Chapter 13: Lemon Laundering

Permanent Labeling

California was the first state to require a permanently affixed label on the driver’s doorframe. A permanent decal identifies a lemon law buyback to prospective purchasers throughout the entire chain of ownership. If nothing else, this ensures that California consumers know when they are purchasing such a vehicle, even if the title has been washed in another state.

While some other states require window stickers that are more conspicuous, the lemon label that California requires is intended to be permanent. The law prohibits its removal. The costs are minimal, and are one-time only.

A permanent label also serves a useful purpose for auction companies and dealers. Vehicles are naturally transportable, and lemon vehicles may undergo several wholesale transactions before being resold to a retail consumer. A permanent decal indicates that additional paperwork and disclosures are required in connection with that vehicle, making it easier to comply with state lemon disclosure laws.

What Can You Do About It?

Before purchasing a used car, investigate. Find the Vehicle Identification Number (VIN), which should be on the window sticker. You can also find it on the top of the dashboard at the base of the windshield, on the driver’s side. It is a string of seventeen letters and numbers.

Once you have the VIN, there are a number of ways to research the vehicle’s title history. For example, for a small fee you can get a title history of the vehicle you want to purchase from CARFAX Vehicle History Reports, AutoCheck, Consumer Guide, and others.

And don’t forget to check the left front doorframe for the lemon law buyback decal.

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