Arkansas Dealership Ordered to Pay Over $5M in Questionable Damages to Ferrari F430 Buyer
The dealer failed to disclose issues about the used Ferrari to the out-of-state buyer.
A jury has awarded a Virginia man $5.8 million in punitive damages after he was defrauded by an Arkansas car dealership. According to a report from Automotive News, Hamid Adeli, a mortgage banking professional, purchased a 2007 Ferrari F430 sight unseen from Mercedes-Benz of Northwest Arkansas, only discovering its numerous issues after taking delivery.
That's not to say that Adeli did not perform his due diligence. A Ferrari dealership in Plano, Texas reportedly performed a pre-purchase inspection before the deal was completed. Upon receipt of the car back in Virginia, Adeli claims to have noticed issues immediately, smelling gas on his first drive in his Ferrari.
The following morning, Adeli says to have called the sales manager of the Mercedes-Benz dealership he bought the car from before having his F430 towed to Competizione Sports Cars in Maryland. There, an inspection revealed a cracked exhaust manifold, a leaking fuel pump, and problems with the Ferrari's suspension.
Mercedes-Benz of Northwest Arkansas allegedly declined to pay for the repairs, stating that the car was sold as-is. Adeli then filed suit for breach of warranty, fraud, and deceptive trade practices.
The main focus of the trial was reportedly on the exhaust manifold issue, since the pre-purchase inspection in Texas located the issue. However, Mercedes-Benz of Northwest Arkansas allegedly opted not to repair it and focused on mending several other issues with the $90,000 Ferrari.
The jury conclusively sided with Adeli, awarding him $6,835 in compensatory damages and $13,366 in incidentals on top of the $5.8 million. Citing cruel and unusual punishment, the dealership is appealing the ruling, hoping to get the multi-million dollar penalty lowered to $27,340.
In the end, it would have just been cheaper for Mercedes-Benz of Northwest Arkansas to fix the car. One thing's for sure, though: when this is all over, Adeli will have gotten a smokin' deal on his used exotic.