If your car is a clunker, cash may still be available.

September 09, 2009
By: Robert Silverman

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 Magnuson 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.

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