On 7 Oct 2005, I bought a car for my son from a used car lot here in
Minnesota. On Halloween night, some drunk idiot hit the car in the
parking lot of my apartment. It was a hit and run, but last week, they
finally found the guy who hit it, and I have been working with his
insurance company to get it fixed/totalled. The adjuster came out
yesterday, and said the car was totalled. He said the settlement would
be between $2100 - $2600. When I spoke with him today, he said the
settlement would be $2080 ($2600 - 20%), due to the fact that the car
is showing a salvage title.

I looked at the title I received from the state, and it does not state
that it was a salvaged vehicle. Was the used car dealership
responsible for telling me that the car was salvaged? Can the
insurance company use a "CarFax" (or similar) report to devalue the
settlement, even though the Minnesota title is "clean"?

My question is:

1. Is the dealer required to disclose the fact that the car was salvaged?
2. Can the insurance company degrde the value of the vehicle based on
the "CarFax" information?
3. Is there any way to dispute the vehicle history report?
4. Is there any additional advice that you can provide or is it "Caveat Emptor"?

I know that GA cannot give legal advice, etc, so no need to quote the
disclaimer, I'm just looking for some information so I know what my
otions are when I see the adjuster tomorrow.

I need an answer prior to 4:00 PM CST 7 Dec 05.

---

Clarification of Question by cvenom-ga on 07 Dec 2005 04:51 PST

They say the salvage title was from Indiana.

Dear cvenom-ga;

Thank you for allowing me to answer your interesting question.
According to the Minnesota Attorney General?s Office and the Minnesota
Lemon Law (known officially as Minnesota Used Car Warranty Law)
dealers are indeed required to tell buyers if the car they're
interested in buying has been branded as salvaged or rebuilt. The law
requires that the title documents for salvaged cars receive a "brand,"
or a permanent written disclosure about an auto's prior salvage
history. Regardless of the origin of the salvage certificate the
Minnesota lemon law covers new motor vehicles purchased or leased in
Minnesota and it does appear that the responsibility to disclose the
history of the car your purchased lies specifically with the car
dealer.

MN CAR LAWS
http://www.ag.state.mn.us/consumer/cars/MNCarlaws/MNCarLaws_2.htm

MINNESOTA USED CAR WARRANTY LAW
http://autopedia.com/html/LemonLaw/MN_lemonlaw3.html

Notwithstanding the damage you have received to your car as a result
of the accident it appears (to me at least) that you may have a valid
civil complaint against the car dealer for failing to disclose the
true history of the car in the first place and that you are possibly
entitled to a full refund of the full purchase price of the used motor
vehicle and all other charges, including but not limited to excise
tax, registration tax, license fees, and reimbursement for towing
expenses incurred (Subd. 8. Refunds.)

For the best and most current information concerning this problem I
recommend you waste no time in contacting the Office of Minnesota
Attorney General Mike Hatch. The Attorney General's Office answers
questions about landlord and tenant rights, mobile homes, health care,
cars, credit, unwanted mail and phone calls, and numerous other
consumer issues. The Attorney General's Office also provides FREE
MEDIATION to resolve disputes between Minnesota consumers and
businesses and uses information from consumers to enforce the state's
consumer laws.

If you have a complaint, please contact the Attorney General's Office
in writing at:

Minnesota Attorney General's Office
1400 NCL Tower
445 Minnesota Street
St. Paul, MN 55101. 

Citizens can also receive direct assistance from a consumer specialist by calling: 
(651) 296-3353 
Toll free: 1-800-657-3787

TTY numbers are: 651-297-7206 and 1-800-366-4812. 
(TTY numbers are for callers using teletypewriter devices.)

As for the insurance company?s policy of using CARFAX and their
ability to devalue the car based on the CARFAX report, this would
likely be an internal policy matter within the insurance company and
also a matter that the Attorney General?s Consumer Affairs Office
might be able to educate you further on (i.e. actual legal advice)
according to state law.

As a matter of opinion, if I were in your shoes it wouldn?t matter to
me how the insurance company attempts to approach the issue because I
would seek a civil remedy if I could from the car dealer in an effort
to get a full refund ? based on fraud or negligence under the MN Lemon
Law; and that, as they say, would be that. I would immediately get
some free guidance from the Attorney General?s office and then, if the
free mediation services they provide to the public does not succeed in
resulting in a full refund I?d consider filing a civil claim against
the dealer to recover the cost of the vehicle that you purchased under
the premise that it was a viable vehicle and not a salvaged one and
that he or she failed to disclose this at the time of purchase.

I hope you find that my answer exceeds your expectations. If you have
any questions about my research please post a clarification request
prior to rating the answer. Otherwise I welcome your rating and your
final comments and I look forward to working with you again in the
near future. Thank you for bringing your question to us.

Best regards;
Tutuzdad-ga ? Google Answers Researcher



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Thanks, found the answer out shortly before you posted, but you did
provide some good additional info. The insurance company came up about
$80 short of the original purchase price, so I am not going to pursue
the matter other than to make a formal complaint, with the AG, against
the dealership. As usual, Thanks for your help.