California Lemon Law Blog

With the economy in the tank, and people losing jobs daily, many prospective car buyers are considering pre-owned vehicles. Buying a used vehicle is an effective way of getting a quality vehicle at a lower price. However, investing in a pre-owned vehicle carries significant risks. How can you know that the vehicle isn’t spruced up to look nice but may have significant problems?

Online resources like Carfax.com can run a background check on the vehicle. They are also a good place to start. However, these websites rely on honest dealers and insurance companies to report information, and therefore are only as good as the information they are provided. For a more comprehensive history, prospective buyers can request records from their local DMV.

A NewsNet5.com article states that experts also recommend buying a factory certified car when possible. Unlike buying a car as-is, the manufacturer’s warranty will cover a factory certified car in case it requires future repairs.

Continue reading "What to Look for When Buying Used Vehicles" »

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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" »

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Posted In: Buying a Used Car , California Lemon Law , Law & Information , Used Car Fraud

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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/

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Posted In: Buying a Used Car , California Lemon Law , Law & Information , Unfair/ Deceptive Business Practices , Used Car Fraud

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In a previous post, we discussed California’s Vehicle License Fee (VLF) increase that was initiated in May of this year. Although it is understandable why vehicle owners would object to an increase in fees, as a part of the state’s budget plan to combat a $42 billion shortfall, there isn’t really anything we can do about it.

To jog our readers’ memory, the new legislation that enabled DMV to raise the VLF from 0.65% to 1.15% for registration payments due on or after May 19, 2009 applies to trailer coaches, automobiles, motorcycles, and commercial vehicles with confirmed gross operating weight lower than 10,001 lbs. The VLF enhancement may last until June 30, 2013. If you are not sure as to the exact vehicle license fee you must pay, you can check your vehicle registration renewal notice or validated registration card. You can also visit www.dmv.ca.gov for more information.

Continue reading "Understanding California's Vehicle License Fee Increase" »

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Posted In: Car Repair Fraud , Law & Information , Used Car Fraud

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According to a nytimes.com article, state lemon-law administrators, consumer groups, and the attorneys general from 40 states are hoping that the Federal Trade Commission’s Used Car Buyer’s Guide receives an update. The F.T.C.’s Buyer’s Guide is required to be placed in every used vehicle by auto dealers. In claiming that the Buyer’s Guide has not been significantly improved since its appearance in 1985, consumer advocates would like to see a change in the current emphasis on warranty information.

Based on the article, the National Association of Attorneys General believe that it is time to protect buyers from rebuilt wrecks, or lemons, that may not be safe, may be overpriced, or both. On the other hand, the article mentions that the National Automobile Dealers Association opposes adding any information about a vehicle’s negative history pertaining to damage because it represents “far-reaching changes” that would “impose significant, costly, and in some cases, impossible burdens on used car dealers.”

Continue reading "Number 1 on Consumer Holiday Wish-List: Used Car Buyers Guide Update" »

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In addition to the Consumer Legal Remedies Act of California, which protects consumers by prohibiting used-car dealers from using deceptive and unfair business practices to sell their cars, new legislation (Senate Bill 95 and Assembly Bill 647) advocated by criminal justice officials and consumer protection groups will go into effect in January 2010.

Senate Bill 95, also referred to as the California Car Buyers Protection Act, will require auto dealers to have outstanding liens (legal claims on a vehicle as security for a debt) completely paid off before trading or selling a used car. Additionally, Assembly Bill 647 gives consumers access to a national database containing title, theft and other important vehicle information.

One State Senator commented that Senate Bill 95 will assist consumers who are already battling the tough economy. In fact, some car dealers have gone out of business due to the economy, leaving consumers with unpaid liens on vehicles that they traded in. Based on the article, the president of the Sacramento-based nonprofit Consumers for Auto Reliability and Safety stated that SB 95 “will help law enforcement agencies crack down on violations before hundreds of car buyers have their credit ruined at a single dealership.”

Continue reading "New Legislation to Protect Used-Car Buyers in California" »

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A recent article from searchautoparts.com reported that more and more cases of auto insurance fraud have been committed across California, perhaps brought on by the downtrodden economy. In fact, the California Department of Insurance (CDOI) reported a 25 percent increase in the number of suspected vehicle arson fraud cases from 2007 to 2008 and a rise in auto theft fraud referrals as well.

A CDOI Commissioner stated, “Many Californians are facing a host of financial challenges in today’s economy, but I want to remind everybody that you will only compound your problems if you break the law and commit fraud in search of a quick fix…our enforcement experts are working hard to crack down on anyone attempting to skirt the law for financial gain.”

The CDOI Commissioner said that enforcement officers examine every case brought to the Department’s attention and that referrals have been received from local law enforcement agencies, directly from consumers, and from insurance companies. The department obtained almost 300 more suspected vehicle theft and vehicle arson cases statewide in 2008 than in 2007.

Continue reading "California Auto Insurance Fraud Has Made a Notable Increase" »

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Posted In: California Lemon Law , Car Repair Fraud , Law & Information , Unfair/ Deceptive Business Practices , Used Car Fraud

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We informed our readers when the Car Rebate Allowance System (CARS) program under the management of the National Highway Traffic Safety Administration (NHTSA) was launched, but no one could quite calculate its paramount affects. It didn’t even take a complete week for car dealerships to receive a flood of consumers that soaked up the $1 billion financial plan’s set-up for “clunkers” to be exchanged for vehicles with more fuel efficiency. Who could blame them? Having the chance to save money in the long run with a more environmentally friendly car by obtaining $3,500 or up to $4,500 rebates is quite irresistible.

Based on a recent report, in response to positive feedback of the program, on June 31, 2009, the House granted $2 billion more for CARS, giving more consumers the chance to join in. It’s not certain at this time how long the new funds will last, but while they do, it is bound to make lots of consumers happy now and for a good amount of time into the future.

From what we have seen up until this point in the year, auto sales in the United States have been extremely low; however, with the overwhelming response and utilization of the CARS program, auto sales have been the highest for 2009. Although this is an exciting fact that has been quite an asset to the auto industry, car fraud may be an issue for concern in some rebate sales and it is something that hopefully consumers can avoid experiencing.

Continue reading "Cash for Clunkers Car Rebate Allowance System Re-Fueled by Additional Funds " »

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Posted In: California Lemon Law , Car Repair Fraud , Law & Information , Unfair/ Deceptive Business Practices , Used Car Fraud

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On July 1, 2009, a federal program signed into law by President Obama provides a rebate for people who trade in older gas-guzzlers for new, more fuel-efficient automobiles. The Car Allowance Rebate System (CARS) program is applicable to car purchases that occurred on or after July 1, 2009. People with vehicles that qualify for the program may be able to receive rebates between $3,500 and $4,500 on the purchase of a new qualifying vehicle. To qualify for the program, the following conditions must apply:

• The vehicle traded in must be less than 25 years old by the trade-in date and in drivable condition.


• The rebate applies only to the purchase or lease of new vehicles with a manufacturer’s suggested retail price of $45,000 or less. The new vehicle can be from a foreign or domestic car manufacturer. Pre-owned vehicles are not eligible for the program.


• Generally, the vehicle being traded in must get mileage of 18 miles per gallon or less (different requirements apply to some cargo vans and very large pick-up trucks).


• Trade-in vehicles must be registered and insured continuously for the full year preceding the date of the trade-in.


• Participating auto dealers will apply the rebate at the time of purchase so no vouchers are required.


• The CARS program runs through Nov 1, 2009 or when the program funds are exhausted, whichever comes first.


• Vehicles traded in must be destroyed. Therefore, the value you negotiate with the dealer for your trade-in is not likely to exceed its scrap value. The new law requires the dealer to disclose an estimate of the scrap value of your trade-in vehicle.

The CARS program is implemented and overseen by the National Highway Traffic Safety Administration (NHTSA), which must publish the program’s rules and regulations by July 24, 2009. The new law requires auto dealers to register to participate in the program, and the agency will update the list of participating dealers on the website. Anyone wishing to take advantage of the program is encouraged to contact dealers in their area to see which have registered. States will license the respective dealers to sell new automobiles.

Continue reading "New Federal Car Rebate Program Information" »

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Posted In: California Lemon Law , Car Repair Fraud , Law & Information , Used Car Fraud

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A recent story in The Wall Street Journal’s Marketwatch highlights the growing problem of car dealerships that fail to forward consumer payments. During the economic downturn, more dealerships are failing to pass on consumer payments for taxes, title fees and other costs. In some cases, dealers are refusing to fulfill their obligations to pay off the remaining balance on trade-in cars, making consumers responsible for thousands of dollars in hidden costs.

Although car dealer fraud is not a new phenomenon, the economic situation has contributed to these activities. According to figures cited by the news story, the California Department of Motor Vehicles has seen the number of open cases against dealers for failing to transfer customer payments double since the beginning of 2007.

Why do car dealerships fail to pass on consumer payments? While a small percentage of dealerships may actively withhold customer payments out of a desire to commit fraud, in times of economic difficulty, plummeting cash flow may contribute to a number of these cases. If a dealership finds its flow of ready cash dwindling, anxious creditors may freeze the dealership’s funds.

Given this problem, a strange Catch-22 arises for California car buyers. Although many troubled dealerships are offering incredible discounts for new and used vehicles, these very same dealerships are the ones most likely to be unable to forward your taxes, title fees and other costs. Thus, a great sticker price could deliver a nasty surprise after the sale is complete.

For struggling dealerships, this situation can lead to a downward spiral as concerned consumers stay away from deals offered by troubled car sellers, which chokes off their cash flow and leads to the dealers being unable to pass on consumer payments.

Continue reading "Dealers Not Passing the Buck in Hard Times" »

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The California Department of Motor Vehicles reports that an auto dealer and his wife have been arrested for their part in an alleged multimillion-dollar auto loan scheme.

This California auto fraud case underscores the need for consumers to be very careful with the information that they give to an auto dealer who also provides financing. Unscrupulous dealers can use that information to apply for additional car loans or home loans, potentially putting an innocent car buyer on the hook for more than he or she bargained for.

Tips for Safe Auto Financing

• Never sign a loan application with blank spaces for the dealer to “fill in later.”
• Always read any financial application form completely before signing
• Never sign backdated financial forms, including auto loan applications

If you have any questions or concerns about auto loan fraud or fraudulent auto dealer practices, please contact the Law Offices of Howard D. Silver. Call 866-49-LEMON for a free consultation with a skilled California used car fraud attorney.

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First time buying a used car? The California Department of Motor Vehicles has created a very nice guide in a report that lists what you need to know before you sign a contract with a car dealer. Here is a summary of the important points:

Research the Value
In an effort to avoid being a victim of used car fraud in California, research the market value of the vehicle before you commit to buying a used car. The Kelley Blue Book is one of the most valuable resources for a used car buyer. Double-check the sticker price against the Blue Book and compare prices from several dealers.

Comparison Shop for Interest Rates
If a car dealer is offering financing, compare interest rates with other lenders. A couple of point difference in the interest rate can save you a bundle over the life of the car loan.

No Cooling Off Period…Unless You Purchase One
Used cars sold by a dealer for less than $40,000 must come with the option to purchase a two day cooling off period (a Contract Cancellation Option Agreement). This option only applies to sales of used cars for less than $40,000. Buying a new car? Doesn’t apply. Buying from a private party? Doesn’t apply. Buying a motorcycle? Doesn’t apply.

Continue reading "California Guidelines on What You Need to Know When Buying a Car" »

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As a story in 5TJT reports, used car dealerships are becoming dangerous places to do business. According to the story, 11 people were arrested in Nassau County, NY, after a year-and-a-half long investigation by the property crimes and homicide units of the local Police Department and the Department of Motor Vehicles.

Investigators found fraud, corruption and theft rampant at the used car dealership under investigation after the January 2007 shooting of a car salesman in front of the dealership’s offices. When authorities looked more closely at the dealership, they found serious crimes being committed. These illegal acts included identify theft to provide certain buyers with the opportunity to own cars without revealing their own identities.

Continue reading "The New Danger Zone: Used Car Dealerships" »

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Digital Odometers Cost Consumers More Than a Billion Dollars per Year

According to a recent article by Chris Woodyard in USA Today, used car fraud scams associated with recalibrating digital odometers are proliferating at an alarming rate. The National Highway Safety Administration has come out with several key studies to support this trend and suggest that nearly half-a-million consumers every year get duped. Scammers often get software and other technical components off the web to reset their digital odometers to make it appear as if vehicles have lower mileage than they actually do.

Fortunately, there are services that used car buyers can use to avoid being defrauded in this way. You can check a car's service record at www.carfax.com or check out oil-change stickers prior to buying a car. Finally, you can have a professional mechanic inspect a vehicle before you purchase it.

In addition, cities have been implementing measures to protect consumers. In Kansas City, Missouri, a high-profile auto sales person recently got busted perpetrating an odometer fraud scam in a highly publicized case. In Philadelphia, a triumvirate of auto wholesalers were recently sentenced for similar misdoings. In Dallas, Texas, another dealer was recently sentenced in U.S. District Court for similar abuses.

If you've been scammed or otherwise financially harmed by odometer fraud or another consumer scam, turn to a California used car fraud attorney at the law offices of Howard Silver. We can help you hold the scammers responsible for costs you've incurred, and we provide free, zero obligation evaluations of all cases. To fight back against dealer dishonesty, browse our website or call our toll-free hotline 1-866-495-3666 today for more information.

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Fife, Washington Dealer Violates Lemon Law Resale Rules

McCann Motors, a used car dealer based in Washington State, was recently dinged by the WA Attorney General's Office for selling Hummers and Escalades to over six dozen customers in a violation of rules regarding lemon law disclosures. The dealership originally purchased the vehicles under a California Lemon Buyback Law. However, through deceptive business practices, McCann Motors failed to notify buyers of potential defects or to provide disclosure notifications.

A settlement was reached in which the dealership paid out approximately $12,000 to cover the costs and fees associated with the customers’ suit. Doug Walsh, a consumer protection advocate, went on record saying that the people who bought these used Cadillac Escalades and Hummers probably paid significantly more for their used vehicles than they would have, had they been allowed to review the Lemon Law disclosures.

According to Washington state law, used car dealers must place yellow flyers in the windows of trucks or autos that reveal previous defects or damage done to the vehicles. This is because said damage may portend mechanical problems to come and can influence insurance costs and the future selling value of the vehicles.

If you've been defrauded by a used auto dealer and you want legal assistance to get compensation, look to the expert California auto lemon law attorneys at the law offices of Howard D. Silver. We're a results-driven law firm with a plethora of experience handling Lemon Law cases. Whether you lost money as a result of a dealer’s failure to disclose defects or you or a family member suffered injuries as a result of faulty parts or bad service or maintenance, you may be entitled to monetary compensation. Browse www.california-lemon-law-blog.com for more information, or call/e-mail to get a free assessment of your legal options.

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General Motors has taken a big step towards improving its used vehicle warranties. According to an article posted on Edmunds.com, the auto maker will offer 12 month/12,000-mile “bumper-to-bumper” coverage for certified used cars starting Sept. 13. Previously, GM’s warranties covered certified pre-owned vehicles for three moths or 3,000 miles.

A statement from the company says the warranty will cover any car defect bumper to bumper relating to materials or workmanship. However, the warranty won’t cover standard wear and tear on vehicle components. This new warranty policy will cover the Chevrolet, GMC, Pontiac and Saturn brands. For Cadillac, Hummer and Saab pre-owned vehicles, the auto maker is offering separate warranties: six year/100,000 mile bumper to bumper comprehensive coverage, effective from the vehicle’s in-service date.

This is good news for consumers looking to buy a certified pre-owned (CPO) General Motors brand vehicle this fall. A CPO vehicle is basically one that has been inspected by an authorized dealership and given an extended factory warranty. A lot of auto makers have CPO programs and they are becoming increasingly popular among buyers.

However, even these deals can leave a bitter taste in the mouths of consumers when a certified pre-owned vehicle ends up being a lemon – a “certified lemon.” It shouldn’t happen, but it does. Fortunately, California’s Lemon Law covers these CPO vehicles as well. If the manufacturer can’t fix your car after a reasonable number of repair attempts, then they owe you a refund or a replacement vehicle. If you’re having problems with getting a refund for your “certified lemon,” call the Law Offices of Howard D. Silver to schedule your free consultation or case evaluation.

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A recent article in the Los Angeles Times discusses a new online database that will help California auto consumers find the history of the used cars they are purchasing, hopefully preventing the sale of more California lemon automobiles.

The National Insurance Crime Bureau is creating a free public database of vehicles declared unrecovered, a total loss, or stolen by insurers. The new free database will allow individuals to enter vehicle identification numbers, or VINs, to see if the used auto they want to buy has a hidden history.

The crime bureau is a not-for-profit organization that receives support from approximately 1,000 property/casualty insurance companies. The organization partners with insurers and law enforcement agencies to facilitate the identification, detection and prosecution of insurance criminals.

The VIN check system can be found at www.nicb.org.

Continue reading "New Free Database Hopes To Curb California Used Car Fraud" »

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