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We handle cases across the United States. Allen Stewart is licensed to practice law in Texas, California, New York, Pennsylvania, Missouri, North Carolina, Ohio and Arizona.

Lemon Vehicles and Resale Values

Lemon Vehicles and Resale Values
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Lemon cars can happen to anyone. Every major automotive manufacturer has inadvertently built lemons, from everyday car makers like General Motors or Toyota to high-end luxury or sports car makers like Bentley or Lamborghini. These “lemons” contain repeating, unfixable problems caused by any number of factors ranging from design flaws at the drawing board to faulty components or accidents in shipping. These defects can be something as seemingly innocuous as a bad paint job, odd smell or unexplainable rattle, to major problems including failing engines or malfunctioning safety systems. Regardless of the defect’s cause or severity, one thing remains the same: the manufacturer holds the responsibility of fixing the problem or fairly compensating the consumer. When manufacturers won’t stand by their vehicles, lemon laws empower consumers and their lemon law attorneys to seek compensation in a court of law.

Each state in America has some form of “lemon law” that provides protection for consumers who unintentionally purchase a defective car. Each state’s lemon law varies from one another in how much protection they offer and for how long. The federal law, the Magnuson-Moss Warranty Act, provides protection to all American consumers no matter what state in which they live. Lemon law attorneys use knowledge of these laws and their years of experience taking on automakers to fight for their clients and get them the justice they deserve.

For more information on arbitration and other frequently asked lemon vehicles questions, click here.

If your car is still within the original manufacturer’s written warranty received when you purchased the vehicle, you can get compensation from the manufacturer without having to sell the vehicle. This can be either repurchase or replacement, depending on the solution you choose after succesfully pursuing your lemon law claim. However, if you wait too long or purchase an older used vehicle well beyond the warranty’s coverage period, you are out of luck. Most states do not offer lemon law protections for used vehicles, except some states, notably New York. Without warranty protection, your best bet is trying to sell the car.

If you’ve given up on trying to repair the defect, or it is truly unrepairable, you can go to websites including Edmunds True Market Value or Kelly Blue Book to see how much your vehicle is worth. You must disclose the problem with the vehicle before selling, which can drastically lower the value of the vehicle. Some states will brand the titles of lemon cars, making sure anyone who buys it later knows there’s a potential issue with the vehicle. While you must disclose these problems when selling the vehicle, it can indeed tank a car’s resale value.

Some dealerships will promise “minimum trade-in value” for any vehicle you bring in as part of a new vehicle purchase. You might think bringing your lemon in as a trade-in for a new vehicle is a good idea but be warned –there’s always a catch. Dealerships have been known to indeed offer a minimum guaranteed trade-in value, but then mark up the cost of the new vehicle to make up the difference. This is especially likely once the dealership discovers the car you’re trading in is a lemon. Reputable dealerships will give you honest assessments of your trade-in but be sure to check the fine print on any deal you make.

Think you have a lemon, click here. to fill out a 30 second form.

If the defect is very substantial and the vehicle is no longer covered by the warranty, your best option may be to scrap the vehicle altogether. Contact local scrapyards and check what they are offering for scrap by weight. This amount differs by location, but if you’re already giving up on the vehicle, something is better than nothing. Some automotive recycling services will offer extra to scrap what useful parts they can from the car before dismantling the rest for its constituent materials.

Selling the car privately is an option, but do so honestly. You can sell the vehicle as is, meaning you provide no warranty and no promise to the buyer as to the condition of the vehicle. However, you should still be upfront about the vehicle’s lemon status and describe the defect to the best of your ability. Misleading a consumer as to a vehicle’s status, warranty or not, could land you in court.

Finally, you could always donate the vehicle to a non-profit organization. There are several charities and non-profits that will accept your vehicle and sell it for you. They keep the proceeds of the sale, while you get a tax deduction. While this can complicate your taxes at the end of the year, it can also benefit you in the long run while you rest peacefully knowing you helped an organization in need.

The dearth of quality options for lemon car owners after the warranty expires emphasizes how you should act quickly when you notice a potential defect in your new car. If you pursue a lemon law claim while still protected by the original manufacturer’s warranty, you can get recompense through the lemon law process either through repurchase or replacement.

Lemon laws are confusing. Read our guide to the lemon law complaint process.

Repurchase is exactly what it sounds like: the manufacturer buys the vehicle back from you and cuts you a check for its value, with a portion withheld depending on how many miles you drove the vehicle before reporting the problem. Most state laws also require the manufacturer reimburse you for incidental costs you encountered because of the vehicle’s defects, including rental car fees, towing costs, phone or mail communications made when contacting the dealership or manufacturer, personal property damage, attorney’s fees if the consumer hires an attorney after learning the manufacturer has also hired an attorney, and even room and board if the vehicle fails while on an out-of-town trip.

Replacement is when the manufacturer provides a vehicle as close to the original as possible, usually of the same make and model – through hopefully lacking the problems that made the original vehicle a lemon in the first place. Just like with a repurchase, the manufacturer can withhold a certain amount depending on how much the original vehicle was driven before the consumer reported the defect.

The lemon law attorneys of Allen Stewart P.C. are here to help you with your lemon car. They have the tools, knowledge and experience needed to take on automotive manufacturers on your behalf and get you the compensation you deserve. The sooner you reach out, the better your chances of getting the best compensation for your lemon. Contact Allen Stewart P.C. today.

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