“I purchased a used car and the dealer didn’t tell me….”

We cannot count the number of calls to the 1-800 LEMON LAW hotline starting with this sympathetic phrase.  They didn’t know it was a rental car, off a lease, had more than one owner, or was in an accident.  Well guess what?  Any reader of our <a href=”http://www.lemonlaw.com/” title=”What is Lemon Law”>Lemon Law</a> Blog knows that if you don’t ask about these issues, the dealer does not have to tell you. Yes, your heard correctly.  It’s “Don’t Ask Don’t Tell.”

A dealer is only required to disclose if a car has a lemon, salvage, flood, or reconstructed title.  So, this means that before you sign on the dotted line, you need to ask the right questions.  And lucky for you, we have those questions listed on our lemon dodger worksheet.  Take this sheet with you and be prepared to walk if the dealer does not provide you with the answers you request.  Also, consider hiring an outside mechanic to check the vehicle out before you drive it off the lot.  A hundred dollars now could save you thousands of dollars later.  And if the dealership has a problem with you arranging for an outside inspection, that should immediately raise a red flag.

Lastly, and just as important, make sure you ask about the warranty and what it entails. Many times, consumers think what is actually a <strong>lemon law</strong> issue is covered under warranty when in fact, it’s not.

Don’t be afraid to ask questions.  Otherwise, you could end up with a used car that uses up all of your funds.

As you can expect, Monday mornings are quite busy for us.  Often times, we are going through 25-40 voice mails from consumers who have left messages on the 1-800 LEMON LAW hotline over the weekend.  This week, we received our first-ever call from a used car dealer.  The dealer, based in Delaware, was complaining that folks threaten him with the Lemon Law, even though he knows that his cars are too old to fall under the Lemon Law.  He asked us if we could include information in our ads about what qualifies under the Lemon Law and what does not.

Obviously due to time and money constraints, that request is completely unfeasible.  However, our website does provide an extensive overview on what qualifies under each state’s Lemon Law.  And we always encourage consumers to call us if they have a question about their individual situation.

After listening to this message, we have to wonder why all of these folks threaten him with the  Lemon Law and wonder if it’s regarding the quality of the cars he sells.  Thus, in the spirit of educating consumers, we think it is imperative to remind used car buyers to raise a red flag if:

**A used car dealer refuses to provide a carfax on the vehicle.

**The dealer cannot provide an affirmative answer on whether the car has an accident history. (You MUST ask if the car has been in accident.  Unless the car has a salvage title or frame damage, a dealer does not need to disclose this information unless asked.)

**The dealer refuses to allow you have an outside mechanic check out the car prior to purchase.  This may cost a little bit of money but it will save you a lot of money and aggravation “down the road.”

**You purchase a car without a warranty.  Ideally, we would like you to buy a car with a manufacturers warranty so it can be fixed by an authorized dealership if something goes wrong.  However, even if you choose to buy the car at your local mom and pop shop, it is imperative that you purchase a warranty and research both the warranty company and the components covered under the policy.  Sometimes, these dealers sell warranties that are not worth the paper they are written on.  It’s a case of buyer beware.

Of course, when buying a used car, we always encourage you to bring along  our lemon dodger worksheet.  This worksheet provides the questions you need to ask to make sure you are getting the msot car for your money.

And if  your used car is under a manufacturers warranty or has been in the shop an extended period of time, give us a call at 1-800 LEMON LAW (1-800-536-6652).   You could be looking at significant compensation under the Federal Magnuson Moss Warranty Act.

Happy buying and safe driving!

We have been receiving a number of e-mails and phone calls lately regarding older cars.  Buying a used car is a tremendous gamble and it you’re not careful, your dream car may have previously been someone else’s nightmare.  Here are a few tips to make sure you are not taken for a ride when buying your next used car:

1) You want a warranty–and not just any warranty.  It must be a manufacturers warranty.  Yes, we realize that it may cost a bit more, but that is the only way the car company will stand behind your vehicle.  If you have a manufacturers warranty, your problems will be addressed by mechanics who are trained by the company and have access to information and tools that outside mechanics may not have.  Furthermore, if you have continuous problems with the car, we can successfully go after the manufacturer for remedy under Federal law.  We cannot hold the manufacturer responsible if you are no longer under the manufacturers warranty.  That’s like asking the doctor to treat you after your insurance lapses.

2) When it comes to accidents, it’s “don’t ask, don’t tell.”  If you do not specifically ask if a car has been in an accident, the dealer does not need to disclose the fact.  And, unfortunately, asking for a carfax is not enough.  There are times where accidents do not appear on the carfax report and the dealer cannot be held responsible for this.   However, if you ask if a car has been in an accident and the dealer says “no,” they can be held responsible if you find out they are not telling the truth. On the flip side,  dealers MUST disclose  if the car has a salvage or reconstructed title, any flood history, or if it was  a manufacturers buyback (aka “a lemon”).

3) If you are buying an “as-is” car (which we never endorse), make sure you have an outside mechanic inspect the car BEFORE you sign on the dotted line.  We understand this could cost a few bucks, but $100 now could save $1,000 or more down the road.

Lastly, take our lemon dodger worksheet with you when purchasing your car.  It provides you with all the questions you need to ask when buying a pre-owned car.  Remember, an educated consumer is an effective consumer.  Happy buying!

Used cars often provide a very attractive way to get more car for less money.  However, if you fail to ask the right questions BEFORE you sign on the dotted line, you could find yourself on the road to numerous car problems.

When it comes to used cars, the biggest assumption is that dealers have to disclose if the car has an accident history.  Unfortunately, when it comes to accidents, it’s don’t ask, don’t tell.  Dealers are only required to disclose if the car has a lemon, salvage, flood, or reconstructed title.

To make sure your car buying experience runs smoothly, we have created the Lemon Dodger, an all inclusive worksheet that provides all the questions you need to ask when dealing with the dealer.  Remember just because a car is new to you does not mean it’s  new to the repair shop.  Ask the right questions now to avoid headaches later.  Happy shopping!

There is no doubt that we are all looking for ways to save money and  that should extend to car buying.  You can save considerably when purchasing a used car versus a new car.  That being said, you need to prepare yourself to make sure that the dream car you purchased was not someone else’s nightmare.

First, when buying a used car, you MUST ask questions.  Do not be shy.  Did you know that a dealer does not have to disclose that a car has been in an accident unless they are asked?  They don’t have to disclose the car is a previous rental, repo or fleet car either.  You need to inquire about anything and everything.  You also need to run a vehicle history report to ensure the car does not have a salvage or lemon history.   We like Experian’s Autocheck, which offers unlimited monthly reports for $44.99.  And you should consider hiring an outside mechanic to inspect the vehicle prior to signing on the dotted line.  This is a simple $100 investment which could save you thousands down the road.

Make sure you inquire about the warranty.  Ideally,  you want to make sure you have a manufacturers warranty.  Dealer and third party warranties often cover very little and have a great deal of fine print.  Understand the terms of your warranty and its coverage. Furthermore, if you have a car under a manufacturers warranty, and you are back three or more times for the same problem, you could be entitled to monetary compensation under the Federal Magnuson Moss Warranty Act we are always talking about.

Lastly, we recommend that you print out a copy of our Lemon Dodger worksheet, which lays out all the information you need to know before taking the car off the lot.  We know it may seem excessive, but it will help you tremendously.

Remember, an educated consumer is an effective consumer and you certainly don’t want to be steered toward a lemon.

Three calls came into the 1-800 LEMON LAW hotline this afternoon from folks who were looking to save some money by buying used cars. 

All three people later found out that their cars were in accidents prior to purchase.  In two situations, the accidents were not even listed on carfax.  Of the three, only one asked about the car’s accident history to which the salesman replied the car had ”no accidents that he knows of.”  That client is the only one of the three who has a potential claim for misrepresentation.

When it comes to accidents, unless the car has a salvage or R title,  the dealer does not have to disclose anything unless you specifically ask “was this car in an accident?” 

If you are planning to purchase a used car, you need to ask questions.  Check out our lemon dodger worksheet before you buy and bring it along on your spending adventure.  The right questions now can save you thousands “down the road.”

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.

As you can imagine, distressed drivers submit hundreds of questions each week to Lemon Law.com, hoping to find out more information about lemon law, breach of warranty and dealer fraud claims. And without fail, at least ten times a day, we receive this one-line inquiry:  “Are used cars covered under the Lemon Law?”

If we had a nickel for every time we received this question, we would be billionaires many times over.  In the nutshell, the answer is no.  The Lemon Laws we work with apply to new or demo cars purchased or leased by authorized manufacturers dealerships.  Now, does that mean that if you purchase a used car, you are up the creek?  Not necessarily.  If you purchased a used car with an original or extended manufacturers warranty, and you find yourself having to go back to the dealer three or more times for the same repair, you very well may have rights under the Federal Law we are always talking about, known as the Magnuson Moss Warranty Act.  Under this Law, you would be entitled to significant monetary compensation from the manufacturer to reflect the diminished value of your car as a result of the problems you have incurred.  In other words, part of what you pay for is a manufacturers warranty and that is the ensure that problems are fixed efficiently and effectively.  If they are not being fixed, there is a breach of warranty and you are entitled to money back.

In many of these cases, you could be looking at 15-35% of what you paid back in your pocket.  This money is non-taxable, you get to keep your car, and your warranty remains completely in effect.  In fact, if the car is fixed after 3-4 attempts, you still are entitled to remedy under this law. You do not need to disclose that you received this money at the time of trade or sale and your car is NOT branded a lemon on carfax.  This is essentially free money in your pocket to pay you back for the defect you have dealt with.

And the best part of all is like the Lemon Law, the Magnuson Moss Warranty Act has a fee-shifting provision which means that if you prevail the manufacturer must pay all attorney fees and legal costs on top of what you receive.  Thus, there is no cost and no risk to filing a claim.

If you feel you may have a potential breach of warranty claim, feel free to contact us at 1-800 LEMON LAW or drop us a line.  Be as specific as possible regarding your problem so we can provide you with a solution to best fit your needs.

Also, it is important to note that certain states we work with, including New Jersey and Massachusetts, do provide used car lemon law protection.  The used car lemon laws are a bit different than new car claims, and in most circumstances can be handled through your State’s Attorney General.  If we feel you qualify for this type of protection, we will be glad to direct you.

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.

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!

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.

While Pennsylvania has always had a lemon law for new cars, Philadelphia has now instituted a lemon law for used cars sold in the city. Mayor Nutter has signed Philadelphia’s first Used Car Lemon Law Bill, sponsored by Councilman Darrell L. Clarke.  The Used Car Lemon Law ensures that purchasers of used cars in Philadelphia have the opportunity to have the car inspected by a licensed mechanic with 72 hours of purchase.  If a major structural defect is found, the consumer has the right to have to return the car for repair or a full refund.

Here are the details:

**A purchaser of a used car may return their vehicle within 72 hours after purchase if it is unable to pass safety or emissions inspections or found by a certified inspection mechanic to have an undisclosed major structural defect (The mechanic MUST put his findings in writing.)

**Upon return of the car, the dealer has 10 days to either fix the car, entirely at their own expense, or refund the consumer’s money.

**Dealer must also provide a copy of any written warranty to the purchaser within 15 days of payment for the warranty, and shall perform all repairs covered under the warranty promptly. At the time of purchase, the delaer MUST disclose in lareg capital letters whether the warranty is provided by the dealer, the manufacturer or a third-party warranty.

**If you purchased a used car and feel the dealer is not upholding their responsibilities, contact the Philadelphia Office of Consumer Affairs at 215-686-7598. They will take complaints and determine their merit.  Repeat offenders face possible suspension or revocation of their Automotbile Sales License and/or Business Privilege License.

Kudos to Mayor Nutter, Councilman Clark and Lance Haver at the Consumer Affairs Office for making this happen.

Strapped for cash?  Who isn’t?  Unemployment is up. News reports continue to flood in about how poor the economy is. As gas prices soar higher, the money in our wallets seems to dwindle. Our homes are not worth what they were and neither are our stock portfolios. So, how would $2,000, $3,000 or even $5000 sound?  In a non-taxable check, and you don’t have to do much to get it.  You may be entitled to a large sum of money and the answer may be right in front of your nose…in your driveway to be exact (and no, we are not talking about selling your car). If you have read it before on the blog, it bears repeating, because consumers who call into the 1 800 LEMON LAW hotline can’t beleive it.  This is a Federal law which applies to every state we work in:  Pennsylvania, New Jersey, Delaware, Maryland, Massachusetts, Ohio, Washington DC, Vermont, Rhode Island and New Hampshire.

It’s a little known Federal law called the Magnuson Moss Warranty Act, that’s not discussed by car dealerships when you purchase your car.  It’s a statute that is not heavily promoted or publicized but it applies to cars, or any products that cost over $25 and are covered by a manufacturers warranty.  What is says is that if you find that you have to get your car repaired three or more times for the same thing, it means that the warranty has not proven to efficient or very effective.  And for that reason, you could be entitled to monies that reflect the diminished value of the car as a result of the problem. So, that darn window motor that’s been replaced, the air conditioner that hasn’t been blowing cool air,  the water leak in the trunk that was finally fixed after four tries, or that nav system that’s gone through quite a few upgrades could mean thousands in your pocket PLUS
**You get to keep your car
**Your warranty remains completely in effect and they still have to fix your car.
**Your car is NOT branded in any way (like the lemon law), so know one can look up a carfax report and determine that you received this money.
**You do NOT need to  disclose that you received this money when selling or trading your car. 
**Like the Lemon Law, the Magnuson Moss provides a provision which entitles consumers to completely FREE LEGAL HELP, so they are on equal footing with the manufacturers.
 
And unlike the lemon law, this law can also apply to used cars, motorcycles(when state laws do not apply), and some seacraft too (like jet skis and sea doos). You read this right–This is free money and it applies to any car or truck which has repeated problems under an original or extended manufacturers warranty (normally three times in for the same problem) .

If you’d like to see if you are entitled to this money, click here or call us at 1-800 LEMON LAW (1-800-536-6652). Also, this past Spring, CBS3 consumer reporter Jim Donovan put together a great story on this which you can view by clicking here.

6ABC consumer reporter Nydia Han put together a fantastic piece last night on buying a used car.  With gas prices soaring, people are looking at saving money by buying pre-owned, but you need to do your homework to make sure your dream car wasn’t previously someone else’s nightmare.  In the story, Nydia mentioned several great resources on lemon law.com, including our Lemon Dodger worksheet, which provides a list of questions you need to ask prior to purchase. Check out the story by clicking here .

On Your Side: Car Issues by Jim Donovan

PHILADELPHIA (CBS 3) ― Are you having mechanical problems with your car? While state lemon laws can help, some Federal laws are designed to protect you too. In fact the Magnuson-Moss Act may be your best bet.

Jan Jeffries bought a certified pre-owned Jaguar about a year ago. Almost immediately he had problems. The anti-lock brakes were malfunctioning and needed repeated repairs. While Jan’s mechanical problems weren’t covered by state lemon law, he was entitled to compensation under the Federal Magnuson-Moss act.

“If the vehicle is under warranty and you’ve had problems with it, subject to repair, and it has not been resolved, you have federal, Manguson-Moss warranty rights.” says attorney Craig Kimmel. The Magnuson-Moss Act applies to vehicles under their original or extended manufacturers warranty, and the car must be in the shop for 3 or more times for the same problem. Kimmel says, “We’re talking brakes, transmission, suspension, head lights, water leak, paint defect, any of these problems and more, those issues the consumer should step up and force the manufacturer to comply with the warranty and if they can’t, call a lawyer.”

That’s what Jan Jeffries did. He says, “I got $6,000 from Jaguar as compensation for what would ultimately be reduced value of the vehicle.”

The Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act is a Federal Law that protects the buyer of any product which costs more than $25 and comes with an express written warranty. This law applies to any product that you buy that does not perform as it should.

Your car is a major investment, rationalized by the peace of mind that flows from its expected dependability and safety. Accordingly, you are entitled to expect an automobile properly constructed and regulated to provide reasonably safe, trouble-free, and dependable transportation – regardless of the exact make and model you bought. Unfortunately, sometimes these principles do not hold true and defects arise in automobiles. Although one defect is not actionable, repeated defects are as there exists a generally accepted rule that unsuccessful repair efforts render the warrantor liable. Simply put, there comes a time when “enough is enough” – when after having to take your car into the shop for repairs an inordinate number of times and experiencing all of the attendant inconvenience, you are entitled to say, ‘That’s all,’ and revoke, notwithstanding the seller’s repeated good faith efforts to fix the car. The rationale behind these basic principles is clear: once your faith in the vehicle is shaken, the vehicle loses its real value to you and becomes an instrument whose integrity is impaired and whose operation is fraught with apprehension. The question thus becomes when is “enough”?

As you know, enough is never enough from your warrantor’s point of view and you should simply continue to have your defective vehicle repaired – time and time again. However, you are not required to allow a warrantor to tinker with your vehicle indefinitely in the hope that it may eventually be fixed. Rather, you are entitled to expect your vehicle to be repaired within a reasonable opportunity. To this end, both the federal Moss Warranty Act, and the various state “lemon laws,” require repairs to your vehicle be performed within a reasonable opportunity.

Under the Magnuson-Moss Warranty Act, a warrantor should perform adequate repairs in at least two, and possibly three, attempts to correct a particular defect. Further, the Magnuson-Moss Warranty Act’s reasonableness requirement applies to your vehicle as a whole rather than to each individual defect that arises. Although most of the Lemon Laws vary from state to state, each individual law usually require a warrantor to cure a specific defect within four to five attempts or the automobile as a whole within thirty days. If the warrantor fails to meet this obligation, most of the lemon laws provide for a full refund or new replacement vehicle. Further, this reasonable number of attempts/reasonable opportunity standard, whether it be that of the Magnuson-Moss Warranty Act or that of the Lemon Laws, is akin to strict liability – once this threshold has been met, the continued existence of a defect is irrelevant and you are still entitled to relief.

One of the most important parts of the Magnuson-Moss Warranty Act is its fee shifting provision. This provision provides that you may recover the attorney fees incurred in the prosecution of your case if you are successful – independent of how much you actually win. That rational behind this fee shifting provision is to twofold: (1) to ensure you will be able to vindicate your rights without having to expend large sums on attorney’s fees and (2) because automobile manufacturers are able to write off all expenses of defense as a legitimate business expense, whereas you, the average consumer, obviously does not have that kind of economic staying power. Most of the Lemon Laws contain similar fee shifting provisions.

You may also derive additional warranty rights from the Uniform Commercial Code; however, the Code does not allow you in most states to recover your attorney fees and is also not as consumer friendly as the Magnuson-Moss Warranty Act or the various state lemon laws.

RELATED LINKS:

PA LEMON LAW

NJ LEMON LAW

DE LEMON LAW

(© MMVIII, CBS Broadcasting Inc. All Rights Reserved.)

At 1-800-LEMON LAW, we receive countless calls from folks who purchased a used car and ended up being taken for a ride. Sometimes the car has a salvage title, or it will not pass inspection, or it just falls apart. Many times, these distressed drivers have little or no protection under the State and Federal Laws we work with. Now, Mayor Nutter’s consumer advocate Lance Haver is working hard to change that in Philadelphia.

This past Monday, The Philadelphia City Council has approved a lemon law bill for used cars, and if that bill becomes law, drivers will have 72 hours to get their car checked out by a mechanic following the purchase. If the car is not drivable, the dealer will either have to fix the problem or allow the consumer to return the car for a full refund.

This is a bill whose time has come, according to Kimmel & Silverman Founding Attorney Craig Thor Kimmel. “In Philadelphia, used car sales occur with greater frequency than in less populated areas for the simple fact that insurance on a used car in the city is cheaper than insurance on a new car. Often people who buy used must rely entirely on what they are told from their salesperson, as there is little or no warranty remaining. In the case of new cars, repairs are covered under warranty for free but sadly, that is not often the case for used cars. Avoiding an unreliable car and its high repair bills is critical. This type of consumer protection would certainly be welcomed.”

As you know, the Pennsylvania Lemon Law currently does not apply to used cars. However, if you are under a manufacturer’s warranty and you have been back three or more times, you could be entitled to monetary damages under a Federal law known as the Magnuson Moss Warranty Act. Like the Lemon Law, representation under this Law is completely cost-free. For more information, call us at 1-800 LEMON LAW or visit www.lemonlaw.com.

Attention viewers in Philadelphia and the Delaware Valley: You see the advetorials in the Philadelphia Inquirer and receive the solicitations in the mail.  It’s a once-in-a-lifetime event at a local dealership, with pricing and financing deals that are so unbelievable, they can’t even print the terms. Sounds a like a great deal, right?  STOP.  Before you grab your checkbook and head to the dealer, watch “All That & More” today at 4pm on NBC10.  K&S Lemon Law Attorney Craig Kimmel has some words of wisdom to make sure you are not taken for a ride.  

By Jacqueline Mitchell, Forbes.com

Think about a used car and you might think junky, dirty and old. But another market is catching the attention of savvy buyers who want updated rides without paying new-car prices.

These certified used or certified “pre-owned” (CPO) vehicles have been inspected and refurbished by the manufacturer and are backed by extended warranties. The certified used car market isn’t one that automakers can afford to ignore. According to a recent J.D. Power and Associates study, sales of certified used cars have increased 46% since 2000. Auto experts estimate that 1.6 million certified used cars are sold annually, a number equivalent to 10% of new vehicle sales. This rapid growth started when the segment emerged in the 1990s. Luxury automakers like Mercedes-Benz, BMW and Lexus, looking for ways to unload vehicles coming off lease programs, introduced the certified pre-owned programs as a way to attract the discerning buyer who wanted a luxury car but didn’t want to shell out the big bucks. Other luxury and non-luxury automakers who found themselves in similar situations began offering their versions of these programs. Smart car buyers like them, too. Now, with this best-and-worst list of certified used cars from Forbes.com, smart buyers can be even smarter about this growing market segment.

Kelley Blue Book experts say new vehicle prices average $35,000 and depreciate at a rate of about 20% a year. With this in mind, the cost involved with the inspection, refurbishment and warranty of a certified pre-owned vehicle may add up to a better purchase package than buying a brand new car. “CPO cars are selected from the best of the best,” says Micah Muzio, video road-test editor of Kelley Blue Book. “Automakers can sell them for a premium, usually about $3,000 more than a used (non-certified) car. But the customer gets peace of mind, because the vehicle has been inspected and it’s backed by an extended warranty.”

But don’t rush out and purchase or lease just any vehicle wearing a CPO badge. The programs vary by automaker — and the quality of the vehicles is just as diverse. We looked at a combination of measures to find the best and worst certified used cars on the market, including Consumer Reports’ used-car verdict scores, the Insurance Institute for Highway Safety for crash test ratings and manufacturer-backed warranty programs.Topping our list of the Best CPO vehicles are the Honda Accord, Toyota 4Runner, Acura TL, Subaru Impreza and Lexus GS.

Making our list of the Worst CPO vehicles are the Saturn Relay, Jeep Grand Cherokee, Pontiac G6, Volkswagen New Beetle and Mercedes-Benz E Class.Vehicles that weren’t at the top of class as new car purchases won’t emerge at the top as stellar CPOs, Muzio says. The Relay, New Beetle and E Class, for example, are aging, older models; the Pontiac G6, while fairly new, isn’t a big seller in the segment for family cars. And the Jeep Grand Cherokee has struggled in the highly competitive SUV market.

To get a comprehensive list, we did not use multiple vehicles from one brand, but took the best of the bunch. So if one company had two vehicles that could make the list, we chose the top-ranked car from that brand, based on our measures, to include on the list. We did not include vehicles that had been significantly redesigned for 2008, and we excluded vehicles that did not have complete reporting data for safety or Consumer Reports’ used-car verdicts.

Those used-car verdicts are based on reliability history in 17 areas, ranging from the engine, transmission, and brakes to power equipment and the electrical system. Consumer Reports provides the data, where available, dating back to 1998. We used data for a three-year period spanning 2005 through 2007, as data for a five-year period was not always complete. The highest possible score a vehicle could earn over that time period is 15, or five points for each of the three years. We considered only vehicles with a total of 13 points or greater for the “best” list; a cutoff of seven points or less was used to determine the “worst.”

The only vehicle making our list with a score of 15 is the Honda Accord. The vehicles with the lowest score are the Saturn Relay and Jeep Grand Cherokee, both tying with a score of three.Keep in mind a score of 15 doesn’t mean that the vehicle is problem-free; it just means that it has relatively fewer problems compared with other models. And a score of three doesn’t mean a vehicle is unreliable; it merely has a higher rate of problems than the average model.

Safety was another key factor. Using information from the Insurance Institute for Highway Safety, we were able to find historical crash test ratings. All the vehicles that made the “best” list have safety ratings of “good” for both frontal-offset and side-impact crash tests for the three model years considered.

The vehicles on the “worst” list all earned “good” ratings in frontal-offset testing, but earned scores of less than “good” for side impacts. The lowest score was “poor” — for the Volkswagen New Beetle. The Saturn Relay, depending on the year, had scores of “average,” “marginal” or “poor.”

We looked at the extended standard warranty and the number of points inspected, which range from 75 to 165. For the best, we used a cutoff of 150 points or higher; for the worst, 130 points and below. The length of time of an extended standard warranty and additional benefits were taken into consideration, but were not as heavily weighted as the number of inspection points, crash-test ratings and reliability history. All extended standard warranties kick in when the original manufacturer warranties expire; if the original has already expired, the new warranty goes into effect at the time the CPO vehicle is purchased. This information is available at the manufacturers’ websites and the Kelley Blue Book site.

The CPO Acura TL includes 24-hour roadside assistance, 24-hour emergency towing services, emergency fuel delivery and emergency lock-out service as part of its 12-month/12,000-mile extended warranty.

The CPO Lexus GS comes with a loaner car, 24-hour roadside assistance and trip interruption service (If your vehicle breaks down while you are away from home, this will cover reimbursement for meals, lodging and rental for a certain period of time, while your car is under repair) under its three-year/100,000-mile standard warranty. Some vehicles making our “worst” list also offered some added benefits under standard warranty plans. The CPO Pontiac G6 standard warranty includes 24-hour roadside assistance, a three-day, 150-mile satisfaction guarantee and a vehicle history report that details any past accidents, damage or “lemon” history.

With the information you need guiding you to the right CPO vehicle, you just might be able to slide behind the wheel of your dream car sooner than you think.

Ever wonder what happens to lemon cars once they are bought back by the manufacturer? Last Sunday, The New York Times printed an interesting story which should shed some light on this mystery.

ManyPennsylvania consumers are unaware that in 2002, K&S Attorney Craig Thor Kimmel worked with the Pennsyvlania House of Representatives’ Consumer Affairs Committee to ammend the lemon law to include tighter title provisions for used cars.  Here’s the press release from our news room:

PA LEMON LAW TAKES EFFECT TODAY

New Pennsylvania Lemon Law Will Require Dealers, Lessors, and Transferors To Disclose If Used Car Has Lemon History

Harrisburg, PA (December 2,2002) – A new change to the Pennsylvania Lemon Law to help used car consumers takes place today. House Bill 767, a measure to protect used car buyers from purchasing lemon buybacks without full disclosure, was signed by Governor Mark Schweiker in October and goes into effect today. The change marks the second major amendment to the Pennsylvania Lemon Law Statute in the past year; the first being the expansion of the Law to include leased cars. Pennsylvania is the first state to take this type of action.

Until now, if a car was bought back by the manufacturer under the Pennsylvania Lemon Law, the manufacturer must fix the car, and place a sticker on the window notifying the next purchaser of its history. The manufacturer must also provide a 12 month, 12,000 mile warranty for the vehicle at no charge. Representative John R. Evans (R-District 5, Erie and Crawford Counties), the prime sponsor of HB 767, says the Law didn’t do enough to ensure that consumers would actually receive the notice. “What we found as that some dealers would purchase the car from the manufacturer and strip the disclosure and resell the car to an unsuspecting customer.”

With the provisions of HB 767 added, the PA Lemon Law now requires all dealers and other classified sellers, to disclose the “lemon” history of a used car and also to obtain a signature from the buyer or lessee before the sale/lease. “Requiring a written disclosure from each purchaser, lessee and transferee for the life of the vehicle, ensures that all parties know exactly what they are doing before the sale is finalized.” says Evans. Lemon Law Attorney and Automobile Consumer Advocate Craig Thor Kimmel, a legal consultant to the House Consumer Affairs Committee, says the change will provide immediate benefits to used car purchasers. “The amendment clearly spells out the responsibilities of anyone selling a lemon buy-back in Pennsylvania,” says Kimmel, adding, “With used cars purchases on the upswing, the law did not adequately protect consumers. Now the consumer will be told what they are buying before the sale, and dealers and other sellers are held accountable if they don’t do what they are required to.”

If a manufacturer or dealer fails to comply with the disclosure requirements, and/or the consumer is not notified in the way specified, the dealer or seller faces stiff civil penalties of $2,000 per car, and must offer the purchaser or lessee their choice of a refund or a comparable vehicle without charge.

As added protection, the amendment mandates that manufacturers apply for a branded lemon title from PennDOT before the car can be resold, leased or transferred in the Commonwealth of Pennsylvania. The title branding then remains throughout the life of the vehicle and cannot be removed. For more information on consumers’ rights under the Pennsylvania Lemon Law, including cost-free legal representation, consumers can visit Lemon Law or call 1-800-LEMON-LAW (1-800-536-6652).