Lemon Law Blog

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.

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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!

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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.

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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.

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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.

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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.

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