Lemon Law Blog

As the winter weather kicks in, we are hearing from quite a few distressed drivers who are experiencing problems with their 4-wheel drive.  Many of these callers drive the same model truck and have been told that the manufacturer does not have a fix for the problem at this time.  Drivers are told to not use the 4wd option, and they are rightfully upset. If this is happening to you, get in touch with us immediately.

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If you have been watching the news today, I am sure you have heard the news that President Bush will be lending Chrysler and General Motors up to $17.4 billion in short term loans from the US government.  The package does come with strings attached; they expect the manufacturers to be viable by the end of March and they put significant limits on executive pay and prohibit either company from issuing new dividends.  

So, what does this mean exactly?  It seems the ball is back in the manufacturers’ court and they have to figure out a way to significantly cut company debt.  Expect to see dealerships continue to close, service personnel to dwindle significantly, and the quality of warranty repairs, coupled with time allotted to warranty repairs, to be severely threatened.  But what is the alternative?  As the President pointed out this morning in his address, if either company declared bankruptcy, their service contracts and warranty obligations would not be a main priority.

Automotive Consumer Advocate and 1-800-LEMON LAW Communications Director Michael Sacks will be discussing the bleak auto industry outlook and answering automotive warranty questions tomorrow morning at 11am on Consumer Hotline on WDEL AM, 1150 on the dial in Wilmington, Delaware.  Last time, Michael appeared on the program, a caller phoned in with a Volvo problem and ended up $7,000 richer, so it pays to listen. 

Also, everyone’s a member of Facebook these days, even the gang at 1-800 LEMON LAW. If you are a client, former client, or just a fan of our services, we invite you to our new Facebook page and become a fan.  

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As we await word on if/how the government will bail out the big three, we continue to see car dealers close their doors in record numbers as a result of this troubling economy.  And these are not fly-by-night agencies mind you; these are long-standing, highly respected dealerships that have been running in some cases for decades.  It’s a sad state of affairs for the automotive industry and now more than ever, it is important that you protect yourself in case your selling dealer closes. 

Pennsylvania Lemon Law Attorney Craig Thor Kimmel appeared on FOX 29 News in Philadelphia earlier this week to discuss how to deal with the dealers closing around us.

FIRST, when buying a car, make sure you keep all of your paperwork.  With dealers closing, you need to make sure you have all agreements in writing.  We recently saw a case where the dealer was supposed to pay off the loan of a trade-in as part of the sale.  Then, the dealer closed and the consumer received a call from the bank asking for payment.  You need to get everything in writing. 

SECOND, make sure you understand the warranty you are purchasing.  It is highly recommended that you purchase a vehicle that has a manufacturers warranty and that any extended warranties purchased are also backed by the manufacturer.  Manufacturers warranties allow you the freedom of taking the car to any authorized manufacturers dealership.  Dealer warranties prohibit this.  Also, if your problems continue under the manufacturers warranty, you may be able to seek recourse under State and/or Federal Laws.

THIRD, make sure when taking your car in for service that you be as specific as possible regarding repairs needed.  Dealers that are not closing are still cutting back, letting go of service personnel and not spending nearly the time on repair visits that they used to.  Make sure you are as specific as possible in terms of what noise you heard and when you heard it, what sensor light popped on, and where you felt that water leak.  The more clues you give, the better chance the service personnel have of solving the problem.  And if you continue to once again feel like you are getting the run around, either a dealer constantly saying no problem found, or the problem not being fixed properly, you need to look into legal action.

FOURTH, if you feel your car is giving you problems, you need to do something.  When Daewoo was purchased by GM following economic problems, the acquired all the assets but none of the headaches. They were not responsible for any Daewoo warranty claims.  If a bankruptcy was to hit one of the big three, there is a good chance hundreds of thousands of people would no longer have warranties on their vehicles.  If something is wrong with your car, you need to get it addressed NOW. And if you feel that you may have a breach of warranty or lemon law claim, you need to address it with a consumer lawyer as soon as possible to protect yourself.  Under State and Federal Laws, help is free in these situations.  You have absolutely nothing to lose and everything to gain. 

For more information regarding this matter, visit www.lemonlaw.com and if you have any specific questions, e-mail Client Services Director Michael Sacks at msacks@lemonlaw.com,  Include your name and daytime phone number, including area code.  We may include your question in a future blog.

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As the big three continue their quest for the $34 billion bailout, Chrysler and GM are being pressured by lawmakers to revisit the possibility of merging.   Edmunds is reporting that a number of dealers, suppliers and others staged a rally in favor of the merge this morning near the steps of the U.S. Capital.

Lawmakers argue that if Chrysler and GM do merge, they will require less federal aid and speed up industry consolidation. There is a chance a merger would be a condition if they receive federal aid.

Lemon Law Attorney Bob Silverman appeared on WYOU Interactive News Wednesday Night in Wilkes Barre, PA and discussed the bailout. While many folks are against the rescue plan, there is no question that a bankruptcy would not only continue to wreak havoc on our economy and add millions to those on the unemployment line, but also cause many more dealerships to close.  These dealer closures are already leaving many drivers stranded, travelling hundreds of miles for warranty repairs, and waiting for inspection stickers and registration renewals. Next week, we will be providing tips on how to deal with the dealers during this difficult time.

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