Despite all of your research and best efforts, it is still possible to make a wrong decision when purchasing a new vehicle. A signed contract is legally binding, however, you do still have rights and the dealer still has obligations beyond the sale. Your protection will be found through state laws, federal laws, and the vehicle warranty.
State Laws
You have most likely heard of the “lemon law” which refers to a vehicle that turns out to have substantial defects. Lemon laws are set by state law which means they will vary from state-to-state. These laws are difficult to define because they are not necessarily titled “Lemon Law.” As a result, if you feel you have a vehicle that could be defined as a lemon, you should contact an attorney to see what relief is provided within your state.
The definition of a vehicle that qualifies as a lemon will vary from state-to-state but generally it is a new vehicle that has a substantial problem or a safety defect which is not repaired within a specified amount of time. Generally, a substantial defect must be repaired with no more than four attempts and a safety defect must be repaired in no more than two attempts. Number of days out-of-service can also be used rather than repair attempts. Generally, a vehicle would qualify as a lemon if it is out-of-service for 30 days or more during the first 12,000 to 18,000 miles. Once again, the definition of a lemon will vary from state-to-state.
Vehicle Warranty
The Magnuson-Moss Warranty Act is a federal law that applies to the purchase of a product that costs more than $25 and is covered by a written warranty. The Act requires that consumers be provided with detailed information about warranty coverage. The warranty must be written in clear, easy-to-understand wording. The Act does not specify what products must include a written warranty, it simply regulates a warranty once it has been provided. How does the Magnuson-Moss Warranty Act help you, the consumer? It provides the basis for protection should a manufacturer breach the warranty.
Secret Warranties
Did you know that a secret warranty may exist for your vehicle? Basically, a secret warranty covers known defects after the initial written warranty has expired. Secret warranties can be somewhat difficult to uncover as they are a closely held secret by the manufacturer. In fact, some dealerships may not even be aware of the secret warranties. So, how can you find out if a secret warranty exists for your vehicle? First, you must obtain the Technical Service Bulletin (TSB) for your vehicle. The National Highway Traffic Safety Administration (NHTSA) has a searchable online database for TSB’s, Recalls, Defect Investigations, and Consumer Complaints. You can also search Edmunds.com for vehical maintenance schedules, recalls and TSB’s.
Unfortunately, the existence of a TSB does not guarantee a secret warranty. TSB’s are published by the manufacturers and provided to the dealerships in order to help them diagnosis and repair known problems. Some of the TSB’s will indicate that a particular repair is covered by the manufacturer. Many times this wording is not very clear so you have to thoroughly investigate the TSB. Look for wording such as “check for availability of good will assistance.”
A few states have laws covering secret warranties, but most do not. The bottom line is that only the consumer that complains loudly enough is going to receive relief for a particular problem. Therefore, if you have a problem, don’t give up. The fight could very well be worth the end result.
Uniform Commercial Code (UCC)
The UCC provides protection to consumers who have a contract involving the purchase of a product. It gives the consumer the right to a refund or a replacement.
Beyond the legal jargon....
The bottom line is that there are existing laws which have been established to protect the consumer. The seller cannot sell you a vehicle that has defects which affect the use, value or safety of your vehicle. Despite the existence of these laws, it can still be difficult for the consumer to obtain a remedy. What can you do to increase your chances of finding relief?
- Document, document, document! Keep good, detailed records of every event involving your vehicle.
- Provide appropriate notification to the dealership. If they have not received adequate notice of the problem, they cannot be expected to assist in resolution.
- Make certain that you have adhered to any responsibilities that you may have as the consumer. Carefully read your contracts and warranties to discover what your responsibilities may be. Do not rely on the dealership to tell you what step you should take next.
- Don’t be intimidated by the dealership or the manufacturer. If you feel you are being bullied, contact an attorney.
Have a question about purchasing a new vehicle? If so, post your question in the Home Finance forum today.
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