Powerful Legal Advocacy

How do undisclosed salvage titles impact buyers and sellers?

On Behalf of | Jan 13, 2025 | Consumer Fraud

Selling a vehicle with an undisclosed salvage title can lead to serious legal problems for both buyers and sellers. Missouri law requires full transparency about a car’s history, and failing to disclose this information can have significant consequences.

Understanding salvage titles

A salvage title is issued for vehicles declared a total loss due to accidents, natural disasters, or other significant damages. You can repair and sell these cars, but the title must clearly state their salvage history. Buyers rely on this information to make informed decisions, especially since salvaged vehicles may have hidden safety issues or decreased value.

Missouri’s disclosure requirements

Missouri law requires sellers to disclose a vehicle’s salvage title status before completing a sale. Failing to do so violates consumer protection laws and can result in penalties, fines, or legal action. The Missouri Department of Revenue emphasizes that this disclosure protects buyers and ensures fair transactions.

Legal consequences for sellers

Sellers, including auto dealers, who hide salvage titles may face lawsuits for fraud or misrepresentation. Buyers can demand refunds or seek damages for repair costs and diminished vehicle value. In some cases, courts may award additional compensation for punitive damages to discourage future misconduct.

Protecting buyers’ rights

Buyers should always check a vehicle’s history using resources like CARFAX or the National Motor Vehicle Title Information System (NMVTIS). Inspecting the title and asking for a professional inspection can also uncover undisclosed salvage issues. These steps help buyers avoid unexpected costs and safety risks.

The importance of transparency

Full disclosure during vehicle sales builds trust and prevents legal disputes. Sellers who follow the law and share accurate information ensure smoother transactions. Buyers benefit by knowing exactly what they are purchasing, which leads to better decisions and fewer complications later.