CarMax sued for not disclosing rental car history

12/30/2011

A class-action lawsuit has been brought against the dealership chain CarMax, as the company is being accused of not providing the full vehicle history of the cars they sell to their customers, reports The New York Times.

The lawsuit states that CarMax does not disclose if a car was once part of a rental fleet or other commercial service. In the state of Maryland, where the lawsuit was filed, dealers are bound by law to reveal such information prior to purchase of the car. Rental cars are considered slightly less valuable as the buyer does not know the auto maintenance history of the vehicle, which is why there are laws on the books in Maryland, California and several other states.

The company denies the allegations.

"CarMax provides information about vehicle history, including prior rental history, to its customers nationwide," Trina Lee, the company's spokeswoman, told the news source. "CarMax is in compliance with Maryland law." The company claims that they print the information on a window sticker that goes on all of their used cars.

When buying a used car, it's always a smart idea to have an independent auto maintenance expert take a look at the vehicle and determine if everything is in working order. Any necessary car repairs should be taken care of by the dealer or subtracted from the purchase price of the car.