Coleman Toyota Will Disclose Damage on New Cars

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DB:coleman.pr 00-46

Contact: Sue Rogan, 240-777-3722
George Rose, 240-777-3678

For Immediate Release: February 3, 2000

Coleman Toyota Will Disclose
Damage on New Cars

The Montgomery County Department of Housing and Community Affairs announced today that as a result of an investigation by its Division of Consumer Affairs (DCA), Jim Coleman Toyota, Inc. (Coleman) will pay $14,000 to settle a complaint about the car dealer's alleged failure to properly disclose damage on new cars. The agreement does not constitute an admission by Coleman of a violation of any law.

DCA alleged that Coleman, located at 10400 Auto Park Drive, Bethesda, Maryland, sold eight new cars during the years 1996 through 1998 that had been damaged and repaired prior to sale, but failed to properly disclose this damage to the purchasers. DCA began its investigation after receiving a complaint from the purchaser of a new Toyota Avalon, who believed that his car had been damaged prior to sale. DCA inspected the vehicle and determined that the vehicle had, in fact, been damaged and repaired. Under Maryland and Montgomery County law, motor vehicle dealers are required to disclose prior to sale any damage to the body of a new motor vehicle that has been repaired, except for minor touch-up paint and scratches.

After meeting with DCA, Coleman resolved the consumer's complaint and agreed to allow DCA investigators to review additional sale files. DCA investigator Sharon Wilder determined that Coleman had performed repairs on seven other new vehicles. Wilder subsequently contacted the consumers who purchased the vehicles and found that the damage was not properly disclosed prior to sale.

Without admitting liability, Coleman agreed to make payments of $2,000 each to the seven affected consumers. Coleman agreed to fully disclose all such repair damage to prospective customers and to provide the consumer with a copy of the repair invoice. Coleman also agreed to pay $6,000 to DCA's consumer education fund. Coleman agreed to comply in good faith with the terms of the Agreement and will continue to make a good faith effort to conciliate any complaints with DCA.

"Any use of a 'new' motor vehicle which is inconsistent with the term 'new' should be disclosed by the dealer," said DCA Division Chief George Rose in announcing the Agreement. "This includes body damage, major engine repair, prior sales, and odometer mileage that is inconsistent with new vehicle use." Rose added that in some cases, the type of use might require the vehicle to be sold as "used," rather than "new." Rose advised consumers with questions to call DCA at 240-777-3636 before buying a new car or truck.

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