Judy Goleman couldn't wait to test drive the used car she and her daughter had found in an online listing for a Medford dealership. It was what she didn't know that proved to be the problem.
“When we arrived, my husband said ‘I don't want any car that has been in an accident.' To make certain, we asked for the CARFAX report,” Goleman recalled.
The salesman said “we don't sell cars that have been in accidents” and told us, tongue-in-cheek, where we could go in town to find such cars. He went on to talk about the reliability of all the dealership's used cars, the rigorous quality tests they underwent at the lot, and promised the CARFAX. (A CARFAX report gives a history of the vehicle, including any reported accidents.)
“We thought the report was coming soon. We weren't suspicious,” she adds.
Goleman and her family spent a significant period of time at the dealership before purchasing the car. At various points, they inquired about the status of the CARFAX report. Each time, the salesman promised to get it for them, and it got pushed to the back of her mind again.
“We came back after signing the papers and paying and finally got the report. It showed that the car had been in an accident!” Goleman says.
She demanded that the dealership take back the car and refund all their money. The dealership refused.
Goleman's husband was familiar with Help Now! and called to see what could be done. He met with Help Now! advocates Dennis Goldstein and Larry Kahn.
“We had Judy take the vehicle to three different body shops. They all confirmed that the car had been in a significant collision, and all identified the same areas of damage. In these situations, you never know what additional mechanical problems the accident might have caused,” Kahn explains.
Kahn and Goldstein contacted the dealership, presenting the body shop findings and demanding a cancellation of the sale with full refund.
The dealership refused stating that all their used vehicles for sale had CARFAX reports on their dashboards so what Goleman was saying about the delay in receipt of the CARFAX could not be true.
Goldstein then decided to use one of his favorite strategies, one that would have made Sherlock Holmes proud. Goldstein had been an attorney for Atlanta Legal Services for some 30 years before moving to Oregon and had often visited car dealerships incognito to gather information.
Posing as prospective customers, Goldstein and fellow Help Now! advocate Eric Wood each made a trip to the dealership. Contrary to the dealership's representation, they found that 10-20% of the used cars for sale lacked CARFAX reports on their dashboards.
Kahn also enlisted the pro bono support of renowned Portland consumer law attorney Justin Baxter. Baxter had previously obtained a million dollar plus judgment for fraud against a Portland auto dealership. He has worked with Help Now! on the water filtration scam. “Justin advised us that there were probable violations here of the Oregon Unlawful Trade Practices Act and of the Oregon Commercial Code, finding both to be bases for voiding the sales contract,” Kahn says.
When faced with the contrary information about the CARFAX reports and Baxter's legal opinion concerning statutory violations, management at the dealership relented.
For Goleman, this story had a happy ending. “We got back every penny. Without Help Now!, it might have ended differently…in court and with a lot of expense to everyone,” Goleman says.
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