Archive for May 30th, 2008

May 30 2008

Lemon laws protect all cars, even the expensive ones

Published by admin under General Articles

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

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May 30 2008

Lemon laws vary from state to state

Published by admin under General Articles

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

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