Disclosures and Announcements – Georgia Car Law Authority

The number one issue that I see with dealers relates to disclosures from the auction and disclosures to customers. This video is a must-watch, even if you haven’t seen any of the other videos yet (I hope that’s not the case). This video is extremely important as I go through auction announcements and your liability as the seller of vehicles to consumers.


Below is a transcript of the video:

Now, we’re going to briefly talk about auction disclosures and announcements. Auctions usually have a lighting system, green light, yellow light, and red light, that notifies the dealers of certain issues and then also has an announcement section as part of the auction, which would announce any issues with the vehicle.

Sometimes those announcements can be something like unibody damage. That can range from a ton of different issues, from slight frame damage to major accident history and impact damage to a simple hole in the frame. I’ve seen cases where unibody damage is a hole from a subwoofer or a speaker being installed in a car being drilled through the unibody frame. Does that affect the actual reliability of the unibody frame?Disclosures and Announcements I don’t know. You’d need an expert to figure that out, but it counts as a disclosure under the auction. It is certainly different and has a different extent than unibody damage caused by a major accident, yet it has the same simple disclosure: unibody/frame damage. It’s up to the dealer to disclose that to the consumer and dealers usually do have the obligation to do that, which we’ll get into in a later video. One thing to really be mindful of is those announcements and disclosures at the auction.

If the auction discloses something in the announcements, then the dealer has a duty to disclose to the customer. Failing to do that, where the dealer has knowledge of damage to the vehicle that is not readily ascertainable in due diligence by the customer, could lead the dealer open to liability. So it’s really important when a dealer is going to buy a vehicle that they understand and are aware of the auction disclosures. Those disclosures become part of the dealer’s file on the vehicle such that salespeople and other folks in the dealership know if there’s been a disclosure on the auction receipt.


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