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USED CARS

Lemon Law Guidance for
New Vehicle Owners

July 11, 2019 by admin 1 Comment

When you purchase a new car, you expect it to operate as planned. However, some models are prone to problems and may require multiple visits to the repair shop. A minor problem here and there is understandable, but the situation persists or worsens, then you may own a lemon car. Worse, are those problems no longer covered by the warranty, requiring you to pay up.

If your car is a lemon, you may find recourse under the federal Magnuson–Moss Warranty Act. (Title 15 Chapter 50 of the U.S. Code). Also, expanded protection may come at the state level as enacted used car lemon laws work beyond the federal requirements. You may be able to manage the process yourself, but if your situation is outstandingly bad, then hiring an attorney who specializes in lemon law cases may be the best approach.

First Step — Review the Magnuson-Moss Warranty Act

The Federal Trade Commission (FTC) enforces the Magnuson-Moss Warranty Act to ensure that consumers are protected.

Specifically, the act “makes it illegal for manufacturers or dealers to claim that your warranty is void or to deny coverage under your warranty simply because someone other than the dealer did the work.” However, if the repair was done incorrectly and caused other problems, such as engine damage, the affected part may no longer be covered under the vehicle’s warranty.

The FTC advises consumers to understand their vehicle’s warranty by reading it and knowing the warranty period. Furthermore, owners should service their vehicles at regular intervals, keep all service records and receipts, and articulate their complaints to service personnel and supervisors if they are not satisfied with the work. Typically, this act applies to purchasers of new vehicles.

Second Step — Contact Your State’s Office of the Attorney General

Every state has an Office of the Attorney General, an individual who serves as the main legal advisor to the government. Also known as “advocates general” and “procurator,” this professional is the chief law enforcement officer in that state. Importantly, existing used car lemon laws are under his or her bailiwick.

Therefore, inquire at the Office of the Attorney General about your state’s lemon law. You will likely find that there is a complaint procedure you must follow before heading to the next step. You should know that used car lemon laws vary from state to state.

Third Step — Review Your State’s Used Car Lemon Law

If after following the two earlier steps you still are not getting your problems resolved or if you suspect your vehicle will never operate as intended, you should examine your state’s used car lemon law. A copy of that law should be available online through your state’s website, otherwise you can usually obtain a copy by visiting the Attorney General’s office.

It is at this point where state laws vary. That said, there may be certain prevalent aspects to consider. For example, you should know when your state’s lemon law was enacted and whether your car is covered under the law. The good news is that all 50 states have lemon laws in place.

If your car is covered, the state will outline the repair procedures and the steps you must follow. Typically, this involves notifying the manufacturer or the dealer within a certain timeframe.

To illustrate, in South Carolina after three unsuccessful repair attempts for the same defect and a cumulative 30 days of out-of-service time, your car would be considered a lemon. In this example, the manufacturer must give you a refund — including the vehicle’s cost, sales tax, license fees, and registration fees. Otherwise, the manufacturer would replace your vehicle.

You should know that if you purchased your vehicle from a private party, you may not be protected by your state’s used car lemon law. In that case, you should consult with an attorney for advice regarding possible remedies. For instance, if the value of the car is under $3,000, making a claim in small claims court is advisable.

Your state may also require dealers of used cars to provide you with a written warranty. For example, in New York, that warranty is usually called a “lemon law warranty” or what spells out your rights, including repairs that will be made at no cost to you. That warranty must accompany your sales contract or lease.

Fourth Step — Consult with an Attorney

If at this point you have not consulted with an attorney and are still not satisfied with the repair process or if you believe your rights are not being protected, then it is time to find a qualified attorney. Reach out to your state’s bar association and ask for the names of at least three attorneys specializing in lemon law and contact each one to gauge how they may assist you.

An attorney may offer an initial consultation for free, explaining what recourse is available to you along with their fee. If you choose to sue, that fee may be paid by the manufacturer or the dealer, but only if you win. There is a decent chance your case will be settled out of court if your suit is a strong one.

Used Car Lemon Laws

In summation, if your car is still under the manufacturer’s original warranty, your dealer will handle those repairs per the warranty. If you are not satisfied with a dealer, you can visit another shop. If your problem is still not satisfied, insist that the manufacturer’s regional representative becomes involved.

For used cars, your state’s lemon law may offer the best protection. Follow these steps carefully to ensure that the repairs are made to your satisfaction, otherwise a full refund or a replacement vehicle may be in order.

Persist Until You’re Successful

With potentially thousands of dollars on the line and in some cases family safety a concern, it is important for consumers to see a lemon car problem through until an equitable resolution is reached.

This may mean taking an unconventional approach, especially if you haven’t yet contacted an attorney. For example, a News 6 Orlando news team investigated one consumer’s claim of a defective Hyundai Sonata SE sedan and was able to help the woman settle with the automaker.

Initially, Hyundai admitted its fault and offered to repurchase the vehicle. However, the settlement did not cover $850 she had paid toward the car. The news team intervened and Hyundai responded by nearly doubling their previous offer.


See Also — Ford Focus, Fiesta Transmission Troubles Not Over Yet

Photo Attribution: André Karwath aka Aka [CC BY-SA 2.5 (https://creativecommons.org/licenses/by-sa/2.5)]

Filed Under: Ownership Experience Tagged With: attorney, attorney general, Federal Trade Commission, FTC, lemon cars, lemon law, Magnuson-Moss Warranty Ac, NEW CAR, USED CARS

Good Deal or Not: Fleet Vehicles

May 10, 2019 by admin


Shoppers of used cars tend to buy from private sellers or car dealers, but there is another option that might be worth considering: a fleet vehicle. Fleet vehicles are those that were purchased or leased by a business or government agency and used on a regular basis. Taxis, police cars, government fleets, and rental vehicles fall under this broad category, typically representing hard-driven vehicles with many miles on the odometer.

Strong Inventory

Fleet vehicles are widely available and are usually sold to auction houses before consumers can get their hands on them. Consumers can sometimes buy one directly, skipping the middle man and his price markups.

The U.S. General Services Administration operates a GSA Fleet Vehicles Sales website that sells approximately 40,000 vehicles annually at approximately 40 sites across the nation. A variety of makes and models are offered. Some states, counties and cities also sell fleet vehicles directly to the public. A web search of “government fleet vehicles” should reveal local results.

Hit or Miss

Vehicle fleets may reflect a variety of makes and models, but if you are looking for a well-optioned model, your choices are limited.

Typically, the rental vehicle companies — Hertz, Budget and Enterprise, to name a few — stock higher trim level models. Most government and public utility fleets feature vehicles that do not come fully equipped. Nevertheless, the variety of trims and package offerings will vary depending on the department and vehicle use.

The Price is Right

When no middle man is standing in the way, fleet vehicles can be competitively priced. Pricing typically reflects age, wear and tear, mileage and the equipment package.

Don’t expect much room to negotiate, however, as prices are typically set and inflexible. For instance, when available to the public, such vehicles usually have the price prominently featured on the windshield. That’s the price you’ll pay and, yes, cash is king.

Hard Driving Takes it Toll

There is no way to escape the fact that fleet vehicles are used and often abused. Taxi and police fleets punish these vehicles which sometimes hit the market with more than 200,000 miles on the odometer.

Carefully following a maintenance plan can help, but you still have a vehicle that has seen much wear and tear and looks the part. If maintenance records have been kept, then examine them. If not, then inspect the vehicle carefully and don’t expect a warranty for well-worn models.

Expect to repair all dings, dents and the paint over stain the taxi decal left when it was removed from the vehicle before heading to fleet sale.

Financing May Not be Available

Most fleet vehicles are sold “as is” with a cash payment or certified check required. One exception is the rental car companies, as some provide financing or they may accept a loan you arranged with your bank.

Bargain prices are synonymous with fleet vehicles, but a good deal on price may turn out to be a bad deal on reliability. If you are handy with cars, then repair concerns are something that you can handle yourself.


See Also — Used Rental Vehicle Buying Tips

Photo copyright Auto Trends Magazine. All rights reserved.

Filed Under: Special Tagged With: consumer tips, fleet vehicles, police cars, RENTAL CARS, taxis, USED CARS

6 Points About Buying a Used Car

March 13, 2019 by admin

You’re in the market for a used car, but you don’t know what to expect. Prices are all over the place and if you haven’t bought a car in a while, you’ll likely experience sticker shock, even for a used vehicle. Before you shop, keep the following in mind.

sixPoint No. 1: How much can you afford for a used car? You should know that a used car in decent condition will most likely cost you at least $5,000. That’s a lot of money! If your budget is considerably lower than that, then expect to find vehicles that are at least 10 years old and perhaps not in the best condition. If you’re handy with car repairs, then the problems may not bother you.

Point No. 2: Decide what type of vehicle you want. Are you shopping for a coupe or a sedan? Are you considering an SUV or a van? Do you want a sports car or some other type of vehicle? Is there a make or model that interests you? Narrowing your parameters first will make your search easier. Identify the vehicle body style that is right for you and then shop accordingly.


Ford Focus ST
2015 Ford Focus ST.

Point No. 3: Consider your purchase options. When buying used, you can shop a car dealer or purchase from a private party. Both options have advantages and disadvantages. Buying a car from a dealer will cost you more, but you should also get a warranty. Buying privately will save you money, but the lack of a warranty means you’re on your own. In any case, it is good to check a site such as Kelley Blue Book or Edmunds.com to get pricing information. From there, you’ll have a framework from which to negotiate. And by all means, negotiate!</a>

Point No. 4: How will you pay for it? If you have enough cash to buy a used car, then you’re in great shape. If not, how will you pay for it? Used car financing is possible, but rates are higher than for new cars. You’ll also pay a higher interest rate if your credit is only satisfactory or poor. The more money you can put down, the lower your monthly payments too. Also consider what a car will cost you in property taxes, the registration fee, insurance, gasoline, and maintenance. Know your full costs going in and you won’t be surprised later.


2016 Infiniti Q70L.
2016 Infiniti Q70L.

Point No. 5: Inspect the car carefully. You’ve found a car, SUV, van, or truck that interests you. Now for the hard part: determining whether it is in decent condition. A thorough check from bumper to bumper and from top to bottom is essential. This means lifting the hood and checking wires, belts, hoses, and fluids. It also means crawling under the car to examine the suspension system, brakes, calipers, and exhaust system. Check the tires too — look for signs of uneven wear and aging. Obtain a car history report too from a service such as AutoCheck.

Point No. 6: Have a mechanic inspect the car. Unless you do a stellar job of checking a car yourself, you may want to hire a mechanic to do the check for you. Typically, you’ll pay upwards of $100 for an inspection. But that review can pay for itself quickly, alerting you to potential problems or avoiding a money pit altogether. Regardless, a second set of eyes may see something that you might miss.


2017 Ford Mustang GT Premium.
2017 Ford Mustang GT Premium.

Used Car Considerations

Carefully shop for a used car and you won’t regret your purchase. Make a sound buying decision and you may get several years out of your car, provided you follow the maintenance schedule in the owner’s manual and address pressing problems immediately.


See Also — 8 Reasons to Avoid a Particular Used Car

Photos copyright Auto Trends Magazine. All rights reserved.

Filed Under: Ownership Experience Tagged With: CAR, car buying tips, SUV, truck, USED CARS, VAN

Consumer Car Loans Reach Record Lengths

June 8, 2015 by admin 3 Comments

Hyundai Sonata

New car loan terms are longer than ever before.

Earlier this month, Experian Automotive announced that the average length of both used and new car loans had increased by one month to 62 and 67 months, respectively. These loan term averages are at record levels, but consumers are eagerly embracing the extended loan terms.

Indeed, Experian noted that 29.5 percent of all new car loans are for 73 to 84 months, representing an 18.6 percent year-over-year increase against the first quarter of 2014. Moreover, used car loans for the same lengthened term and period were up by 14.2 percent, representing 16 percent of all such loans.

Negative Equity Implications

Despite the increasing shift to longer term car loans, Experian’s senior director of automotive finance, Melinda Zabritski, downplayed worries that such loans might have an adverse affect on consumers. “Most longer-term loans help consumers keep monthly payments manageable, while allowing them to purchase the vehicles they need without having to break the bank. However, it is critical for consumers to understand that if they take a long-term loan, they need to keep the car longer or could face negative equity should they choose to trade it in after only a few years,” explained Zabritski.

Experian noted that the average amount financed for new car loans has also set a record. In the first quarter of 2014, consumers financed an average of $27,612. But that amount rose by $1,099 to $28,711 one year later. Monthly payments increased too, rising from $474 to $488.

As a point of comparison, used car debt is coming in lower, at least $10,000 below new car indebtedness. However, those obligation levels are on the rise, increasing from $17,929 to $18,213. Furthermore, the median interest rate for used car loans was 9.17 percent compared to 4.71 percent for new car loans.

GMC Sierra Denali

Longer loan terms mean affording trucks such as this GMC Sierra Denali.

Consumers with excellent credit routinely qualify for the best loan terms. To be sure, those low teaser rates offered by the car manufacturer’s financing arms are reserved only for people with the highest credit scores.

And with an average credit score of 713 for the new car loans financed during the first quarter of this year, that number is about 100 points lower than consumers with excellent credit, underscoring the higher average interest rate. Used car loan borrowers came in even lower, with a median 643 credit score. That’s not far above the 620 credit score that some consider subprime.

Underwater and Sinking Fast

Not everyone is convinced that the trend to longer loan terms is a good one.

For instance, Paul Kirkbride, SVP of CU Solutions at CU Direct noted that there are certain financial implications consumers should keep in mind. Specifically, they may find themselves underwater (i.e., owing more on their car than what it is worth) as vehicles depreciate an average of 13 percent annually according to NADA.

Said Kirkbride, “If a borrower didn’t make a down payment and selected a longer term, the risk is the borrower will possibly need to roll negative equity from one car loan into another when they trade in the car, or worse, should the borrower need to sell the car, they’ll have to come up with the difference to pay off the loan.”

He also pointed out that credit unions typically work with people who have the financial means and creditworthiness to afford such loans. Such consumers usually choose the extended loans for convenience purposes.

2013 Buick Encore

Interest rates for late model used cars average above 9 percent.

Looming and Costly Repair Costs

Ed Snyder, President of Oaktree Financial Advisors foresees a problem that consumers may overlook. In particular, he points out that repair costs tend to mount as a car ages.

“If you take a longer loan, like 72 months, you are going to rack up some miles by the time your loan is paid off. If you average 15,000 miles per year you’ll be closing in on 90,000 miles – and that’s on a new car. If you buy a used car you’d have even more miles on it at that point. This is certainly at the mileage and age where your car could need some expensive repairs. It could easily need some work on the air conditioning or new tires or other repairs. You’ll have to foot that bill on top of the car payment that you still have,” said Snyder.

The longer term new and used car loans may eventually have an adverse impact on new car sales down the line as well. Said Snyder, “These longer loan lengths could end up meaning fewer cars sold in the future as people are forced to hang onto their cars longer since they are still paying on them.”

Credit and Car Loans

Astute consumers can and should keep tabs on their credit by obtaining copies of their three credit reports. Those reports, assembled by Trans Union, Experian and Equifax are available for free once annually at AnnualCreditReport.com. Information in these reports can affect credit scores, a three-digit number that is sold separately.

Shopping around for a car loan, putting more money down and choosing a shorter loan length can reduce your monthly payments as well as curtail your overall costs. Explore your options before committing to a car loan that you may have for the next six, seven or eight years.

Filed Under: Special Tagged With: CAR LOANS, CONSUMERS, CREDIT REPORTS, CREDIT SCORES, CU DIRECT, DEBT, EXPERIAN AUTOMOTIVE, FINANCIAL, FINANCING, MONEY, NEW CARS, OAKTREE FINANCIAL ADVISORS, USED CARS

Can the Weather Really Affect Old and New Car Discounts?

July 16, 2012 by Will Vernon Leave a Comment

Climate conditions and your car purchase.

Can the weather affect car discounts? Yes it can, according to Chris Crow, Chief Editor at car pricing experts CAP. He’s recently conducted a study to try and find a correlation between weather patterns and car prices. His findings, which are published in industry journal AM Magazine, seem to suggest that warmer weather adds a few more zeros to the end of a price of a used auto.

Sunshine Sales

Crow says, Both 2002 and 2006 began with similar hours of sunshine through to the month of May. However, in June 2006 there were an additional 60 hours of sunshine compared to 2002, while July enjoyed 115 additional hours over the same period in 2002.

MarlinIt was also a cracking year for strong used car values, which supports what dealers often tell us that the better the weather, the stronger the demand for used cars.

Market Conditions

His study focused on years 2002 and 2006, which both had similar economies, but markedly different weather patterns. It may sound a bit flimsy, but Chris Crow’s findings are intriguing – certainly worthy of more research from either himself or another party. Crow’s research, by the way, shows that the whole market benefits, and not just sun-stealing autos like convertibles.

Is a bright, sunny day more likely to urge people to head outdoors to their local used car dealership and investigate the new car discounts available? If Chris Crow is right, then exactly how harsh does the weather need to be for a consistent period before a dealership goes out of business? Could a used car dealership theoretically invest in meteorology technology to predict the weather, and adjust their prices according to what Mr. Blue Sky fancies doing on any particular day?

Buying Habits

Of course, such a strategy would be folly. But, if accurate, it’s interesting to know that weather does play a part in people’s used car buying habits. Does that relate to other industries, we wonder – will people invest in a new washing machine if heavy fog descends one afternoon?

The only logical reason that we can think of is that people simply want to enjoy the weather, if the findings are accurate. They must want to invest in a used car and go on a road trip with friends, and be as sociable as possible whilst the sun’s out.

Good luck to them, we say!


See Also — Dealers: Use Open Recalls to Drive Sales

Filed Under: Dealers Tagged With: BUSINESS, CAR DEALERS, CAR SALES, NEW CARS, USED CARS, weather

Why Your Used Car Is Worth Less (And What You Can Do About It)

July 1, 2012 by admin Leave a Comment

Sell your car and still come out ahead.

2014 Toyota Corolla

If you’re planning to sell your car either to a private party or to trade it in to a dealer for a new car, then you may have discovered that its value has slipped in recent months. Besides being a few months older and with more miles on the odometer, there are some good reasons why your cars valuable has been slipping. Well tackle those issues here and help you get more for your car when you’re ready to make a sale.

1. Lower gas rates equals falling prices for economical cars. In recent years as gas prices have risen so has the value of fuel efficient small cars. Earlier this year, gas prices topped $4 per gallon across much of the nation, pulling up used car prices with it. As gas prices fall as they are doing in summer 2012, used car values are also falling. This is one area of car pricing you have little control over, but take heart if you own a luxury car as scant supplies of these vehicles has been driving up prices according to the National Automobile Dealers Association and its Used Car Guides.

2. Make mention of a warranty. Later model used cars often come with a new vehicle warranty, one that may not have expired yet. Check your warranty and if it is fully transferrable to a new owner, make note of that when you advertise your car for sale. Even older models from Kia and Hyundai may still be covered, given that both companies offer a 10-year/100,000-mile powertrain warranty. An available warranty adds values to a car.

3. Get it ready to show. You can make up for the dropping value of used cars, by ensuring that your vehicle is in tip-top shape and looks great. Any maintenance issues should be resolved before you put your vehicle on the market. You’ll also want to wash and wax it, detailing it by using an old toothbrush to lift crud from cracks, a soft brush on the wheels to remove brake dust and pay particular attention to hazed-out headlamps. Providing similar attention to the interior can make your car look great and fetch you more when you’re ready to sell it.

4. Sell it privately. It takes more work and preparation to sell a used car privately, but you stand to make much more money on a private sale than through a trade-in. Your car dealer may be willing to take your old car off of your hands, but that comes with a price reduced profits fro you. Dealers will sometimes inflate the price of your trade-in to make it look as if youre getting a good deal, but youll pay in some other way such as receiving less of a discount for your new car.

5 Advertise it effectively. These days, you don’t have to take out an expensive newspaper advertisement to market your car. Indeed, word of mouth advertising can help you sell your car, perhaps to someone you know. Start with the people nearest and dearest to you and tell them that your car is for sale. Ask them to help spread the word, providing contact information and car details on a flyer or through an email message to help your market your car. Beyond the people you know, online ads through services such as MSN Autos, AOL and Edmunds.com can also attract buyers according to Consumer Reports.

Private Sale

Ultimately, the value of your used car doesn’t always coincide with what a buyer may be willing to pay for it. A few percentage point drop in car values can be made up if your car is in good running condition, looks great and is a model that is in high demand. Negotiate wisely and you’ll come out ahead in a private party car sale.


See Also — 8 Reasons to Avoid a Particular Used Car

Filed Under: Special Tagged With: ADVERTISING, detailing, NADA, USED CARS, WARRANTY

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  • Raptor Fighter: Ram 1500 TRX!
  • White Space Wonder: 2020 Nissan Rogue Sport
  • About the 2021 Genesis GV80
  • The Toyota Supra Gets a Four-Cylinder Engine and We’re Simply Gobsmacked!
January 2021
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