Lemon Law Blog

We get all sorts of calls at 1-800 LEMON LAW and after handling over 65,000 cases, we certainly know the right way and the wrong way to handle a lemon car.  Of course, there are those consumers who call, ask us a million questions, and then go against our advice and move ahead with what they think is the correct way to handle the situation.  Many times, they call us weeks later asking us to get involved.  Sometimes, we can and sometimes, they kill their rights and there is nothing we can do.  Here are the three top blunders we see among consumers:

1)  THREATENING THE DEALERSHIP  –  As we have reported many times before, in State Lemon Law and Federal Warranty Claims, the defendant is the MANUFACTURER, not the dealer.  The dealer is responsible for fixing the car under the warranty.  They get paid by the manufacturer every time they fix your car.  When it comes to getting the car repaired, you are at the dealer’s mercy.  Thus screaming “I am going to sue you” at the top of your lungs is not really accomplishing anything.  Do you want them to be flexible around your schedule?  Take the time to hear and address your concerns?  Offer you a loaner car?  Then, you need to be respectful of their job.  You will be surprised as to how many dealers whisper our number to their customers.  Why?  Because they want their customers happy and they know we can help free of charge.  The only time this does not happen is when….

2) YOU INADVERTENTLY TRADE THE CAR IN.  Dealers are out to make money and sometimes, dealers see lemon cars as potential money makers for them.  So, they will say to the customer “You have a lemon.  Let’s take that car off your hands.”  And, they present a brand new car to the customer. The customer thinks “This is great.  I got rid of my lemon and I am getting a brand new car.  I don’t need a lawyer.”  The customer signs all the new paperwork and then they are shocked when they are socked for a huge bill later on.  They didn’t use the Lemon Law; they traded the car in and by not reaching out to a lawyer for free legal help, they now are sometimes tens of thousands of dollars in the hole.  HUGE MISTAKE and it happens a lot. Dealers cannot solve lemon law claims.  If they say otherwise, get it in writing first and have it reviewed by us or another consumer law firm.

and finally…..

3) NOT DOING ANYTHING BECAUSE YOUR CAR IS FINALLY FIXED.  Don’t get us wrong.  We are thrilled that after 5 repair attempts, that front end noise is gone or that check engine light is off.  But, you paid for a manufacturers warranty that guaranteed that problems were fixed efficiently and effectively and they were not.  Under the law, you could be entitled to monetary compensation and continued ownership of the car.  It’s lovely that you don’t want to give the manufacturer a tough time now that the problem is fixed. But once your warranty expires, do you think they will treat you with the same kindness?  Use your rights.  This is your hard-earned money and you are entitled to compensation if you did not get what you paid for.

Certainly, if you have any questions, feel free to reach out to us at 1800 LEMON LAW (1-800-536-6652) or fill out our Get Rid of Your Lemon form.

Popularity: 3% [?]

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.

Popularity: 8% [?]

As we await word on if/how the government will bail out the big three, we continue to see car dealers close their doors in record numbers as a result of this troubling economy.  And these are not fly-by-night agencies mind you; these are long-standing, highly respected dealerships that have been running in some cases for decades.  It’s a sad state of affairs for the automotive industry and now more than ever, it is important that you protect yourself in case your selling dealer closes. 

Pennsylvania Lemon Law Attorney Craig Thor Kimmel appeared on FOX 29 News in Philadelphia earlier this week to discuss how to deal with the dealers closing around us.

FIRST, when buying a car, make sure you keep all of your paperwork.  With dealers closing, you need to make sure you have all agreements in writing.  We recently saw a case where the dealer was supposed to pay off the loan of a trade-in as part of the sale.  Then, the dealer closed and the consumer received a call from the bank asking for payment.  You need to get everything in writing. 

SECOND, make sure you understand the warranty you are purchasing.  It is highly recommended that you purchase a vehicle that has a manufacturers warranty and that any extended warranties purchased are also backed by the manufacturer.  Manufacturers warranties allow you the freedom of taking the car to any authorized manufacturers dealership.  Dealer warranties prohibit this.  Also, if your problems continue under the manufacturers warranty, you may be able to seek recourse under State and/or Federal Laws.

THIRD, make sure when taking your car in for service that you be as specific as possible regarding repairs needed.  Dealers that are not closing are still cutting back, letting go of service personnel and not spending nearly the time on repair visits that they used to.  Make sure you are as specific as possible in terms of what noise you heard and when you heard it, what sensor light popped on, and where you felt that water leak.  The more clues you give, the better chance the service personnel have of solving the problem.  And if you continue to once again feel like you are getting the run around, either a dealer constantly saying no problem found, or the problem not being fixed properly, you need to look into legal action.

FOURTH, if you feel your car is giving you problems, you need to do something.  When Daewoo was purchased by GM following economic problems, the acquired all the assets but none of the headaches. They were not responsible for any Daewoo warranty claims.  If a bankruptcy was to hit one of the big three, there is a good chance hundreds of thousands of people would no longer have warranties on their vehicles.  If something is wrong with your car, you need to get it addressed NOW. And if you feel that you may have a breach of warranty or lemon law claim, you need to address it with a consumer lawyer as soon as possible to protect yourself.  Under State and Federal Laws, help is free in these situations.  You have absolutely nothing to lose and everything to gain. 

For more information regarding this matter, visit www.lemonlaw.com and if you have any specific questions, e-mail Client Services Director Michael Sacks at msacks@lemonlaw.com,  Include your name and daytime phone number, including area code.  We may include your question in a future blog.

Popularity: 7% [?]

Throughout this blog, you may find a few statements that we repeat over and over again.  Why?  Because no matter how many times we say it, people still don’t believe it.  So, here we are again, reminding you that in most lemon law and breach of warranty claims, THE DEALER IS NOT THE DEFENDANT.  They are merely the middlemen and they do not have the authority to get you a buy back or a new vehicle.  Rather, it’s the manufacturer who is the defendant and many times when a service manager can’t do anymore to fix or diagnose a problem, they will whisper 1-800 LEMON LAW under their breath.  Treat your service team with respect and try your best not to air your frustration with them.  You rely on them to help you get your vehicle repaired and you do not want to create a hostile relationship.

Today, we thought we would give you some tips on how to deal with the dealer when your car is in the shop.

First and foremost, when bringing your car into the shop and describing your problem to the service manager, try and be as detailed as possible.   Is there a leak?  Where is the leak coming from?  Do you smell mold?  Is your floor mat wet?  Did you see water spots in your headliner?  Is there a noise?  What does the noise sound like?  Is it coming from the front or rear?  Is it in the morning when you are starting the car up, or after the car is running?  Is it on highways or in the neighborhood?  Every detail, description or clue can help the service manager and his team properly diagnose the problem.

You may also want to visit the National Highway Traffic Safety Administration website prior to your repair to determine if there are technical service bulletins or similar consumer complaints on your vehicle. Bring this information with you to show the service manager.

When you pick up your car, make sure that you give the service manager a few minutes to discuss which reapirs were done.  Don’t hesitate to ask questions if you don’t understand something. And, most importantly, always ask for a repair invoice.  Now, some folks may say “My car is under warranty.  Why would I need an invoice?” Invoices provide a paper trail which is the key to any lemon law or breach of warranty claim.  They outline the problem you complained about, what was done to fix the problem, a list of any components that may have been replaced, and dates the vehicle was in the shop.  Make sure you get a receipt at the time you pick up your car.  Do not let them mail it to you.  You want to review it to make sure everything is correct and if not you want them to revise it on the spot.  Also, it’s very important to keep these invoices in a safe place, and we don’t mean the “circular file.”  These invoices could be your ticket to getting out of a lemon car. Once you have three invoices for the same problem, you want to consult a lemon law attorney to see if you are entitled to remedy under State and/or Federal Law.

Questions regarding your repairs and how to deal with your service manager?  E-mail us and we will be glad to answer them. 

Popularity: 6% [?]

As we have reported repeatedly on this blog, car sales are down big time! As a result, dealers are doing everything they can to make a sale.  Unfortunately, some dealers are more concerned with getting the cars off the lot immediately than they are about securing financing for their customers.  And as new car sales continue to be more competitive, we are receiving a plethora of calls at 1-800 LEMON LAW regarding a dealer tactic known as spot delivery.

Most folks have heard of this tactic before.  An alleged spot delivery transaction between a NJ consumer and the Brad Benson dealership found its way on National TV (and throughout cyberspace).  Spot Delivery occurs when a dealer puts a consumer in a new car “on the spot,” with the consumer signing a number of documents, including a retail sales agreement.  Later on, the customer starts receiving calls tellling them their financing did not go through. In most cases, they are trying to get the customer to come back to pay more money than they originally agreed to.   Some dealers play dirty when this occurs.  They may threaten repossession, or not pay off a trade-in, or make numerous threatening phone calls. And in most cases, customers feel trapped into paying more money.

So, what should you do? You need to stand your ground.  If you signed purchase doucments and registration applications, obtained insurance, and a new license plate installed or an old plate transferred, the car belongs to you.  Here are some other tips to follow if you find yourself in a spot delivery situation:

• Keep all copies of your paperwork and anything else associated with the sale (including calendars, photographs, advertisements). If the finance manager asks for your papers at any time for any reason, refuse! Keep these documents in a safe place, not the car.
• If you are called back to the dealership to sign additional papers, either do not go or do so in a different car than the one you bought.
• Have a friend or spouse drive you and witness whatever is being told to you. This will prevent the dealer from taking your car as hostage, an all too common happening.
• If a dispute arises with the dealer over the contract and the dealer demands the car is returned, park it in a garage or remote location until the matter is resolved, to prevent it from being taken against your wishes.
• Put together a complete time line of everything that happened from the time you thought of purchasing the car until the car was taken away. Try to remember specific names of dealership personnel and any statements that were made to you during conversations with the sales and finance staff.
• Keep track of all monies you had invested into the purchase, including registration, insurance, down payment and trade. Never pay cash and always get a receipt!

If after reading this, you realize that you are a victim of spot delivery, you may want to contact a consumer attorney to take action. At this time, we are handling spot delivery claims in Pennsylvania and New Jersey. If you are in either state, please contact us via e-mail or by calling Michael Sacks, Director of Client Services at 1-800 LEMON LAW (1-800-536-6652) ext. 131.  If you reside in another state, contact your attorney general or check out our attorney directory.

Popularity: 7% [?]

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!

Popularity: 9% [?]