Buying a new car is one of the largest single purchases many Americans make in their lives. The process can drain you of more than just money, but time and energy spent shopping for a vehicle, deciding where to buy your vehicle from, and how to finance it. Many Americans each year, unfortunately, encounter an entirely new problem when buying their new vehicle: a defect.
This happens to more people than you may realize. The National Highway Traffic Safety Administration (NHTSA) estimates American consumers inadvertently purchase 150,000 vehicles each year containing repeating, unfixable defects. The defects these “lemon” vehicles contain can range from the merely annoying (unexplainable foul odors, paint job mistakes, rattling noises) to the truly dangerous (faulty safety systems, engine malfunctions). These defects can arise from any number of causes including manufacturing mistakes, design flaws or even shipping mishaps from the factory to the dealership.
No matter what caused the problem, one thing stays consistent from one lemon to another: the manufacturer must, by law, make the consumer whole. This can be either by fixing the problem, replacing the vehicle or refunding the consumer’s money. When they fail to uphold their end of the bargain, lemon laws give consumers and their attorneys the tools they need to seek justice.
Many consumers finance their vehicles instead of paying outright. This means for those whose financed cars end up as lemons, they are still paying a loan on a vehicle they cannot use. However, it is imperative the client continues paying their car loan throughout the lemon law claim process. Failing to do so can end in repossession. It doesn’t matter if the vehicle is stuck in the shop or otherwise undrivable; falling behind on payments can negatively affect their lemon law claim. However, once their claim resolves, they can pay off their old loan with their awarded funds.
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Clients who pursue a successful lemon law claim can use funds awarded through the process any way they choose, including paying off their loan. Clients who bought their vehicle outright or paid their loan off before their lemon law claim resolves can use their awarded funds as a down payment on a new vehicle. They could also, if they remain wary of yet another long-term loan, put that money toward buying a less expensive used vehicle.
One thing to keep in mind when choosing your next vehicle, however, is how most states do not offer lemon law protections to used vehicles. The Texas lemon law, for example, does not cover used vehicles, as it specifically states it protects consumers who purchase vehicles from a dealer. Most used vehicles are sold long after the manufacturer’s warranty expired.
Andrew Ross, a lemon law attorney with Allen Stewart P.C., said used car consumers are often out of luck if they expect the manufacturer to repurchase or replace their used vehicle.
“If a consumer is hoping to force the manufacturer to repurchase or replace their used vehicle, the Texas Lemon Law is not going to help the consumer achieve their goal,” Ross said. “The only relief that may be afforded is that the consumer may be able to force the manufacturer to repair the problems experienced in the vehicle.”
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When a consumer pursues a lemon law claim and succeeds in court, they generally have two options: repurchase or replacement. Repurchase, or “buyback,” is where the manufacturer agrees to refund you the money spent on your defective vehicle. Buyback is one of the faster methods of getting compensation, since they simply cut you a check for the full price of the vehicle including sales taxes, title registration and other fees. 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.
Buybacks come with a caveat, however. Manufacturers can withhold reasonable allowances for the consumer’s use of the vehicle” depending on how much the consumer drove the vehicle before the defect put the vehicle in the shop. Simply, the more you drive the vehicle before finding the defect, the less the manufacturer must pay when buying it back from you.
Replacement is precisely that: the manufacturer provides a vehicle as similar as possible to the original. This time, hopefully, without the unfixable defects that made the original a lemon in the first place. The manufacturer must provide a “comparable” vehicle, meaning one of the same make and model as the defective vehicle. Just as in the case of a buyback, the manufacturer can also withhold a certain amount of money paid according to the use of the defective vehicle.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
The first thing you should do if you suspect your brand new car is a lemon is contacting the dealership to arrange a repair. The second thing you should do is reach out to an experienced, qualified lemon law attorney. Ross said lemon law lawyers know how auto manufacturers react to lemon law claims and how to counter them to make sure you get the justice to which you are entitled.
“If you’re missing some of those things, or if you don’t follow certain rules, your claim can be completely tossed out,” Ross said. “You run the risk of having your case thrown out or getting a judgement that prevents you from trying to present your case again.”
The lemon law attorneys of Allen Stewart P.C. have represented hundreds of clients just like you across the United States when their car’s manufacturer fails to uphold their end of their written manufacturer’s warranty. They have the knowledge and tools needed to get you the compensation you deserve, and a proven track record of doing that for scores of clients just like you. The sooner you reach out to Allen Stewart P.C., the better your chances of getting the compensation you deserve. Contact Allen Stewart P.C. today and get back behind the wheel.