Lemon Law Blog

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!

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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.

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Happy new year–Hope you and yours enjoyed a festive holiday season. At the beginning of every year, we see a large batch of drivers who are itching to get behind the wheel of a new car. They may visit the local car shows, or be enticed by all the incentives being offered by both manufacturers and local dealerships. Perhaps, they just want a change of pace to welcome in 2007. Whatever the case may be, we certainly see an increase on the 1-800-LEMON-LAW hotline from folks who just purchased their cars and are already having problems. A significant number of these callers have just purchased used cars, and now want to know how to go about returning the car.

Unfortunately, you can not return a car in the same way you would return a shirt or a popcorn popper you received for the holiday. It is a common misconception that there is a 3-day rule, where you have three days to return a car if you are not satisfied with it. I hate to be the bearer of bad news, but the rule only applies to items that are sold to you at your home, much like the encyclopedia salesmen from years gone by.

And while it pains me to add salt to the wound, in most states, used cars are NOT covered under the lemon law. Folks, there is nothing worse than hearing a long pause on the other line after I share this information with someone who just put their life savings into a four-year old car that is already stalling. So does that mean that you should not look into used cars as a cost-effective way to get behind the wheel of a different vehicle? On the contrary, buying a used car is a wonderful option for someone who is looking to save a few dollars, but you need to be careful. If you don’t follow the right path, you could end spending more for a used car than you would for a new automobile.

So, how can you go about buying your used dream car without purchasing someone else’s nightmare? First things first, do not rush! I know you may be anxious to drive the car off the lot, sign the papers and be on your way, but slow down. First, you want to write down the VIN number, and get the year, make, and model of the vehicle and the cost in writing. Also, if they are willing to offer you money for your trade in, get that figure in writing as well. Finally, ask if you are able to have an outside mechanic check the car out prior to purchase (if they say no, look at it as a red light to STOP and look elsewhere.) Then, you want to excuse yourself. Take the salesman’s card and tell them you will call them. DO NOT BE FORCED INTO BUYING THAT CAR THAT DAY WITHOUT DOING YOUR HOMEWORK!!! If the car is sold from under you, it was not meant to be.

Next step: Go home or to your local library and jump onto the world wide web. Visit Kelly Blue Book Online and confirm that the price they are selling the car for is a reasonable one. You can also check to make sure they are offering you a fair amount for your trade-in if applicable. Then, it’s time to visit carfax and run a vehicle history report using the VIN#. It’s going to cost you $19.99 for one report, or $24.99 for a full-month of unlimited reports. DO NOT SETTLE FOR THE FREE REPORT–it does not provide all the information you need. A carfax report will tell you if the car has a lemon, salvage or flood history; if the odometer has rolled back; if the car was a rental in past life; if the car has been auctioned off, etc. Plus, they guarantee their information. The report is truly worth its weight in gold.

If everything adds up so far (KBB shows you are getting a good deal, the car has a clean carfax report, etc.), then it’s time to arrange for a mechanic to check out the car. Ask friends and family to recommend someone or look in your local yellow pages. It should cost you roughly $100 to have a mechanic check a car out for you and make sure that if you are paying, they put their findings in writing and they have some sort of guarantee. In other words, if a mechanic says the car is in perfect working order, you buy the car based on their findings, and then the tranny goes bad a week later, that mechanic has to be held responsible.

Now I know what you are saying…”The whole purpose of buying a used car is to save money. I have not even purchased a car yet and already I am spending a large amount of money.” Trust me when I tell you that this is a small price to pay to insure that the bright shiny car on the lot is not a lemon in disguise.

Once your used car receives a clean bill of health from the mechanic, it is time to pay a return trip to the dealership. But before you go, print out our Lemon Dodger worksheet. It provides a list of questions for you to ask the dealer. You need to find out if your car has a warranty and if that warranty is backed by the manufacturer (recommended)or by a third party (not recommended). Plus, even if the car has a clean carfax report, you should ask the dealer if the car has been in accident. Sometimes, these accidents fall under the radar of both carfax and the mechanic and when it comes to accident history, if you don’t ask, the dealer does not have to tell.

Lastly, always remember our rule of thumb when it comes to buying any car, new or used. “Try it before you buy it.” Before you sign on the dotted line, take the car on a good, long test drive, make sure you try out every feature and understand how everything works Do not settle for any IOU’s. This is your one chance to demand perfection so take advantage of it.

If you are in the Boston area, catch our story on used cars Tuesday night, January 16 at 5:55pm on Channel 4 News, WBZ TV. For those who live outside of MA, the story should be available on the station’s website by Wednesday morning. Click on the consumer section. Safe driving!

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