California Lemon Law Blog

A recent U.S. News & World Report article discusses certain “deal breakers” that a consumer should look out for when buying a used car. According to the article, some of the “red flags” that consumers need to pay attention to include frame damage and models that have persistent problems or constantly fall short of quality and functionality standards (a.k.a. a lemon vehicle). The article also mentions that a car with water damage, a missing or altered Vehicle Identification Number (VIN), or a history of being used by police or as a taxi should be avoided when buying a used vehicle. It is also important for a potential car owner to spend time examining a car and to consider having a mechanic conduct a pre-purchase inspection.

In comparing purchasing a car to getting married, the report acknowledges that the process of buying a used car, and the subsequent use and care of that vehicle, involves legal, financial, and time commitments. Although many consumers rely on vehicle history reports when deciding whether or not to buy a particular car, if a previous owner did not report an accident to the police or their insurance, then it is not going to be on the history report. As a consequence, a vehicle could be damaged even if that does not appear to be the case.

While discovering that your used car has more problems than you were initially led to believe is not a pleasant experience, fortunately, consumers are protected when adversely affected by used car fraud, unfair business practices, or a lemon vehicle. For more information about how you may be able to receive a full refund or replacement vehicle, contact attorney Howard D. Silver. Call 866-49-LEMON today for a free consultation. You can also refer to Howard D. Silver’s Consumer’s Guide to Buying a Used Car in California for additional information.

Source article: http://usnews.rankingsandreviews.com/cars-trucks/The-Worst-Used-Cars-You-Can-Buy/

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Posted In: Buying a Used Car , California Lemon Law , Law & Information , Unfair/ Deceptive Business Practices , Used Car Fraud

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Although we would like to believe that our vehicles are ultimately free of imperfections, this is not always the case. According to a detnews.com article, GM has recalled 22,000 Chevrolet Corvettes due to concerns that the vehicle roof may fly off while being operated.

General Motors informed the National Highway Traffic Safety Administration that its 2005-07 model year Corvettes and Corvette Z06 models contain adhesive between the roof panel and frame that may come apart. GM is supposed to install a redesigned roof panel for affected vehicles as well as reimburse motorists who have already had their roofs repaired or replaced.

GM released the following statement: "If there is a partial separation, the driver may notice one or more symptoms, such as a snapping noise when driving over bumps, wind noise, poor roof panel fit, roof panel movement/bounce when a door or hatch is closed, or a water leak.”

Continue reading "22,000 Chevrolet Corvettes Recalled Over Faulty Roof and Frame Design" »

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Posted In: Auto Product Recalls , California Lemon Law , Law & Information

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It was announced on November 15, 2009 that over 13,500 Sprinter vans sold as Dodge and Freightliner vehicles were being recalled. According to an automotive-fleet.com article, the model vans in question include MY 2002-2003 Dodge Sprinter 2500 and Doge Sprinter 3500.

Based on the National Highway Traffic Safety Administration’s report, the intake manifolds in these vehicles may have been destroyed. It is suspected that “under certain conditions”, sulfur in the diesel fuel is capable of creating a chemical reaction, causing sulfuric acid to form in the exhaust channel of the intake manifold. The consequences of the intake manifold decay may contribute to an exhaust gas leak, harm to the fuel return line that could bring about a fuel leak, and heat destruction to the insulation at the front wall.

In addition to Chrysler LLC informing vehicle owners about the recall, van owners may contact Chrysler by calling (800) 853-1403. Auto dealers are supposed to examine and replace the intake manifold at no expense to van owners.

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Posted In: Auto Product Recalls , California Lemon Law , Law & Information

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Tesla Motors, most widely known as a U.S. electric sports car maker, may soon go public with an Initial Public Offering (IPO). Typically issued by an up-and-coming company looking for capital to expand, an IPO may also be filed by a large privately-owned company hoping to be publically traded. An IPO will consist of common stock or shares presented to the public for the first time. In addition to the strong reappearance of electric vehicle technology, Tesla Motors continues to demonstrate that the future of green technology for automobiles is very bright.

According to a reuters.com article, an IPO filing by Tesla Motors, manufacturer of a $109,000 all-electric Roadster, may be confirmed soon. If the public offering goes through, it would be the first from a U.S. automaker since Ford Motor Company in 1956.

With the Obama administration’s goal of having approximately one million rechargeable vehicles on U.S highways by 2015, and with the support of low-cost Department of Energy loans for manufacturers, there may be quite a significant increase in electric vehicles on California roads in upcoming years.

Continue reading "Electric Sports Car Maker Hints at IPO Filing" »

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In a previous post, we discussed California’s Vehicle License Fee (VLF) increase that was initiated in May of this year. Although it is understandable why vehicle owners would object to an increase in fees, as a part of the state’s budget plan to combat a $42 billion shortfall, there isn’t really anything we can do about it.

To jog our readers’ memory, the new legislation that enabled DMV to raise the VLF from 0.65% to 1.15% for registration payments due on or after May 19, 2009 applies to trailer coaches, automobiles, motorcycles, and commercial vehicles with confirmed gross operating weight lower than 10,001 lbs. The VLF enhancement may last until June 30, 2013. If you are not sure as to the exact vehicle license fee you must pay, you can check your vehicle registration renewal notice or validated registration card. You can also visit www.dmv.ca.gov for more information.

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Posted In: Car Repair Fraud , Law & Information , Used Car Fraud

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According to a nytimes.com article, state lemon-law administrators, consumer groups, and the attorneys general from 40 states are hoping that the Federal Trade Commission’s Used Car Buyer’s Guide receives an update. The F.T.C.’s Buyer’s Guide is required to be placed in every used vehicle by auto dealers. In claiming that the Buyer’s Guide has not been significantly improved since its appearance in 1985, consumer advocates would like to see a change in the current emphasis on warranty information.

Based on the article, the National Association of Attorneys General believe that it is time to protect buyers from rebuilt wrecks, or lemons, that may not be safe, may be overpriced, or both. On the other hand, the article mentions that the National Automobile Dealers Association opposes adding any information about a vehicle’s negative history pertaining to damage because it represents “far-reaching changes” that would “impose significant, costly, and in some cases, impossible burdens on used car dealers.”

Continue reading "Number 1 on Consumer Holiday Wish-List: Used Car Buyers Guide Update" »

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In addition to the Consumer Legal Remedies Act of California, which protects consumers by prohibiting used-car dealers from using deceptive and unfair business practices to sell their cars, new legislation (Senate Bill 95 and Assembly Bill 647) advocated by criminal justice officials and consumer protection groups will go into effect in January 2010.

Senate Bill 95, also referred to as the California Car Buyers Protection Act, will require auto dealers to have outstanding liens (legal claims on a vehicle as security for a debt) completely paid off before trading or selling a used car. Additionally, Assembly Bill 647 gives consumers access to a national database containing title, theft and other important vehicle information.

One State Senator commented that Senate Bill 95 will assist consumers who are already battling the tough economy. In fact, some car dealers have gone out of business due to the economy, leaving consumers with unpaid liens on vehicles that they traded in. Based on the article, the president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety stated that SB 95 “will help law enforcement agencies crack down on violations before hundreds of car buyers have their credit ruined at a single dealership.”

Continue reading "New Legislation to Protect Used-Car Buyers in California" »

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An article from latimes.com reported that Robert G. Beverly, a well-known lawyer and Republican who worked in the state Legislature for almost 30 years, passed away on Wednesday, October 14, 2009 from complications connected to Parkinson’s disease. He was 84-years-old. According to the report, one of Robert G. Beverly’s major contributions was the creation of the Song-Beverly Consumer Warranty Act. His innovative consumer-protection legislation led to what so many consumers know today as our California lemon law statute. What many consumers don’t know is that the Song-Beverly Act dates back to 1970 and is the foundation for the consumer protections we now enjoy.

Thanks to the hard work of Mr. Beverly, citizens are protected from unscrupulous car dealers selling “lemons” and manufacturers that are unaware that their vehicles are flawed in some way. Pursuant to the lemon law, consumers may receive their money back or a replacement vehicle when the vehicle they purchased is defective.

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Consumers and citizens throughout the U.S. were shocked to hear that 3.8 million vehicles were being recalled by Toyota Motor Corp. due to poorly designed removable floor mats that increased the likelihood of accelerators getting stuck, cars accelerating out of control, and subsequent car accidents. According to a huffingtonpost.com article, this is Toyota’s largest recall to ever take place in the U.S. According to a Toyota spokesman, "A stuck open accelerator pedal may result in very high vehicle speeds and make it difficult to stop a vehicle, which could cause a crash, serious injury or death."

As Toyota works with officials from the National Highway Traffic Safety Administration (NHTSA) to find a solution for the faulty floor mat issue, owners of these vehicles have reportedly already been notified of the recall. Also, until the problem is fixed, consumers have been advised to take the removable floor mat out from the driver’s side of the vehicle and not substitute it with a replacement.

So what triggered this recall in the first place? Sadly, a high-speed collision took place in California in August involving an out-of-control Lexus automobile exceeding speeds of 120 mph due to a stuck accelerator. In addition to this tragic accident, NHTSA stated that 102 other incidents were reported regarding accelerators on Toyota vehicles that also may have become stuck due to the faulty floor mats.

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There are many different kinds of fraud associated with motor vehicles. Although consumers are typically more concerned with used car fraud or auto repair fraud in California than they are with auto insurance fraud, insurance schemes also have the potential to affect the wallets of consumers. A recent article from insurancejournal.com reported that a 56-year-old San Jose man was arrested for auto insurance fraud and faces criminal charges for filing a counterfeit motor vehicle claim, perjury, and falsely reporting a crime.

According to the story, this particular man went as far as reporting his “stolen” vehicle to the San Jose Police Department and filed a stolen vehicle claim with his insurance company. Sentry Insurance suspected the claim was fraudulent and reported the incident to the Department of Insurance. An investigation conducted by the California Department of Insurance (CDI) discovered that before the man reported his vehicle to be stolen, he purportedly tried to use the car as collateral for a loan. This incident serves as an important reminder that although our economy is struggling, turning to fraudulent actions is not a solution and there is no excuse for such behavior.

Based on the article, the California Department of Insurance received approximately 300 more vehicle theft and arson claims in 2008 than 2007. For consumers who really have had their vehicles stolen, fraudulent cases do nothing more than make the recovery process that much more difficult.

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According to an edmunds.com article, a man received a full refund of $240,000 for his 2008 Lamborghini Gallardo Spyder after repeatedly visiting dealers in both Seattle, Washington and Scottsdale, Arizona to seek a repair for the high-pitched brakes in his car. Neither dealer was able to fix the problem, even after Lamborghini had technicians fly out to work on the Gallardo. The owner still complained that the brakes were making too much noise.

This refund may seem shocking especially to those of us who do not own a luxury car, but the Lamborghini-owner’s story is encouraging in that lemon laws throughout the country should be upheld under qualifying circumstances to protect consumer rights.

The state of Washington’s lemon-law arbitration program was updated earlier this year so that it is more wide-ranging, applying to a greater number of vehicles. Due to the value of the man’s car in this particular case, the panel met and ruled in his favor, saying that Lamborghini must give the vehicle owner his money back. Their decision was based on Washington law, which states that the customer can get his or her money back for a vehicle that has been taken in unsuccessfully for repairs at least twice within 12 months.

Although this incident took place in the state of Washington, California's lemon law is just as important in ensuring that consumers’ rights are secured. In California, if during the first 18 months of vehicle ownership or 18,000 miles, there have been at least two unsuccessful attempts at fixing a problem that makes the vehicle unsafe, it is presumed that the vehicle is a lemon qualifying for a refund. Compensation may also be given after four or more attempts that prove to be unsuccessful for the same problem, or after 30 or more days out of service during that same time period.

Continue reading "Lemon Law Full Refund Applied to Lamborghini with Shrill Brakes" »

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There has been much controversy lately regarding California Assembly Bill 1200, also known as “the steering bill”, which did not pass this week in a 19-17 Senate vote. California Assembly Bill 1200 would remove restrictions against an insurer to require or suggest that a vehicle be repaired at a specific auto repair dealer. If the bill had been approved, insurers would have apparently had more leeway in steering customers to their preferred shops. According to a report, it is possible that the bill may be reintroduced.

At the heart of the criticism is the notion that it does not give consumers the protection they need or require. A California-based consumer advocacy group that opposes the Bill, Consumer Watchdog, has published multiple insurance company documents that are said to show evidence of anti-consumer practices and direct repair programs (DRPs) that do not really help consumers. In fact, one contract between an insurance company and its desired group of body shops revealed that the auto body shop was being pressured into maintaining lower costs, at the expense of having their contract terminated if they did not comply.

The executive director of Consumer Watchdog said that these questionable contracts create “reverse competition.” Instead of competing for customers, body shops are fighting for insurer referrals, which are ultimately determined by the shop’s capability of cutting its rates, thus leading to poor auto repair work stemming from those cut-rate prices. In addition, another document revealed that a body shop was reprimanded for using more factory parts than an insurance company preferred. Also, it was recommended by the insurance company that the body shop use more after-market parts to lower costs.

Continue reading "California Steering Bill Drives Off the Beaten Path: Senate Does Not Approve" »

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Posted In: Car Repair Fraud , Law & Information , Unfair/ Deceptive Business Practices

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