Lemon Law Blog

A few years ago, a personal story was posted on the Internet about a man who purchased a car that was recalcitrant, to say the least. The more that he repaired it the more repairs that it seemed to need; and one day he had had enough. As he was driving through the countryside on his way home, his recently repaired car broke down yet again. What did he do? Call a tow truck? No. He retrieved a gas can from the vehicle’s trunk, doused its interior with gasoline, set it ablaze and then calmly walked home, happy to be rid of his lemon car.

Whether or not the story is true, anyone who has owned a lemon can identify with its protagonist. When we buy a new car, we expect it to perform like new, not beset us with repairs. But what the man in the story didn’t realize, or chose to ignore in his anger, was that there are laws that could have rectified his situation. Often referred to as “Lemon Laws”, these statutes hold automakers responsible when they sell you a new car that is “new” in name only.

The provisions of Lemon Law vary by state. But in each case, it establishes that consumers are either entitled to a new vehicle or are entitled to a refund of the lemon’s purchase price, less a mileage based allowance in some states. In the case of a refund, consumers are also reimbursed for such things as finance charges and licensing and registration fees. Normally, the choice is the consumer’s.

Purchasing a lemon is a new car owner’s worst nightmare. But if you find yourself broken down in the countryside with your lemon to blame, resist the instinct to light a match and contact an attorney instead. In the end, you’ll be rid of your lemon and have something to show for it too.

At one time or another, most of us have driven a car that we would describe as a “lemon”. For some of us, that car came in the form of an old jalopy that we still felt lucky to be driving when we were sixteen. But for others of us, a lemon car was vehicle that we purchased new but that nonetheless performed like an old jalopy. Anyone who has encountered the latter scenario knows how frustrating it can be in terms of cost, social autonomy and maintaining a punctual schedule. Just when you feel free of auto repairs, are ready for a weekend outing or are leaving for work, your supposedly “new” car is headed for the repair shop. Just how unfair is this scenario? According to lawmakers, it’s so unfair that “Lemon Laws” have been enacted to hold automakers responsible.

Lemon Laws vary by state. But most states define a lemon as a vehicle that spends an undue amount of time in the repair shop or is repaired numerous times for the same problem before its warranty expires or it reaches a certain number of miles, whichever comes first. For example, in Ohio, your vehicle is presumed a lemon if within the first year or eighteen thousand miles, it has been unsuccessfully repaired for the same problem three or more times, or if it has spent a total of 30 days or more in the shop since, or it has been subject to 8 or more repairs for various problems or one time for a problem likely to cause death or serious bodily injury.

Once a vehicle becomes a legal lemon, compensation arrives in of two forms: the vehicle is returned and replaced with a comparative vehicle or the consumer is refunded the car’s purchase price (minus a mileage based “allowance” in some states) and is compensated for other expenses as well, such as sales tax, options and modifications made by the dealer, finance charges, licensing and registration fees, rental car fees incurred while the lemon was being repaired and towing charges. If you’re driving (or, rather, not driving) a lemon car, contact a Lemon Law attorney and let the Lemon Law work for you before it’s too late.

Thinking you might have a lemon car?  Every state has its own lemon law and may differ on the exact definition of a lemon car.  Along with state lemon laws, there is a federal lemon law manufacturers must comply with.  If your vehicle has defects or conditions that make it unsafe, non-usable, or otherwise diminish the value of the vehicle and they have not been repair within a reasonable number of attempts, you may have a lemon car or truck.  It is your right to receive a copy of all all repair orders and your responsibility to keep track of the number of attempts.  It is important to bring your vehicle in for repair as soon as a defect arises. 

Remember, there is more to a vehicle being a lemon car or truck than just having a defect.  Most states require you to give the manufacturer or dealer a reasonable number of attempts to repair the defect.  The number of repair attempts varies per state, but there are some general guidelines that apply to most. 

• If the defect is likely to cause serious injury or death, some states only require one unsuccessful attempt to fix the defect. 
• When the defect or condition is not that severe, but still substantially impairs the use, value or safety of the vehicle, state laws vary from three to four unsuccessful attempts.
• Sometimes there is a time limit, such as if a vehicle is out of service for thirty days, it can be considered a lemon car or truck.

 If your meets one of the above, the first thing you should do is give the manufacturer or dealer a chance to comply with your state’s lemon law.  Normally, this means they are required by the lemon law to either replace the vehicle or refund the purchase price of the vehicle.  In most states, they may deduct the usage costs.  If the manufacturer does not follow through with this, it is time to consult with a lawyer in your state.

Purchasing a used car can be stressful because it does not come with the same guarantees as a new car.  Of course it is always best when considering a used vehicle to check out its history and find out how it was taken car of.  Check to see if it was in any accidents and find out what repairs have been done to it.  It is also a good idea to have a reliable mechanic inspect it as well.

One or more of the following procedures may prove to be useful in discovering more information about a used car prior to purchasing it: 

1. Get a vehicle history report at www.carfax.com or call 1-888-4-Car Fax;
2. Take the vehicle to a body shop mechanic to determine if is was ever in a major accident;
3. Have your Insurance Company run your Vehicle Identification Number (VIN) on their computer (may be called a C.L.U.E. report) to see if an accident claim was ever made with another insurance company; and/or
4. Go to an authorized dealer and have them check the computer to see what information they have on past repairs or prior accidents. 

Even when all the homework has been done and the vehicle has been purchased, problems may arise. The only way the federal Lemon law can apply to used cars is if the problems arise under the remainder of the manufacturer’s warranty period or possibly under an extended warranty.  This is sometimes known as an express warranty.  You may also have a claim against the dealer if a limited warranty was sold with the vehicle by the dealer.  You may also have a claim under what is known as an implied warranty, but only under certain conditions. 

Sometimes consumers are lied to, misled or taken advantage of in connection with the purchase of their vehicles.  In these instances, there are many State and Federal laws to protect you which can be used to assist victims of fraudulent and deceptive sales practices. 

If you purchased a used car that is giving your problems, make sure to document all repairs and keep a history on the vehicle.  Make sure to notify seller as soon as a defect arises as the warranty period may be very short on a used car.  If the defect is not being repaired in a timely manner, you may have recourse under these lemon laws.

Compensation with used cars is normally in the form of cash to compensate the consumer for the diminished value of the vehicle and incidental expenses.  If the dealer or manufacturer does not comply, it may be wise to seek the advice of an experienced lemon law attorney.

For most of you, autumn brings cooler weather, beautiful foliage, and the beginning of the school year. With winter on the horizon, many drivers think that their daily commute is still far from getting stressful. However, many people don’t know that the fall driving season can be just as dangerous. Here are some tips to keep you and your family safe during the fall season.

• Remember that with the beautiful color of the leaves comes the large amount of leaves on roads. Wet leaves can in fact be just as slippery as ice. Worse yet, piles of leaves on the road can hide pot holes and other dangers.
• Fall is “Back to School” time. Be careful of students crossing streets and walking or riding bikes to and from school. In addition, school busses can stop frequently, so follow with care.
• Many roads in America travel east and west. With this said, the fall sun rises and sets from almost exactly east to west. That means motorists traveling east to work and west home will have to deal with the sun being in their sight line. Be sure to carry sunglasses.
• Cool autumn nights often come with a great deal of fog. The warm earth cooling at night will sometimes cause dense fog, so travel with care and make sure your low beams and fog lights work.
• For many, deer season can cause many accidents on the road ways. Be careful in poorly lit and desolate areas to avoid deer that may cross the street.

$3.80 – $3.90 – $4.00 – $4.10 … When will it stop? With the rising cost of gas consumers have been bombarded with advertisements for various gas saving products and free gas promotions. So are any of them real?

Gas Saving Products

Products ranging from fuel additives to hardware that you mount on your car claim to save you hundreds at the gas pump. Do any of them work? Of the hundreds of “gas saving” devices and additives reviewed by the EPA over the years, none have been found to actually work. Furthermore, Consumer Reports recently tested several new products, and none lived up to their claim.

So what can you do? Save your money! Properly maintaining your car and improving your driving style are still the best ways to increase your gas mileage. In fact, traveling at 65 mph instead of 75 mph, braking easier, and accelerating at a slower pace can save you up to 37% in gas!

Buy a Car Get Free Gas

Are the “free gas for a year” new car promotions real, or are they a scam? Well, yes and no. Here’s the scoop: When buying a new car under this and similar promotions, make sure you read the fine print. Often these deals are good, but the promotion only cover gas up to a certain amount. The amount covered is often calculated by factoring the amount of gas required to drive the car 12,000 miles and the vehicles EPA mileage estimate.

The bad end of the deal involves other discounts and rebates you may be passing up. By going with the free gas, you may be substituting 0% financing, saving you thousands and thousands, or attractive factory rebates in exchange. To truly understand which offer is the better deal, sit down with your salesman and get all the fine print. Then calculate out your exact savings for each deal.

As many of you know, the price at the pump is determined by a few different factors. A majority of news shows simply state that, “it is all supply and demand.” While that all sounds grand, have you ever wondered to yourself how they come up with the per gallon price of gas? Well, wonder no more.

Crude oil is the key contributing factor towards the cost of a gallon of gasoline. In fact, crude oil costs makes up 70% of the cost per gallon. To be more exact, refineries get 42 gallons of gasoline out of a barrel of crude oil. So, if the market has the per barrel price of crude oil at $109, the cost of the gasoline in that barrel is approximately $2.60 per gallon. Remember though that crude oil costs account for only 70% of the cost of gas at your local gas station.

Refining and distribution, as well as your local gas station’s profit makes up approximately 16% of the per gallon price of gas. Refining that crude oil into gas, delivering it, the gas company’s profit, and the gas station’s cost of doing business are wrapped up in this 16%. Based upon a per gallon price of $3.65; your looking at $0.58 of that attributed to these costs.

Finally, you can’t escape taxes. Each state varies in taxes with the lowest being Alaska at $0.23 a gallon, and the highest being California at $0.63 a gallon. Most states fall in the middle with taxes averaging $0.40.

Using the scenario above, determining the price at the pumps isn’t as complicated as it seems.

The warranty battle is on! Many manufacturers are engaged in a battle for the best warranty. But here are some things to keep in mind when investigating the difference between new car warranties.

It’s good to know the difference between a new car warranty and an extended auto warranty. A typical new car warranty has two parts: the “bumper to bumper” warranty, which covers everything except the “wear” items such as brakes and tires; and the powertrain warranty that covers all the parts that make the car move, such as the engine and transmission.

An extended auto warranty can be purchased to prolong the coverage of the bumper-to-bumper warranty. Most people are familiar with the extended warranty that is sold at dealerships. There are also “third-party” warranties which can save consumers money but are generally less convenient to use. Many third-party warranties require out-of-pocket payment for repairs before reimbursement. Weigh all these factors carefully before you make your choice.

Many Auto dealers employ unfair and deceptive practices in order to persuade you during the negotiating process to purchase a vehicle from them. While it would be nearly impossible to list all of the tricks employed in new and used car sales, the following tips will help give you a better understanding of some of the most prevalent tricks certain dealers are using.

Hidden Damage / Title Washing
Every year vehicles which have been totaled in an accident and thereafter rebuilt are sold as if they had not sustained any damage. Consumer advocacy groups have stated that as many as twelve percent (12%) of used vehicles sold have hidden defects that could lead to major problems. Vehicle’s that have had evidence of flood, fire or accidental damage so severe as to be reported to an insurance company have their titles branded as such in many states. Sometimes the title is “re-branded” and then resold to an unsuspecting consumer. Many dishonest dealers will deny knowledge of the vehicle’s history, despite the availability of vehicle history reports. Be wary, many states require title branding, however, in those that don’t, a vehicle’s prior history can be wiped clean of any negative marks against it.In addition, new vehicles can be damaged as well, either in a mishap on the lot, or even in transport to the dealership. Although some states have specific statutes requiring disclosure of damage, it normally has many loopholes, even if it is being followed at all.

Laundered Lemons
When a manufacturer repurchases a lemon car or truck from a consumer, the vehicle often ends up sold through dealerships and back on the road. The vehicle becomes a laundered lemon when an unsuspecting consumer purchases one of these vehicles and the dealership fails to inform them that it had been repurchased under the Lemon Law. Most states require that the manufacturer, through their dealers, inform buyers that the vehicle has a repurchase history and offer a limited warranty.Sometimes the title is “re-branded” and then resold to an unsuspecting consumer or no disclosure is given at all. Many dishonest dealers will deny knowledge of the vehicle’s history, despite the availability of vehicle history reports.

Odometer Fraud
An old trick is to “rollback” a vehicle’s odometer to hide its true mileage and make the vehicle more appealing to a would-be buyer. Odometer fraud is illegal on the federal, as well as the state level.

Sale of Rental Vehicles (and other heavily used vehicles)
Rental car companies regularly turn over their vehicles prior to the warranty expiring and sell them at various auto auctions. Dishonest dealers buy these vehicles and resell them on their used car lots without disclosing their prior rental car history. Most people do not want a prior rental car due to the abuse it’s been put through or would only purchase one at a substantial discount. Other types of unwanted vehicles could be police cars, demos, taxis, etc.

Spot Delivery/Yo-Yo Sales
A spot delivery or yo-yo sale occurs when the dealer places a consumer in a vehicle on the spot before securing financing or pretending to have secured financing. The consumer is told that everything is complete and drives the vehicle home to show off to friends and family. Once the consumer is “attached” to their new car, the dealer calls to tell them the lender has refused financing at the price they were expecting. Usually the price is now more than they had agreed to and sometimes the trade-in vehicle has already been “sold.” This unethical practice can provide thousands of dollars of unearned gain to the dealership. To avoid this, ensure that your trade in is not sold until the financial institution has approved your loan!

How to Avoid these Problems
Despite the existence of these fraudulent practices, a knowledgeable consumer can protect themselves from falling victim to these scams. It is good practice to have any used vehicle inspected by an independent mechanic not associated with the dealership prior to purchase to receive an honest evaluation of the vehicle. You can also use Carfax or do a title search to help ensure your vehicle does not have one of the above problems.

Given the sheer volume of vehicles manufactured each year, it should come as no surprise that auto manufacturers will make mistakes during the process. From design defects to manufacturing defects, the responsibility of rectifying the manufacturer’s mistakes must be addressed. Often times, auto makers will address these defects by releasing “secret warranties” that many consumers may never know exist.
 
Secret warranties are free repair programs offered by automakers often dealing with repairs related to negligence or poor engineering in the manufacturing process. Manufacturers are reluctant to admit the existence of secret warranties, only admitting these issues under the guise of special technical service bulletins (TSB), goodwill policies or extended warranties. Worse yet, there is no federal law requiring auto makers to release this information. As a result, consumers are never notified, only regional offices and sometimes the dealer. Therefore, only the consumer who complains loudly gets covered by the secret warranty, while others end up accepting the expense of the manufacturer’s mistakes!
 
Secret warranties can assist a consumer who may think they have a lemon. Often times, they cover everything from large, costly repairs including blown engines or transmissions to even smaller repairs, costing only a few hundred dollars.
 
Finding Secret Warranties
First, check for a list of technical service bulletins for you’re vehicle. Consumers can contact us at 1-888-536-6671 and request a search of our extensive file of TSB information or search sites such as the National Highway Traffic Safety Administration at nhtsa.dot.gov. The existence of a service bulletin does not conclusively prove the auto company has a secret warranty, but it does show a defect or problem exists for which the manufacturer has had to develop a repair. Bulletins that authorize the dealer to make repairs at the manufacturer’s expense, even if the defect is no longer covered under warranty and contain wording such as “check for availability of good will assistance” are important to your cause.
 
Once determining that your vehicle is covered by a secret warranty, take the service bulletin that proves its existence with you to your dealer. Should the manufacturer refuse to honor the secret warranty for any reason, escalate your claim to the manufacturer directly and their corresponding regional and zone managers. Manufacturers only reimburse consumers who are persistent in their complaints.