California Lemon Law Blog

Important Things To Consider When Buying A Used Car or Certified Pre-Owned Vehicle

2008-05-22T23:22:34Z

The market for used vehicles has never been stronger. With thinning budgets, diminishing cash flow and high prices, the last thing we want to do is spring for a brand new set of wheels. But buying a certified used vehicle comes with its own set of unique risks and problems. Los Angeles Times Staff Writer Ken Bensinger’s article “Seven steps to buying a used car” ()
tells you, step by step, the ways you can avoid buying a lemon – whether you purchase the vehicle from a dealer, online or from a private owner.

According to the article, in 2007 alone Americans bought 41.4 million used vehicles compared to 16 million new vehicles. Consumers now also have a wide variety of choices – from certified pre-owned vehicles to no-haggle deals on eBay. And yet, there is always the possibility that you could end up with a lemon. Bensinger lists the important decisions you must make and things you must watch out for before making a decision on a used car.

A common misconception among used cars buyers is that they’ll be fine if they buy a certified pre-owned vehicle. Last year alone, 1.6 million of these certified pre-owned vehicles were sold in the United States. A CPO vehicle costs about $1,700 more than a regular used car because of the inspections and warranties that go into them. But here’s what every used car buyer needs to remember – shelling out that extra cash and buying a CPO does not mean you won’t get stuck with a lemon.

]]> Whether you’re buying a CPO or a regular used car, the most important step – the one step you cannot afford to miss – is to have the vehicle completely checked out. If the dealer insists that their technicians OK’d the car, ask to see the repair orders or a written description of what r see inspection sheets. An inspection sheet should detail the entire inspection process and indicate any repairs that were done to the car as well in addition to the certified pre owned inspection sheets. If they don’t have these documents then insist that an outside mechanic check the car Don’t leave anything to chance. The fact that the auto is a CPO does not mean that it is free of defects.

If you think the used car or certified pre-owned vehicle you bought is a lemon and you want a refund or your defective vehicle replaced, call the Law Offices of Howard Silver today for a free, half hour consultation with one of our experienced California Lemon Law attorneys.

Ford Recalls 650,000 Defective F-150 and Lincoln Mark LT Pickup Trucks

2008-05-15T23:13:27Z

Ford Motor Co. is recalling more than 650,000 F-150 and Lincoln Mark LT pickup trucks because of a defective power brake assist hose, according to an article on Consumeraffairs.com . This recall covers 2005 and 2006 model trucks with the 5.4-liter engine. These vehicles are reportedly equipped with a brake hose that may swell over time causing the hose to become detached from the intake manifold, which means the brakes could require more pressure on the brake pedal, according to the National Highway Transportation Safety Administration (NHTSA).

So far there have been reports of 11 minor accidents caused by these faulty brake hoses. No injuries have been reported in connection with these accidents. A majority of the recalled Ford trucks – about 600,000 – have been sold in the United States and about 50,000 were sold in Canada. Ford currently does not have the parts needed to complete the repairs to correct the defects, but dealers will replace the hose at no charge to customers when the recall begins. For more information about this recall, please call Ford at (800) 392-3673 or NHTSA at (888) 327-4236.

]]> Bear in mind that the California Lemon Law provides that when the manufacturer cannot repair a motor vehicle after a reasonable number of attempts, they must either replace the defective auto or refund the consumer’s money. Generally speaking, the manufacturer who made your defective vehicle bears the final responsibility to repurchase your lemon – be it a defective car, truck, motor home, boat, recreational vehicle or motorcycle.

If your vehicle is determined to be a lemon, you have the right to choose a refund instead of a replacement. A manufacturer cannot force you to take a replacement vehicle. You may also be able to get reimbursed for repairs, towing and rental vehicle costs. Having an experienced and competent attorney on your side can make all the difference. If you believe the car you bought is a lemon, call the Law Offices of Howard D. Silver for a free half hour consultation with one of our experienced California Lemon Law attorneys.

GE To Stop Financing Motor Home Purchases

2008-05-08T21:23:38Z

General Electric Co. announced Monday, May 5th that it will stop offering loans for the purchase of boats and motor homes. The move is linked to a downward trend in the economy that began with diminishing home values, higher gas prices, and an overall lack of consumer confidence in the economy.

The lender, which currently has a $3.6-billion dollar loan portfolio, told boat and RV dealers that it would cease taking applications by July and underwriting new loans on August 1st.

“We just really looked at a lot of different alternatives and are facing a challenging environment and ultimately came to the decision that we needed to invest our resources and capital in areas where we could see good return,” Williams said.

The decision is a blow to the already hard hit recreational products sector. Makers of boats and motor homes have had a rough year as rising gas prices, a tough housing market and fears of a U.S. recession caused many consumers to scrap plans to buy big-ticket recreational items.

]]> “The decision is another in a string of developments – diminishing home values, higher gas prices, weaker consumer confidence – that has 2008 on pace to be the worst year since 1992” for RV and boat makers, Robert W. Baird analyst Craig Kennison wrote in a note to clients.

With the California RV and motor home market looking so bleak, dealing with a problem motor home or RV can be especially frustrating. Once you have decided to invest in a motor home you should be spending your time on the open highway, not in repair shops. Under the California Lemon Law, consumers who have serious problems with their motor home or RV that cannot be repaired may be entitled to their money back or a replacement unit.

If you feel that your defective motor home may in fact be a lemon, it’s important for you to contact an experienced lemon law lawyer who will help determine whether your motor home or RV is in fact a lemon and can help you with documentation and investigation of your case. The Law Offices of Howard D. Silver is committed to justice for those who have bought a lemon motor home or RV. Think you've bought a lemon? Call Howard D. Silver today and make lemonade. A telephone consultation is free and completely confidential.

Spot Issues With Your Car BEFORE You Purchase It!

2008-05-02T00:24:35Z

One of the best ways to avoid the headaches and grief that come with purchasing a defective used or defective certified pre-owned vehicle is to thoroughly inspect the car BEFORE you drive it off the lot. Los Angeles Times Staff Writer, Ken Bensinger recently wrote an article entitled “10 ways to spot trouble” that helps guide the reader with 10 easy things to look for when buying a used or certified pre-owned vehicle.

The tips themselves came from Carey Caldwell, purchasing manager for used-car chain CarMax. Armed with these guidelines, the average used car consumer might be able to sniff out potential used and certified pre-owned car problems before driving the car off the lot. The tips address cars that have suffered severe water damage, significant body work, and finally issues with the operation of the motor vehicle on the road.

Water Damage

Cars that have been submerged in water or have at some point been water logged are notorious for having problems of all sorts. How do you identify these autos after they’ve been dried out? The article suggests doing things like sitting in the car with the windows rolled up and smelling for mildew or musty odors. Finding signs of water damage like silt, water lines, and rust on the bolts that hold the seats to the floor and seat belts is a sure-fire giveaway that the car was at one point or another, water logged.

]]> Significant Body Damage

Automobiles that have had big repairs or been wrecked and rebuilt can have a much shorter shelf life then cars that have been cared for properly and not been in any accidents. The article suggests looking for signs of big repairs in places like under the hood, under the carpet inside the trunk and on the bolts that hold the fenders. Checking the car’s body panels for vehicle identification numbers (VIN) can also indicate when one of the panels has been replaced.

Engine Troubles

The most obvious of all areas that need to be checked can sometimes be forgotten. By simply starting the car and listening to the engine, you can tell a lot about how a used automobile will function. The engine should idle smoothly without any inconsistent running, grinding or knocking sounds. The test-drive of the used car can also reveal a lot about the health of the auto and whether or not it is a California Used Car Lemon. By driving the car a few miles and checking all the systems like the radio, windshield wipers, heater, air conditioning, and headlights you can spot obvious problems right away. Also checking the odometer and making sure that it is tracking the distance traveled properly is of major importance. “(If it’s stuck,) who knows how many miles are really on this car” Cladwell explains.

Even if the car you’re interested in passes the once-over test, Caldwell still suggests that you have the car inspected at a garage of your choice. Some problems only a mechanic can spot. The average cost of an inspection like this one can be anywhere between $50 to $150, a small investment to help insure that you don’t end up with a defective California Used Car.

Following the steps outlined in the article can help prevent you from making a purchase you will regret, but if you think the car you have already purchased is a lemon and you want your money back or another car, you should contact the Law Offices of Howard D. Silver today for a free, half hour consultation with one of our experienced California Lemon Law attorneys.

U-Haul Loses Class Action Suit, Accused of ‘Fraudulent Business Practices’

2008-04-18T14:00:00Z

In an example of the type of protection California’s laws attempt to provide consumers from unfair and deceptive business practices, a Santa Cruz County Superior Court judge ruled that U-Haul engaged in “unlawful and fraudulent business practices” when they advised agents to book reservations of trucks and trailers without knowing if it will have the equipment available when and where customers need it.

In his class action ruling, Judge Stevens declined to award monetary damages to U-Haul customers but ordered the rental giant to stop promoting “confirmed reservations” for one way moves in California. U-Haul agents have long been instructed to accept every reservation – a policy known to employees as “just say yes”, and although the company almost always supplies the equipment (98% of the time according to U-Haul representatives), the customer may face long waits or have to travel long distances to pick up the rentals.

]]> Under U-Haul’s policy, customers reserving equipment online or by phone were supposed to be told that their booking was confirmed and that they would be informed of the time and place that they could pickup their rental the day before their move. The ‘confirmation’ pre-supposed that the reservation had been made, but in actuality, the reservations were not official until the customers received pickup information the day before their move. The indirect warning of uncertainty often did not register with customers and according to judge Stevens was tantamount to a fraudulent business practice:

“This is all part of U-Haul’s business plan. Their marketing scripts and computer screens are designed to promise confirmed reservations and then, with less than explicit language, take it away.”

U-Haul is appealing Stevens’ ruling and contends that its policy has always been fair to customers.

The types of consumer protection laws that governed this class action decision against U-Haul are the same ones that apply to new and used car fraud in California. Since 1987, Southern California unfair business practices attorney Howard Silver has focused exclusively on protecting consumers from lemon cars, automotive fraud and other types of dishonest and unfair business practices. He has won millions of dollars for clients, and wins more than 95% of his cases against big businesses like automakers. If you believe you are a victim of consumer fraud, you have rights. Call the Law Offices of Howard D. Silver today for a free half-hour consultation, where you can learn about your rights and have your case evaluated with an experienced eye. And because we work on contingency, you pay nothing up front if we take your case -- and nothing at all if we lose.

Certified Pre-Owned Vehicles – Do They Insure You Won’t Get a Lemon?

2008-04-17T01:28:24Z

A recent article in the Los Angeles Times by Ken Bensinger discusses the fairly recent popularity of “certified pre-owned” vehicles that are in the used car sales market and whether these cars are any more or less likely to end up being certified used car lemons.

In 2007, 1.6 million of these certified pre owned vehicles were sold in the United States. The majority of these automobiles are no more than 6 or 7 years old and have relatively low mileage. Most all of them carry extended warranties and are inspected by dealer mechanics to pass a factory checklist. Any necessary repairs and upgrades are then made. For this reason, the average CPO vehicle costs about $1700 more than a comparable one that isn’t certified.

The extended warranties on these vehicles is the main benefit of purchasing certified pre-owned vehicles. The warranties themselves, however, vary widely depending on the brand of car. BMW, for example, extends coverage to six years or 100,000 miles from the date the car was sold new, while Dodge offers only a three-month or 3,000 mile extension from the date the certified car was purchased.

“At the end of the day, what you’re buying is the warranty,” says Rob Gentile, a California used car fraud specialist at Consumer Reports.

]]> So does purchasing a certified pre-owned vehicle insure that your car won’t be a lemon? The answer is clearly no. While CPO vehicles do tend to be in better shape than your standard used cars, there is no guarantee that the vehicle will be free of defects. As with all car purchases, it is advisable to have your mechanic check to make sure the car is in as good a shape as the CPO checklists promise. You can ask to see a copy of the inspection sheet, which should detail the entire inspection process and indicate any repairs made. Armed with this information, your mechanic will be able to give the car a more thorough examination, helping to insure that you don’t end up with a lemon.

If you think the used car you bought is a lemon and you want your money back or another car, you should contact the Law Offices of Howard D. Silver today for a free, half hour consultation with one of our experienced California Lemon Law attorneys. You can fill out our confidential online contact form, or call 1-866-49-LEMON or (818) 597-2610 to contact us.

Reminder: Know Your Rights Before You Buy

2008-04-15T01:15:41Z

A recent article in the Los Angeles Times discusses the California Car Buyer’s Bill of Rights, a law passed in 2006 that lays out rules regarding the purchase of new and used automobiles that can help prevent California Used Car Fraud. Specifically, the article outlines the ‘return option’ as it applies to used cars. Under the car buyer’s bill of rights, consumers have the right to return a used car to the dealer that it was purchased from for a small fee (usually based on the price of the vehicle). For instance, a dealer can charge a maximum of $75 if the price of the car is $5,000 or less. There are loopholes, however, that could get you into hot water when you buy a more expensive used car. For example, did you know that cars that cost over $40,000 need not have a return policy at all?

The article also discusses the California lemon law and how it applies not only to new cars but also used ones. For example, a new vehicle returned to a dealer because it is a lemon can be sold as a used vehicle, but only if the buyer is informed it was bought back under California’s lemon law. These “Lemon law buyback” automobiles must be advertised as such. Notices must be posted on the autos specifying the vehicles problems and the work completed to resolve them. Additionally, the manufacturer must provide a 1 year warranty for these issues.

]]> Though the article doesn’t really tell us anything we don’t already know about the lemon law and the danger of buying a lemon, it does give us a much-needed reminder – know your rights before you buy. Though you can’t foresee a car being a lemon, you can prevent the wrong decisions before they happen. It’s up to you to be vigilant about your seller, your own rights, and the condition of a vehicle before you buy.

If you do get burned, realize that there is always hope in the form of an experienced California Lemon Law attorney. The Law Offices of Howard D. Silver are here to protect you from fraudulent sellers of new and used cars, get the money you deserve from your lemon, and help you fight back against unethical car repair companies, fraudulent sellers and dealers that sell substandard products to their trusting customers. Be proactive – arm yourself with education. But if you do get burned, contact us for a free consultation. Your time to file a claim may be limited, so act today.