[trunge44]

Hi,

Last month I purchased a Chevy Bolt Lt from a local dealership. It was utilized by them as a rental car for customers having work done on their vehicle and so it had 500 something miles on it when I purchased it. When I referred to it as "used" I was quickly cut off and corrected that it was considered new as "it was never titled to anyone." All the paperwork I signed had "new" checked off rather than used. I received my title in the mail today and to my surprise it says used. I contacted the dealership and explained all this to see if it was just a mistake on the DMV end but was told I was "unfortunately misinformed" at the dealership and that I am indeed the second owner as it was titled to the dealership. Even if the mileage was only 500 something, I feel as though I paid the price of a new vehicle for a used one. The title saying I'm a second owner reduces it's value should I ever sell it. I don't understand how all the paperwork was allowed to say "new" to totally mislead me and only later find out that it is used.

Can anyone offer advice on how I should handle this? I'm also trying to figure out how much a comparable used Bolt should be to say how much they overcharged me. It has the DC fast charging and comfort/convenience package and as a potential seller, I am now the second owner, which is even worse off than a first owner selling it. I paid $36,572 as the vehicle price, after adding sales tax and everything it came to a total of 39,262.50 though $599 of that was optional simoniz glass coat. I feel as though that is way too much to be a second owner of any vehicle.

Thank you for any advice.
TR

 

[bro1999]

Hi,

Last month I purchased a Chevy Bolt Lt from a local dealership. It was utilized by them as a rental car for customers having work done on their vehicle and so it had 500 something miles on it when I purchased it. When I referred to it as "used" I was quickly cut off and corrected that it was considered new as "it was never titled to anyone." All the paperwork I signed had "new" checked off rather than used. I received my title in the mail today and to my surprise it says used. I contacted the dealership and explained all this to see if it was just a mistake on the DMV end but was told I was "unfortunately misinformed" at the dealership and that I am indeed the second owner as it was titled to the dealership. Even if the mileage was only 500 something, I feel as though I paid the price of a new vehicle for a used one. The title saying I'm a second owner reduces it's value should I ever sell it. I don't understand how all the paperwork was allowed to say "new" to totally mislead me and only later find out that it is used.

Can anyone offer advice on how I should handle this? I'm also trying to figure out how much a comparable used Bolt should be to say how much they overcharged me. It has the DC fast charging and comfort/convenience package and as a potential seller, I am now the second owner, which is even worse off than a first owner selling it. I paid $36,572 as the vehicle price, after adding sales tax and everything it came to a total of 39,262.50 though $599 of that was optional simoniz glass coat. I feel as though that is way too much to be a second owner of any vehicle.

Thank you for any advice.
TR

That sucks. Not only the 2nd owner resale value issue, but you won't be able to claim the $7,500 tax credit most likely either. You pretty much got screwed by the stealership.

Do you have emails or other documentation (aside from the sale paperwork) that has them telling you it is a new car? I would think there would be some kind of legal recourse for this kind of blatant deception by the dealer. They owe you an additional $7,500 at a minimum.

 

[MDBolt]

Hi,

Last month I purchased a Chevy Bolt Lt from a local dealership. It was utilized by them as a rental car for customers having work done on their vehicle and so it had 500 something miles on it when I purchased it. When I referred to it as "used" I was quickly cut off and corrected that it was considered new as "it was never titled to anyone." All the paperwork I signed had "new" checked off rather than used. I received my title in the mail today and to my surprise it says used. I contacted the dealership and explained all this to see if it was just a mistake on the DMV end but was told I was "unfortunately misinformed" at the dealership and that I am indeed the second owner as it was titled to the dealership. Even if the mileage was only 500 something, I feel as though I paid the price of a new vehicle for a used one. The title saying I'm a second owner reduces it's value should I ever sell it. I don't understand how all the paperwork was allowed to say "new" to totally mislead me and only later find out that it is used.

Can anyone offer advice on how I should handle this? I'm also trying to figure out how much a comparable used Bolt should be to say how much they overcharged me. It has the DC fast charging and comfort/convenience package and as a potential seller, I am now the second owner, which is even worse off than a first owner selling it. I paid $36,572 as the vehicle price, after adding sales tax and everything it came to a total of 39,262.50 though $599 of that was optional simoniz glass coat. I feel as though that is way too much to be a second owner of any vehicle.

Thank you for any advice.
TR

That was blatant misrepresentation on their part. Do you have a copy of the contract that you signed with the “new” language plastered all over it? I could imagine that this would be grounds for litigation (disclaimer: I’m not a lawyer and this is by no means to be taken as legal advice, but something I would probably do if in a similar situation).

As bro1999 pointed out, the most painful thing about this in the short term is potentially losing out on the huge chunk of change in the form of the federal tax credit, because it does specify that the vehicle has to be new in order to qualify.

Sorry about your experience, I felt bad just reading the post.

 

[XJ12]

I doubt the dealer applied for the tax credit. I'm no tax expert, but as long as the VIN gets only one claim I would think you would be okay.

 

[Cehjun]

GM might disclose to you whether dealer was paid on that VIN as a service loaner. Also will be good to find out the customary break-point for used versus new vehicle. Years ago in this area it used to be 200 miles. Unfortunately it takes time to build your case. Dealer should issue you back a policy adjustment credit but if they're not going to be honest you will need to go to Chevrolet regional office.

 

[discodanman45]

I doubt the dealer applied for the tax credit. I'm no tax expert, but as long as the VIN gets only one claim I would think you would be okay.

I believe the law states that only the first title holder gets the credit. If the car dealership did this and did not inform you, you may have legal recourse. If they claimed the credit and sold the car as "used" after 500 miles I would lawyer up. The EV credit was not intended for this and dealers could scam people out of a lot of money. I would contact the IRS stating that you bought a used car for 500 miles and the dealership might be attempting to get an EV credit after that. I would also contact GM and tell them the same. I would go to every online review place and leave negative feedback, even giving names of the people that sold you the car. If they are going to steal $7500 from me, I am going to make sure they lose at least $7500 in business.

 

[trunge44]

Thanks everyone. When I signed everything, they told me I would be able to get the $7,500 rebate so I don't think they applied for it. I also don't trust them now so I will try to confirm if I'm still eligible for that, given the highlighted concern of a possible issue of being the second owner.

A DMV rep told me (her personal opinion) is that I signed under false pretenses and told me to file a complaint with Motor Vehicle Safety. I'm definitely leaving negative feedback everywhere if they don't favorably resolve this for me or even if they really drag this out and make me fight for everything.

I'm still trying to figure out the depreciation of being a 2nd owner. Most people have told me that it is significant, while one has told me it's more about the mileage and maintenance than the number of owners.

 

[Doonga]

You should probably be consulting a lawyer before you go do anything else.

 

[Torontonian69]

I doubt the dealer applied for the tax credit. I'm no tax expert, but as long as the VIN gets only one claim I would think you would be okay.

According to the paperwork the dealer was deemed as the primary user. If that is the case they might have asked for the incentive...
This is definitely worth checking because this customer is owed at least 7500...

 

[Torontonian69]

I'm still trying to figure out the depreciation of being a 2nd owner. Most people have told me that it is significant, while one has told me it's more about the mileage and maintenance than the number of owners.

The depreciation of an EV is still a tricky issue. Not sure in the US but here in Canada (using Tesla as an example) you can buy a new one with less features for the price of an used model S up to 25,000km in it.
500 miles will really not mean much to an EV, however you should have some depreciation percentage over it, even if it’s minimal.
If it were me, I would get the incentive, give them **** in all channels so they do not scam others and learn to do things correctly. But I’d focus on that instead of depreciation factor which will most likely be close to nil.

 

[shotel]

I paid $36,572 as the vehicle price...
I'm still trying to figure out the depreciation of being a 2nd owner.

I've been shopping for a pre-owned Bolt for some time. I agree with Doonga, A lawyer is justified here as
this is yet another criminal GM dealer story. How many times have I heard a GM dealer say " we're sorry, you were misinformed" post-sale to a customer. The Tax incentive is irrelevant to the criminal action. They sold a used car as new.

That is fraud. They are hoping you eat it, as the quality of typical GM customers are of the low-intelligence, high-risk, sub-prime financing crowd. EV customers are, by definition, more sophisticated. GM dealerships, and their staff are not equipped for EV customers. (Anyone that has to work in the sales department of a GM dealership has likely made several wrong career turns in life)

If your facts are correct, I don't see a need to sugar coat this. This is not some clerical mistake. Otherwise as soon as you informed them of the problem, they would have immediately replaced the Bolt you purchased with a new one. They have embezzled about $20,000 from you; $7,000 in outright fraud (see below value of a used Bolt with 2 miles on it), the hit on your credit report, minimum $7500 in tax credits (and other potential credits/incentives), and your valuable time in dealing with their crime.

I am that guy who has my attorney write them a letter stating the facts, and asking for a $25,000 cashiers check by end of day as settlement. Otherwise a criminal complaint will be filed as well as a civil lawsuit for damages. All of which will be made publicly available to every media outlet and newspaper.

 

[DaV8or]

Sadly, I agree with others. You need to get a lawyer. You got swindled. Traditionally the retail price difference between a new car and a used car, no matter how low the mileage is significant and your dealer knew it.

 

[NY-Rob]

If that car has ever been titled (even for just one day)- the next owner is not eligible for the $7,500 Fed Tax credit.

There is no discussion/changing that fact. It doesn't matter if the original title holder applied for the credit or not... the second title holder is not eligible for the $7,500 Fed Tax credit. This has been a topic for discussion since the Fed started offering credits for electric vehicles years ago and it's always "no" for the second title holder.

Very sad!

PS- you can bet that dealership knew exactly what they were doing.. and... they also took/got/will get the full $7,500 Fed credit.

 

[trunge44]

Thanks everyone! Interesting with the Runde Bolt - it is marked down $7,549 from my listed vehicle price, which would match the federal credit. Sounds like at a minimal, they need to refund me $7,500 for the federal credit or swap out and give me a brand new Bolt with me as the first owner. And something on top of that for all the troubles they are causing through their deception.

 

[discodanman45]

Thanks everyone! Interesting with the Runde Bolt - it is marked down $7,549 from my listed vehicle price, which would match the federal credit. Sounds like at a minimal, they need to refund me $7,500 for the federal credit or swap out and give me a brand new Bolt with me as the first owner. And something on top of that for all the troubles they are causing through their deception.

I would tell them if they wrote me a check for $20,000 I would forget about it. The after they got pissed I would tell them you will be hearing from my lawyer and have a nice day.

 

[DucRider]

Just as a note, according to FTC rules the vehicle must be sold as "used" in that situation even if it was never titled in their name!

"Previously titled or not, any vehicle driven for purposes other than moving or test driving is considered a used vehicle"
https://www.ftc.gov/tips-advice/business-center/guidance/dealers-guide-used-car-rule

§455.1 General duties of a used vehicle dealer; definitions.

(d) The following definitions shall apply for purposes of this part:

(1) Vehicle means any motorized vehicle, other than a motorcycle, with a gross vehicle weight rating (GVWR) of less than 8500 lbs., a curb weight of less than 6,000 lbs., and a frontal area of less than 46 sq. ft.

(2) Used vehicle means any vehicle driven more than the limited use necessary in moving or road testing a new vehicle prior to delivery to a consumer, but does not include any vehicle sold only for scrap or parts (title documents surrendered to the State and a salvage certificate issued).

https://www.ecfr.gov/cgi-bin/text-idx?SID=1a09cf0afb96ef4068e8b72894fe6f11&node=pt16.1.455&rgn=div5

 

[NY-Rob]

Even if it had zero mi on it... the fact that it was previously titled means it's ineligible for the Fed Tax Credit to the next person/entity that titles it.

Remind the dealership that if it goes to court that in addition to everything else they will be responsible to pay for your legal representation/court costs once you win.... that should help them make the right decision.

 

[redpoint5]

If you get serious about pursuing legal action, I expect they will offer to trade a new vehicle for yours, and then simply try to push it off onto another victim. No way do they want to spend time/money fighting you.

 

[frenchfry]

Redpoint 5 is right. Pursue them with a lawyer. You should know quite quickly and for very little money if you have a case or not and the general chances of winning.
You must however have proof on the paperwork that shows you were mislead and that it was sold as new.
Things like where the car was on the lot is important too. Was it parked int he same area as the new ones and does that dealership have a "used car" section. If so, then why was it not parked there. Was it priced like a new one or did it have a substantial discount attached?
Spend the money on a lawyer. I suspect they will take it back once they realize you are serious...It will cost them way less to switch it out than fight you....

 

[Packard V8]

The OP has a legitimate problem with the dealer's misrepresentation and what that may do to his tax credit.

However, suggest OP is overthinking the second owner penalty. Reality of the used car business is 99% of resale/trade-in value is condition and miles. The number of owners is not really a factor. When checking NADA or Kelly or Manheim, there is no box for "one-owner" or however many. Go to the bank for a loan and they don't take into consideration as to how many previous owners.

jack vines