Archive for June, 2009

Google Subscribe Button MyYahoo! Subscribe Button Windows Live Subscribe Button RSS 2.0 Web Feed Subscribe Button

Tuesday, June 23rd, 2009

California Lemon Law and Repair Orders- The Cardinal Rules

California lemon law requires consumers to give the manufacturer a reasonable opportunity to repair the defect(s).The paperwork the dealership gives consumers with each repair is an important legal document for a lemon law case. Consumers should resist the temptation to toss what often seems like a confusing jumble of abbreviations, auto mechanic jargon and undefined computer codes into the recycle bin. If a car turns out to be a lemon, these repair orders will be vital evidence in getting a buyback- a warranty refund.

There are three cardinal rules that every consumer should follow

1. Take your car to the dealership for repairs when it first starts to give trouble or if the defect is still not fixed after repair. Sometimes people with busy lives prefer to limp along with a defective car, figuring that they’ll take it up when they next bring the car in for service. This can be a big mistake. Why? When manufacturers buy a car back, California lemon law allows them to deduct an amount from the refund proportional to the mileage on the car at the time it was first presented for repair of the major defect. In other words, every mile you drive the car after it starts acting up could cost you money. If you make follow-up visits promptly, it will be easier for your attorney to prove that you were diligent in trying to get your problems addressed.

2. Always give the service writer a complete description of your car’s problems to the best of your knowledge and make sure that he writes down exactly what you say. Lemon laws generally require that a manufacturer be given a “reasonable number of opportunities” to repair the defect. Without repair orders that say exactly what the problem is, it is hard to prove that the manufacturer’s authorized dealers were given the required chances to fix the problem.

3. Always remember to get a repair order and keep it in a safe place for as long as you own the car. Dealerships may try to avoid giving them out. If you have already been in for the same problem several times you might hear, “you already know we can’t fix it (or we don’t think there’s a problem) and so we didn’t do any work. So, we don’t have to give you a repair order.” This creates a problem. They can’t repair your car but they won’t give you the document you need to prove it. If polite persistence doesn’t work, you can write them a letter stating the date and time you presented the car with a statement of the defect you brought it in for. If relations have deteriorated to this point, it is probably already time to consult a lemon law attorney.

The California Bureau of Automotive Repair publishes a guide called “Write it Right” which is also available on their web site (www.bar.ca.gov/). It states exactly what needs to be written on a repair order in California.

Hopefully, technicians will be able to fix the problems with your car somewhere during the repair process and you will wind up with the car you paid for. But if not, you may need to seek a warranty refund. Following the three cardinal rules of repair orders will give you vital documentation you need when requesting a buyback in a lemon law case.

Thursday, June 11th, 2009

Lemon Law Claims- Post GM and Chrysler Chapter 11

Auto sales began a serious slide in the spring of 2008 and by the fall, several manufacturers were down as much as 30% from the prior year. What if anything will this mean to the consumers in their future lemon law claim?

A hint of what may become the prevailing attitude amongst manufacturers happened during the recent Chrysler bankruptcy proceedings. It appeared as though all outstanding lemon law claims and the bouncing checks were going to be swept up and discharged in the bankruptcy leaving many lemon owners out in the cold. There was a public uproar carried by various consumer groups speaking on behalf of those who had purchased a lemon, went through the process and were poised for their refund. The media was such that it gave Chrysler a black eye, and in what appeared to a PR effort to secure a future with the buying public the “New Chrysler” switched its course and decided to honor the outstanding lemon law claims.

Just prior to GM’s recent bankruptcy filing I was informed by someone in a position to know that GM did not want to make the same mistake Chrysler did by giving the appearance that it didn’t give a hoot about it’s buying public or those stuck with a lemon. I took this to mean GM is already looking to the future with a message they will stand behind their product, which includes honoring the lemon law.

Auto manufacturers in this country will survive only if they deliver a high quality product and stellar service. No manufacturer is immune from producing a bad one every now and then. It is the nature of mass production. So when it does happen, manufacturers are smart to stand behind their product and “exchange in abundance” with their public by honoring lemon law claims. Gone should be the days whena  consumer has to fight to get what the manufacturer promised at the time of sale; a vehicle free of defefcts for a given term.

Thursday, June 11th, 2009

Lemon Law Future for Chrysler- Will Chrysler Honor its Lemon Law and Warranty Claims?

Good news for Chrysler consumers. U.S. customers of the new Chrysler to emerge from bankruptcy will be covered by lemon law rights accordings to the agreement reached by Chrysler and Fiat. Warranty promises will be honored as originally intended.

Under most states lemon laws, a manufacturer is suppose to either buyback or replace a lemon vehicle where the consumer has given the manufacturer a reasonable opportunity to repair a major problem.

Prior to the agreement reached between Chrysler and Fiat it was unclear how consumers who had initiated claims under the lemon law would be affected by the bankruptcy. Some consumers who had requested refunds on their lemons had been issued checks that bounced because of the bankruptcy filing. After many protests by consumer groups and attorneys on behalf of consumers, Chrysler said it immediately requested and received approval from the court to honor warranties in the bankruptcy case. The court decided that all warranty and lemon law obligations will be assumed by the new company after the close of the transaction between Chrysler and Fiat.

Chrysler consumers can now rest easy knowing their warranty is safe and they will still have rights to seek a refund or replacement under the lemon law if they find they have purchased a lemon, whether it was prior to the bankruptcy, during or after.

Tuesday, June 2nd, 2009

Manufacturer’s Warranties, Extended Warranties, and Service Contracts; Should I Buy a Service Contract?

There is a big difference between warranties and service contracts. A warranty promises to perform needed repairs on the vehicle and that it be free of defects. A service contract offers no promise of quality.

After a reasonable number of failed attempts to repair a vehicle under warranty, you should have the right to a refund or replacement (lemon law). However you could theoretically have over one hundred failed attempts to repair the same major defect under a service contract, yet still have no right to a refund or replacement.

The price of a service contract is typically based on several factors: the make and model of the vehicle; whether the vehicle is new or used; and the desired overage and length of the service contract. The cost can range from several hundred dollars to over a thousand dollars or even more.

Some people will gladly pay for extra coverage for their vehicle, just for the comfort of knowing that defects will be taken car of no matter what happens, after the manufacturer’s warranty expires. For people who keep a close eye on their budgets, service contracts make sense if they plan to put a lot of miles on their vheicles in a short period of time. In such cases the original warranty will expire much sooner, so a service contract could be worth it’s weight in gold. Otherwise, the manufacturer’s basic warranties are usually adequate.