Consumers:
Consumer Protection > Vehicles > Check out the Car before You Buy
Before you purchase a new vehicle, do as much investigation as you can. There is information below that may help you research the history of the vehicle. You should always check in advance to determine the value of the vehicle you are purchasing. In addition, if the vehicle is used, you should always test drive the vehicle and have it checked by a reliable independent mechanic. If the seller will not allow independent inspection of the vehicle, it is probably best to walk away from the deal.
Flood Damaged Vehicles
Attorney General Dustin McDaniel issued an alert to warn consumers about
the potential of flood damaged vehicles being sold in Arkansas.
Titles marked "Damaged" or " Previous
Damage"
While dealerships cannot misrepresent the condition of a vehicle,
there is no specific law that requires a dealership to disclose
whether a vehicle has been in a wreck or has been repaired unless
the vehicle was salvaged (title was marked Damaged Title).
If a vehicle is damaged in excess of 70% of its value, Arkansas law requires the owner (or an insurance company that takes title) to file for a Damaged Title. If the vehicle is later repaired, an Affidavit of Reconstruction listing all repairs must accompany any subsequent sale and the title must be marked " Previous Damage." Anyone selling a vehicle with a title marked " Damaged" or " Previous Damage" must post a notice on the vehicle' s window containing an Affidavit of Reconstruction listing all repairs made. Additionally, the seller must specifically disclose that fact to a purchaser and get the purchaser' s written acknowledgement of receipt of the notice prior to the sale. For the full text of the law, click here
If there is the potential that the vehicle has sustained previous damage, it is wise to contact the Department of Finance and Administration at 1-501-682-4677 and inquire about the car' s title history. If the vehicle has been reported as salvaged and a Damaged Title was obtained, this report will list the damage and items repaired or rebuilt.
Check for Hurricane Damage
The
National Insurance Crime Bureau (NICB) has collected many of
the Vehicle Identification Numbers of vehicles that were damaged
by recent Hurricanes Rita and Katrina. It provides a website where you can check to determine whether a vehicle has been reported.
You will need the Vehicle Identification Number (VIN number)
of the vehicle. There is no charge for this service.
Car History Checks
Private businesses offer car history checks for a fee. Carfax is
one of the most widely publicized. If you purchase a report or
if one is provided to you by the dealership, you should know
what the report will not reveal.
While car history checks are useful tools, they will not reveal the entire history of the vehicle. Most companies only search public records and do not have access to private insurance and legal files. Therefore, they may disclose when the vehicle was sold, any changes to the title, and the states in which the vehicle has been titled. The report usually will not disclose wrecks or other problems unless the wreck meets the 70% damage threshold that triggers the requirement to apply for a damaged title to the vehicle. Also, the reports will not always reveal if the vehicle has been repurchased by the manufacturer as a " lemon."
Contact Us
Consumer Protection Division
501-682-2341
800-482-8982 (statewide)
501-682-8118 (fax)
consumer@arkansasag.gov
