January 12th, 2010
Used car dealers typically sell cars on which the manufacturer’s warranty has expired. Consumers often assume that used cars do not qualify for the California Lemon Law. However, sometimes the dealer will issue a separate “dealer’s warranty” – usually good for 30 days. The short term of the warranty gives you as the buyer a very narrow time frame to do anything about a problem car. However, you still have some rights.
The first and most important rule is know what you’re buying. But let’s say despite all of your diligence, the car starts to sputter when you try to accelerate up to freeways speeds or you discover some other serious defect two days after you buy it. It is very important to present the vehicle for repairs and make a record of it within the 30-day period and if the problem isn’t handled to go back.
Ideally, you’ll present the car, they’ll do the work and give you a repair order documenting when you brought it to them. But what do you do if the dealer says, sorry we’re busy, bring it in next week (after the warranty is up)? Or, they claim it is a normal characteristic of the vehicle and refuse to repair it or give you a document?
It is vital to any case you may want to present to have evidence of presenting it for repair within the warranty period. If polite persistence doesn’t get you a repair order, you can write a letter to the dealer stating the date and time you brought the car in for service, whom you spoke to, the defects with the car that you wanted to fix and the exact response. You can have someone go with you who can provide corroboration that you went there. You should save things such as voice mails and e-mails from the dealership that indicate they knew of the problem within the warranty period.
If you have a used car that can’t be fixed don’t assume you have no rights under the lemon law just because it is used. A qualified lemon law attorney may be able to help you get a refund or replacement. The job is made easier if you’ve got a paper trail.
Tags: California Lemon Law, lemon law attorney, repair orders, warranty
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December 14th, 2009
The lemon laundering problem created by manufacturers is not limited to just those vehicle that are formally determined to be lemons in a lawsuit. It includes all vehicles with a history of defect, or known to the manufacturer to be substantially defective. It includes so-called goodwill buybacks and trade assists completed with financial assistance from the manufacturer or its financial arm (such as GMAC, which is affiliated with GM).
It doesn’t matter whether the manufacturer bought back the vehicle due to an arbitration award, a court order, or so-called customer satisfaction. It doesn’t matter what the manufacturer calls it. If it’s a lemon, any potential secondary owner who might end up with the vehicle should be warned. Lives may well hang in the balance.
Some states, including California, already requires title banding and resale disclosure even for goodwill buybacks, in which the manufacturer has never formally acknowledged an obligation to take back the vehicle.
Tags: California, defective vehicle, disclosure, goodwill, lemon law, lemon law buyback
Posted in Uncategorized | 10 Comments
December 11th, 2009
The only thing gap insurance and lemon law has in common is that both provide protection for the car buyer. Gap insurance is a popular choice with many consumers because it fills the “gap” between a car’s value for insurance purposes and the owner’s outstanding debt on the car. For example, if you owe $20,000 on your car when it is totaled, the insurance may only reimburse you for the value of your car at the time of the accident. In other words, the vehicle may have depreciated quite a bit since time of purchase. If the insurance company only pays out $14,000 on your claim, you still owe the bank $6,000 to pay off the loan. A gap insurance policy will cover the $6,000 difference.
It’s pretty obvious that a defective vehicle (a lemon) is not worth what it should be. If you tried to sell the vehicle in its defective condition, the buyer would want a substantial discount in price taking the defect into account. Just like the car that has been involved in an accident, you may end up owing more on your lemon vehicle than you can get when you try to sell it. Gap insurance will not protect you if in this scenario. You’re on your own, or, you can seek the assistance of a lemon law attorney. If successful you can recover not only your down payment and all payments made up to the time of settlement, but also the lender is paid off entirely and title to your lemon gets transferred to the manufacturer buying back. It actually works out much better than gap insurance.
Tags: buyback, Gap Insurance, lemon car, lemon law, lemon law attorney
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November 18th, 2009
Many people mistakenly believe that in order to qualify for the California lemon law your vehicle must be in the shop a pre-requisite number of times within a certain mileage period. This is simply not so. There is what is a called a “presumption” – e.g. in California if your vehicle has been in the shop 4 or more times within the first 18,000 miles for the same defect, or, 30 days in the shop within 18,000 miles, one is presumed to have a lemon. The advantage gained is a technical one; instead of having the burden to prove your vehicle is a lemon, the burden shifts to the manufacturer to show you don’t. Otherwise the real test is and always has been, whether the manufacturer had a reasonable number of attempts to repair the vehicle, and the defect is substantial. That means e.g. your first problem could start as late as 30,000 miles and so long as you give the manufacturer a reasonable opportunity to repair your defect, you may be entitled to a buyback.
Tags: 000 miles or 18 months, 18, California Lemon Law, presumption
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November 13th, 2009
Part of the lemon car experience is the number of people you get the chance to meet. If you are like most people, as your repair record gets longer and longer and you become increasingly frustrated with the inability of service technicians to fix your car you will want to talk to people higher up the ladder.
You will soon find yourself talking to a customer relations specialist. They will probably suggest another repair or that the car be looked at by a technical specialist. Sometimes the process will put your car into the hands of a more highly-trained technician and you will finally have a working car. But you could wind up like all too many customers who find themselves in the same endless loop of repairs, only this time involving the corporate level instead of the dealership.
An important rule to apply here is “look, don’t listen.” Ignore the smooth talk and explanations. Is your car fixed? If it’s not, it may be time to contact a California lemon law attorney and insist on your rights.
Did you call the customer assistance number in your warranty booklet or the manufacturer’s web site? Are you getting help or the runaround? Let us know your experience. If you’re on the same treadmill of repair after repair we might be able to help.
Tags: customer relations, lemon car, the runaround
Posted in California Lemon Law, lemon law | 3 Comments
November 3rd, 2009
“Reliability” is one of the most important qualities in a car. We depend on them to get us to work, get the kids to their various activities, shopping and many, many other aspects of our daily lives. For most families a car that will be there for you when you need it is a necessity. California lemon law and the lemon laws of other states recognize the importance of the automobile to our daily lives by providing remedies to buyers whose cars are substantially defective.
The highly-respected magazine, Consumer Reports, also takes heed of the importance of reliability by publishing an annual reliability survey based on actual experiences of car owners. Asian cars have for many years dominated the survey and 2009 in which they captured nine of the top ten spots was no exception. Mercury came in tenth. Combined with Ford’s sixteenth-place finish, this made Ford by far the best of the US automakers and also the only one that appears to be gaining on its international competition. Consumer Reports noted that it is the sole US automaker to achieve “world-class reliability.” By contrast, Chrysler’s three brands slipped further in the ratings, though the survey mostly reflects cars that were made before the new ownership team took over.
How well a brand or model did in a survey will not of course tell you whether or not you have a lemon. If your car is not performing, regardless of its reputation, don’t delay getting needed repairs. If it still isn’t fixed a qualified lemon law attorney can help you determine whether or not you have a case.
Tags: California Lemon Law, Consumer Reports, lemon, lemon law attorney, reliability
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October 30th, 2009
Some lemon laws may require you to go through an informal arbitration process before you can file a lemon lawsuit. Others may not. In the case where you are not required to do this, it should be known that arbitration is rarely helpful, even if you win. For example, the arbitrator may issue an eloquently worded opinion finding that your defect exists, but that “in all fairness” it looks as if it could be repaired. So, instead of awarding you the refund or replacement that the law requires, you are “awarded” another repair attempt. This isn’t an award at all. It is something you were entitled to under your warranty anyway!
What’s even worse is the “award” of a refund with deductions to your refund that are not permitted by your state law. There is no real oversight committee to see that the law is actually followed.
More often than not the arbitration process turns out to be yet another obstacle placed in between the consumer and his goal, to get their money back for a bad vehicle. In all my years I have observed that it is indeed a rare occurrence for a consumer to receive the relief they are actually entitled to under the law. One is better off seeking the assistance of a competent lemon law attorney.
Tags: arbitration, California Lemon Law, lemon law attorney
Posted in Uncategorized | 5 Comments
October 28th, 2009
A prospective client brought me an interesting situation. She had a lemon law claim against Ford, but what she brought with her was evidence of the latest scam by Ford Motor Co. to escape it’s liabilities under lemon laws.
The woman had taken her vehicle in for warranty repair. The part necessary to effect the repair was on back order and so her vehicle was to be in the shop for a few weeks until it came in. With a smile on their face, the dealer offered to put her into a rental car for the duration of the waiting time, but at a cost. She was given a Release of All Claims to sign in exchange for receiving the rental car during the down time. Upon close examination the Release included forgoing of any lemon law claims, any product liability claims, virtually any claim that might arise from ownership of the Ford product. The Release was worded in such a way as to imply it is being implemented on a nationwide basis, also releasing Magnuson-Moss claims aka Federal Lemon Law.
The prospective client was smart enough to actually read the Release and refused to sign it because she had been in several times for the same defect and was aware that she may have rights under California’s Lemon Law. She refused to sign it even though the smiling dealership said, “oh, it’s no big deal; you want the rental don’t you?”
The less sophisticated consumer might not read what they are signing. If they did sign it, and later it turned out they had a “lemon”, at best there are issues of whether the Release is enforceable, and whether the false and misleading statements made to induce the signature are admissible. Then there are judges who will uphold the Release and slam the door in the face of the consumer, who is left holding the keys of their lemon car. I suppose many unsuspecting consumers have and will sign Ford’s scandalous Release never realizing the impact it might have on them in the future. This is precisely why Ford does it. This is one way Ford protects itself from putting out “crap” product to the public.
Who ever said greed was confined to Wall Street?
Posted in California Lemon Law, lemon law | 1 Comment
October 22nd, 2009
We would like to take a moment to express our appreciation for the life and work of former California assemblyman and state senator Robert G. Beverly who recently died at the age of 84. Mr. Beverly is best-known as the co-author of California’s famous Song-Beverly Act, which since its passage in 1970 has formed the basis for California’s lemon law, considered by many to offer the strongest protection to automobile consumers in the nation as well as to buyers of many other products.
Beverly was a Republican who collaborated with Democrat Alfred Song to produce the bipartisan law. According to those who knew Beverly, working well with people of either party was one of his strengths.
Californians should be grateful for Robert Beverly’s efforts to create a level playing field in the marketplace and his legacy in the form of the bill that bears his name.
Tags: California Lemon Law, consumer protection, consumer protection act, lemon law, Robert Beverly, song beverly, song beverly act
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September 25th, 2009
You’re in the showroom and, despite the recession, you’ve got the financial resources for the high-end luxury car you’ve always wanted. In addition to showing you all of the bells and whistles that will enhance your driving experience, the sales person is assuring you that all of the cash you’re about to shell out will guarantee a very safe and reliable car. There is no chance that a car of this caliber could be a lemon car. Certainly the dealership will have every incentive to make very sure that the car you drive off their lot will give you plenty of trouble-free, high performance driving, right?
Not necessarily. A recent study of Mercedes dealers indicated that their profitability depends on service more than sales. When dealers perform work on your car under warranty they send the bill to the manufacturer for reimbursement. In cases where the repair is not covered under warranty or the warranty has expired the consumer is responsible for repair costs. When there is a question of whether or not the defect is covered under warranty, the dealer asks for approval for a tear down to inspect the defect and submits the claim for warranty approval with the caveat that the consumer may be responsible for the costs of a tear down and repairs if it is decided that the warranty does not cover the defect. When Mercedes put out cars that broke down every few thousand miles, the dealers were raking in the dough. Oddly enough, as Mercedes has tried to improve their product quality, some dealerships have felt a financial pinch.
It’s tough to trust a system where the business that sells you the car has a disincentive to make sure it’s going to be free from defects. This is just another reason why consumers need to know their rights under California lemon law or the state in which they live.
Tags: California Lemon Law, lemon car, Warranty claims
Posted in California Lemon Law, Warranties, lemon law | No Comments
