The old maxim "caveat emptor" prevails in this situation. "May the buyer beware." Unless you received a warranty or statements in writing that may help your position, you're, unfortunately, out of luck. Without a written warranty on a used car, you are buying the vehicle "as is."
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I have a lot of respect for Eric, and he knows Indiana law too, but I wouldn't give up too easily. Car sales law is a very narrow area of law. What happens if you buy a vehicle with a branded title and didn’t know it was branded? In most states, there is a title “defect” law that says that if the title that the buyer gets turns out to have a “defect” because it is “branded” with a phrase like “rebuilt” or “salvage” or “lemon law buyback” or “flood” or “odometer” or something similar, then this title defect law can be used to make the seller take back the car if the buyer acts promptly after discovering it. For car dealers who sell branded titles, the laws are far more strict in almost every state too. For a private consumer seller, same fundamental result though. These laws can be strong but each state law can be a little different on this. If you bought a vehicle and the title was not clear and unbranded (sometimes called a “clean” title) then you may be able to claim fraud too. If it is still soon after the sale, the best thing to do is contact the seller and ask them to cancel the sale and return the vehicle and get back your money. If you want to keep the vehicle then maybe you can get the seller to still refund at least a small part of the purchase price, just to be safe and avoid a problem later. If things go bad and don’t get worked out agreeably, then you really need to talk to a local Consumer Law attorney near you. I know Steve Hofer is near you and so is Robert Duff. Ryan Frasher is also in Indiana. I think all of them have experience with cases like this. You can also go to this web site page for a Free Online 50 State National List of Consumer Law Lawyers (http://www.ohiolemonlaw.com/ocll-site/ocll-locate_local.shtml) and find one near you (lawyers don’t pay to get listed here and most of them are members of the only national association for Consumer Law lawyers, NACA.net). You can also look for one here on Avvo under the Find a Lawyer tab. Or you can call your local attorney's Bar Association and ask for a referral to a Consumer Law attorney near you. But act quickly because for every legal right you have, there is only a limited amount of time to actually file a lawsuit in court or your rights expire (it's called the statute of limitations), so don't waste your time getting to a Consumer Law attorney and finding out what your rights are. If this answer was helpful, please give a “Vote Up” review below. Thanks for asking and Good Luck. Ron Burdge, www.CarSalesFraud.com, www.NewCarLemonLaw.com
For a Free Online 50 State National List of Consumer Law Lawyers, click here http://www.ohiolemonlaw.com/ocll-site/ocll-locate_local.shtml
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This answer is for general purposes only and does not establish an attorney-client relationship. The law in your state may differ and your best answer will always come from a local attorney that you meet with privately. If you need a Consumer Law attorney, click the link above to find a Consumer Law attorney near you.
From my experience, most vehicles that have this kind of branded title are worth 50% of market before looking into the actual reasons for the branding, which could affect value further. If you paid close to market price and have an ad that fails to disclose the title brand, it's very likely, in my opinion, that you can make a strong case that important information regarding the title was not disclosed and you should be able to unwind the deal. Get a sit down with local counsel specializing in this area of law for a complete analysis of your situation. It should be inexpensive or free. Find someone here: http://www.naca.net