Posted On: January 28, 2009

7,200 Mazda Cars Recalled: Fuel Leaks, Fire Hazard

The National Highway Traffic Safety Administration (NHTSA) issued a recall for 2007 Mazda automobiles with California emissions systems.

According to the NHTSA recall notice, the protective PVC coating found on the outside of the fuel tank of the 2007 Mazda may have been damaged during the assembly process. The PVC coating acts as a barrier against coercion. If the PVC coating is breached, it may allow rust to weaken the tank causing fuel leaks and increasing the risk of fire.

As part of the recall, Mazda dealers will inspect the protective coating on the bottom of the fuel tank for damage. If damage is discovered, the fuel tank coating will be repaired; or if necessary, the fuel tank itself will be replaced.

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Posted On: January 21, 2009

Fewer Vehicles Recalled by Manufacturers in 2008

Although the total number of vehicles recalled by the auto industry in 2008 declined, the total number of recall campaigns increased, reports David Shepardson at detnews.com.

Automobile manufacturers recalled 10.2 million vehicles during 2008—a decrease of almost 30 percent. Yet the total number of recall campaigns increased by over 9 percent, from 588 to 642.

This seemingly contrary situation has been created by a number of factors. According to the National Highway Traffic Safety Administration (NHTSA), improvements to the system which monitors vehicle defects deserve a portion of the credit. By gathering a more complete picture about the reliability and safety of cars, the NHTSA is better able to recommend corrective actions to manufacturers and dictate corrective action as necessary.

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Posted On: January 7, 2009

Forced Warranty Scam

One scam that is commonly encountered in both new and used car sales is the forced warranty. Basically, the dealer tells the buyer that financing for the car will not be approved unless the buyer purchases an extended warranty. Usually this is passed of as protection for the buyer should anything go wrong with the car. What the dealer isn't telling you is how much profit he or she is making on the deceptive business practice deal.

Extended warranties are huge money makers for car dealers. In an interview with the New York
Times
, Consumer Reports automotive editor Rik Paul revealed that extended warranties for new
cars are "major profit centers" for auto dealers. Even worse, when buyers fall for this unfair
business practice
, the warranty charges are often rolled into the financing arrangements. This makes it difficult to tell exactly how much the warranty really costs, and the extra cost hits their wallets again and again throughout the lifetime of the loan.

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Posted On: January 2, 2009

Remedies Available From the California Lemon Law

California's lemon law is officially known as the Song-Beverly Consumer Warranty Act. This section of the civil code provides protection for buyers of new cars, used cars that are still covered by the manufacturer's warranty, motor homes and other vehicles.

Song-Beverly requires manufacturers to meet the conditions spelled out in a written warranty. Manufacturers (or their dealers) must attempt to repair the defects in a vehicle that is covered by the warranty. If they are unable to do so after a reasonable number of attempts, the manufacturer must either replace the vehicle or refund the purchase price to the buyer.

According to the lemon law, manufacturers have the right to charge the buyer for the millage that they have put on the vehicle. This is known as the usage fee and is based on the number of miles on the vehicle the first time it is brought to the authorized dealer to repair the defect.

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