California Lemon Law Blog

This is part two of a two-part series on buying a motor vehicle for Christmas. Read our previous blog post for tips on buying a new car for Christmas.

For many, buying a loved one a car is the perfect Christmas gift, but new cars are often too costly to buy as a present. For those still looking to buy a car, giving a used model in good condition can be just as good as a new one. However, buying a used car can be tricky and you must be careful about what you are buying. To avoid the many pitfalls of buying a used car for Christmas, follow these tips.

Check for recalls

When you have decided on a specific model or a final few candidates, check to see if they have been subjected to any recalls by the National Highway Traffic Safety Administration (NHTSA). NHTSA keeps track of all vehicle recalls. If the model has been recalled, make sure it has undergone the proper repairs.

Get a vehicle history report

Before buying the car, check the history of the vehicle through a vehicle history report. These reports may show previous damage reported about the car, whether the odometer has been tampered with, if it was used as a rental, or has a salvage title. The reports are not foolproof, but may show if something is wrong with the car.

Look out for odometer fraud

Sometimes used car dealers attempt to fool consumers by decreasing the amount of miles shown on the odometer. Odometer fraud is illegal and can trick a consumer into believing the car they are buying is in better condition than it truly is. If the odometer reading on a car seems too good to be true, check it out.

Read everything that you sign

Make sure to carefully read every document the dealer asks you to sign. If you have questions ask for the answers. Also, make sure that what you’re signing accurately reflects what you have agreed upon verbally with the dealer. After you sign the documents and take the car home, it may be too late to complain.

When a used car dealer uses deceptive and unfair practices, those who have suffered can seek reimbursement for the money they have lost. If you are a victim of these types of practices contact Southern California used car fraud lawyer, Howard D. Silver. For a free consultation call (866) 49-LEMON.

Stories of used car buyers being scammed by bogus sellers using online classified ads as a vehicle for fraud are common these days. As we’ve discussed on recent blogs, it’s important to meet sellers in person and avoid unverified online sellers. However, a recent news report by KSL in Utah, reminds us that meeting a seller in person in no way guarantees authenticity or honesty.

For example, the KSL article is about an individual who was scammed $500 after meeting the seller of the vehicle in person and taking a test drive. Further, both the buyer and his father said the seller seemed honest. However, when the buyer said he did not have with him the full amount of money needed to make the deal, the seller insisted there were other buyers waiting, and convinced the buyer to make a $500 down payment on the vehicle and meet later at the seller’s house to complete the deal. Unfortunately, left with a phony Vehicle Identification Number (VIN) and fake personal information, the meeting at the seller’s home did not take place and the buyer was out $500.00. The Executive Director of the Utah Department of Commerce told KSL that the fraudulent seller has most likely victimized other individuals.

If you’ve been the victim of a fraudulent car sale, contact California used car fraud attorney Howard D. Silver for assistance. Call 1-866-49-LEMON for a complimentary case review.

Starting in July of 2006, consumers purchasing a used vehicle in California were given new protections under the Used Car Buyers Bill of Rights. The following are some of the protections, according to the Department of Consumer Affairs:

• The consumer’s right to cancel the sale. For used vehicles that cost less than $40,000.00, consumers have the right to cancel the sale within two days if they change their mind about the purchase. Depending on the vehicle’s price, the fee for this option is between $75 and one percent of the purchase price for vehicles costing more than $30,000.00 but not more than $39, 999.99. Additionally, if the consumer returns the vehicle, the dealer can charge a restocking fee between $175 and $500 minus the cancellation fee.
• Written disclosure about your credit score. Dealers must provide a “Notice to Vehicle Credit Applicant” document, which discloses:
  
  • The credit score obtained and used by the dealer and the name of the credit reporting agency providing the credit score to the dealer;
  
  
  • The range of possible credit scores established by the credit reporting agency that provided the credit score;
  
  
  • The address and telephone number of each credit reporting agency providing a credit score that was obtained and used by the dealer.
• Finance fee caps. If a dealer obtains financing on your behalf, the dealer compensation from an institution financing the purchase of a vehicle is limited to no more than:
  
  • 2 percent of the purchase amount for contracts with a term of more than 60 months; or
  
  
  • 2.5 percent of the purchase amount for contracts with a term of 60 months or less.

This limitation does not apply when the assignment requires the dealer to bear the entire risk of financial performance for you or when the assignment is more than six months after the date of the conditional sales contract.

Consumers are granted certain rights under the California lemon law that offer them protection if they purchase a sub-standard vehicle. If you believe you have purchased a lemon vehicle in California, contact Howard D. Silver at 1-866-49-LEMON to learn how Mr. Silver can protect your rights today.

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.

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.

Before you begin to shop for a new car, you will need to do some research. Taking the time to investigate vehicles now could end up saving you significant money in the future. There are books and magazines that compare the costs of cars, different models and options, as well as information about safety and repairs. When doing your research, consider your needs, budget, and driving habits to find the car that best suits you. The U.S. Federal Trade Commission (FTC) has several tips for buying a used motor vehicle that many consumers would be wise to follow.

Used cars can be purchased at various places: rental car companies, used car stores, leasing companies, or franchise or independent dealers. Used cars can also be bought online at popular sites such as Craigslist. It is also recommended that you purchase a used car from a dealer that doesn’t have any complaints filed with your state’s Attorney General or the Better Business Bureau (BBB). You should also ask your family, friends, and co-workers for any recommendations.

If you live in California and you are thinking of buying a used vehicle, it would be a good idea to read the Consumer’s Guide to Buying a Used Car in California by Howard D. Silver before visiting a used car dealership. Mr. Silver has years of experience representing people who have bought a lemon vehicle from a used car dealer. To find out how he can help you, call 866-49-LEMON today.

The FTC’s Used Car Rule requires dealers to include a Buyers Guide with every used motor vehicle they sell, including demonstrators, program cars, trucks and vans. Demonstrators are new vehicles that haven’t been leased, owned, or used as a rental by a consumer but have been driven by staff at a dealership. Program cars are current year model vehicles that have low mileage and were returned to the dealer from short-term rentals or leases. Buyers Guides are not required to be posted on some recreational vehicles or motorcycles, and any dealer that sells less than six vehicles annually.

The Buyers Guide must inform you:

• If the vehicle being purchased is being sold with a warranty or “as is”;
• Details regarding the major electrical and mechanical systems on the vehicle, including what major problems you should watch for;
• What repair cost percentage the dealer will pay under the warranty;
• That spoken promises between you and the dealer can be hard to enforce;
• That any promises by the dealer should be in writing;
• That you should have the vehicle inspected by an independent mechanic before you purchase the vehicle; and
• That you should keep the Buyers Guide after the sale for reference.

When you are purchasing a used vehicle from a dealer, make sure you receive a Buyers Guide. It must show any changes that you and the dealer negotiated regarding the vehicle’s warranty. The Guide also becomes part of the sales contract and supersedes any contrary provisions. For instance, if the Guide states that the vehicle comes with a warranty, but the contract the dealer is offering states that the vehicle is being sold “as is,” the dealer must provide you with the warranty the Guide describes.

If you live in California and you are thinking of buying a used vehicle, it would be a good idea to read the Consumer’s Guide to Buying a Used Car in California by Howard D. Silver before visiting a used car dealership. Mr. Silver has years of experience representing people who bought a lemon vehicle from a used car dealer. To find out how he can help you, call 866-49-LEMON today.

An article published by online news outlet TheUnion.com details a recent class action settlement regarding a Grass Valley, California used car dealership. Over 100 customers were charged improper tire fees after purchasing used motor vehicles through the dealership, which now has to pay each customer $350. The cars were purchased between 2005 and 2009, and customers were charged a tire fee that only should have applied to new tires.

According to court documents, the class action was sparked by one couple who purchased a used 2001 Chevrolet Cavalier from the dealership in November of 2007. The couple was charged a tire fee that only applied to a purchaser of new tires and were also informed they would need to buy gap insurance in order to receive financing. Within a month of purchasing the vehicle, the couple discovered multiple problems, taking it in to the dealership for repairs. Unfortunately, more and more damage was discovered, which led the couple to believe that the vehicle had been misrepresented at the time of purchase.

When the couple attempted to get out of their contract, the used car dealership offered them $3,000 when the couple had paid $9,000 the month before. After hiring a California lemon law attorney, they filed a lawsuit that settled for $22,500.

If you are considering purchasing a used vehicle in California, you should refer to Howard Silver’s Consumer’s Guide to Buying a Used Car in California for more information. Those purchasing a used car need to make sure the used vehicle they are thinking of buying is not a lemon. As an experienced and knowledgeable California lemon law attorney, Mr. Silver has represented many individuals who have purchased a lemon vehicle from a used car dealership. Call 1-866-49-LEMON today to find out how Mr. Silver can help you.

Consumers throughout the United States seem to be watching every dime with the current state of our economy, especially when considering buying a used car. Despite a person’s heightened budgeting, some individuals do not anticipate the potential for additional fees when buying a used vehicle.

Before you actually purchase the used car of your heart’s desire, it is important to be aware of the total cost: used vehicle price, down payment, interest rate, and monthly payments. However, a WTVM report includes a few other potential fees that the Georgia MEA Federal Credit Union warns consumers against. Some of these extra costs may include dealer preparation, documentation, delivery, extended warranties and gap insurance.

Based on the article, the National Automobile Dealers Association anticipates the purchase of over 7 million car and trucks during April and August, particularly since consumers tend to buy vehicles more often during the spring and summer months than other times of the year. Even though the excitement and possible urgency of buying a used car may tempt an individual to make an impulsive and quick buy, it may be worth it to invest a little more time in finding the best financing deal for a used car in addition to the vehicle’s actual price.

If you are thinking of buying a used car in California, please refer to California lemon law attorney Howard Silver’s Consumer’s Guide to Buying a Used Car in California for more information. It is vital that consumers not only save as much money as possible and feel confident in their used car purchase, but that a consumer takes extra care in making sure that the used vehicle they purchase is not a lemon. When consumers have a solid understanding of their rights, they are less likely to be stuck with a lemon vehicle.

California is now one of 31 states to offer the public online access to used car history reports after consumers rallied for DMV report procedures to be more consumer-friendly. In fact, according to a national report from the LA Times website, California residents desiring to purchase a used vehicle can now check the history of the vehicle online for a small fee of $4; a charge significantly less than other car information firms.

The new arrangement, run by the American Association of Motor Vehicle Administrators for the Justice Department, will allow residents to purchase a detailed outline of a used car’s background, including information from insurance companies, auto-body shops, junkyards, and other sources that reveal if a car was stolen or if the odometer was modified. Prior to the new setup, the DMV had an agreement with an outside source, R. I. Polk & Co., who maintained an extensive car history database. However, that agreement gave Polk the right to sell information to the public at its own discretion.

A consumer group, Consumer Action, says the new DMV data reporting system, 18 years in the making, will help shoppers to be more careful when considering a used car and avoid poorly maintained and unsafe vehicles. To have your vehicle assessed, check out http://www.vehiclehistory.gov.

Continue reading "California DMV Makes it Easier for Consumers to Access Used Car History" »

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/