Is Your New Car A Lemon?
How to Tell, What To Do
t's called buyer's remorse -- when consumers have a problem with a car soon after buying it, they feel that momentary feeling of panic creeping in. They find themselves asking that question: "Did I just buy a lemon?"
When confronted with mechanical problems soon after purchase, many of us jump to the conclusion that we've been had.
There is a technical definition of what constitutes a vehicle that is a "lemon." It's any new vehicle that has a substantial problem that isn't fixed within a reasonable number of attempts, or that has had a certain number of days out of service. But how does one define the meaning of "substantial problem," "reasonable number of attempts," and "certain number of days" when it comes to dealing with a problem car?
There are general national "lemon laws" consumers can turn to, as well as more specific state laws, to understand if their problem car fits the bill and what they can do about it. Three sets of laws apply to defective vehicles and products in the United States.
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The Magnuson-Moss Warranty Act is a federal law that protects the buyer of any product that costs more than $25 and comes with a written warranty. The act prevents manufacturers from drafting grossly unfair warranties. It also makes it economically viable to bring warranty suits by providing the award of attorney's fees. Consumers can find more information about the act at AutoSafety.org.
The Uniform Commercial Code applies to all 50 states and covers contracts dealing with the sale of products. The UCC gives a consumer a right to a refund or replacement of a lemon. The UCC, however, does not define a Lemon, so it's up to a court to decide if an auto company must give you a refund or a new car. The Magnuson-Moss act and many state lemon laws also provide for attorney fees under the UCC.
The theme of most state lemon laws is that a manufacturer must provide a refund or replacement for a defective new vehicle when a substantial defect cannot be fixed in four tries, a safety defect within two tries or if the vehicle is out of service for 30 days within the first 12, 000 to 18,000 miles or 12 to 24 months. Success in using state lemon laws depends upon three things: keeping good records, providing the right notice, and using an arbitration program where required.
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Keep good records. Keep close track of the number of repair attempts and the time the car is out of service. Submit a written, dated list of problems to the dealer each time. List your car's symptoms. Insist on getting a copy of the repair order. And keep copies of all records and correspondence.
Follow your state's notice requirements. Where written notice to the manufacturer is required, send a certified, return-receipt letter stating your vehicle's need for repair to the manufacturer's consumer-relations office, as well as to the nearest regional office. Send this notice by the time you take the car in for the repair attempt that qualifies it as a lemon. Give the dealer a copy of this letter.
Use an arbitration program where required. If you arbitrate, ask for a copy of the program's procedures and make sure you follow them. The manufacturer may make a settlement offer prior to any arbitration meeting. Consider the offer, but don't be pressured into an unfair settlement. If a manufacturer's program has not given you a decision within 40 days of your original contact, you are not required to continue in it. What's most important is thorough preparation in showing that basic fairness, as well as the lemon law, entitle you to a refund or replacement. To find lemon lawyers in your state, go to AutoSafety.org.
