Lemon Law Blog

This just in–Edmunds is reporting that Volkswagen, once revered for having a 4 year/50,000 mile original manufacturers warranty, is now reducing the coverage to 3 years/ 36,000 miles on all 2009 models and newer.  The good news is that like several other high-end manufacturers, VW will be covering this cost of all scheduled maintenance up to 36,000 miles.  Which would you rather have–a longer warranty or free service? While some may perceive it as six of one, half a dozen of the other, that’s not really true.  You certainly could shell out a lot more money with the 14 less months of warranty coverage if a transmission or engine problem occurs at 40,000 miles, or 3 years and 2 months after you purchase your car.  One may also question why VW is shortening their warranty at a time where most companies are tyring to find a competitive edge.

Less publicized is the fact that Mazda has also reduced their manufacturers warranty from 4/50 to 3/36 as well.

No doubt these reductions in warranty protection will help the manufacturers with their bottom line, but how will the change affect sales?  Only time will tell.

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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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No doubt you have read all about the Chrysler bankruptcy in the headlines.  It has been covered by print outlets and blogs throughout the Country, or perhaps you heard Kimmel and Silverman attorney Bob Silverman discuss the situation on the local news.  All current Chrysler, Dodge and Jeep owners and anyone who intends to purchase one of these cars in the near future has hit a pothole when it comes to their consumer rights under State Lemon Law and Federal Warranty Law. 

As a result of the manufacturer filing in bankruptcy court, all lemon law and breach of warranty claims currently in litigation have been “stayed” or stalled until we receive instruction from the court on how to proceed.  But that’s not all; we have over 20 consumers waiting for complete repurchases or refunds, agreed upon before the manufacturer filed for bankruptcy, who are now stuck.  These folks each have signed releases from the manufacturer.  One client is a handicapped woman who desperately needs her Dodge conversion van to get around, and it has been in the shop numerous times for transmission problems. Another client, who has faced tough financial problems himself, already turned his car in and was waiting for his repurchase, and now he has no car, and no money. Plus, being that his creditor was never paid, he is facing the prospect of his lemon car being repossessed and ruining his credit.  Dozens of other folks have received checks which have bounced and these checks were dated prior to the 4/30 filing.

Currently, Kimmel and Silverman is working extensively on efforts to make sure Chrysler, Dodge and Jeep consumers are protected.  The manufacturers stance (and the PR statement we have heard from Washington DC and DCC headquarters) is your cars will be fully covered under warranty.  But, that’s not really the case.  If you can find a dealer that hasn’t closed, and they do have the part you need in stock (doubtful as a result of the closed factories and stop in production), what happens if they still can’t fix the problem?  If the check engine light keeps coming on?  If the water leak keeps reoccurring, resulting in mold?  If the windows still don’t go down?  If the car still won’t start?  And you are back one, two, three, four times?  Well, under normal circumstances, you would be able to use your rights under State and Federal Law to seek recourse, either a complete buyback, a new vehicle, or monetary damages to reflect the diminished value of the car as a result of the problems that occurred.  But that’s not the case right now.  Right now, Chrysler feels you are entitled to nothing other than continuous repair.  And, the new company that is looking to take over Chrysler is NOT interested in taking over these responsibilities; they do not want to compensate all the distressed drivers who have suffered defects or are currently suffering defects with their products.  The language in their motion is very unclear and contradicts itself.

We are currently working on a motion in an attempt for Chrysler to establish a litigation trust for those people who were entitled to recourse under warranty claims.  We will keep you abreast of our progress. In the meantime, we encourage you to reach out to your State’s consumer protection division and attorney general office and make sure they are aware of this situation.  Ask them what they are doing to advocate for consumers in perhaps one of the most troubling situations we have ever seen.

Confused? No doubt.  if you feel you have a potential DCC lemon law or breach of warranty claim and you would like to discuss this situation and your rights further, please e-mail us or call 1-800 LEMON LAW (1-800-536-6652). (Our firm handles claims in Pennsylvania, New Jersey, Ohio, Delaware, Maryland, Connecticut,  Massachusetts, New York and New Hampshire.  For other states, please visit www.lemonlawamerica.com.) We will be more than happy to go over your matter with you. 

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It’s a sad day in the history of automobiles.  Autoblog reports that General Motors will phase out Pontiac by the end of 2010, and will build its accelerated visibility plan surrounding its four remaining brands:  Chevrolet, Buick, GMC and Cadillac.  By the end of the year, we will also know if and how GM will move forward with the Saab, Saturn and Hummer brands.

The first Pontiacs were produced in 1926 and their popularity has escalated throughout the decades with the production of the Bonneville, GTO, Firebird, and in later years the G6 and Solstice.

So, what does this mean if you have a Pontiac?  Ideally, this situation should not have any effect on your manufacturers warranty or in filing a lemon law or breach of warranty claim if in fact GM cannot fix a non-conformity despite numerous repair attempts.  It appears General Motors is standing behind the brand and its warranty and will continue to do so until the make phases out.

And while the value of the vehicles will certainly diminish come trade-in time, if you like the model, now may be a time you can take advantage of the situation and purchase one for a very reasonable price.

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An interesting article today in AOL’s automotive section sparks a debate we have seen many times over the years.  A consumer starts to encounter problems with their engine.   The car starts to sputter, the service engine soon light comes on, and then all of a sudden, the distressed driver finds himself stuck in the middle of a busy highway.  He has his car towed to the dealer.  After all, he is under manufacturers warranty and therefore there should be no issue with the car being fixed, right? 

Wrong.  The dealer blames the problem on engine sludge and asks to see the driver’s oil change receipts confirming that they have cared for the car as outlined in the owner’s manual.  Fear starts to set in the driver’s face.  He doesn’t remember if and when he got his oil changed.  Perhaps, he went to a franchise, but when and how many miles were on the car?  Did he take it to his mechanic?  Did he change the oil himself?  Before he knows it, the consumer is socked with a repair bill in the thousands and there is nothing anyone can do about it, including us.  Why?  because the consumer did not keep proof that he fulfilled his responsibilities.

Now more than ever, as manufacturers continue to look at the bottom line, it is imperative that you keep records of all maintenance.  There is nothing wrong with going to Jiffy Lube or Grease Monkey but hold to those receipts; do not discard them with the egg mcmuffin wrapper from the sandwich you enjoyed in the waiting room. Those receipts outline the date and mileage of the service.  If you choose to change the oil yourself, you want to keep the store receipt and the proof of purchase, as well as keep a written log. 

If you have proof that you have covered all of your responsibilities and the manufacturer still is not covering the repair under warranty, that is where we step in.  We have represented many organized drivers in these types of breach of warranty claims and manufacturers have no idea what hit them!

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More and more consumers are calling into the 1-800 LEMON LAW hotline with a problem that “can not be duplicated” by the service department.  Whether it be braking, a sensor light, an alignment issue or a strange noise in the engine, nothing is more frustrating than having a well-intentioned service adviser tell you that they can’t figure out what you are complaining about.

As we have written about in our blog many times before, the automobile manufacturers have been cutting costs across the board as a result of the troubling economy and the service departments have suffered significantly.  Manufacturers have instructed dealerships that they are only paying a certain amount toward a repair, and if the dealer cannot locate the problem within a certain period of time to send the consumer on their way. You will also notice that many of the top-level service representatives have been laid-off, replaced by those who have less experience, and thus require a lesser salary.  In addition, manufacturers are not producing as many parts as they used to, resulting in various components being on back order for long periods of time.

If you find yourself in a situation like the ones described, that does not mean you should not take action.  It is very important that when you are dealing with the dealer, you do the following:

** Make sure you clearly outline your problem or complaint with the service manager and confirm prior to leaving the dealership that your complaint is clearly written on the repair invoice as described.  Do not hesitate to correct it if it is not.

**Upon return, ask to review what had been done to the car, if anything.  Ask if any parts or components are replaced, and make sure these are listed on the repair invoice.

**If they cannot find the problem, ask to take the service adviser or representative on a test drive to try and duplicate it.  If they cannot go for a test ride then, make sure you schedule the next appointment right then and there.

**If the problem is still present because a part needs to be ordered, make sure that is clearly listed on the repair invoice, as well as an estimated time as to when the dealer expects to receive the component.

**If a sensor light is still on, or there is still a noise because the part has not yet been replaced, and the dealer insists that the vehicle is still okay to drive, make sure they write this on the repair invoice.  UNDER NO CIRCUMSTANCES SHOULD YOU BE DRIVING A CAR WITH A CHECK ENGINE LIGHT ON.

**If they insist they cannot find the problem, take the car to another authorized manufacturer dealership to have a fresh pair of eyes look at the problem. A manufacturers warranty enables a consumer to take their car to ANY authorized manufacturers dealership, regardless of where they purchased the car.

**Finally, please make sure you never leave your repair facility after a repair without an invoice.  These invoices provide much needed information and should be kept in a safe place. Never accept an excuse from the dealer as to why you cannot have a copy (i.e. we are keeping the ticket open, our printer is down, we will mail you one.)  Do not take delivery of your car without it.

This situation should not prevent you from looking into your rights to remedy under State and Federal Laws.  If you feel as though you are being stalled in your repair efforts, please contact us or another consumer attorney to determine if you are entitled to remedy.

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