2018 GNYADA Membership Directory

DAMAGE DISCLOSURE REQUIREMENTS

When is Damage Disclosure Required? New York State requires presale disclosures whenever a vehicle being sold has sustained previous damage. If a new vehicle requires repairs valued in excess of 5% of the MSRP for physical damage, dealers and manufacturers must provide a written notice of the repairs before the buyer pays for the vehicle. This applies whether the buyer is a consumer or another dealer. Exception No notice requirement applies to identical replacement of stolen or damaged accessories or their components used to make the repairs. Penalties A consumer who does not receive the written notice is entitled to a full refund of the purchase price of the vehicle, plus any trade-in allowance, plus fees and charges (within four months of the purchase). The law includes a deduction for mileage using a complicated formula.

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A retail dealer who suffers a loss because they were not notified of prior damages by a manufacturer, distributor, or another retail dealer is entitled to reimbursement from the seller who failed to provide such notice. In addition, any dealer or their employee who violates this law is subject to a fine of up to $50 for the first offense and $250 for each subsequent offense. GNYADA recommends that you keep a signed copy of a Damage Disclosure Form in the deal jacket. A sample form is on the right.

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