Purchasing a car - Binding arbitration

Cars
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Is binding arbitration a condition of sale for all cars now? I negotiated a purchase and was ready to give them my money, but they would not sell me a car without the agreement. I walked, but will I be able to find anyone besides a private seller who won’t require the agreement? Last bought a car more than 10 years ago and refused to sign then (they still sold us the car).

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Per ChatGPT:

" Binding arbitration clauses have become increasingly common in the sale and lease contracts of new cars in the U.S., though not all automakers require it. These clauses often require customers to settle any disputes through arbitration instead of through court, waiving the right to a jury trial or a class-action lawsuit. Arbitration clauses are typically part of the purchase or lease agreement, and they can cover a range of disputes, from defects to contract terms.

Here’s a quick breakdown of how binding arbitration works in car sales today:

  1. Manufacturers’ Policies Vary: Some automakers require arbitration for all disputes, while others may limit arbitration to specific issues or allow buyers to opt out. For example, Tesla includes arbitration but offers a 30-day period to opt out if buyers prefer to retain the right to sue in court.
  2. Dealership Influence: Because most car sales in the U.S. go through independent dealerships, the presence of an arbitration clause may depend on the dealership’s sales contract as well. Some dealerships automatically include it, while others do not.
  3. State Regulations: A few states have legislation or case law that limits or restricts mandatory arbitration clauses in consumer contracts, which could impact whether a binding arbitration clause can be enforced.

If you’re considering a purchase and want to avoid arbitration, review the sales contract closely and ask the dealership or manufacturer about opting out. In most cases, you’ll need to formally opt out within a specified time frame to retain the right to go to court."

In addition to the above check to see if the arbitration agreement excludes claims in small claims court which is common.

Also, arbitration agreements may not apply to codefendants

If a part is defective and causes damages you may be able to sue the manufacturer of the part.

Finally abritration agreements do not apply to non signatories.

If a defect in the car results in injuries to a passenger or a pedestrian they are not signatories to the arbitration agreement.

I am not a lawyer and my legal advice may be worth a lot less than what you have paid for it.

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