Got Screwed by a Commercial Dealer

LOCATION: MICHIGAN

I bought a used 2011 Chevy Silverado LS from someone who represented themselves as a private seller. The ad said things like “runs and drives great,” “only one owner,” and “fair share of rust.” Nothing was disclosed about any structural issues.

After buying it, I took it to my father who is very knowledgeable on cars and sent pictures to my buddy who is an aircraft and auto mechanic. There were multiple holes on both sides of the frame and subframe. The truck was unsafe to drive. This was not visible without getting way under, and for me personally I do not know what is safe and what is not or where to look.

I contacted the seller/representative immediately. He said that rust severity is to your own discretion and the discussion was the truck is "as is". I kept pushing back and standing my ground and was met with "not sure how we can do small claims when it was sold as is". I eventually told him I would take 3k back making the vehicle purchase 1600 given the severity of the rust or a full refund for the vehicle. They eventually agreed to a return.

Before we met to get the refund, he was very adamant that I send a picture of the signed off title before they can write a check "per their attorneys". I refused this because to my understanding that exposes me to potential fraud. They played it off as a requirement and said "You just don’t want to work with us do you? Very disappointing," but with enough refusal they dealt without.

While reviewing the payment trail, I discovered that the money I paid didn’t go to the individual I met. It went to a commercial entity (a business), and the title was actually in the name of a corporate officer of that business. A third person handled the sale. This made it clear that the transaction was not actually a private sale, but a commercial sale being represented as a private one.

From what I understand, in Michigan a seller (especially a business) cannot misrepresent themselves as a private seller, and “as-is” does not protect a seller who conceals or fails to disclose a material defect like structural frame rot. I also understand that dealers have additional legal obligations regarding disclosures and paperwork.

I documented everything: photos of the frame, screenshots of the ad, screenshots of messages, proof of where the money went, proof of who the titled owner was, and video of the return interaction. I also proposed a neutral vehicle return agreement that they refused to sign which is also on video.

We had requested to meet with a high ranking manager to talk about a settlement, the owner was there too. They had agreed to cover registration costs, gas, and time. We came up with a number about $700 and said they would email me a DocuSign. Its been 48 hours with no contact.

Ultimately, I did receive the full refund and returned the vehicle without signing anything until the money was physically in my hand, but I would still like the compensation money.

My main concerns for this subreddit are:

1. Was this handled correctly from a legal standpoint?

2. Does misrepresenting a commercial sale as a private sale violate Michigan law?

3. Does the presence of severe latent frame rot create grounds for rescission even in an “as-is” sale?

4. If the seller had refused to refund me, what would have been the proper legal route (SOS dealer enforcement, AG complaint, small claims, etc.)?

5. Can I pursue legal action if they do not send the settlement?

Thanks in advance for any insight.