Lemon Law Blog

Yes, I know we are in the middle of a hot, humid Summer….no better time to surprise you with a pop quiz on your knowledge relating to the lemon law and car buying.  No matter what time of year, it’s important to be prepared when either buying a new or used car, or filing a lemon law claim.  So, grab that #2 pencil and let’s see how much you know….

1) TRUE OR FALSE: If I buy a car and something goes wrong with it, I have three days to return the car.  It’s the law. 

2) TRUE OR FALSE: Once I have driven the car off the lot and signed a sales agreement, there is no way a dealer can change the price on me.

3) TRUE OR FALSE:  If I purchase a car and later figure out that I can’t afford to make the payments, I can return the car and it won’t affect my credit as long as I can prove financial hardship.

4) TRUE OR FALSE: I can ask the dealer to show me what he paid for the car he is selling.

5) TRUE OR FALSE: If I buy a used car and the car has been in an accident, the dealer must tell me that prior to sale.

6) TRUE OR FALSE: The Lemon Law not only applies to major problems, such as the transmission and engine, but also to electrical problems, water leaks, rattles and paint.

7) TRUE OR FALSE: If a new car is in the shop for 30 days in the first year, regardless of whether it’s for the same or different problems, the driver can file a lemon law claim.

8 ) TRUE OR FALSE: If I have a manufacturers warranty and something goes wrong with my car, I have to take it to the dealer when I purchased the car, even if it is far from my home.

9) TRUE OR FALSE: Used cars are covered under the State Lemon Laws.

10) TRUE OR FALSE:  A consumer under the age of 25 may be denied a loaner while their car is in service because of their age.

Click here to see how well you did!

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Anyone looking to purchase a cute, compact number in the wake of these high gas prices?  If you’re looking for a cool ride that will be easy on your wallet, look no further.

Consumer Advocate Jack Gillis and The Center for Auto Safety have put together a comprehensive list of Best Bets in the 2008 Car Book, and they have given 1-800 LEMON LAW permission to reprint their findings. These are the highest-rated vehicles in terms of crash tests, safety features, fuel economy, rollover prevention, maintenance and repair costs, warranties, insurance costs, customer complaints and overall performance.

So, without further ado, here are this year’s best bets in the compact, subcompact and intermediate categories:

Subcompact:
Hyundai Accent
Kia Rio

Compact Cars:
Honda Civic/Civic Coupe
Hyundai Elantra
Kia Spectra
Nissan Sentra

Intermediate:
Acura TSX
Acura TL
Chrysler Sebring
Hyundai Sonata
Kia Optima
Nissan Altima

This list is great news for the Korean manufacturers, who have certainly stepped it up in terms of quality and warranty coverage since their inception.  They are following in the footsteps of stalwarts Honda and Nissan, both of whom have always been respected for offering top notch products and exceptional customer service. 

And if you don’t care about a little pain at the pump, you can check out the best large cars, SUVs, minivans and trucks, by clicking here. Also, here is our disclaimer for the day–remember that just because a car may appear on this list does not mean you are completely clear of finding youself in a lemon. Defects do happen from time to time, and if  your sweet ride is turning sour, you need to know your Lemon Law rights. Happy shopping!

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General Motors, not wanting to face the fate of bankruptcy, is scaling back with an overall $15 billion cost-cutting program, as reported by Mike Harris of The Associated Press. Speedway Motorsports Inc., which owns eight tracks that hold NASCAR events, already has been told GM will not renew contracts at two tracks — New Hampshire Motor Speedway and Bristol Motor Speedway. In addition, the company has suspended its stock dividend, another huge blow to investors who have seen their shares dip to the lowest prices in fifty years. And finally, to reward those employees who have stood by the company through its trials and tribulations, The Street is reporting that they will no longer offer health care to retirees, effective January 1, 2009.

However, depsite the gloom and doom that has been haunting the automaker, the company is remaining optimistic with their plans for the upcoming year. A story in the Baltimore Sun reports that GM’s sales fell 16 percent in the first half of the year, with trucks off 21 percent and cars down nearly 9 percent. GM Prez Fritz Henderson says that for the company to succeed, they must repair their car brand image and “steer” away from trucks (pun intended.) The Chevrolet Malibu has seen its sales increase a whopping 46 percent in the first half of the year, even though the new and improved quality and style resulted in an MSRP increase of $4000. Eighteen of the 19 vehicles GM will unveil between now and 2010 will be cars or crossovers, including a smaller Cadillac.

The manufacturer is also kicking the clunky Cobalt to the curb, replacing it with the sleek Cruze, a little powerhouse with a 1.4 liter turbo-charged four-cylinder engine that will allow it to get a fantastic 45 miles per gallon.  The Cruze is coming to a GM dealer near you in 2010.

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As you can expect, we have successfully handled thousands upon thousands of GM lemon law cases through the years….Cadillacs, Buicks, Chevrolets, Corvettes, Pontiacs, Hummers, etc.  Founding Partner and Lemon Law Attorney Bob Silverman has taken charge of many of these cases, and he has always felt that, despite the fact the glitches occur, GM has constantly exhibited a strong commitment to quality and customer service.  We have also seen that many of our GM clients have illustrated tremendous brand loyalty, buying a brand new GM vehicle following their lemon law experience.  Thus, it is quite disheartening to hear that this once invinceable auto giant is suffering a tremendous amount of troubles and tribulations.

Bloomberg reports that the company has suffered a 16 percent decline in 2008 U.S. auto sales and the price of GM stocks is now at a 54-year low (Shares have tumbled 62% this year, the most among the 30 companies in the Dow Jones Indsutrial Average). However, despite continuous speculation that GM could file for bankruptcy in the next year, Chief Executive Officer Rick Wagoner says that the company has “no thoughts whatsoever” of bankruptcy.  Wagoner also says that Hummer is the only one of GM’s U.S. brands being studied for possible sale or shutdown. As gas prices continue to soar, the manufacturer will review the truck’s future and sales potential. He adds that the bankruptcy rumors have not resulted in any drop in sales, with GM sales falling less than 1 percent in the first three months of the year.

As a company, GM has not posted an annual increase since 2004, with no U.S. sales gain since 1999. Last year, they suffered an astounding $38.7 billion loss. Outside analysts say that in a worst case secnario, with sales continuing to decline and an inability to acquire much needed captial, GM might have to declare bankruptcy by the end of 2009 or beginning of 2010, but they put the odds of that happening at 25 percent.

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Over the years, we have frequently received calls and e-mails from folks who have purchased vehicles on e-bay.  Unforutnately, most times, we had to refer these consumers elsewhere, because it was very rare for a car sold on e-bay to still have a manufacturers warranty.  Well guess what? That’s about to change.

With car sales declining by the day, the manufacturers are looking for new outlets to sell their cars and that includes e-bay.  Reuters is reporting that Daimler Chrysler will market over 15,000 certified pre-owned Chrysler, Jeep and Dodge vehicle on the popular website. Chrysler’s certified pre-owned vehicles cover models from 2003-2008 with less than 65,000 miles and reconditioned to meet the automaker’s standards. They carry an eight-year, or 80,000 mile powertrain warranty, backed by the manufacturer, roadside assistance and rental car allowances.

Just a reminder, of course, that even with certified pre-owned cars, it is important to ask the right questions BEFORE you buy.  Check out the Lemon Dodger for specific questions you need to ask before signing on the dotted line.

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CBS3 Consumer Reporter Jim Donovan reported today on the 2008 Car Complaint Index.  You can catch his very informative report, featuring lemon law lawyer Craig Kimmel, by clicking here.

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