Private Party Car Sales

The Massachusetts Lemon Laws require private parties selling used cars to inform buyers about all known defects which impair the safety or substantially impair the use of the vehicle. The law applies to all private party sales regardless of the price or mileage. Private party sellers are not required to repair the vehicle after it has been sold.

If you discover a defect that impairs the vehicle’s safety or substantially impairs its use and you can prove that the seller knew about the defect but failed to disclose it, you may cancel the sale within 30 days of the date of your purchase.

The seller must refund the amount you paid for the vehicle, less 15 cents per mile of use. If a private party seller refuses to cancel the sale within 30 days of the purchase date, you should consult with an attorney to determine whether to pursue the matter in court. See legal tips and resources.

You need to prove that the car has a defect and that the seller knew about the defect but didn’t tell you. 

Determining Defects: 

• Research previous service records
  • These records may be able to show that the seller knew about a defect but didn’t disclose it to you.
• Get a proper title and bill of sale
  • All vehicles must have a certificate of title issued by the RMV and must be properly endorsed at the time of sale.
  • Fill out the “Assignment of Title,” which is found on the back of the vehicle’s “Certificate of Title,” and include:
    • The date of sale
    • Purchase price
    • Buyer’s name, address, and signature
    • Seller’s name, address, and signature
    • Odometer reading
• Have the vehicle inspected at a licensed Massachusetts Inspection Station
  • TIP: You may be entitled to a refund if your car fails inspection within seven days of the purchase date and the estimated costs of repairs exceed 10 percent of the purchase price.
• Check and Research Odometer Readings
  • The Odometer Law prohibits both dealers and private party sellers from turning back or readjusting the odometer or mileage indicated on any automobile offered for sale
  • If you can prove that the seller reset the odometer, you can sue for $1,500 or three times the amount of your damages, whichever is greater, along with court costs and attorney fees
  • Odometer tampering is a criminal offense. To report odometer fraud, notify the National Highway Traffic Safety Administration (NHTSA) at 888-327-4236 or 888-275-9171 (TTY). 

If a private party seller refuses to cancel the contract within 30 days of the sale, consult with an attorney to determine your best course of action. Lemon Law arbitration is not available for private party sales.

Pursuing Legal Options: 

• Mediation: Mediation is an inexpensive and informal way to resolve your dispute without hiring an attorney and going to court. Some courts offer mediation services
  • Check with your local courthouse to see what services may be available to you
  • The AGO provides grants to Face-to-Face (FTF) Mediation Services and Consumer Complaint Services.
• Sue in court: For claims under $7,000, small claims court may be the least costly alternative
  • Larger claims may be more suitable to District or Superior Court
  • You should seek legal advice for all claims. 

The seller must refund the amount you paid for the vehicle, less 15 cents per mile of use.

Title Compensation: 

• Contact the RMV’s Title Division
• Explain that you are returning the vehicle to the seller under the Lemon Law and that you are requesting that a certificate of title be issued to you as soon as possible
• When you receive the title, you should assign and transfer it back to the seller
• If the seller refuses to accept the title, then send it by certified mail and retain a copy for your records.

Sales Tax and Registration Fees Compensation:

• Sales tax is not included in Lemon Law buybacks or sales cancellations of used cars
• Registration fees are included in Lemon Law buybacks from dealers, but private sellers are only legally required to return the money you paid to them
• If you have taken the steps to void or cancel a private sale, contact the RMV to see if you may be eligible for a refund of registration charges or other fees.

You may be entitled to a refund if your car fails inspection at a Massachusetts Inspection Station within seven days of the date of purchase and the estimated costs of repairs exceed 10 percent of the purchase price.