Does a Dealership Have to Disclose Damage to a New Vehicle in Florida?

By Joshua Feygin, Esq. · Dealer Fraud · Updated September 2026

Yes, above a threshold. Florida requires a dealer to tell you when a new vehicle was damaged and repaired before delivery if the dealer knew about it and the repair cost crossed a dollar line tied to the sticker price. Below that line, the dealer can stay silent about the dent it fixed on the lot. New car damage not disclosed in Florida is one of the cleaner cases an auto fraud attorney in Florida sees, because the rule is written in numbers rather than adjectives. This post covers the rule, the exemptions, the remedies, and how used cars are treated differently.

What Is Florida's 3% Damage Disclosure Rule for New Cars?

Section 501.976, Florida Statutes, makes it an unfair or deceptive act for a dealer to fail to disclose damage to a new motor vehicle, as defined in section 319.001(9), of which the dealer had actual knowledge, where the dealer's actual cost of repairs exceeds the threshold amount, excluding replacement items. That listed violation is one a consumer can sue over under the Florida Deceptive and Unfair Trade Practices Act, and it can also be reported to FLHSMV, which licenses and disciplines Florida dealers.

"Threshold amount" and "replacement item" are defined in section 501.975, Florida Statutes. The threshold is 3% of the manufacturer's suggested retail price of the vehicle, or $650, whichever is less. On any vehicle with an MSRP above roughly $21,700, the $650 cap controls, so for most new cars sold today the practical rule is: known repairs costing the dealer more than $650, excluding replacement items, must be disclosed.

What Counts as Damage That Must Be Disclosed?

The statute looks at the dealer's actual cost of repairs, not the retail value of the damage or the diminished value of the car. If a vehicle was scraped on the transport truck, backed into on the lot, hail-dented, or damaged in a port storm and the dealer's body shop invoice (or the internal cost, if the dealer repaired it in-house) exceeded the threshold, disclosure is required. Common examples:

• Body and paint work after a lot collision or transport damage
• Hail repair across multiple panels
• Structural or frame straightening, at any cost, since it almost always exceeds $650
• Water intrusion cleanup after flooding at the port or on the lot
• Mechanical repairs from a test-drive incident or mis-fueling

The disclosure has to come from the dealer before the sale. A buyer who later finds overspray in the door jambs, mismatched panel gaps, or a body-shop repair order in the vehicle's service history may have the beginning of a claim. The rule targets damage, not factory defects repaired under warranty.

What Repairs Are Exempt as "Replacement Items"?

Section 501.975 carves out a list of parts whose replacement doesn't count toward the threshold. The statute's definition of a "replacement item" covers a tire, bumper, bumper fascia, glass, in-dashboard equipment, seat or upholstery cover or trim, exterior illumination unit, grill, sunroof, external mirror, and external body cladding.

The exemption is narrow. Replacing up to three of those items is not "repair of damage" only if each item was replaced because of a product defect or vandalism while the vehicle was under the dealer's control, and only if the replacement used original manufacturer equipment. The exemption does not apply to an item replaced because of a crash, collision, or accident. So a dealer that swapped a bumper cover and a headlight after a lot collision generally can't hide behind the replacement-item list; those parts count, and if the total exceeds the threshold, disclosure was likely owed.

What Do I Have to Prove?

Three things: the vehicle was new as defined in section 319.001(9); the dealer had actual knowledge of the damage; and the dealer's actual repair cost exceeded the threshold amount after excluding qualifying replacement items. Actual knowledge is the element dealers contest. It's usually proven from the dealer's own records: internal repair orders, body-shop invoices, transport damage claims filed with the carrier, and manufacturer damage-allowance credits. Those documents exist because the dealer had to pay someone, and they are discoverable once a claim is made.

A paint-depth reading or a body shop inspection establishes that repairs happened; the dealer's file establishes what they cost and who knew. The section 501.98 pre-suit demand, described in our guide to suing a car dealer in Florida, forces the question before suit.

What Can I Recover for New Car Damage Not Disclosed in Florida?

Because the violation is a listed unfair practice, a consumer can bring a FDUTPA claim without separately proving the practice was deceptive. FDUTPA provides actual damages, which in these cases is typically measured by the difference between what the car was represented to be worth and what a repaired-damage car was actually worth, plus attorney's fees and costs to the prevailing party under section 501.2105.

Where the repaired damage substantially impairs the vehicle's value, revocation of acceptance under section 672.608 may be available: the statute allows return of the car and recovery of the price. Fraud and negligent misrepresentation claims can run alongside when the dealer affirmatively said "no damage." The same facts support an FLHSMV complaint, which can cost the dealer its license; see how to file a complaint against a car dealer in Florida.

How Is Undisclosed Damage Handled on a Used Car?

The 3% rule applies to new vehicles only. Used cars are governed by a different set of provisions, and none of them uses a dollar threshold:

• Section 501.976 makes it unfair for a dealer to represent, orally or in writing, that a vehicle has not sustained structural or substantial skin damage unless the statement is made in good faith and the vehicle has been inspected to support it. It also bars misrepresenting the previous usage or status of a vehicle. The trigger is a false statement, not a repair cost.
• Section 319.14 requires written disclosure, before sale, when a vehicle's title is branded salvage, rebuilt, or similar, or when it was previously used as a taxicab, police vehicle, or short-term lease (rental) vehicle. See undisclosed branded title.
• General FDUTPA and fraud principles reach a dealer that knew of a major prior accident and advertised the car as "clean" or "no accidents."

The practical difference: on a new car, silence about a $900 known repair can itself be the violation. On a used car, silence is generally lawful unless a statute requires the disclosure or the dealer said something false. That's why the "as-is" question matters for used cars; see what "as-is" means when buying a used car in Florida.

This page is attorney advertising and general information, not legal advice. Reading it does not create an attorney-client relationship. Results depend on the facts and law of each matter; prospective clients may not obtain similar results. Statutory damages described are as set by law and are before deductions for attorney's fees and costs. Sue Your Dealer – A Law Firm, Hollywood, Florida · By appointment only · (954) 321-0507.