Phoenix used-car dealer to pay $125,000 to settle case with state

A Phoenix used car dealership will pay $125,000 in restitution and attorney’s fees after selling unsuspecting customers previously wrecked cars that had been declared a total loss, according to a settlement agreement.

Discount Auto Sales and its owner, Eivan Shahara, admitted to violating Arizona’s Consumer Fraud Act and agreed to pay the state at least $125,000. Consumers who purchased a previously wrecked car from Discount may be eligible for restitution if they file a complaint with the Arizona Attorney General’s Office by April 2018.

The Attorney General’s Office launched an investigation into Discount Auto Sales after receiving complaints from consumers about the condition of the vehicles sold. The investigation revealed that Discount failed to tell consumers about the accident, ownership and repair histories of vehicles sold to consumers.

Discount from 2012 to 2014 purchased numerous vehicles from insurance companies at out-of-state wholesale auctions that specialize in the disposal of damaged and inoperable vehicles. 

Discount would bring the vehicles to Arizona, perform substantial repairs and then offer the vehicles for sale without telling the public about the vehicles’ adverse histories, according to the Attorney General’s Office.  

The court-approved consent judgment prohibits Discount from advertising or selling vehicles that were previously owned by an insurance company, without disclosing how the company purchased the vehicle and what repairs were performed. 

Discount is also prohibited from making any type of false statement or material omission regarding the condition, repair or accident history of vehicles offered for sale.

Anyone who purchased a non-repairable used vehicle from Discount should contact the Attorney General’s Office at (602) 542-5763 or (800) 352-8431.

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