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Bought a Certified Pre-Owned car found out there was frame damage

So last year I bought a GM Certified Pre-Owned car from one of the very well known dealerships in my area. I found out when I went to trade it in that it had frame damage and the dealership I was looking to trade it in at said they couldn’t sell it at there lot. I bought the car for $12,000, which was comprable to all the other 08 Impalas at the lot. There was nothing to lead me to believe it was different than the rest. I asked if it had been in any accidents or had any issues and was told NO. I was told it had gone through a 172 point inspection and was factory new. I sold have gotten a carfax but didn’t, I know dumb! Now my $12,000 car has depriciated in value by $7,000 in a year. I went to the dealership last night and confirmed that it was GM Certified. The Auto auction announced the frame damage when they sold it to the dealership. When I bought it we did get the 1 year/ 12,000 mile bumper to bumper warranty for it being a Certified Pre-owned. I am outside the miles and it has been a few days over a year. And unfortunently for there was no way to know about the frame damage until I went to trade it in. When I talked to a manager he said that he is baffled to see this having happened and would have to talk to a higher up person in the dealership. I want them to pay off my loan and take the car back, has anyone ever heard of this happening? Do I have enough of a case for that to be possible? I just don’t know how to go about this with the dealership!

I think some how something went missing on the “172 point inspection” Iwould say talk to a lawer and see what they reccomend. i think the car was not what they said it was when you bought it. i hope something postive comes out of this for you.

I thought you were out of luck until this part:

The Auto auction announced the frame damage when they sold it to the dealership.

If you can prove that, you have a fraud case on your hands.

On the autochecker report I got it says it clear as day first line “Auto Auction Announced Frame Damage” second line was the dealership purchase then “GM Certified”

I need an explanation of what is meant by a “Certified” used car. I remember back in the 1950s when the Chevrolet dealer sold “OK” used cars, the Pontiac dealer sold “Goodwill” used cars, Buick dealer sold “Owner Certified” used cars, the Ford dealer sold “A-1” used cars, etc. These were nationally used descriptors for the various franchises. They didn’t mean anything then and unless someone can explain it to me, I don’t think “GM Certified” means much of anything now. I think that the best strategy is to take a prospective purchase to a good independent mechanic and pay the mechanic to do an inspection. The independent mechanic would discover frame damage immediately. My guess is that the 172 point inspection consists of things like "check ash trays for cigarette butts, oil any squeaky door hinges check under seats for any loose change. . . . "
If you have a television station that has a consumer affairs segment on its news broadcast, make contact with them and expose the dealer.

The dealership got back with me and told me that any dealership should take the car with frame damage. I feel this is probably false seing as the two dealerships we had it appraised at said they would have to wholesale it.

Now I get the picture. A dealer takes a trade-in with frame damage. The dealer says he can’t sell the car on his lot, so he sends it to the auction where another dealer buys the car, “certifies” the car and then sells it on his lot with frame damage.
Now, I know that new car dealers do buy cars at auction to increase the inventory. A dealership is divided into different departments: 1) New car sales; 2) used car sales; 3) service; 4) parts; and sometimes 5) body shop. Each department has its own manager and each department is expected to make a profit. The used car manager needs to have cars to sell. If there haven’t been enough trade-ins, off he trots to the auction to find something he car resell at a profit. The used car manager inspects each potential trade-in to determine if it is something he wants to resell on the lot.
Now, there are some independent dealers who sell used cars and would buy a car with frame damage at an auction for resale. However, a good used car manager at a franchised new car dealership would shun such a car. I think you should engage a lawyer to go after this dealer.

First I am not sure you have a case for fraud. Check with a Lawyer, Laws very from state to state. Also the 2 dealers who said they would wholesale it, are trying too get the car cheap. As long as the car has been repaired properly the car is fine. I would bet if you if traded or sold it to them it would be on their lot for sale. May not be the lot that took it in,but it will be on one they own. Has the car gave you any problems? Your car is a unibody car and does not have a frame. Most cars today that get hit have some unibody damage. It does not mean the car cant be put back as good as new. This is a myth that wont die. I have cut cars in haft and put them back together. You could not tell that I had done it. The last one I did is sill on the road and now has over 200,000 miles on it. It had under 10,000 when I did it.

I think you have a case. Looks to me like they knew it was bad when they sold it to you. It might be the case where the salesman probably didn’t know…but someone in the organization surely did.

A quick search without knowing the model, miles or location shows the trade in value between $6,000 and $9,000 (depending on the source). The $7,000 offer may be typical with or without the frame damage. You can sell this car to a private party and not take as much of a loss.

Did they show you the extent of the frame damage or is this based on a report?

Most cars today that get hit have some unibody damage. It does not mean the car cant be put back as good as new. This is a myth that wont die.

The problem is that the myth drives down the actual market value of the car. It doesn’t matter if it’s true or not - all that matters is if people believe it’s true, and reduce the amount they’re willing to pay for the car as a result.

The car had damage. The dealer knew about it, and not only failed to disclose it, but in “certifying” it, created the impression that the car was unblemished. Whether that damage is fixable or not, or even whether it was in fact fixed or not, it permanently drives down the price of the vehicle. If I have two identical cars, and one has been in a wreck, while the other hasn’t, I’m going to be willing to pay less for the car that’s been in a wreck. I can’t trust that Oldbodyman is the guy who worked on it and therefore the car is just fine. For all I know it was repaired by some idiot, and in 5 years it’ll rust in half on me.

@ Nevada_545 it is $7000 less than purchase I have only been offered trade ins between $4000-$5000. Way lower than it should be but the damage holds it back.

The biggest problem for me now is I can’t get even close to the blue book value bacuase it has that spot on its record. It drives fine but i;m still screwed!

Sorry to hear about your troubles.
I wonder if you can go to small claims court for stuff like this so it doesn’t cost you an arm and leg in legal costs.You’d have to prove what MountainBike suggest: that the car would sell for less than if it didn’t have frame damage but that may not be that difficult.
Them certifying it and then being sued over it in small claims court may actually scare them into submission. Call the local “I’m in your corner” TV personality and they’ll quickly want to shut you up, I suspect.

Trade in value is always the least you’ll ever get for a vehicle. Then they mark it up to that retail value making their profit for prep and lot time.

To get higher dollars in your pocket sell it yourself to a private party…and disclose the ‘‘frame damage’’ as fully repaired and therefore not a problem.

That IS true isn’t it ?
The tires don’t wear strangely ?
It doesn’t ‘dog leg’ down the road when driving ?
All the doors, hood and trunk are aligned and work properly ?
The repaired damage is properly rust proofed and painted ?

Just why ARE you trying to sell a car you’ve had merely a year ??

frame damage is one thing.
REPAIRED frame damage is another.

Does your copy of the 172 point certified inspection have a box checked for “no frame damage” or “clean Carfax report” as some inspection forms do? Unless there is a disclosure law in your state you may need some proof that the car was sold as “no prior damage”.

The biggest problem for me now is I can’t get even close to the blue book value bacuase it has that spot on its record.

Not everyone who shops on craigs list will check the vehicle history report. You can still ask retail value for this car.

@ Ken Green The car rides kind of funny. The back right tire seems to wear more than the rest. Our main reason to trade it in it that my husband and I want to expand our family and get a bigger car more suitable to our need. I recently got a career and we are in a position now that we don’t want to settle and want to find a good car for our family lifestyle.
@Nevada_545 I considered selling it privatly but I don’t know if I want to go through the hassle. I would much rather the dealership fix it. If it comes to that I will though.

I talked to the dealership and they are now trying to tell me every other dealership is wrong if htey will not give you close to blue book trade in value.

take the car back to the dealer that sold it to you and trade it in for another car with them. Make them give you the full value of the car without “frame damage” or sue them.

The dealership got back with me and told me that any dealership should take the car with frame damage.

This is an easy one, drive over there and make them prove their point. Trade it back to them at full value and move on.