviewed: January 2, 2020.

Can you sue a registered dealer in Ontario?

If the Ontario Motor Vehicle Industry Council (OMVIC) cannot help you solve your problem, you can sue the registered dealer in. Small Claims Court. . If you are asking for $35,000 or less, you can file a claim in Small Claims Court. You must file your claim within 2 years of when you first learned about the problem.

What do you need to know when going to court?

When you go to court, you are trying to prove to an independent trier-of-fact—a jury of your peers or a judge—that the defendant you’ve named owes you money. To do this, you need to understand four things: (1) the cause of action, (2) the elements of the cause of action, (3) the burden of proof, and (4) the evidence available to you.

How to determine if you carry the burden of proof?

In determining whether you can carry your burden of proof, you need to look at all the available evidence and basically guess what you think a jury or judge will decide based on that evidence.

What is the burden of proof in a case?

In simple terms, this means that the trier of fact has to look at your claim and determine that your story is the more likely story. In other words, the trier might say, “I believe you 51%, so I guess I have to go with you.”

What is cause of action?

A “cause of action” is a legal basis for telling the court you want money from the defendant. For example, if you had a contract and someone breached it, your cause of action is “breach of contract.” If someone injured you in a car accident, your cause of action would be “negligence.”

Do small claims need to be detailed?

Small claims complaints do not need to be detailed. However, it is important to keep in mind that you will be trying to convince the judge to rule in your favor and the judge is likely legally trained. The judge will therefore be looking at your case from that perspective. The judge will want to see the cause of action and the elements and see that your evidence meets the burden of proof on each element. With this in mind, it may benefit you to identify your cause of action and provide some narrative to explain how the elements of the cause of action are met.

Is it easier to win a car sale case against a private party or against a dealer?

This often runs counter to both common sense and fairness, as a private party may be more honest than a dealer. But fair or not, the fact is that a nondealer is usually less sophisticated in legal self-protection than a pro.

Is a nondealer a pro or a nondealer?

But fair or not, the fact is that a nondealer is usually less sophisticated in legal self-protection than a pro. Indeed, in most private party sales, the seller does no more than sign over the title slip in exchange for the agreed-upon price without any formal contract.

Robert Grant Pennell

The advice you have already gotten from the other two responses are excellent and should be followed. I'm only answering to point out that this will be covered by the terms of the contracts that you signed with the dealer and the third-party warranty company...

Henry S. Clapper

Mr Bell has given you good advice. You might want to invest in a consultation with an attorney who handles consumer fraud cases.

Bryce Bruce Bell

Generally, you can file a case in small claims court if there is no forced arbitration clause. You should review any such forced arbitration clause in the documents you signed. A forced arbitration clause is contained in most used and new automobile transactions.

Common types of small claims lawsuits against car dealerships

We often receive the question, can I sue a car dealership in small claims? The answer is yes as long as the dispute is for $10,000 or less (more on this below).

How much does it cost to sue a car dealership in small claims?

So how much are you going to spend by suing a car dealership in small claims court?

How much can you sue a car dealership for in small claims?

In California, you can sue a car dealership for a maximum of $10,000 if you are an individual. If you are a business suing a car dealership, you can sue for a maximum of $5,000. Note, if you are a sole proprietor, you count as an individual.

How to file a small claims lawsuit against a car dealership

In order to sue in California small claims, you need to be able to correctly name the person or business you are suing. Identifying whether the car dealership is doing business as an LLC or Corporation is very important. Alternatively, the business may be owned by a person, known as a "sole proprietorship."

What is a small claims court hearing like?

Small claims hearings in California small claims are informal and most hearings last around 15 minutes. While many disputes settle before the hearing, here is what to expect if your lawsuit does not settle.