Does an 'As-Is' Clause Protect a New Hampshire Auto Dealer from Fraud Claims?

When you buy a used car in cities like Salem, Derry, or Lebanon, you will almost certainly see a sticker in the window stating the vehicle is being sold "As-Is." Many buyers mistakenly believe that signing an As-Is contract means they have absolutely no legal recourse if the car breaks down on the way home. While an As-Is clause does disclaim standard implied warranties for normal mechanical wear and tear, it absolutely does not protect a New Hampshire auto dealer from liability for active fraud, deceit, or intentional misrepresentation.

The Limits of 'As-Is' in New Hampshire

Under the federal FTC Used Motor Vehicle Trade Regulation Rule, 16 C.F.R. § 455.2, dealers must display a Buyer's Guide indicating whether a car is sold As-Is or with a warranty. In New Hampshire, N.H. Rev. Stat. Ann. § 382-A:2-316 allows for the exclusion of implied warranties. However, the N.H. Rev. Stat. Ann. § 358-A:2 (Consumer Protection Act) supersedes contract language when deceptive business practices are involved. In landmark decisions such as Snierson v. Scruton, 145 N.H. 73 (NH Supreme Court 2000), the courts have made it clear that a dealer cannot use an As-Is clause as a shield against their own fraudulent actions.

Oral Promises Contradicting the Written Contract

A classic bait-and-switch tactic occurs when a salesperson verbally promises to fix a knocking sound in the engine or replace worn tires, but then rushes you into signing an As-Is contract without putting those promises in writing. While the "parol evidence rule" generally favors the written contract, if you can prove the dealer made specific oral promises to induce you into signing the contract, this can be considered fraud in the inducement. Always demand that any verbal promise is written into the "We Owe" section of the contract.

Check Engine Light Tampering (Clearing Codes)

Modern vehicles rely on an OBD-II computer system. Deceptive dealers will sometimes use a cheap diagnostic scanner to erase fault codes right before you test drive the car. The check engine light turns off temporarily, only to illuminate a hundred miles later after the computer completes its drive cycle. Actively clearing emissions or mechanical failure codes to trick a buyer is an affirmative act of concealment. An As-Is clause does not cover sabotaged vehicle sensors.

Forged or Illegally Obtained NH State Inspection Stickers

Under New Hampshire law, vehicles driven on public highways must meet safety and equipment standards set by N.H. Rev. Stat. Ann. § 266 and N.H. Rev. Stat. Ann. § 358-F:2. Although state legislation under HB 649 and HB 2 sought to eliminate annual passenger inspection stickers in favor of direct equipment standard enforcement under N.H. Rev. Stat. Ann. § 266 (a measure subject to federal litigation regarding Clean Air Act compliance), safety verification remains a key buyer protection. Some unscrupulous dealers use collusive mechanics to falsely pass an unsafe vehicle and display an invalid state inspection sticker on the windshield. If your newly purchased As-Is vehicle has bald tires, heavily rusted brake lines, or a rotted subframe but was sold with an improper inspection sticker or false assurances of roadworthiness, this is severe fraud. You can report the dealer or inspection station directly to the New Hampshire State Police Troop G, Concord, submit an official signed complaint letter to the Dealer and Inspection Complaints desk at the New Hampshire Division of Motor Vehicles, Concord, or file Form Consumer Complaint, New Hampshire, Department of Justice, Consumer Complaint Form with the New Hampshire Department of Justice Consumer Protection and Antitrust Bureau, Concord.

Step-by-Step Process to Take Action in NH

If you were sold a dangerous or fraudulently represented vehicle under the guise of an As-Is contract, you must act swiftly to build your case.

Step 1: Have the Vehicle Diagnosed Immediately

Take the car to a reputable, independent mechanic. If you suspect the check engine codes were cleared, a professional mechanic can pull the computer's history to see exactly when the codes were last erased. Obtain a detailed, written repair estimate and diagnosis.

Step 2: Contact the NH Authorities

If the vehicle is unsafe for the road but passed a recent state inspection, contact the state authorities. They have the power to investigate the inspection station that issued the sticker. An official finding of an improper inspection is a massive piece of evidence for your fraud case.

Step 3: Hire an Auto Fraud Lawyer

Using our directory, find a New Hampshire lawyer experienced in auto dealer fraud. Because As-Is contracts are legally complex, an attorney knows how to bypass the standard warranty disclaimers by proving fraudulent misrepresentation or CPA violations.

Step 4: Pursue Litigation

Your lawyer may file a complaint in a local court, such as the Rockingham County Superior Court, Brentwood or the Strafford County Superior Court, Dover. You will seek a rescission of the contract (forcing the dealer to take the car back and refund your money), plus potential punitive or treble damages under the Consumer Protection Act.

How Much Does it Cost in New Hampshire?

Pursuing a fraud claim requires some initial investment, but can result in total financial recovery.

• Diagnostic Scan and Inspection: Typically $100 to $200 at a certified New Hampshire auto shop.
• Court Filing Fees: Roughly $325 to file a civil suit in NH Superior Court.
• Attorney Fees: Most lawyers will take strong fraud cases on a contingency fee arrangement. State law often mandates that a dealer found guilty of consumer fraud must pay the plaintiff's legal fees.

How Long Does it Take?

Resolving an As-Is fraud dispute depends heavily on the dealer's willingness to cooperate. A well-drafted legal demand letter might secure a refund within 2 to 4 weeks. If the state inspection authorities launch an investigation, expect that to take 1 to 3 months. If you must go to trial, the court process typically lasts 8 to 14 months.

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