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Bought a clean Mercedes e350. Insurance wont insure due to 3 claims on C.L.U.E. Should I back out?

CarFax only knows about problems if they are disclosed to them. The dealer’s knowledge of the car is probably only as good as the CarFax they presented to you.

The dealer did not disclose the past problems with the car. I find it highly unlikely that they could get away with selling a car that cannot be insured, even if it is by just your insurance company. The dealer is the expert and thy have an obligation to sell y out a car that can be registered in Colorado. If CO is like MD, you can’t register an uninsured vehicle. Get an email from your auto insurer stating that they will not insure this E350 and why. Take it to the dealer and demand your money back. It doesn’t matter what they did to the car, they sold you a car under false pretenses. If they did not know about it, they did not commit a crime, but they still have no business selling a car like this. If they refuse to let you out of the deal, contact the State’s Attorneys office and ask for advice.

The OP stated " no other insurer had a problem with insuring the car"

Yeah, I have a little trouble understanding why an insurer would not insure a car for the past misdeeds of the previous owner.

Did the OP check with other insurers, and if so, how many? Maybe the dealership made the assertion. I hope the OP checks back and explains a little further.

Not to sound redundant, but you don’t have a car problem. You have a legal problem. See a lawyer. He’ll know the applicable state laws and what’ll need to be done to make you “whole” again.

Agree pretty much. I think we need to know a little more about what the $8500 loss was for. Obviously it was hit pretty good and then maybe subject to hail or vandalism a couple times. Did it have a salvage or washed title? Yeah I wouldn’t rely on Carfax but a good inspection should turn up what was repaired on it. At any rate, yeah back out based on misrepresentation then argue about getting the money back.

If the car took an $8500 hit, no matter when it was, that was a hard hit, even figuring the high cost of M-B parts.

It is entirely possible that they don’t know the car’s history too. It probably came from an auction somewhere. Carfax is far from all knowing.

Even if the dealer has some earnest money from you, they will probably let you back out due to the uninsurability issue. You must have full coverage insurance, especially if you are financing the car. If they say you can use another insurance company, not of your choice, that’s not good enough.

Yeah its important to stay with one company for everything in order to qualify for an umbrella.