My engine failed right after I bought the car.

As-Is Disclaimer 

When buying a used car, consumers sometimes find "as-is" disclaimers in sales contracts. Dealers may claim the disclaimer negates any claims.  We discuss rebuttal. 

Consumer Fraud Act 

The New Jersey Consumer Fraud Act prohibits "unconscionable commercial practices, deception, fraud, false pretense, false promise, misrepresentation, or the knowing concealment, suppression, or omission of any material fact" in connection with the sale of goods or services.  Violations are "per se" unlawful if they breach specific regulations, such as those governing used motor vehicle sales.  In many cases, deceptive conduct by the dealership will subject them to liability even if there is a paper saying the car was sold as-is. 

Altering Check Engine Lights 

Tampering with diagnostic indicators, like altering or disabling the check engine light (CEL), is a form of concealment. The CEL signals engine or emissions issues, and resetting or masking it prevents buyers from discovering problems during a test drive or inspection.

• Why it's actionable: This is an affirmative deceptive act under the CFA. If a dealer knows of an underlying defect (e.g., faulty sensors, emissions issues) and conceals it by tampering with the CEL, it's a knowing omission or misrepresentation. Courts have held that such actions violate consumer protection laws, as they induce buyers to purchase under false pretenses.
• Evidence to gather: Diagnostic scans showing recent resets, mechanic reports confirming tampering, or dealer service records. Buyers should document any post-purchase CEL illumination and related repairs.
• Potential outcomes: Buyers may seek to revoke the sale, recover repair costs, or claim the vehicle's diminished value. In cases like Cannon v. Cherry Hill Toyota, courts emphasized that non-disclosure of material facts triggers CFA liability.

Even in an "as-is" sale, dealers cannot hide defects they know about or could discover through reasonable inspection. If the defect substantially impairs the vehicle's use, value, or safety, it strengthens the claim.

Administrative  Regulations Under New Jersey Used Car Lemon Law 

." In New Jersey, additional rules apply under the Used Car Lemon Law (N.J.S.A. 56:8-67 et seq.) and related regulations (N.J.A.C. 13:45A-26B and 13:45A-26F).

• For vehicles with fewer than 60,000 miles, dealers must provide a warranty and cannot sell "as-is."
• For vehicles with 60,000 to 100,000 miles, "as-is" sales are allowed only if the buyer signs a written waiver.
• Vehicles over 100,000 miles or older than seven model years may not qualify for Used Car Lemon Law protections, but CFA claims can still apply.

Despite these disclaimers, New Jersey law prohibits dealers from using them to evade responsibility for fraud or deception. If a dealer engages in prohibited conduct, the "as-is" clause can be rebutted, allowing buyers to seek remedies like refunds, repairs, or damages.

Concealment of defects is a classic CFA violation that overrides an "as-is" disclaimer. New Jersey regulations explicitly prohibit dealers from:

• Misrepresenting the mechanical condition of a used car.
• Failing to disclose any known material defect in the mechanical condition prior to sale.
• Omitting material facts about the vehicle's history, such as prior accidents, flood damage, salvage titles, or odometer tampering.

Conflicting Warranties

Dealers sometimes provide oral promises, written addendums, or service contracts that contradict an "as-is" disclaimer. This creates confusion and can invalidate the disclaimer.

• Oral Representations: If a salesperson assures you the car is "in great shape" or "fully inspected" despite known issues, this can be fraud if it contradicts the "as-is" clause. Regulations require dealers to provide a clear written explanation of "as-is" terms and prohibit representations that a vehicle comes with a warranty when it doesn't.
• Service Contracts or Extended Warranties: Under N.J.S.A. 56:8-68, dealers must disclose all terms of any warranty, service contract, or repair insurance. Failing to do so, or retaining undisclosed profits from these add-ons (as in Cannon v. Cherry Hill Auto Mall), violates the CFA. If a dealer sells a service contract alongside an "as-is" disclaimer without full disclosure, the implied warranty may still apply.
• Conflicting Documents: If the Buyers Guide indicates a warranty but the contract says "as-is," or if a 50/50 warranty (where costs are split) is offered, the dealer cannot fully disclaim responsibility. New Jersey law prevents waivers of minimum standards, such as roadworthiness.
• Statements on Website About Vehicle Inspection.  If the dealer said it inspected the vehicle it's unfair to suggest the consumer needed to do that too.
  
  Proving Your Claim 

Suppose a dealer verbally promises to fix minor issues post-sale but includes an "as-is" clause. If they renege, this could be a CFA violation for false promise. Evidence like emails, texts, or witness statements can support the claim.

1. Document Everything: Keep the sales contract, Buyers Guide, service records, repair bills, and communications with the dealer. Get a professional inspection to identify concealed defects.
2. Notify the Dealer: Send a written demand letter outlining the issues, citing CFA violations, and requesting remedies (e.g., refund, repairs). This preserves your rights and may prompt settlement.
3. File a Complaint: If unresolved, file a claim in Special Civil Part or Superior Court. .
4. Seek Additional Remedies: Combine with Used Car Lemon Law claims if applicable (e.g., for unrepaired defects after three attempts). Federal laws like the Magnuson-Moss Warranty Act may also apply for warranty fraud.
5. Consult an Attorney: A consumer protection lawyer can evaluate your case, gather evidence, and pursue treble damages. Many work on contingency, with fees recoverable under the CFA.
   
   Case Examples

• In Zimmerman v. Northfield Real Estate, Inc. (though an Illinois case, similar principles apply), courts rejected "as-is" defenses where exculpatory clauses were used to hide defects.
• New Jersey cases like Cox v. Sears Roebuck & Co. affirm that CFA violations cannot be waived by disclaimers.
• National resources, such as the National Consumer Law Center's Automobile Fraud guide, highlight that fraud claims survive "as-is" sales.

Conclusion

An "as-is" disclaimer is not an ironclad shield for used car dealers in New Jersey. If defects were concealed—such as by altering the check engine light—or if conflicting warranties were provided, the CFA offers a pathway to rebut the disclaimer and hold dealers accountable. Consumers facing these issues should act quickly, as statutes of limitations (six years for CFA claims) apply. By understanding your rights, you can turn a bad deal into a fair resolution.  For more information on consumer rights in auto sales, explore resources from the New Jersey Division of Consumer Affairs or contact our office where we specialize in consumer fraud claims.

Sources: New Jersey Statutes Annotated (N.J.S.A.); New Jersey Administrative Code (N.J.A.C.); Federal Trade Commission Used Car Rule.


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