Used Car or Lemon?
Used Car or Lemon?
Used Car or Lemon?
Lemon Laundering Laws and Regulations
You have heard the term "Lemon" used to describe a car that just not right. A lemon can refer to used or new car, that repeatedly fails to meet standards of quality and performance. For the car buyer, buying a Lemon can be a sinkhole of misery and repair money.
Lemon laws are state laws that provide a remedy for purchasers of Lemons. Thelemon law (theMagnuson-Moss Warranty Act) protects citizens of all states. The rights afforded to consumers by lemon laws may exceed the warranties expressed in purchase contracts. Lemon law is the common nickname for these laws, but each state has different names for the laws and acts.
Laws regarding lemon laundering vary widely from state to state; indeed, only 19 states mandate that a lemon's title carry a warning.
Do you know the law in your State?
Even states that have lemon laundering laws can differ in their definition of a lemon; some limit affected vehicles to those repurchased as a result of a Lemon Law claim, while others also include vehicles voluntary repurchased by manufacturers. Some consumer advocates have accused manufacturers of rerouting lemon vehicles and selling them in states that have more lenient laws about consumer notifications. Others say that manufacturers sell lemon vehicles at auction, and that unscrupulous people who purchase the lemons then resell them to unsuspecting buyers at retail prices. The result? A doubly sour experience.
In 1995, consumer groups filed a petition with the Federal Trade Commission, urging the FTC to address the problem of lemon laundering. The FTC launched the Vehicle Buyback Disclosure Project, and held a public conference where a variety of lemon laundering proposals were discussed, including one that would require manufacturers to re-register lemons that were repurchased (either voluntarily or as the result of a lemon law claim), and to make a notation that the vehicle was returned. Because consumer groups were concerned that a federal regulation would override stronger state laws and a consensus could not be reached about a strong federal regulation, the FTC did not take action on the matter and has yet to make any rulings about the issuse.
The best way to protect yourself from buying a Lemon is to hire a full-service Auto Broker. A good Broker will research the car you want to buy and obtain a complete history of the vehicle's repairs.
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