Most states require car dealers to disclose pre-delivery damage new cars have sustained. Usually, there’s a threshold amount. For example, if the pre-delivery damage exceeds $500 or a certain percentage of the vehicle’s price, then the dealer must disclose the damage, even if the damage has been repaired. But if the damage does not exceed $500 or the statutory percentage of the vehicle’s price, then the dealer is not required to disclose the damage.
In California, certain types of damage, such as to the frame or suspension damage, must be disclosed no matter what the value of the damage is. Also, if the vehicle damage has not been repaired, the car dealer must dislcose the damage no how much it costs to repair the vehicle.
If a car dealer fails to disclose such damage to new vehicles, the buyer may be entitled to cancel the contract or recover damages.