Suing A Car Dealership for Breach of Contract: Explained
When buying a car from a dealer, you expect to receive the car in the condition as advertised. If your car dealership fails to follow the terms and conditions of your contract, you may sue for breach of contract.
In this article, we will explore what constitutes a breach of a contract and the legal elements that you need to prove your claim. We’ll also introduce an easier way of suing a car dealership for breach of contract using .
When Can You Sue a Car Dealership?
Most car dealership lawsuits involve car dealers deliberately deceiving buyers or failing to reveal the correct nature of the vehicle's condition. Here are some of the common reasons for suing a car dealership:
- Buying a car and paying more than the published or advertised price
- Buying a car that broke down as soon as you left the car dealer’s place
- The dealer breaking up the down payment into several checks
- The dealer not disclosing information that the car has been in an accident or is defective
- Buying a car and the dealer not honoring the warranty
- Buying a car and being told that repairs are not covered due to an exclusion in the warranty
How to Prove a Breach of Sale Contract?
A breach of sale contract involves a failure of either party to perform according to the contract terms. It can either be intentional or accidental and could be material or minor. Even if the contract breach is minor, the consumer may sue the car dealer if the breach costs the consumer significant injury or damage. To prove a breach of a sale contract, the plaintiff must prove the following:
- The consumer and car dealer signed a valid contract containing specific terms
- The consumer acted according to the provisions of the contract
- The car dealer failed to do what the contract required the car dealer to do
- The car dealer’s failure to do what the contract required caused a loss or damage to the consumer
A car dealer is required by a court to prove that they have made an effort of good faith in completing the purpose of the contract. If the car dealer can do this, it may affect the dollar amount of damages that can be awarded to the plaintiff.
Types of Damages You Can Sue For
The most recommended court where to file a lawsuit for breach of contract is the small claims court. In most states, the dollar amount for damages in small claims is limited to $1,500 to $15,000. Suing in small claims court is simple where the plaintiffs and defendants may represent themselves. The table below outlines the types of damages you can expect:
| Type of Damages | Description |
| Compensatory Damages | Damages that are intended to restore the plaintiff to the original status if the contract was fulfilled in the first place. |
| Consequential Damages | Damages that include lost profits where the other party must fulfill the contract to earn profits from your purchase. |
| Liquidated Damages | A clause in the contract that specifies the dollar amount of damages to be paid should the contract is breached. |
| Injunctions and Equitable Relief | A court-granted remedy that forces the other party to take action or be banned from a specific action. |
How to Sue a Car Dealership with DoNotPay?
Filing a lawsuit can be complicated and overwhelming. This is where DoNotPay can help! The robot lawyer can help streamline the suing process into 4 simple steps:
- Log in to and select the Sue Now product
- Enter the dollar amount you are owed
- Select whether you want a demand letter or court filing forms
- Describe the reason for the lawsuit and submit any applicable details, including photo proof
That’s it! DoNotPay will generate a demand letter or court filing forms for you. We’ll also mail a copy of your demand letter to the car dealership you are suing!
What Else Can DoNotPay Do?
DoNotPay has been helping thousands of its users sue anyone, from your nuisance neighbor to big corporations such as:
- Airlines
- Insurance companies
- ATT
- Uber
- Verizon
- And others!