California Lemon Law Blog

This summer has shown how far a little innovation can go when it comes to giving consumers incentive that really works in purchasing vehicles, especially in a struggling economy. The National Highway Traffic Safety Administration’s CARS rebate program, also known as cash for clunkers, proved successful as consumers traded-in their cars for more fuel efficient vehicles, receiving credit starting at $3,500 and up to $4,500.

According to a report, foreign automakers finished the sales race ahead of domestic automakers. Out of the estimated 700,000 autos purchased through CARS, 61.4% were foreign-made cars. With so many new vehicles hitting the road, particularly those that have been sitting on car dealership lots for an extended period of time, many consumers may be wondering if the California lemon law applies to vehicles purchased through the CARS program.

The answer of whether or not your vehicle bought through the program falls under the lemon law in California depends on the reasonable amount of attempts the manufacturer has made to fix your vehicle. Overall, if the vehicle you obtained through the rebate initiative turns out to be defective in some way and a lemon law candidate, it is highly possible that you may be able to get your money back or have your vehicle replaced.

Continue reading " Increase in Auto Sales from Rebate Program: Does the Lemon Law Still Apply? " »

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Posted In: California Lemon Law , Law & Information

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Thousands of consumers rely on auto repair shops to help them get their vehicles back up to par, but some consumers do not realize that they have the right to choose which shop to go to. Apparently, according to a Connecticut Attorney General, there are a number of auto insurers displaying questionable behavior, requiring consumers to go to particular body repair locations that auto insurers deem acceptable. In opposition to the notion, the regional manager for the Property Casualty Insurers Association of America (PCI) has said that these claims are not accurate.

So what should consumers do? The simplest answer is that consumers are not obligated under any law to go to a certain car repair service; it is your right as a consumer to make that decision. However, the recent challenge against insurer practices raises the question of whether or not laws have in fact been violated, and for how long these violations have been taking place. Essentially, consumers may have been fooled into believing that the decision is not within their power. One of the accusations being made against insurance companies is that they are not adhering to a 1963 consent decree.

Connecticut’s Attorney General stated, “Almost 50 years later, insurer steering is still a scourge…this outpouring of complaints shows that problematic practices persist.”

As the federal government works with state officials to look deeper into the matters surrounding these possible deceptive business practices, it can’t hurt for consumers to be suspicious of suggestions pertaining to body shop referrals made by their insurer. When getting your vehicle repaired, no matter what a shop’s reputation, it is important to do your research and be aware of common forms of car repair fraud in California so that you don’t become a victim of it.

Continue reading " Insurance Procedures for Auto Repair in Question: Where Should Consumers Go? " »

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

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$2.4 billion dollars in federal grants that will go towards the production of electric cars was announced on August 5, 2009 by President Obama while in the state of Indiana. According to a report from the LA Times website, the large sum is to go toward reducing oil imports and lowering greenhouse gas emissions. The money will be split up in the following ways:

• $1.5 billion – for production of advanced batteries that could allow electric cars to drive long distances on a single charge;


• $500 million – for drive trains for electric cars; and


• $400 million – to purchase and support thousands of electric vehicles that will serve as demonstration models.

Thanks to a near $800 billion economic stimulus bill that Congress passed earlier this year, the reported sum will be made available to help our nation’s environmental goals progress and stimulate the auto industry. Living in a competitive world, the federal grants could launch the U.S. into world leadership for the production of electric cars.

As a follow-up to his May proposal of strict new federal standards for greenhouse gas emissions for trucks and cars, President Obama has introduced the means for automakers to create a new generation of high-efficiency vehicles that can be more readily available to consumers. Another positive twist on the “single largest investment in advanced battery technology for hybrid and electric-drive vehicles ever made” is that an estimated tens of thousands of manufacturing jobs will be created.

Continue reading " Electric Car Federal Grants May Contribute to Funding Increase " »

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