This document is commonly used in car sales transactions to disclose to the buyer certain elements of the vehicle's history and condition. In some cases, dealers have even used this form to document other parts of the agreement between the parties.

The Statement of Facts typically includes information such as the vehicle's make, model, year, and vehicle identification number (VIN). It also includes details about the sale, such as the name and address of the buyer and seller, and the date of the sale. In addition, in practice the dealer community has used the Statement of Facts to disclose or disclaim certain things to the buyer, such as whether the vehicle is being sold "as-is", whether the vehicle has a prior history of accidents or damage, and so on.

Although there are better ways of disclosing a vehicle prior history and condition, many dealers still continue to use a Statement of Facts and other paper disclosures such as a standard Vehicle History Disclosure Form to make such disclosures. Using such antiquated methods can have some downsides that dealers should be aware of. Here are a few potential issues with using paper disclosure forms:

1. Risk of Errors or Omissions: When filling out a paper version of the Statement of Facts, there is a risk of making errors or omissions that could later lead to disputes or legal issues. For example, if the seller forgets to disclose a known defect with the vehicle, this could later be used as evidence of fraud or misrepresentation, or even as negligence or a violation of the California Consumer Legal Remedies Act (“CLRA”).
2. You’re Not a Lawyer: Some dealers invent their own language to add to the Statement of Facts, or use language they obtained from a friend at the auction. Many times, however, this language not only fails to properly disclose to the customer, but in some cases, it actually creates liability for the dealership.
3. Difficulty in Retaining Records: Paper documents can be easily lost, damaged, or destroyed over time, making it difficult to retain a clear and accurate record of the vehicle sale. This can create challenges if disputes arise in the future and the parties need to refer to the Statement of Facts as evidence.
4. Inconvenience and Expense: Finally, using a paper Statement of Facts form can be inconvenient and expensive for both the buyer and the seller. It may require additional time, effort, and resources to print, fill out, and file the document.

To mitigate these risks, some buyers and sellers choose to use digital versions of the Statement of Facts or electronic disclosures, which can help ensure accuracy, retention, and efficiency in the car sale transaction.