I Lost Thousands of Dollars On My 2021 Nissan Rogue Because the Nissan Dealer Failed To Disclose Damage From Two Prior Accidents

"Nissan sold me a car that had been in two accidents and failed to disclose the damage."   

That's what Norlan Palacios told his attorney after the Nissan dealer he bought his 2021 Nissan Rogue from failed to tell him about the previous damage on his used car when he purchased it.

He says, "I bought a 2021 Nissan Rogue Sport and found out 13 months later, when I tried to resell it, that the dealer didn't tell me that my car had been in two accidents. I lost thousands of dollars."

A report from Automotive News (AN) says the lawsuit filed by Norlan Palacios alleges AutoNation Nissan Miami failed to tell Nolan that the used vehicle he purchased from them had been involved in two accidents. 

AN says, "A customer accused a Miami dealership, a captive finance company, and a service contract administrator in a suit alleging fraud and consumer violations in failing to disclose his used vehicle had been damaged in two crashes."

Imagine buying a used car, driving it for over a year, deciding to sell it to get a newer one, and finding out it's not worth much. The Nissan Rouge Sport you purchased from the Nissan dealer had been in two prior accidents, and now it's worth a fraction of what you paid for it. 

Now, picture the shock of discovering that the dealer knew about the damage, repaired the car in their body shop, and then sold it to you without disclosing the accidents. What you thought was a sound investment turned out to be a financial loss. 

According to the suit, the report says, "Not only were the prior accidents recorded in Carfax and other databases, but AutoNation Nissan Miami serviced and repaired Norlan Palacios' 2021 Nissan Rogue Sport after the crashes."

Norlan bought the Nissan Rogue in October 2023 and tried to resell it in November 2024. 

Norlan says he didn't learn about the prior damage until 13 months later when he tried to resell the vehicle. As a result of the accidents, he sold it "at a substantially lower price (than the market value), thereby losing thousands of dollars," the suit contends.

The Miami Nissan dealer leased the vehicle to the original owner in February 2022, and the lessor was involved in crashes in April and July 2022.

The Nissan Rogue Was Involved In Two Accidents

Norlan's 2021 Rogue Sport sustained damage to the front engine compartment and exterior in the first crash and damage to the bumper on the left and right sides and engine compartment in the second, according to the complaint filed on March 5 in Miami-Dade County Circuit Court.

Police reports documented both crashes.

Norlan Palacios claims the Nissan dealer told him verbally and in writing that the Rogue Sport had no previous accidents and that the store "knew that these statements were blatant lies" because of its subsequent work on the SUV. 

The lawsuit says Palacios relied on those "fraudulent representations" in deciding whether to buy and finance the car, adding, "At a minimum, he would not have purchased the vehicle at the price he purchased it at, nor would he have financed with Nissan Finance at the interest rate (9.06%) that he accepted."

The complaint does not accuse Nissan Motor Acceptance or the service contract administrator of doing anything wrong. Still, it seeks to hold them liable as agents for the dealership in the transaction.

The suit seeks actual and punitive damages.

"Nissan Finance 'benefitted and gained a profit due to his interest payments,' the complaint said. It also said, "Norlan Palacios wouldn't have paid thousands of dollars for the service contract if he'd been aware of the crash history."

Kyle Bazemore, director of corporate communications at Nissan Group of the Americas, told Automotive News that the company does not comment on pending litigation.

What Should Car Buyers Do Before Purchasing a Used Vehicle?

• Don't assume the dealer is disclosing the vehicle's accident history. 
• Obtain a vehicle history report using the car's VIN (Vehicle Identification Number) to find out about a car's accident history before buying.

1. Use Reputable Vehicle History Report Providers:

• Carfax: A well-known service that provides detailed vehicle history reports, including accident history, ownership, and service records. 
• AutoCheck: Another popular provider offering comprehensive vehicle history reports. 
• The National Motor Vehicle Title Information System (NMVTIS) is a federal database that provides information on title status, insurance loss, and salvage records. You can access NMVTIS through vehiclehistory.gov. 

2. Consider a Pre-Purchase Inspection:

• Even with a vehicle history report, it's always a good idea to have a pre-purchase inspection by a trusted mechanic.
• A mechanic can identify any hidden damage or mechanical issues that might not be apparent from a vehicle history report alone. 

3. What to Look For in a Vehicle History Report:

• Accident History: Look for any accident reports, including the damage's severity and whether airbags deployed. 
• Title Status: Check if the vehicle has a clean title or has been branded as salvage, flood, or rebuilt. 
• Service History: Review any records of maintenance or repairs performed on the vehicle. 
• Open Recalls: Ensure that there are no outstanding safety recalls for the vehicle. 

Conclusion:

Car dealers who do not disclose accidents happen more often than you think. 

I wrote a report about a buyer, John Porter, who purchased a Tesla Model S that had been in an accident and later found out it had a salvage title. The problems mounted from there.

John Porter sued a Mercedes-Benz dealer in California and Tesla, alleging consumer law violations, fraud, and misrepresentation.

John says,

"We purchased a used Tesla Model S, and the dealer failed to disclose that it had been in an accident and now has a salvage title. The car is still under warranty, but Tesla says they will not cover the warranty issues." Check out his unbelievable story here.

How About You?

Have you been in a similar situation? Your experience matters. Share your story by clicking the red Add New Comment link below.

Check out my Nissan Rogue story: I’m Shocked That A Customer Just Traded A 2024 Toyota Grand Highlander With Only 3,300 Miles For A 2025 Nissan Rogue

I am Denis Flierl, a Senior Torque News Reporter since 2012. My 30+ year tenure in the automotive industry, initially in a consulting role with every major car brand and later as a freelance journalist test-driving new vehicles, has equipped me with a wealth of knowledge. I specialize in reporting the latest automotive news and providing expert analysis on Subaru, which you'll find here, ensuring that you, as a reader, are always well-informed and up-to-date. Follow me on my X SubaruReport, All Subaru, WRXSTI, @DenisFlierl, Facebook, and Instagram.

Photo credit: Denis Flierl