As I was looking through my new Automotive News online subscription, I ran across this intriguing story of buying a used Tesla. It described the buyers purchasing a Tesla Model S only to find out it had a salvage title. The problems mounted from there. Imagine the used Tesla Model S you just purchased has no viable title. The repairs it needs, the dealer said, are still covered under warranty, and Tesla says it will not cover anything under warranty because it has a salvage title. That's what John Porter and Isaiah Graham say happened to them as they explained it to their attorney. They have sued a Mercedes-Benz dealer in California and Tesla, alleging consumer law violations, fraud, and misrepresentation. John says, "We purchased a used Tesla Model S, and the dealer failed to disclose that it had been in a accident and now has a salvage title. The car is still under warranty, but, Tesla says they will not cover the warranty issues." The report from Automotive News says, "John Porter and Isaiah Graham claim a California Mercedes-Benz dealer failed to disclose the car had been in an accident, "lied" about it not having a branded title, and misrepresented that the manufacturer's warranty was still in effect." They Allege Tesla Also Lied About the Title's Status AN says that the suit also contends Tesla "lied" about the vehicle's salvage status to withhold warranty repairs and accuses the company of having "a pattern and practice of deeming vehicles as 'salvage' when those vehicles do not meet the industry or statutory definition of 'salvage' so Tesla can unfairly deny warranty coverage. Tesla denied the allegations in the answer it filed on January 13. Lawyers for Tesla and Mercedes-Benz declined to comment on the case. According to the complaint, John Porter and Isaiah Graham bought the 2021 Tesla Model S in February 2024 for $76,196. When they later tried to use the manufacturer's warranty, they allege that Tesla responded that the warranty was void because the car was deemed to have a salvage title. "Mercedes-Benz of Oxnard and/or Tesla each engaged in, and continues to engage in deceptive acts and/or practices," the suit alleges, "And the plaintiffs contend they wouldn't have bought the Model S if they'd known about its accident history or that its warranty was voided." Carfax reports Damage to the Tesla Model S Before the Car Was Purchased The plaintiff's lawyer, Michael Klitzke, said, "Carfax reported damage to the front of the vehicle before my clients' purchase. As far as anyone has found, no salvage title was ever issued for this vehicle, and the National Motor Vehicle Title Information System does not show that an insurance company deemed it a total loss/salvage. That would suggest Tesla's salvage claim and denial of warranty coverage was wrong." In the Automotive News report, Klitzke, of Escondido, told them that he is unaware of any court decisions on the subject but "heard about Tesla treating structural damage (frame or unibody damage) as salvage in the past, which would not appropriate." "Tesla may have been aware of the total loss through its own insurer but did not report it to parties "downstream," he said. "It is also possible, and I think much more likely, that Tesla is aware of the damage event through Carfax, Tesla service center, or a Tesla-certified body shop and has decided to call it a salvage, which would void the warranty." The plaintiffs are asking Mercedes-Benz of Oxnard to rescind the sale and for compensatory and punitive damages and attorney fees. What Should Used Car Buyers Do To Ensure They Don't Buy a Car With a Salvage Title? To avoid buying a car with a salvage title, you can: Check the vehicle history: Use a vehicle history report from a service like CarFax or AutoCheck to see if the car has a salvage title. You can also check the National Motor Vehicle Title Information System (NMVTIS). Get an inspection: