Archive for May, 2008

May 31 2008

The Lemon Law - Taking The Law Into Your Own Hands

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The automobile lemon laws were designed to protect car buyers from irreparable manufacturers’ defects in automobiles that should be ordinarily be covered under warranty.

So How Did The Lemon Laws Come About?

Consumer demand for lemon law protection started to swell from around 1972, when more than one million people were found to have paid for vehicles that had problems that dealers could not, or would not, repair. Connecticut and California were the first states to adopt an automobile lemon law, and other states were quick to follow. They’ve had a dramatic effect on vehicle quality and today, with the increased accountability demanded by lemon laws, claims have dropped to about 100,000 new cases a year.

So What Is Covered Under Lemon Law?

Every state now has an automobile lemon law and the specifics of each vary widely. However, as a general guideline, you are considered a candidate for protection under the lemon law if you have a serious problem (or, in certain cases, a string of minor problems) that falls under your car warranty. A problem is usually considered serious when it threatens the use, value, or safety of the vehicle.

Some examples of serious problems that would probably be covered include brake failure, transmission problems, and repeated non-starts. The lemon law in most states will not cover thing like funny noises, loose cup holders, and peeling paint - most times that’s just fair wear and tear.

The type or ownership of vehicles is also important when it comes to protection under the lemon law. In some states, leased vehicles are covered as well as wholly owned vehicles. Others exclude automobiles purchased for business purposes or special kinds of vehicles such as RVs and motorcycles. Even used vehicles may be covered if they come with a car warranty.

Inevitably, some shady car dealers try and write a clause in sales contracts that states that no lemon law claims can be made against the vehicle. These provisions are totally invalid and can be ignored - as long as your vehicle has a car warranty and qualifies under the other automobile lemon law provisions, you will be covered no matter what you originally signed.

Before any lemon law comes into effect you must give the manufacturer ample opportunity to repair the problem in question. This is usually defined as a specific number of repair attempts (for example, four attempts to repair the same problem) or a certain amount of time when the vehicle is out of action (for example, four weeks). A life-threatening vehicle defect may require only one attempt at repair before falling under the lemon law.

So What Happens if I Qualify for the Automobile Lemon Law?

If you believe that you qualify for protection you must file a claim with the manufacturer within a certain period of time. Usually, the case will then be brought for arbitration with the manufacturer. If you win your case, you will most often receive a replacement vehicle or a refund of your purchase price minus a fee for vehicle use.
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May 31 2008

Lemon law information may not be up to date

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Most consumers never have any sort of problem with perpetually defective vehicles, as the quality of most autos in this country is quite good. When cars or trucks do turn out to be defective, the owners of those vehicles have recourse through both Federal law and the laws of their state. Each of the fifty states now has a lemon law on the books to protect consumers from problems associated with habitually defective vehicles.
What does a consumer with a problem vehicle do? The first step is usually to look for information in order to find out whether or not the problem or problems are covered by law. There are a number of places that one can go for that kind of information; this Website is one of them. While the many Websites on the Internet are a good starting point, many of them (including this one) have trouble keeping up with the many changes that take place each year in the laws of the various states.

The next obvious place to look for current information would be the Website of the state itself, or perhaps the Website of the state’s Attorney General’s office. After all, the Attorney General’s office is usually responsible for upholding and enforcing the law, so they should have accurate information, right?

Unfortunately, that is not necessarily the case. Recently, a television station in Memphis, Tennessee, discovered that the official Website of the state of Tennessee had incorrect information regarding the state’s lemon law. Not only that, but the erroneous information had been posted on the site for more than four years! Legislators made changes in the law in 2003 that made the law more favorable to consumers. Unfortunately, the people responsible for noting those changes on the state’s Website failed to do so.

This was potentially harmful to consumers, as the changes to the law reduced the number of repair attempts that were necessary for a vehicle to qualify as a lemon from four to three. It is quite possible that during the past four years, a number of people who had three, but not four, repair attempts might have been discouraged from seeking relief under the law due to the incorrect information.

It’s worth noting, by the way, that the information posted on this site has been correct all along.
What does this mean for consumers with problem vehicles? Before taking any action regarding a potentially defective vehicle, you should check with more than one source of information in order to make sure that the information you have is both correct and current. It might be wise to consult with an attorney who specializes in vehicle law; they tend to be pretty good at keeping up with changes. You might also contact your state’s Attorney General’s office directly; a phone call can clear up a lot of misinformation in a hurry.

Having the wrong information when something goes wrong with your car can cost you thousands of dollars. Be careful to make sure that the sources you have are up to date and accurate. If you can, check with more than one source. It’s better to be safe than sorry, as having the wrong information could be expensive.

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May 30 2008

Lemon laws protect all cars, even the expensive ones

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Over the past five years or so, sales of luxury vehicles in the United States have increased substantially. There are a number of reasons why people buy expensive cars and trucks; some just like the added comfort. Others like to brag about having an expensive make. Still others like to drive an attention grabbing vehicle. What other reason could there be for driving a Hummer in downtown Chicago?

Consumers need to realize a couple of things about expensive cars, however. The luxury features are nice, but studies show that nearly all cars are about equally reliable these days. Furthermore, most cars are about equally likely to be defective. That means that while it may be nice to drive a Ferrari, you will pay a lot for the privilege, and you still run the risk of buying a lemon. In addition, the insurance and repair costs of a more expensive car could be far more than you might expect.

Car reliability is currently the best it has ever been. Average cars such as the Honda Civic are quite reliable and can reasonably be expected to run well for years. The old days when a car with 100,000 miles on it was considered over the hill are gone; many cars routinely reach 200,000 miles and beyond today.

Still, lemon problems do occur, and driving Jaguar or a Porsche does not make you exempt from factory defects. It just creates a more expensive headache should a lemon problem occur. All cars are going to have occasional problems, including warranty issues. For more expensive or exotic cars, the headaches associated with defects can be far more serious. Downtime can be longer, particularly if the parts needed for repair are not in stock. They might need to be ordered from a remote location. If the problem is recurring, the amount of time you spend without your vehicle could be considerably longer.

Studies have shown that warranty problems with luxury cars are often associated with nonessential equipment, such as adaptive cruise control or other sophisticated electronic gadgetry. Drive train problems tend to be no more prevalent than they are for other vehicles in any price range. The one advantage of having problems with luxury cars is that dealers of such vehicles tend to be a bit more service-oriented than dealers of more common or less expensive vehicles. That may at least save you a bit of discomfort, particularly if your dealer is willing to lend you a car while your expensive machine is out for repairs.

All cars, no matter what make or model or price range, are going to have occasional problems, and some are going to be out and out defective. Luxury cars are nice, and you should feel free to buy one if you are so moved. Don’t delude yourself into thinking that buying an expensive car will somehow insure that you don’t get stuck with one that’s defective. The risk is still there.
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May 30 2008

Lemon laws vary from state to state

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Prior to the advent of lemon laws, consumers with perpetually defective vehicles had to beg manufacturers or dealers to help them with their problems. If someone bought a car and the vehicle kept breaking down, the owner was just stuck unless the dealer saw fit to help them out by offering a replacement. Those days are gone, as every state now has a lemon law on the books that protects consumers from the hassles of defective new vehicles. The laws vary from state to state, but in most cases, consumers with problem cars or trucks can receive either a replacement vehicle or a refund of the purchase price.

While the laws are both good and effective, they sometimes don’t reflect changes that take place in how consumers do business. Twenty five years ago, when the first lemon laws were passed, virtually all new vehicles were sold to the end consumer. That is not necessarily the case any more. While the vast majority of new vehicles are, in fact, sold to the end consumer, many people opt to lease vehicles instead.

There are many reasons to lease a vehicle instead of buying one. Those reasons include low down payments and low monthly payments, as well as knowing that you can simply be rid of the vehicle once it reaches a point where it might need regular maintenance. Some people simply want to drive a new vehicle all the time, and leasing allows that with a minimum of hassle. When the lease is up, you can just drive back to the dealership and give them the keys. That’s an oversimplification, of course, but that is pretty much how it works. Auto manufacturers often advertise low prices on television for leases, and when consumers realize that they cannot purchase the vehicle for the low price advertised, they often decide to lease, instead.

That’s fine, but few consumers realize that not all states cover leased vehicles under their lemon laws. One state that does not, as of this writing, is Arizona. Furthermore, a state court recently ruled that those who lease vehicles are also not covered under the Magnuson-Moss Warranty Act, a Federal law that offers consumer protection. Again, the court ruled that those who lease are not “owners”, and both the state law and the Federal law explicitly refer to owners.

Most states’ lemon laws do cover leased vehicles. Anyone who wishes to lease a car, truck, or minivan would be wise to first check with their state’s Attorney General’s office to see if the vehicle they plan to lease is covered under that state’s defective vehicle statute. If not, you may be taking a significant risk when you sign a lease.
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May 29 2008

When a lemon law isn’t enough, a car buyer’s bill of rights is passed

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In the twenty five years or so since the first lemon laws were passed, consumer protection law has improved a great deal. The manufacturers of defective automobiles used to have all of the say in whether a car with a problem would be fixed, replaced, or even considered at all. When California passed the first lemon law in 1982, other states took notice, and now all 50 states offer some degree of consumer protection for people who buy new, defective cars.

In the eyes of the California legislature, that law doesn’t go far enough. The state has recently signed into law a new Car Buyer’s Bill of Rights, which is designed to extend and enhance the rights granted by the lemon law.

The new bill, ten years in the making, offers new protections, including the following:

A two day return privilege for buyers of used cars - Consumers are no longer stuck if the vehicle dies five minutes after they leave the dealership. The new law permits them to return the vehicle on a no-questions-asked basis for up to two days after they take possession of it. The dealership is permitted to charge for the privilege, as preparing a returned car for resale does take time and resources. Fees are expected to charge between $75 and $400 for this service, although the amount is negotiable.

The law requires auto dealers to provide potential customers with a comparison list showing the total price of the car both with and without additional options. 

Buyers who finance their purchase through the dealer must be provided with a copy of their credit score.

The law provides maximum markups for interest on loans offered through the dealer. The financing is actually done through other lenders, but dealers often take a cut of the financing.

Cars sold as certified used cars must meet new, tougher regulations that prohibits cars with certain types of damage from being sold as certified.

Few states offer any type of protection for buyers of used cars. For buyers of second hand vehicles, the matter is usually regarded as “buyer beware.” Unless the dealer offers some sort of warranty, buyers are stuck if the vehicle breaks down at any time after it leaves the dealer’s lot. The California law goes a long way towards making it easier to return a car that offers some sort of problem immediately after purchase.

As with the lemon laws, this sort of legislation will probably expand to other states. It seem unlikely that a similar bill of rights will be passed in all states, as some states’ lemon laws come pretty close to being hostile to the consumer already. But it does represent a step in the right direction. Consumers in others states would benefit tremendously if their legislators took California’s lead. The greater the protections are for consumers, the less likely that dangerous or defective vehicles will be offered for sale to the public.

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May 29 2008

Auto lemon laws are not intended for all situations

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Auto lemon laws were first written in the early 1980’s, after a number of people went through well publicized problems with defective vehicles that they have purchased through major auto manufacturers. In the days before such legislation, people who had repeated problems with their cars had to count on charity from the auto makers; they had no legislation requiring the manufacturers to “make them whole.” One woman picketed her dealer for months before she finally got relief; her efforts led to the passage of California’s lemon law.

Today, every state has a lemon law on the books, and while the effectiveness varies from state to state, they all have the intention of helping people get their problem vehicles replaced. Unfortunately, the laws are usually written in such a way that they can’t help everyone. Some people will continue to be stuck. One example is the police force of McSherrystown, Pennsylvania. The police in this town recently purchased a 2005 Ford Crown Victoria that has had repeated problems with defective brakes. The problem showed up with only 4000 miles on the odometer, and in the next 20,000 miles, the vehicle was in the shop seven times to repair the defective brakes. Each repair has, so far, been unsuccessful.

One would think that this vehicle qualifies as a lemon if any car does. After all, who needs to make sure that their car works dependably more than the police? Making matters worse is the fact that the problem is with the brakes! It’s a fundamental safety issue; surely the lemon law of the state of Pennsylvania will cover that, won’t it?

Unfortunately, it doesn’t. Pennsylvania’s law is no different from most; the law was written specifically to protect consumers with defective vehicles. While that covers the vast majority of cars and small trucks on the road, it leaves out those vehicles that belong to charity organizations, churches, nonprofit agencies, small and large businesses, municipalities, and, as it happens, police departments.

These laws were written with the understanding that most consumers would lack the financial resources to absorb the financial shock of owning a defective vehicle. It was similarly understood that businesses and other non-consumer interests would be able to afford to deal with such problems. That’s not necessarily the case with small town police departments. The Los Angeles Police Department might be able to weather such a storm, but McSherrystown, which has fewer than 3000 residents, is simply stuck with a car that has bad brakes.

At last word, the borough solicitor was going to attempt to contact the dealer and see if they would be willing to provide a replacement. There is no law that prevents a dealership or manufacturer from doing so simply because it is good business, but it remains to be seen if they’ll do it or not.
Lemon laws are great. But you shouldn’t automatically assume that they will protect you in all cases. After all, they won’t protect the police.

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May 27 2008

RVs and the lemon law

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Owning a car is expensive; owning a recreational vehicle is even more so. Despite gasoline prices that are hovering around $3 per gallon, the growth in RV sales continues to increase. And sales aren’t limited to trailers; motor homes, with prices up to $1 million are also growing in popularity.
It’s certainly nice to see technology in motor homes improving to the point where you can sell your house and live in one, but before you shell out six or seven figures to buy, make sure you check the vehicle’s reliability carefully. Despite the fact that these motor homes are motor vehicles, they are not protected under the lemon laws of most states.
How is that possible? Motor homes are seen as different sorts of vehicles from cars. They aren’t mass produced like cars or pickup trucks; they are hand assembled in small quantities. That being the case, some defects are going to be present. And they are made by a number of different companies. One company (usually auto manufacturer) makes the drive train. Other companies make the body, and other items, such as electronics and appliances are made by companies that specialize in those devices.
Of the fifty states’ lemon laws, only a dozen or so cover recreational vehicles at all. Those that do usually restrict them to those that meet certain weight restrictions. If you’re a buyer of an amphibious Terrawind, for instance, you are probably on your own if something goes wrong. Another twenty states cover them, but only the drive portion of the vehicle. If your engine fails, you are probably covered. If your toilet fails or your windows fall out, you’re out of luck.
Anyone considering the purchase of an expensive RV should first consider the following:
• The lemon laws in your state. Check to see if your state covers the vehicle you wish to purchase. It may be covered completely, partially, or not at all. It’s best to find out upfront if you will be taking a risk.
• Consult with the individual manufacturer about their warranties. Different makers have warranties that cover different components and run for different amounts of time. You want, obviously, to have the best coverage possible.
• Check to see if you can buy an extended warranty. If so, check to see how much it costs and what it covers.
• Do some Internet research to see what the reliability history is of the make and model you want to buy. If you are buying a used one, try to find out about the history of that vehicle in particular.
• Look for the seal of the Recreational Vehicle Industry Association one the vehicle. This would suggest that the manufacturer belongs to an industry association that requires its members to comply with more than 500 safety specifications.
Owning an RV is great, when it runs. Before buying one, make sure that you will be able to get the most out of it and to make sure that you are covered, in some way, if something goes wrong. Then you can hit the road without any worries. Otherwise, you had best sign up for a roadside assistance plan.

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May 27 2008

Lemon Law Attorneys

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Here are some examples of how hiring an attorney can help you with a lemon law case:
• They can shorten the process - There are three times in the process when a manufacturer may offer a refund or replacement: when you first contact them about the problem, during the filing process, or after you win a lawsuit. Some manufacturers may feel more likely to win their case if you do not have legal representation. Having an attorney on your side, especially one who exclusively handles lemon law cases, may inspire the manufacturer to settle your case sooner, rather than later.
• Arbitration favors the manufacturer - All of the major auto companies make arbitration available for consumers with problem vehicles. The system, on paper, appears to be fair and impartial, but it often isn’t. By some estimates, manufacturers win up to 90% of arbitration cases. That shouldn’t be a surprise; arbitrators of manufacturer-supported programs are paid by the manufacturers. Many consumers give up their cases after losing in arbitration, but consumers who follow up losing arbitration cases with lawsuits often win them. Having an attorney is vital.
• They don’t necessarily cost too much if anything at all - Most states permit consumers with lemon law claims to receive attorney fees in addition to restitution for their defective vehicles. Should you win your case, the manufacturer will pay your attorney. It’s a win-win situation for you.
• Your attorney can advise you when your case is poor - Some states do not permit consumers to collect attorney fees in lemon law cases. Worse, some states require the consumer to pay the manufacturer’s attorneys should the manufacturer prevail. Since these fees can exceed the value of the automobile, there are times when pursuing a case in court is not a good idea. An experienced lawyer will know when you shouldn’t continue.

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May 25 2008

Lemon law lawyer could help thwart dealer excuses

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Lemon laws were introduced to simplify the process of a consumer getting relief after he or she buys a habitually defective vehicle from an auto manufacturer. Prior to the passage of such laws, consumers were essentially at the mercy of the manufacturers, who simply do not want to refund money or offer replacement vehicles for those that are defective.
The lemon laws in all 50 states make it clear that the consumer has the right to request a refund or a replacement vehicle should their auto qualify as defective under their state’s lemon law statute. And yet, time and again, manufacturers and dealers offer excuses and explanations as to why they cannot or will not offer relief.
Here are some of the most common reasons offered to consumers as to why a refund or replacement cannot be offered:
• The defect is not significant - The defect need only “substantially affect” the value, use or safety of the vehicle. It need not be a “significant’ defect; even something small can affect one of those three things. Whether or not a defect affects safety, value or use isn’t really a dealer call, anyway. These things are best determined by either arbitration boards or judges. 
• Abuse or neglect - As far as we know, all 50 states have clauses in their lemon laws that void the law if the vehicle has been subject to abuse, neglect or unauthorized modification by the owner. Again, that shouldn’t really be a judgment call by the dealer, although abuse and neglect are pretty easy to prove. Still, this accusation probably works a good portion of the time. Don’t fall for it. If you haven’t abused or neglected the vehicle, you have a valid claim.
• Incorrect number of repair attempts - The laws on the number of repair attempts or the number of days out of service that are necessary to qualify as a lemon vary widely from state to state. Some states require as little as two weeks. Check your states regulations carefully; you will know if you qualify. And be sure to document all repair attempts, as it may be necessary to prove that you met the requirement should you have to go through arbitration or a lawsuit.
• Claiming that a defect isn’t a defect - This one’s sneaky. The dealer simply claims that the problem is common to all units of that particular make and model. If they’re all like that, it can’t be a defect, can it? Yes, it can. If the brakes don’t work, the vehicle is defective even if the brakes don’t work on every single one the manufacturer made.
These excuses are common and are just one more reason why it may be in your best interests to hire an experienced lemon law lawyer to help you with your case. While it isn’t absolutely necessary, having an attorney could speed up the process dramatically. Why waste more time on your defective car than you have to?

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[ To Learn more our services and areas of practice, please visit our website at www.LemonLawIntel.com ]

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May 25 2008

Avoiding lemon law issues can be done with research and patience

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Next to a house, an automobile is usually the most expensive item we’ll purchase in our lifetimes. Given the amount of money spent on cars today, buyers should be careful when making a purchase. But buyers often make their purchases impulsively, based on color or looks or some commercial they saw during a football game. Every state does have a lemon law that will protect buyers should the car turn out to be defective, but these problems can often be avoided if buyers are careful. Here are a few tips that may help you to avoid problem vehicles in the future.
• Don’t buy impulsively. Do some research before you buy. Consumer Reports issues an annual issue on cars every spring that evaluates most models for safety and reliability. They also offer estimates as to how well a car will hold up over time and evaluations of used models, too. Spending a few dollars on that magazine may help you avoid buying a car that’s prone to mechanical problems.
• Ask around. What are your friends driving? Are they happy with it? If the car they drive suits your needs and meets your price requirements, you may have found the right make and model for yourself. Nothing beats first-person experience. Your friends know their cars well and will be all too happy to tell you the good and bad points of the cars they drive.
• How much does it cost? There has always been a huge mystery surrounding auto pricing, but in recent years, those mysteries have begun to unfold a bit. Consumer Reports offers a vehicle pricing service that can help you determine the dealer cost of the car you want to buy. Knowing that figure may help you obtain a better deal. Firms such as Costco and the insurance company USAA also offer vehicle buyisng programs that may help you get a good price and avoid paying too much for a new car.
• Test drive your car before you agree to buy it. Every car is different, and if you’re going to spend a lot of money on a car, make sure it works correctly before you agree to buy it. If there’s a knob on the dash, try it and see if it does what it’s supposed to do. There’s nothing more annoying than buying a new car and finding out there’s something wrong with it.
While some mechanical problems with new cars are unavoidable, some can be avoided by simply taking the time to make sure the car you are buying has a reputation for reliability. By taking some time to research your purchase and examining the exact vehicle you want to buy, you can avoid a great deal of financial headache in the future.

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