Lemon Law Blog

The Car Allowance Rebate System (aka Cash for Clunkers) has ceased, but that does not mean you cannot get cash if your car is a clunker. 

We repeatedly discuss the Magnuson Moss Warranty Act, which provides distressed drivers with monetary damages if their car, truck or motorcycle has been back in the shop repeatedly for the same repairs, but does not fall under Lemon Law parameters.   Lemon Law Lawyer Craig Thor Kimmel recently joined Ukee Washington on Eyewitness News This Morning on the CW Philly to discuss the Magnuson Moss Law and how it works.

Under the Federal law, which provides protection for any consumer who purchases a product over $25, a consumer can receive monetary damages from the manufacturer to reflect the diminished value of the product as a result of the repeated problems.  At Kimmel & Silverman, we have used this Law to help folks with faulty vehicles, motorcycles, ATVS, computers and appliances. 

The best part for drivers who use this law is that they are entitled to monetary compensation even if the vehicle is finally fixed after repeated attempts. You receive money PLUS you get to keep your car.  In addition, the car is not branded in any way on carfax, the warranty remains completely in effect, and you do not need to disclose that you received this money at the time of sale or trade.  Also, just like the Lemon Law, legal help is 100% cost-free.

Here are some recent Magnsuon Moss victories.  (Of course, each case is different and we cannot guarantee that you would be entitled to the same compensation). 

2004 Mazda RX8: currently has over 57,000 miles
Engine flooded—replaced numerous components , including cat converter
Consumer received $6,000

2007 Suzuki SX4: currently has 60,000 miles
Defective engine block at 42,000 miles, out of service 2 months
Consumer received $4,500

2004 Volvo C70: currently has 37,000 miles
Car would not start x3
Consumer received $3,000

2007 Saturn Ion: currently has 43,000 miles
Loss of power starting at 15,000 miles—replaced wiring harness
Consumer received $3,000

2008 Cadillac Escalade: currently has 23,000 miles
Purchased used, replaced trailer hitch cover x3, stalling x2
Consumer received $4,000

2007 Subaru Impreza: Currently has 21,000 miles
Problem occurred right outside of Lemon Law
Check engine light x3—replaced left side cylinder & short block, out of service 46 days
Consumer received $7,500

2007 Hummer H3: currently has 23,000 miles
Car leased; Door lock & window malfunctions x6
Consumer received $3,000

2005 Jeep Grand Cherokee Laredo: currently has 60,000 miles
Purchased used; check engine light x4 under warranty
Consumer received $2,750

2004 Cadillac SRX: currently has 43,000 miles
Purchased used; engine replaced plus power steering leak x3
Consumer received $6,000

2005 GMC Sierra:  currently has 38,000 miles
Check engine light starting at 18,000 miles—eventually replaced turbo
Consumer received $4,000

If your car is still under an original or extended manufacturers warranty, and you have been in the shop three or more times for the same problem, please drop us a line to see if you are entitled to remedy under the Magnuson Moss Warranty Act.

Popularity: 8% [?]

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.

Popularity: 9% [?]

For the sixth year in a row, Robert M. Silverman and Craig Thor Kimmel have been named Pennsylvania Super Lawyers in a survey conducted by Law & Politics Magazine. In addition, Jacqueline Herritt, Managing Attorney for the Firm and a 11-year lemon law veteran, has also been named to the list for a third year running. Kimmel & Silverman is proud to have more Consumer Lawyers named to the list than any other Firm in the State.

The findings are published in the June 2009 edition of Philadelphia Magazine. More than 34,000 attorneys were asked to vote for the most effective counsel they have personally observed in action. Kimmel and Silverman were recognized among the top 5% of all attorneys statewide for building Pennsylvania’s oldest and largest full-service lemon law firm, and assisting more than 50,000 distressed drivers across the Northeast with cost-free legal representation.

Read the full article here: Pennsylvania Super Lawyers

Popularity: 9% [?]

This year, the Car Complaint Index takes on a whole new meaning, as more and more consumers are complaining that their dealers can not duplicate their problems.  In addition, many components are on back order, requiring many distressed drivers to wait months before having their vehicles properly fixed.  Lemon Law Attorney Craig Thor Kimmel joined Fox 29 consumer reporter Michelle Buckman on Good Day Philadelphia to discuss how drivers can still find their way on the road to recovery despite these tremendous obstacles.  You can read the whole story by clicking here.

Watch the video here:

Popularity: 7% [?]

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!

Popularity: 10% [?]

When college student and Kimmel & Silverman client Ryan Robinson purchased the car of his dreams, a 2007 Ford Mustang with 13,000 miles, he had no idea he was stepping into a puddle of problems. However, even though the carfax was clean, Robinson found his car turned out to have previously been flooded.  He has filed suit against the dealer for misrepresentation and remarkably enough, we signed another client today who purchased a flooded BMW from the same dealer.

CBS 3Consumer Reporter Jim Donovan has Robinson’s story, and also some important tips from ASE Certified Mechanic Steve Ruch on how to spot a flood car.  You can read the story and view the video by clicking here.

Also remember, when purchasing a used car, there are a lot of questions you need to ask to make sure your dream car was not previously someone else’s nightmare.  Check out our Lemon Dodger worksheet, and make sure you read some of our past blog entries on used car buying.  Even though you are purchasing a used vehcile, you still are making a significant financial commitment and if you don’t watch yourself, you could find yourself paying out of pocket for costly repairs and part replacement.  We have seen many instances where it cost a consumer more to purchase a used car than it would have to purchase a new one.

Lastly, if you feel your car was misrepresented at the time of sale, inquire about your rights with us or another consumer attorney.  It never costs anything to ask a question and the advice provided could prove to be invaluable.

Popularity: 10% [?]