As you can expect, Monday mornings are quite busy for us.  Often times, we are going through 25-40 voice mails from consumers who have left messages on the 1-800 LEMON LAW hotline over the weekend.  This week, we received our first-ever call from a used car dealer.  The dealer, based in Delaware, was complaining that folks threaten him with the Lemon Law, even though he knows that his cars are too old to fall under the Lemon Law.  He asked us if we could include information in our ads about what qualifies under the Lemon Law and what does not.

Obviously due to time and money constraints, that request is completely unfeasible.  However, our website does provide an extensive overview on what qualifies under each state’s Lemon Law.  And we always encourage consumers to call us if they have a question about their individual situation.

After listening to this message, we have to wonder why all of these folks threaten him with the  Lemon Law and wonder if it’s regarding the quality of the cars he sells.  Thus, in the spirit of educating consumers, we think it is imperative to remind used car buyers to raise a red flag if:

**A used car dealer refuses to provide a carfax on the vehicle.

**The dealer cannot provide an affirmative answer on whether the car has an accident history. (You MUST ask if the car has been in accident.  Unless the car has a salvage title or frame damage, a dealer does not need to disclose this information unless asked.)

**The dealer refuses to allow you have an outside mechanic check out the car prior to purchase.  This may cost a little bit of money but it will save you a lot of money and aggravation “down the road.”

**You purchase a car without a warranty.  Ideally, we would like you to buy a car with a manufacturers warranty so it can be fixed by an authorized dealership if something goes wrong.  However, even if you choose to buy the car at your local mom and pop shop, it is imperative that you purchase a warranty and research both the warranty company and the components covered under the policy.  Sometimes, these dealers sell warranties that are not worth the paper they are written on.  It’s a case of buyer beware.

Of course, when buying a used car, we always encourage you to bring along  our lemon dodger worksheet.  This worksheet provides the questions you need to ask to make sure you are getting the msot car for your money.

And if  your used car is under a manufacturers warranty or has been in the shop an extended period of time, give us a call at 1-800 LEMON LAW (1-800-536-6652).   You could be looking at significant compensation under the Federal Magnuson Moss Warranty Act.

Happy buying and safe driving!

We have been receiving a number of e-mails and phone calls lately regarding older cars.  Buying a used car is a tremendous gamble and it you’re not careful, your dream car may have previously been someone else’s nightmare.  Here are a few tips to make sure you are not taken for a ride when buying your next used car:

1) You want a warranty–and not just any warranty.  It must be a manufacturers warranty.  Yes, we realize that it may cost a bit more, but that is the only way the car company will stand behind your vehicle.  If you have a manufacturers warranty, your problems will be addressed by mechanics who are trained by the company and have access to information and tools that outside mechanics may not have.  Furthermore, if you have continuous problems with the car, we can successfully go after the manufacturer for remedy under Federal law.  We cannot hold the manufacturer responsible if you are no longer under the manufacturers warranty.  That’s like asking the doctor to treat you after your insurance lapses.

2) When it comes to accidents, it’s “don’t ask, don’t tell.”  If you do not specifically ask if a car has been in an accident, the dealer does not need to disclose the fact.  And, unfortunately, asking for a carfax is not enough.  There are times where accidents do not appear on the carfax report and the dealer cannot be held responsible for this.   However, if you ask if a car has been in an accident and the dealer says “no,” they can be held responsible if you find out they are not telling the truth. On the flip side,  dealers MUST disclose  if the car has a salvage or reconstructed title, any flood history, or if it was  a manufacturers buyback (aka “a lemon”).

3) If you are buying an “as-is” car (which we never endorse), make sure you have an outside mechanic inspect the car BEFORE you sign on the dotted line.  We understand this could cost a few bucks, but $100 now could save $1,000 or more down the road.

Lastly, take our lemon dodger worksheet with you when purchasing your car.  It provides you with all the questions you need to ask when buying a pre-owned car.  Remember, an educated consumer is an effective consumer.  Happy buying!

Looking to learn more about car buying and your consumer rights?  WBRE Eyewitness News interviewed 1-800 LEMON LAW Communications Director Michael Sacks on a variety of lemon and car buying stories this month.

The first story,  ‘the list the manufacturers don’t want you to see’, looked at the popular Car Complaint Index, the list of cars that receive the most complaints per sales according the Center for Auto Safety.  From hybrid vehicles with sudden acceleration complaints to SUVs with brake issues, the car compliant index is a list that all car buyers need to see before venturing to the car lot.

Michael also provided some helpful tips when it comes to buying a new car:

Finally, WBRE looked at why the Pennsylvania Lemon Law is so useful to consumers. If you’ve bought a new car and think it’s a lemon, help is available. The law stipulates if you’re back in the shop three or more times for the same problem under warranty, or your car is in the shop for an extended period, you are entitled to legal compensation, completely free of charge. Remedies could include a complete repurchase, a brand new car, or significant monetary compensation and continued ownership of your car.

Read all 3 articles and check out the accompanying videos on PAHOMEPAGE.COM
The List Car Manufacturers Don’t Want You to See
The Lemon Law and You
Tips for Successful Car Shopping

Used cars often provide a very attractive way to get more car for less money.  However, if you fail to ask the right questions BEFORE you sign on the dotted line, you could find yourself on the road to numerous car problems.

When it comes to used cars, the biggest assumption is that dealers have to disclose if the car has an accident history.  Unfortunately, when it comes to accidents, it’s don’t ask, don’t tell.  Dealers are only required to disclose if the car has a lemon, salvage, flood, or reconstructed title.

To make sure your car buying experience runs smoothly, we have created the Lemon Dodger, an all inclusive worksheet that provides all the questions you need to ask when dealing with the dealer.  Remember just because a car is new to you does not mean it’s  new to the repair shop.  Ask the right questions now to avoid headaches later.  Happy shopping!

It’s one of Lemon Law. Com’s most popular features, the annual Car Complaint Index.  The list, put out every year by Automotive Consumer Advocate Jack Gillis, takes a look at which cars receive the most consumer complaints per sales.

It’s important to note that this list is not an end-all, be-all.  In fact there are cars on this list that are still ranked as best buys by Gillis and other consumer publications.  The list is subjective and is based solely on the consumers who take the time to complain to the National Highway Traffic and Safety Administration about their cars.  You can read these complaints by clicking here.

So, if the list is subjective, why is it so important?  Because it provides another valuable piece of information when you are researching the right car for you.  If you see a number of complaints pertaining to a particular make and model, you may want to steer clear (pun intended) or at least ask the dealer if the manufacturer has addressed the problem.  An educated consumer is an effective consumer and this list could help you make your decision between one car over another one.

First and second on the list are Toyota vehicles, which comes as no surprise following all of the sudden acceleration stories in the news. The granddaddy of the hybrid, the Toyota Prius is first followed by the Lexus HS sedan. Throughout the complaints, there are drivers complaining of problems with their gas pedal and their brakes.

One thing that is worth mentioning when discussing hybrid vehicles is that hybrids drive differently than traditional cars.  You need to test drive a few hybrid models before purchasing one to ensure that you enjoy the ride.  Often, it’s not as smooth but that is a characteristic of the hybrid model.

Third on the list for a second year is the Jaguar XF, the most reasonable sedan of the Jaguar line.  In this situation, electrical issues are irking drivers, who complain of problems with stalling and their bluetooth.   The bluetooth may seem more like a nuisance but when you figure that many states now have cell phone laws, that bluetooth is becoming more and more important.

Subaru has dibs on four and five on the list.  The cross-over Subaru Outback is number four, with stalling again serving as a common thread through many complaints, particularly a loss of power when changing gears.  Some Subaru Legacy drivers are complaining of vibration when driving, making it difficult to keep control on the road.

The Dodge Journey has a few drivers on a journey to find a fix to their stalling problem.  While some drivers have had their computer and ignition switches replaced, others have complained to the dealer and have been met with an invoice which reads “Can Not Duplicate,” leaving them stranded and frustrated.

To see the complete car complaint index, click here.  And if you find you are experiencing these problems with your car, remember the Lemon Law provides 100% cost-free legal representation to help you fight for your rights.  Feel free to contact us at 1-800 LEMON LAW or by clicking here.

Thanks to the cash for clunkers program, more than 700,000 gas guzzlers are now off the road, replaced by more fuel-efficient vehicles.  It is a tremendous accomplishment and no doubt consumers and car dealers alike really profited off the program.

While the program officially came to a close Monday night, there are still car buyers out there waiting to hear if their rebate will go through.  Some have been told they will find out in a couple of weeks. As we discussed previously in the lemon law blog, there was quite a bit of fine print associated with this promotion and it is the dealer’s responsibility to ensure that the consumer qualifies for the rebate.  After all, if the dealer doesn’t do their job verifying everything prior to the transaction, they are the ones left stranded if the rebate never comes, right?

The answer seems to be affirmative, but one dealer in Philadelphia decided to test that theory.  After they completed the sale, and trashed the trade, the dealer found out that the insurance on this car had lapsed for two weeks during the last year of ownership.  That means they would not receive their rebate and that left them raving mad. They went back to the buyer, a second-year medical student, to try and recoup their $3,500.  And when we say try and recoup, we mean demand and threaten. 

So, who won and who was right?  For the answer, take at look at KYW TV Consumer Reporter Jim Donovan’s piece (featuring Kimmel & Silverman’s Founding Partner Craig Thor Kimmel) by clicking here.

If you find yourself in a position where you have already turned in your clunker and the dealer is demanding more cash, please contact us.

No, we are not talking about that ridiculous boy band song.  We are saying that if you have some money in your pocket, now is the time to consider buying a new set of wheels. The incentives are very attractive, there are many dealers out there who are hungry to make a great deal with you, the cash for clunkers program is in effect, and there are still plenty of 2009 models out there for the picking.  Heck, you can even consider a certified pre-owned car, but as we have repeatedly reminded you, if you buy a used car, please make sure it has a manufacturers warranty.

Just remember the five golden rules you need to keep in mind when aiming to buy your next auto:

KNOW YOUR NEEDS.  Identify what you need a car for.  Is it to get to work an hour away and use as little gas as possible?  Consider a hybrid.  Is it to taxi your brood of children from soccer games to ballet to Chuck E Cheese and then back to ballet because you daughter forgot her slippers? You may want to consider a minivan or crossover.  Figure out your daily schedule and that will help you narrow down the search immensely.

RESEARCH, RESEARCH, RESEARCH.  It’s so important we say it three times.  The internet provides so many incredible opportunities to gather information about cars.  There are reviews on such sites as vehix.com, where you can even put together a side-by-side comparison.  There is a complaint and defect database at the National Highway Traffic and Safety Administration (NHTSA) website. Every manufacturer from Kia to Jaguar has a comprehensive website where you can examine a model inside and out, review its features and its pricing.  Plus, there are so many automotive forums out there, the king being at edmunds.com. And lastly, don’t forget about our car complaint index and best bets, furnished by consumer advocate Jack Gillis and the good people at the Center for Auto Safety. Before you drive to the dealer, take a trip down the information superhighway and learn everything you can about the car you are looking at. Remember, an educated consumer is an effective consumer.  (And if you do have a gas guzzler you are thinking of trading in, read up on the Cash For Clunkers program before going to the dealer.  Don’t rely on the salesman to give you the most accurate information.  Know your stuff beforehand and correct him if necessary.)

TRY IT BEFORE YOU BUY IT.  And we are not talking about a car like the one you are planning to buy; we are talking about the EXACT car you are buying.  BEFORE you sign on the dotted line, take the car out for a long test drive and go through every single feature from the air conditioner to the trunk release.  Make sure you ask every question and if something is not working, tell them to fix it NOW.  Never settle for an IOU.  This is your one chance to demand satisfaction.  Take advantage of the opportunity. 

UNDERSTAND YOUR WARRANTY.  Every warranty is different.  You need to know the terms of the warranty and what it covers.  Is it cheaper to buy an extended manufacturers warranty when you first buy the car or can you purchase it later?  If this is a used car, is it covered by the company who is manufacturing your car? (We get so many folks calling the 1-800 LEMON LAW hotline who are driving a used Toyota with a Kia warranty. Make sure if you are driving a Toyota, you have a Toyota warranty.)  Are there deductibles?  Is it bumper-to-bumper or does it just cover the powertrain components?  Is roadside assistance offered?  Are loaner cars provided?  The warranty is your insurance that if something goes wrong with this car, and chances are it will at least once, you are covered.  Which bring us to…..

FIGHT FOR YOUR RIGHTS.  If something continues to go wrong with your car, or the car is in the shop for an extended period of time, contact a lemon law attorney to find out about your rights.  The State and Federal Laws are on your side and help you go against the billion-dollar automobile manufacturers. Remember, the legal help is completely free, so take advantage of it.

Now, without further ado, get your motor running, head out on the highway, and good luck!

President Obama introduced a “Cash for Clunkers” program last week. 

The $1 billion program will provide drivers with up to $4,500 in trade in value if they turn their poor-mileage clunker in for a more fuel-efficient vehicle. The government is hoping that the new program will take off the way it has in Germany, and will result in more than a quarter of a million new car sales throughout the Country while simultaneously getting gas guzzlers off the road.

According to an article in the Newark Sar-Ledger, this new law could increase Garden State car sales by roughly 24,000 sales and provide $50 million in additional tax and motor vehicle fee revenue for New Jersey. It is widely understood that other states will enjoy the same success.  That being said, the program is not as cut and dry as it may suggest.

For instance, the car that is going to be traded in must have been registered in the owner’s name and insured for at least one year. Eligible clunker cars must also be drivable and have an overall fuel economy rating of 18 or less miles per gallon.  Furthermore, in order to qualify for the top dollar amount, $4,500, the new vehicle has to get 10 miles per gallon more than the car being traded in, which is a pretty lofty feat. If you are looking at a van, SUV or pickup, it has to get 5 additional miles per gallon to receive the top rebate.  The new vehicle being purchased cannot cost more than $45,000.

If you cannot find a vehicle that gets 10 miles more per gallon, you can get a $3,500 rebate if you find a car that gets 4 additional miles per gallon. For vans, SUVs and pickups, an extra 2 miles per gallon will fetch a $3,500 voucher.

The program applies only to new cars purchased or leased between July 1and November 1.  Dealers have to register for the program in order to participate.

The other benefit to this program is while many of the clunkers traded in would not qualify for lemon law or breach of warranty protection due to their age and mileage, the new cars will qualify, giving consumers an extra piece of mind.

1-800 LEMON LAW attorneys Bob Silverman and Amy Bennecoff have received a significant amount of exposure and kudos this past week for working with Chrysler’s and Fiat’s attorney to ensure lemon law and breach of warranty protection for Chrysler, Dodge and Jeep drivers.  Kimmel and Silverman was the only lemon law firm in the Nation to be involved in these meetings.  

In addition to interviews with Comcast, Philadelphia Inquirer, and Automotive News, Bob Silverman and our client Bob Buchecker were featured in this Action News segment which aired Friday night on WPVI TV in Philadelphia.

Get the full story by clicking here.

Kimmel & Silverman Lemon Law Attorneys Robert M. Silverman and Amy L. Bennecoff spent a large portion of last week in New York working with Chrysler counsel Jones Day and Fiat counsel Sullivan Cromwell to include specific language regarding consumer protection in the Master Sales Agreement between the two companies, scheduled to take effect Monday, June 15.

The new amendment, in paragraph 19 of the order, specifically outlines that the New Chrysler will be responsible for all existing and future lemon law and breach of warranty claims filed by consumers who suffer repetitive non-conformities with their Chrysler, Dodge or Jeep vehicles.   This means that our numerous clients whose claims were stayed or whose settlements were stalled as a result of the filing will be taken care of, and we will be able to continue to provide cost-free lemon and breach of warranty representation to all Chrysler, Dodge and Jeep consumers who need our services in the future.  Both counsel attributed Silverman and Bennecoff as the only lemon law attorneys in the Nation who were directly responsible for helping to make this amendment a reality.

If you are suffering problems with your Chrysler, Dodge or Jeep vehicle, or if parts have been on back order resulting in your vehicle being in the shop for a long period of time, contact us to discuss your rights to remedy or recourse.

You can read all about the big news by clicking here.

Jacqui Herritt, Managing Attorney of Kimmel & Silverman and one of the most prominent women consumer attorneys in the Nation, has contributed a car-buying article to the inaugural issue of MomSpace Magazine.  If you are planning on buying a car in the near future, you must click here to ensure that you are not taken for a ride.

You can find MomSpace Magazine at bookstores and retail outlets throughout Pennsylvania, New Jersey and Delaware.  For a free subscription, visit www.momspace.com.

I know we have covered this before, but I need to cover it again.  Regardless of whether Kimmel & Silverman handles your claim or not, you should NEVER pay any upfront fees or retainers to a consumer attorney in any case dealing with lemon laws, warranty laws, or dealer fraud.

The laws are written in a way so that attorneys can recover their fees and costs upon prevailing.  If any attorney is asking you for an upfront fee, that illustrates that either a) they are not fully educated on the statutes needed to win your case or b) they are not entirely confident you are going to prevail.  Neither option sounds very comforting to us.

Just today, we received an inquiry from a consumer who appears to be stuck in a spot delivery situation.  She is not in a position yet where we can get fully involved as counsel.  However, before us, she contacted numerous attorneys.  One of them decided to take it upon himself to write a letter to the dealer and told her “if his letter results in something, she owes him $1,000.”  What???? She told him she couldn’t afford the $1,000 (who can in this society and why should you have to throw good money after bad?) and he said “oh, you can pay me in monthly installments.”   $1,000 for a letter????? Are you out of your mind?  Oh, by the way, she never was asked to sign any sort of document confirming she owed them $1,000 and she didn’t see the letter until it was sent to the dealer.  Now, she’s stuck.  Even if she does get her way, and gets to keep her car at the finance rate outlined in her sales contract, she is now out another $1,000.  The laws are not written that way!!!!  As consumer advocates for 18 years now, this really upsets us.

Please, before you agree to pay anyone anything, contact us and explain your situation.  We may not be able to do something immediately, but we will provide assistance to get the matter resolved as soon as possible.  Ok, off the soapbox and back to work…..

“If I only knew then what I know now….”  It’s a standard phrase that we all tend to say now and again.  Two calls we received today on the 1-800 LEMON LAW hotline certainly cement the fact.

The first call came from a woman who purchased a certified pre-owned BMW in Philadelphia.  So far, so good, right?  After all, we always tell consumers that if they are planning to purchase a used car make sure that they purchase a car with a manufacturer warranty.  And thank goodness she did! Check engine light x6, stalling x3, trims replaced x5, ignition coil problems, airbag sensor problems, o ring replaced, alignment issues, moisture in the fog lights, steering problems….the list went on and on and on. Over 20 warranty repair invoices for all sorts of problems.  So, why can’t we help her?  She waited too long.  It could be a number of reasons, perhaps she kept wanting to give the dealer one more time to fix a problem; she wanted to see what BMW would do for her (absolutely nothing); or she thought that she was so clearly “in the right” and she appeared confident she could get the matter resolved on her own.  And now, at 104,000 miles, mere months after her warranty has expired, the car will not run; and BMW is offering nothing but a hefty repair estimate. And she has exceeded the timeline to file a claim, called the statute of limitations.

I certainly understand that no one likes to be litigious and many folks call us as a last resort.  But, the beauty of the State Lemon Laws we work with, in Pennsylvania, New Jersey, Delaware, Massachusetts, New Hampshire, Ohio and Connecticut, and the Federal Magnuson Moss Warranty Act, is that they specifically provide for completely cost-free legal representation, so that the consumer is on equal ground with the manufacturer. Not only does the consumer have an experienced lemon law attorney on their side, they also have ASE-certified mechanics who will inspect the car and the invoices, and a people who will advocate for their consumer rights, at NO COST. There are quite a few folks who call each year who want to see what the dealer or manufacturer will do, and then end up calling us months later.  When you sit on your claim, you hurt your claim.  Your miles continue to accrue, the car get older and if you wait too long, you just may exceed your statute of limitations for filing a claim.  Many times, consumers may think they are getting somewhere when the manufacturer’s customer service department gives them a file # or a claim #, or when the dealership asks them to be patient and wait a couple weeks or a couple months.  This is a time-wasting tactic.  As we have written about before in this blog, you need to understand what dealers and customer service departments can and cannot do.   Bottom line: only when you know your rights, can you enforce them.

Second scenario: A woman contacted us today regarding her lease.  It’s a beautiful car, no problems with that.  However, she didn’t realize until after the fact that the lease only cover 10,000 miles a year versus the 18,000 miles a year she had on her previous lease.  She signed the contract, but it was an oversight and she is not agreeable to the terms, so she would like to return the car.  As we have mentioned before, you cannot return a car and if you do not read your contract carefully prior to signing it, who’s fault is that?  Signing a contract is like signing a check.  If it’s a blank contract, consider it a blank check, where you will be responsible for things you didn’t even think of.  I am often amazed at folks who do not read or understand their contracts prior to signing.  This is the one chance to ask questions, make demands, correct miscommunication.  If you do not agree to the terms, do not sign.  Do not be strong-armed, do not be forced, do not let time be your guide.  If it’s late, and you can’t think straight, go home and tell them you will come back to sign it the next day.  Otherwise, you will once again have that dreaded hindsight and the knowledge that you could have prevented being in the predicament you are if only you read the contract first.

As always, if you have a question, drop us a line and we will be happy to answer it if we can.

Looking to buy a car?  Would you believe that in today’s economy, it may be better to purchase a new car than a pre-owned one?  Lemon Law Attorney Craig Thor Kimmel discussed the pros of buying a new car with Michelle Buckman of Fox 29 News today.  The interview, which was taped at the Philadelphia Auto Show, airs tonight during the 5pm newscast.

So, what are the selling points, when it comes to buying a new car?

First, there’s the warranty.  Many folks who are calling 1-800 LEMON LAW regarding their used cars have aftermarket warranties which are worth less than the paper they are written on.  The cost of repairing a car, when you include both labor and parts, could be skyrocketing and if you don’t have a manufacturers warranty, you could be stuck with a huge bill.  A new car means you are ensured a manufacturers warranty and that your repairs will be covered by skilled technicians using manufacturer-approved parts.  Thus, the manufacturer is responsible for the quality of the repair.  Also, in many states, including Pennsylvania, only new cars are covered under Lemon Law.  (There are Federal Laws to assist consumers who have pre-owned cars with manufacturers warranties but the maximum remedies are not the same.)

Second, there are amazing financing deals available for folks with good credit.  The dealers need to get rid of these cars, and now that they have 2008 leftovers and 2009 models, the inventory is larger than ever. Those with good credit scores are now in the “drivers seat” when it comes to getting a great deal on a great car.

Third is technology.  Visiting the car show today, we were thrilled with all the new safety features available to consumers.  Plus, more and more manufacturers are really thinking about fuel economy and how to save their drivers money each week at the pump.

Fourth, there may be an added incentive from Uncle Sam.  Hybrid drivers are now looking at tax deductions ranging from $1,000-3,000, plus there is a bill being introduced which could provide any new car buyer an average of a $1,300 deduction on a $25,000 car.  The government is looking at ways to convince consumers to purchase these cars, so that our manufacturers can rebuild their companies and their profits. 

If you have questions about car buying, drop us a note and we’ll be happy to help any way we can.  In the meantime, if you are in the Philadelphia area, we urge you to check out the Philadelphia Auto Show opening tomorrow and running through February 8 at the Pennsylvania Convention Center.  It’s the ideal setting to view all different makes and models, without being attacked by salespeople.  Happy Shopping!

According to the Associated Press, December auto sales figures were quite surprising. Despite the financial trials and tribulations being experienced by the big three, it appears that two of the most dependable manufacturers, Toyota and Honda, ended up at the bottom of the heap.  Despite showcasing affordable, fuel-effective models, Toyota sales dropped 37 percent last month, and Honda was right behind with a 35 percent drop.

This is more than a matter of getting financing for interested consumers, says analysts, but rather it is a matter of finding interested consumers in the first place. They expect to see auto sales industrywide drop up to 40 percent.  According to Edmunds, It appears that auto sales figures are at their lowest level since 1992 as the Nation remains uncertain about the economy and employment. 

There is only one company who is announcing sales increases in 2008 in the United States.  Subaru of America said its US sales of the Impreza and Forrester models rose 0.3 percent this year, selling roughly 500 more cars this year than last. Not much to crow about, but it’s better than the alternative.

So, are there any winners when it comes to this sales disaster?  Absolutely.  As in the case of real estate, it is a buyer’s market, and if you have good credit, you can run the show.  Many manufacturers are continuing to offer vehicles at significant discounts, plus they are coupling these great deals with the always popular zero percent financing and significant incentives and rebates. In addition, there are still many 2008 models around, so you could save even more money by purchasing a leftover.  The rule of thumb as always is to shop around and educate yourself.  Lastly, we urge you to read your sales contract carefully before signing on the dotted line.  Happy shopping!

As we continue to blog about the dips in auto sales, manufacturers will do anything and everything they can to bring prospective buyers into their showrooms. And, here is the most creative marketing we have seen to date.

While unemployment continues to rise in these troubling financial times, one manufacturer is trying to convince you NOT to take job security into account when buying a car. In fact, if you lose your job within one year of purchase due to lay offs, they are volunteering to buy your car back from you, no questions asked.

MSNBC reports that Hyundai has teamed up with an insurance company to offer consumers with an added protection that is out of the norm among US car dealers. If a consumer suffers a life-changing event, such as involuntary job loss, within one year of purchase, the consumer can return the car and Hyundai will cover up to $7,500 in negative equity.  Most important, the consumer will not take a hit on their credit report. All the details are outlined on Hyundai’s website.

Hyundai also extends this protection to self-employed professionals who have to declare personal bankruptcy and those employees who get transferred overseas.  However, if you are fired for cause, you do not qualify for the refund.

While this is new to us, programs like this have been in effect in Canada since 2000.

Now, of course if you don’t have problems with your job, but you do have problems with your Hyundai, the dealer is not going to let you return your car as easily.  If that’s the case, you will have to turn to us. 

Late last week, we taped a story on flood cars (Check back with the lemon law blog for air date and station).  A young man surfed the web for a great deal on a beautiful 2007 Silver Ford Mustang.  It was loaded with every feature he could ask for….and a few problems he didn’t want.  After he purchased his car, he found a significant amount of rust under the seats.  Upon further inspection, he noticed the carpeting appeared to be replaced. He called 1-800 LEMON LAW for advice on how to handle the situation. Needless to say, our experts uncovered additional evidence that proves this car was involved in some sort of flood and had been immersed in water.  We are currently representing the young man as he fights the dealer to get his money back.

The wet weather down South caused a number of vehicles to be caught in flood waters.  These cars were washed, title and all, and promptly put on the auction block where dealers have purchased them at rock bottom prices.  Now, they are sitting on lots across the Nation, aiming to attract unsuspecting consumers looking for a great deal on a pre-owned car.

While there is no sure way to detect vehicle flood damage, the National Automobile Dealers Association offers primary advice that may be used to detect significant water damage. At a minimum, a prospective buyer should:

Check the vehicle’s title history on carfax,it may state whether it has sustained flood damage (However, carfax should not be your only tool.  In the case of this young man, his carfax came out clean); 

Examine the interior and the engine compartment for evidence of water and grit from suspected submersion; 

Check for recently shampooed or replaced carpet; 

Look under the floorboard carpet for water residue or stain marks from evaporated water not related to air-conditioning pan leaks; 

Inspect for rusting on the inside of the car and under interior carpeting and visually inspect all interior upholstery and door panels for any evidence of fading; 

Check under the dashboard for dried mud and residue, and note any evidence of mold or a musty odor in the upholstery, carpet or trunk; 

Check for rust on screws in the console or other areas where the water would normally not reach unless submerged; 

Look for mud or grit in alternator crevices, behind wiring harnesses and around the small recesses of starter motors, power steering pumps and relays; 

Complete a detailed inspection of the electrical wiring system looking for rusted components, water residue or suspicious corrosion; and 

Inspect the undercarriage of other components for evidence of rust and flaking metal that would not normally be associated with late model vehicles.

If you sense something is not right, even if the carfax comes back clean, have your car checked out by an independent body shop.  If you can prove that your car has flood history, and it was not dislcosed by the selling dealer, you could be entitled to significant monetary remedy or perhaps a full refund.  Feel free to contact us if you have any questions.

Lemon Law attorney Bob Silverman is featured in the November/December edition of The Penn Stater, Penn State’s Alumni Magazine.  As part of the magazine’s how -to guide, Bob, a 1986 graduate, offers some guidance on how to avoid buying a lemon:

Narrow the car you’re looking for down to make and model. You have to do your research and know which models are reliable, especially if you’re buying a used car.  You can research using on-line resources or check out magazines such as Consumer Reports. Our website, www.lemonlaw.com, actually has a lemon dodger worksheet,  which provides the questions every used-car buyer should ask the dealer before signing on the dotted line.

If you are buying a used car from a dealer, you want to look into a vehicle that is certified by the manufacturer. This provides you with the manufacturer’s guarantee that they have gone over the car, and if there is a problem, they will address it.

When you buy a used car, you want to have some sort of warranty, preferably from the manufacturer. Most of the certified cars come with a factory warranty. If you buy a car in a private sale, and it has warranty leftover, it can transferable and you may still have legal recourse if needed. You want to make sure that if the car does break down, you are not going to be socked with huge repair bills which eat up the savings you accrued from buying used instead of new. If you have a manufacturer’s warranty, always take it to an authorized manufacturer dealer for repair, never to a private mechanic, as that will void your warranty.

Every state has a lemon law.  Most lemon law firms don’t really deal with lemons per se; they deal with varying degrees of defects:  Your brakes don’t stop the car, your steering isn’t right, the car leaks–that kind of thing.  The best part of the Lemon Law and the Federal Warranty Statutes is that in addition to providing you with a refund or new car, they also require manufacturers to pay all legal fees. The help is completely free to to the consumer.

At 1-800 LEMON LAW, we have heard of folks suffering with headaches after driving around in their new vehicle, and we never understood what they were talking about….until now.  It appears that the new car smell we are all so fond of could actually make us sick.

CNN.com is reporting that this scent could be made up of a variety of poisons, including arsenic and formaldehyde.  With American automakers suffering in an economic slump, this pollution is not getting much play.  On the other side of the world however, European and Japanese automakers are well aware of this problem and are working hard to combat it.

So, which cars tend to be most problematic?  According to the Ecology Center’s HealthyCar.Org study which they put out each year, the most toxic avengers are:

• Suzuki Forenza
• Suzuki Reno
• Lincoln Mark LT
• Mitsubishi Eclipse
• BMW 128i

In today’s economy, many folks are purchasing used cars to save a few dollars. We have repeatedly provided tips on how to make sure your used dream car was not previously someone else’s nightmare. You need to do your homework, take a look at our lemon dodger used car buying worksheet, inquire about the car’s repair and accident history, have an outside mechanic check out the car, and lastly invest in a carfax report to insure no hidden secrets about the vehicle’s past. This must all be done BEFORE signing on the dotted line. Buying a used car can be a significant financial gamble and if you don’t take your time, you could end up spending more money than you would on a new car. We have seen it happen many times.

Today, as a public service, we thought we would reach out to any auto retailer out there who thinks it’s okay to roll back an odometer. Throughout the seventeen years we have been in business, we have received well over 1000 calls pertaining to odometer rollback. It remains a common act of dealer fraud. And as we have repeatedly told consumers, it is illegal. There are retailers who never get caught, but if they do, they could find themselves in serious trouble. CBS Marketwatch reports that a 55 year-old man from Georgia has been sentenced to 18 months in prison, six months of home detention and another six months of supervised release for pleading guilty to two counts of odometer rollback.

If you think your odometer has been rolled back, carfax remains one of the best sources to see if your suspicions hold truth. However, even if the carfax comes up clean, your can contact your State’s DMV office to see if they can assist you. If you have proof that your odometer has been rolled back, or if you receive notice from the State (which does happen), you need to contact us at 1-800 LEMON LAW or reach out to another consumer law firm. The Firm should be prepared to use various consumer statutes to ensure cost-free representation.

If you have any questions, or feel you were the victim of odometer rollback, feel free to drop us a line at lemon law.com and we will see if we can help, or direct you to someone in your area.

From The Consumerist: The Environmental Protection Agency just released their 2009 EPA Fuel Economy Guide and we’ve pored through the hot-off-the-presses data to pull out this list of the ten most fuel efficient cars for sale in the US next year. Not surprisingly, the Toyota Prius once again tops the list with a combined 48 mpg city/45 mpg highway performance. Though hybrids take four of the top five spots, the Volkswagen Jetta/Jetta SportWagen Diesels cracked the top ten with a 30/41 mpg rating. Also showing up in the lineup for the first time is the new Chevy Cobalt XFE with a fuel economy rating of 25/37 mpg. The rest of the list and the top performers in each category below.

The Ten Most Fuel Efficient Vehicles For 2009

We’ve provided you two lists, one of the top ten vehicles ranked by highest fuel economy in city driving, the other, by highest fuel economy on the highway

Make Model: City or Highway

By City:
1.) Toyota Prius: 48
2.) Honda Civic Hybrid: 40
3.) Nissan Altima Hybrid: 35
4.) Ford Escape/Mariner Hybrid 2WD: 34
5.) Smart Fortwo: 33
Toyota Camry Hybrid: 33
7.) Volkswagen Jetta/SportWagen Diesel: 30
8.) Toyota Yaris: 29
9.) Mini Cooper: 28
Honda FIt: 28

By Highway
1.) Toyota Prius: 45
Honda Civic Hybrid: 45
3.) Volkswagen Jetta/SportWagen Diesel: 41
Smart Fortwo: 41
5.) Chevy Cobalt/Pontiac G5 XFE: 37
Mini Cooper: 37
7.) Toyota Yaris: 36
Honda Civic/Civic CNG: 36
9.) Chevy Cobalt/Pontiac G5: 35
Toyota Corolla/Honda Fit: 35
Ford Focus: 35

The Most Fuel Efficient Cars By Category

This list covers the most fuel efficient cars by EPA category.

Two-Seater Cars
Smart ForTwo: 33/41

Minicompact Cars
Mini Cooper: 28/37

Compact Cars
Honda Civic Hybrid: 40/45

Midsize Cars
Toyota Prius Hybrid: 48/45

Small Station Wagons
Volkswagen Jetta SportWagen Diesel: 30/41

Midsize Station Wagons
Kia Rondo: 20/27

Small Pickup Trucks
Ford Ranger 2WD: 21/26

Standard Pickup Trucks
Chevrolet C15 Silverado/GMC Sierra Hybrid: 21/22

Cargo Vans
Chevrolet/GMC G1500: 15/20

Minivans
Mazda Mazda5: 22/28

Sport Utility Vehicles
Ford Escape/Mercury Mariner/Mazda Tribute Hybrid 2WD: 34/31

[Source: FuelEconomy.gov]

Now an important message from your friends at 1-800 LEMON LAW - We receive calls everyday from distressed drivers who are furious that their car is not living up to the MPG promise on the sticker. Unfortunately, the sticker is just an estimate and manufacturers are not held responsible if the MPG is less, unless there are warrantied repairs done to the vehicle (software upgrade, component replacement, etc). if they actually complete three warrantied repairs to address the problem, then and only then would you have a potential lemon law or breach of warranty claim. Feel free to e-mail us for more info.

As our roller coaster economy continues its downward spiral, repo men are unfortunately having their best year ever.  In an article which recently ran in New York Newsday, the number of cars, boats, motorcycles, and trucks being repossessed has been growing as more Americans are struggling to make ends meet. According to a consultant who works for the National Automotive Fiannce Association, “the first quarter of 2008 brought the auto finance industry a significant increase in delinquencies and repossessions.”

So, how can you take control if you are facing repossession?  First, you may want to proactively address the issue with your lender to see if they can restructure the loan or payment schedule.  Banks don’t normally like to repo vehicles; they lose thousands on each vehicle repoed so they will work with you to try and prevent it. You can also enlist the help of a credit counselor to negotiate with the lender. Newsday recommends the National Foundation for Credit Counseling at 800-388-2227.

Lastly, you should look into enlisting a consumer attorney to make sure that your rights were not violated. The creditor may not have the right to repo the car.  For instance, if the seller committed fraud, mispresentation or illegal practices in selling the vehicle, the creditor is responsible for their wrongdoing.  Therefore, the contract may be null and void and they may be prevented from repossessing the car. In addition, the bank may be responsible for compensating the consumer for the seller’s actions. 

Furthermore, repo men may not trespass onto your property or use threats of force. And, while they don’t have to provide prior notice, they must immediately provide you notice in person or via certified mail which outlines the debtor; the vehicle; the location of the car; whether or not the buyer can reinstate the contract; the time, place and manner of resale; an itemized statement of amounts owed; including any repossession charges; and a list of the location and personal property contained in the vehicle. The letter must be sent no less than 15 days before the date of resale.

If your car has been repoed, and you feel your rights have been violated, please contact us and we will be glad to discuss the matter with you.

For more information on help with Vehicle Lender Abuse and Repossession Fraud, please click here.

As we continue to report, new car sales have been sinking faster than the Titanic.  Many folks, hoping to save a couple bucks, are turning to used cars for solace (not a bad idea considering that depreciation accounts for a whopping 46 percent of the owner’s cost over a five-year period).  But we need to remember that regardless of how much a car costs, gas is the same price for everyone.  Therefore, the big question is “which used cars use less gas?”

Fear not distressed driver–Consumer Reports has come to the rescue.  On their car blog, they have compiled a list of used cars which have the best fuel economy.  These rankings are based on measurements using a flow meter,  and calculated from equal portions of city, expressway and rural roads.

Without further ado, here is the list:

Under $10,000

• 2000 Honda Insight (Manual)   51MPG
• 2001-02 Toyota Prius 41MPG
• 2000-05 Toyota Echo 38MPG
• 1999-2002 Chevrolet Prizm  32MPG
• 1998 Mazda Protege LX 32MPG
• 1998-2001 Acura Integra LS (Manual)  32 MPG
• 1998-2000 Toyota Corolla CE/LE  32/31 MPG
• 2004-05 Toyota Scion xA manual/automatic  31/30 MPG

$10,000 – 20,000

• 2004-06 Toyota Prius  44 MPG
• 2002-03 Toyota Prius  41MPG
• 2006-07 Honda Civic Hybrid  37MPG
• 2003-05 Honda Civic Hybrid  36MPG
• 2007 Honda Fit Sport (Manual)  34MPG
• 2007 Toyota Yaris Liftback (base, manual)  34MPG
• 2007 Toyota Yaris Sedan (base, automatic)  33MPG
• 2007 Honda Fit (base, automatic ) 32MPG
• 2004-06 Scion xB (manual/automatic)  32/30MPG
• 2006 Scion xA (manual/automatic)  31/30MPG
• 2006-07 Honda Civic EX (manual)  31MPG
• 2004-07 Mazda 3 (manual)  30MPG
• 2006 Mini Cooper Hatchback (manual)  30MPG

This list does not come as a huge surprise.  It is largely dominated by Toyota and Honda, two companies we revere.  Of course, as we always tell you, it is important to make sure you buy a car with a manufacturers warranty.  Chances are this is going to be a car that is less than three years old.  And please ALWAYS remember to bring along our Lemon Dodger worksheet so you know which questions to ask.  What good is saving money on gas if the car does not run?  Happy shopping!

As we have been reporting, the manufacturers are suffering and will do anything and everything to sell.  These dire times provide an ideal opportunity for anyone who is looking to get a nice ride for less.  However, a consumer still needs to take the steps necessary to make sure their new dream car does not turn into a nightmare. Here are a few rules of thumb you need to keep in mind when buying a new (or used) car.

First, do your research!  Make sure the car has a strong customer satisfaction rating, provides the features you need and want, and is priced within your range.  Consumer Reports is a great source of information.  For pre-owned cars, check out the Kelly Blue Book. Also, ask family, friends and neighbors.  Often overlooked, these are some of the very best resources for car shoppers.  In many cases, they can provide reliable and useful information about the vehicle you may be considering.  Also, if you are purchasing a used car, it is worth hiring an outside mechanic to check the car out prior to signing on the dotted line. While carfax is very useful, their report may be incomplete and not include smaller accidents not reported to insurance companies (and don’t forget to use our lemon dodger used car buying worksheet).  

Second, know the MSRP, the Manufacturer’s Suggested Retail Price.  Unless a car is in high demand, dealers generally sell cars lower than MSRP.  And don’t forget to shop around; call several authorized dealers to see if they can get a better offer for you. Identical cars are widely available from dealer to dealer; it’s only the price that changes!

Third, it’s very important to try it before you buy it.  Before you sign the papers and drive off, try every feature, from the defroster to the stereo to the horn.  Take the car for a lengthy test drive, listen for unusual sounds and pay attention to how the car steers, accelerates, brakes and handles.  If something isn’t working properly, don’t sign anything and don’t accept promises to fix it after the sale!  This is the one time you have total control over the dealer and salesperson. Stay in control and demand perfection before you sign or you may be buying a headache down the road. 

Fourth, never purchase a car without a manufacturers warranty, whether new or used.  Otherwise, getting your car fixed properly by qualified mechanics, with the maximum of expertise and the minimum of hassle, may be next to impossible.  If the manufacturer of the car will issue a warranty, it must stand behind the work performed.

Finally, know your rights!  If you have purchased a new car or a car with an existing manufacturers warranty and you have a reoccurring problem that they can’t seem to fix, you do have legal rights.  Best of all, legal help is completely free to consumers under State and Federal Laws. Don’t be afraid to consult an attorney if needed. For more information on the Lemon Law and free legal representation, call 1-800-LEMON-LAW (1-800-536-6652) or visit Kimmel & Silverman’s website at www.lemonlaw.com.

Remember that pop quiz we snuck on you a couple weeks back?  How did you do? It’s amazing how many folks can’t separate fact from fiction when it comes to car buying and your lemon law rights.  Fox Philadelphia consumer reporter Michelle Buckman was equally surprised at some of the answers when she gave the quiz to her viewers on Good Day Philadelphia this morning.  She was joined by lemon law attorney Craig Thor Kimmel.  You can watch the video by clicking here or visit her blog by clicking here.