California Lemon Law Blog

A recent Fox Business article reported that over 2.5 million motor vehicles are totaled each year, with about 1.5 million of those vehicles repaired and put back on the road. It is estimated that vehicles that have a salvage-title are worth about 50 percent of its Kelly Blue Book value. Unfortunately, because of this, some used car dealerships resort to unfair and deceptive business practices when it comes to selling vehicles without disclosing that they have a California salvage title.

While many may think that buying a vehicle with a salvage-title may save money, there are a few important things to consider. First, insurance companies may not be willing to offer coverage on a salvage-title vehicle since it is often difficult to determine the vehicle’s value. Additionally, financing these vehicles can be complicated, since lenders may not be willing to loan money without insurance to protect the vehicle.

Second, but perhaps most importantly, vehicles with salvaged titles can be dangerous and rebuilders may cut corners to make a profit. Structural and alignment issues occur, and a vehicle’s air bags can be skimped on.

Third, a salvage-title vehicle is worth significantly less than a vehicle that has never been damaged in an accident.

Lastly, if a consumer is looking to sell a vehicle with a salvaged title, the pool of potential buyers is quite small, due to many of the reasons listed above. It can be quite challenging to sell a salvage-title vehicle since there are financing and insurance issues attached.

If these reasons sound unappealing, that is because they are, and used car dealers know this. This is often why consumers are not told when a vehicle possesses a salvaged title. For over 20 years, lawyer Howard D. Silver has been helping consumers who have been victims of unfair business practices in California. Call 1-866-49-LEMON to have Mr. Silver start helping you.

According to a recent Associated Press article, a new study conducted by the Government Accountability Office found that used car dealers could be selling vehicles that have been recalled, but not repaired, since manufacturers do not send them the recall notices that franchised dealers receive. Also, even if franchised dealers or used car sellers are aware of a recall, they are not required to notify potential purchasers or make repairs before the sale of a vehicle. The National Highway Traffic Safety Administration (NHTSA) also does not have the authority to demand that dealers warn buyers or make repairs, or to require vehicle manufacturers to notify used car dealers of recalls.

The study found that the situation poses a serious risk to millions of consumers who buy a defective vehicle. In 2009, over 35 million used vehicles were sold, including 11 million sold by used car dealers. There is also a negative impact on recall completion rates. It is estimated by NHTSA that about 70 percent of repairs are done within 18 months after a recall is issued, but only around 65 percent from 2000 to 2008.

Part of the problem is that there is not a database that used car dealers can check using the Vehicle Identification Number (VIN) to find out whether recall-related repairs for the vehicle have been made. The study recommends that NHTSA make its vehicle recall database searchable with VIN numbers, and proposes that Congress give the agency the power to make sure potential car buyers are informed of a recall before buying the car.

For now, it is recommended that consumers check with automakers directly or search the NHTSA website SaferCar.gov to check if there is a pending recall notice for a particular vehicle model. However, since the website is not able to be searched by VIN number, it is not possible for a used car owner to see whether their particular vehicle has had repairs done.

Attorney Howard D. Silver has been protecting the rights of California consumers for over 20 years. To learn how Mr. Silver can help you, call 1-866-49-LEMON.

Recently, General Motors LLC announced a recall of approximately 47,400 Cadillac SRX crossover utility vehicles from model year 2011. The vehicles were recalled because they fail to conform to the requirements of Federal Motor Vehicle Safety Standard No. 208, “Occupant Crash Protection.”

The air bags in the affected vehicles are programmed to turn off the right side roof-fail air bag if the passenger sensing system determines that the right front passenger seat is not occupied. As a consequence, an occupant sitting in the right rear of the vehicle may not be protected in certain frontal and side accidents, and may suffer serious injuries.

The recall is expected to start on or about June 17. General Motors dealerships will reprogram the sensing and diagnostic modules in the affected vehicles at no cost to consumers. To receive more information about the recall, vehicle owners may call Cadillac at 1-866-982-2339 or visit http://gmownercenter.com. They may also call the Vehicle Safety Hotline of the National Highway Traffic Safety Administration (NHTSA) at 1-888-327-4236 or visit http://safercar.gov.

If your vehicle has given you significant problems that affect its use, value, or safety, it could be a lemon. You are given certain legal rights under California’s lemon law and you may be eligible for a replacement vehicle or refund of your money. Since 1987, attorney Howard D. Silver has been protecting the rights of consumers throughout Southern California. To have Mr. Silver investigate your situation to determine whether your vehicle is a lemon, call 1-866-49-LEMON.

According to Cleveland.com, the proposed state budget in Ohio would limit the time a consumer has to cancel the purchase of a used vehicle if a dealer does not provide them with a title or sells them a vehicle that is an unmarked lemon. In Ohio, car dealers are permitted to sell used cars or mobile homes before they have the titles, as long as the dealer contributes to a state-administered fund put in place to protect car buyers. If a dealer does not give the buyer or their lender the title to the vehicle within 40 days of the sale, the buyer has the right to cancel the purchase and receive a full refund. If the dealer does not produce the title or pay into the fund, the Title Defect Rescission Fund reimburses the consumer and then goes after the dealer to obtain the money.

Now, however, the Senate’s proposed budget would impose stricter limitations for consumers that try to access the fund. Under the proposal, consumers who are deprived of a vehicle’s title would have just 60 days to give a dealer notice they want to cancel the sale, from the time the title is finally transferred. Consumers who do not make the deadline would not be eligible for reimbursement.

While many have decried the changes, the Ohio Attorney General has said there are benefits, such as all car dealers in Ohio would be required to participate in the fund. Another change is a condition that would permit the fund to pay off a consumer’s outstanding loan on their trade-in vehicle if it was sold by the dealer.

Currently, the fund covers the sale of used vehicles if a dealer does not disclose odometer tampering or if a vehicle was rebuilt from salvage. The proposal would change the fund to include vehicles that a dealer fails to disclose is a “lemon law buyback.”

If you believe your vehicle is a lemon, contact Southern California lemon law attorney Howard D. Silver to learn more about your legal rights and options. Call 1-866-49-LEMON.

The owner of a used car dealership in Buffalo, New York was recently charged with several felony larceny and fraud charges after allegedly taking payments in excess of $100,000 from dozens of customers for motor vehicles he never delivered to them. According to a BuffaloNews.com article, the man is also being sued by the state’s Attorney General, for restitution.

According to prosecutors, the owner used the money he had taken from customers to pay $50,000 in restitution for a previous case in which he pleaded guilty to stealing over $500,000 collected from customers for state sales tax. To raise the money, the man reportedly sold customers vehicles he did not own, and in several instances, sold the same vehicle to more than one customer. Prosecutors allege that he informed customers purchasing a motor vehicle from his lot that the vehicle required servicing and would not be available for delivery until a later date. The vehicles were never delivered to customers.

Additionally, customers who wanted to buy a vehicle that was not on the lot were told they would get their vehicle if they made a down payment. Those vehicles were also not delivered. After collecting over $100,000 the dealership abruptly closed, hurting dozens of customers who had made down payments for vehicles never received.

The felony charges could carry a prison sentence from two to seven years. In addition to restitution, the attorney general lawsuit seeks to prevent the owner from operating another used car dealership unless he first posts a bond that would help protect future customers. The lawsuit also seeks civil penalties of up to $5,000 for each customer that the man allegedly defrauded.

Most of us are trusting individuals, and may think we will never be the victim of a scam or fraud. Unfortunately, many consumers have been taken advantage of by a dishonest car dealer whose practices are unfair and/or deceptive, and it may happen to you. If you have been a victim of car fraud in California, call Howard D. Silver. Mr. Silver can conduct an investigation into your vehicle purchase to help you conclude whether you have a valid claim against a dealership. Call 1-866-49-LEMON today.

Recently, Volvo announced a recall of approximately 7,600 5-cylinder 2012 S60 sedans due to a stalling problem, reports The New York Times. The auto manufacturer attributes the problem to an incompatibility with the affected vehicles’ software. The software that is used to regulate the fuel pump of these vehicles are equipped with 5-cylinder engines that may not distribute a sufficient amount of fuel to the active part of the fuel tank. This can result in engine hesitation or stalling as though the vehicle has run out of fuel, even when the fuel gauge indicates there is up to one-fourth of a tank of fuel left.

The 5-cylinder engine is only available on entry-level, front-wheel drive S60 sedans. Volvo’s all-wheel drive T6 and R Design models have 6-cylinder engines and are not affected by the recall. According to the automaker, it has received 23 warranty claims regarding the problem but has not received any reports of accidents.

Volvo will begin to notify affected vehicle owners in mid-June to take their vehicle to a dealer to have the engine control module software updated for free. Consumers with questions can contact Volvo by calling 1-201-768-7300 or the Vehicle Safety Hotline of the National Highway Traffic Safety Administration (NHTSA) at 1-888-327-4236.

When a defect affects the use, value, or safety of a vehicle, it may be a lemon vehicle in California. Attorney Howard D. Silver can explain the complexities of the law to you, help you determine whether your vehicle is a lemon, and guide you through the process. Call 1-866-49-LEMON to get started with Mr. Silver now.

The New York Times reports that Toyota has issued a recall of approximately 106,000 Priuses worldwide, with about 52,000 being recalled in the United States. The recall was initiated due to the discovery of a problem with the electric power steering in vehicles from model years 2001 through 2003.

According to the automaker, the electric power steering pinion-shaft attachment nuts in the affected vehicles may loosen, and as time passes, a motorist will begin to notice they need to exert a significantly increased effort for steering, particularly when making a left turn. Toyota has been looking into the issue for close to four years, after receiving a field technical report in late 2007 that the steering wheels in first-generation Priuses had a tendency to lock up. The car maker found that the locking nuts were loose and investigated how the condition was created, while receiving sporadic reports from consumers regarding similar problems.

The steering problem relates to tightening and lubricating grease from the rack-and-pinion assembly that reaches the nuts. Due to the differences between right and left-hand drive models, the steering wheels on the Priuses sold in the U.S. would not stick, and would result in a significant increase in driver effort needed to turn. When the root of the problem was discovered, the manufacturer notified the National Highway Traffic Safety Administration (NHTSA) and issued a recall.

When the recall was announced, Toyota did not mention any defect-related accidents, but when a Toyota spokesperson was reached for comment, they stated the manufacturer had received one unconfirmed report of a minor accident. Toyota has also received several dozen complaints from vehicle owners regarding problems with the power steering on Priuses from model years 2001 to 2002.

If your vehicle has required repairs many times for a problem that impairs its use, value, or safety and was bought in California, it could be a lemon. There are many subtleties to rights given to consumers under the lemon law in California and consumers may have questions about the legal options available to them under the law. To find out more about your legal rights, and to learn if your vehicle qualifies for coverage under California’s lemon law, call 1-866-49-LEMON to speak with Howard D. Silver, a lemon law attorney serving Southern California, today.

Chanel 5 News in Florida reports that many used car owners often do not know that their vehicle has been recalled by the National Highway Traffic Safety Administration (NHTSA), sometimes for a serious defect. Also, many consumers are not aware that used car dealerships are not required to notify consumers if a vehicle has been recalled.

While new car dealerships are not allowed to sell vehicles that have “open recalls,” used car dealerships do not have the same requirement. Experts believe that approximately 25 percent of cars that have been recalled have never been repaired, with many of those vehicles for sale on used car lots or driven by a current owner. According to the article, in 2010 alone, there were 20 million vehicle recalls in the U.S.

Many people have called for the implementation of laws that would prohibit a used car dealership from selling vehicles with open recalls. Others, however, oppose such regulations, stating that requiring a dealership to search to see if recalls exist, checking the vehicle identification number (VIN), and repairing the defect, would place an unfair burden on used car dealerships.

If you are looking to purchase a used car, you can visit the NHTA’s vehicle recall site at http://www.safercar.gov to learn whether a vehicle has been recalled. However, the site does not have a way to check a vehicle’s VIN. To learn whether the car you are thinking of purchasing has been recalled, you will likely need to contact the manufacturer or an authorized dealer. It is also a good idea to have the vehicle inspected before purchasing it to ensure you do not become a victim of used car fraud in California and throughout the United States.

Attorney and consumer advocate Howard D. Silver may be able to help if you believe you have been a victim of used car fraud. Mr. Silver has dedicated his practice to protecting the rights of consumers. Call 1-866-49-LEMON to find out more about your legal rights.