I’m 21, bought a used car, and it broke down the same night — now I don’t know how to fix my finances or get out of it

Let’s take the case of Riley, for example. Riley is 21, and she purchased a used car for $25,000 with 75,000 miles on it. She bought the car as-is, and three hours after she drove it home, the engine blew.

While the dealer provided some help with that issue, putting in an old engine for a reduced cost, Riley has had a series of other problems and can’t go more than 24 hours without a new issue. She’s already spent thousands on repairs and is regularly taking Ubers to work.

Now, Riley owes $10,000 more than the car is worth and is faced with deciding whether to fix it, trade it in and pay the $10,000 difference, or let the lender repossess it, ruin her credit, and still potentially end up with a judgment against her for the balance.

Is there any recourse after buying an as-is vehicle with major issues?

Unfortunately, because Riley purchased her car as-is, her recourse is somewhat limited. She doesn’t have a warranty and the dealer has already provided all the “help” it is willing to give by putting in the used replacement engine. Still, she does have some potential avenues to pursue.

“An as-is sale can make a claim more difficult, but it doesn’t eliminate all legal recourse against a dealership,” advised Blaine Rogers, Attorney at Davis Levin Livingston in an interview with Moneywise. “If the dealer misrepresented the vehicle’s condition or made promises that contradict the as-is disclaimer, the buyer may still have claims under state consumer protection laws.”

Riley may have a claim under Unfair and Deceptive Acts and Practices laws, or under consumer fraud laws. If the dealer engaged in deceptive, unfair, or unconscionable practices by failing to disclose known defects or making false oral promises about the car, Riley may have a right to actual damages, attorneys’ fees and even punitive damages in some circumstances.

Rogers recommended reviewing invoices, inspections, and correspondence to look for signs the dealer may have known of the issues and not disclosed them, or may have made false promises. “Contractual disclaimers do not protect a business from liability for intentional misrepresentations or deceptive conduct,” Rogers said.

If she thinks she may have a claim, some lawyers offer a free consultation and some will take cases on a contingent-fee basis, so Riley could get legal help and pay any fees due out of the money recovered.

Should she fix the vehicle or trade it in?

If Riley doesn’t want to pursue legal action, she’s left with a choice of keeping the car and paying for repairs, trading it in and cutting her losses or letting it get repossessed and ruining her credit. The third option doesn’t really make sense, since she could end up owing the unpaid balance plus fees anyway. So she’ll need to choose between trade-in or repair.

“As a general rule to follow, one issue on its own is very rarely a reason to replace or change your car,” said Luke Oswald, an automotive specialist at Wheels Away, in an interview with Moneywise. “We’re actually seeing vehicles last longer than ever, with some well-maintained cars doing more than 150-200,000 miles. The one thing they usually have in common: they are all well-maintained, looked after by their owners, and have been serviced regularly.”