Car Parts Plus

Lemon Law Litigation: From Complaint To Settlement

Most states have a Lemon Law that protects motorists from being saddled with a defective vehicle. Each state has different conditions that must be met in order to qualify. For example, a driver may be required to take his car into a dealership 3 times in order to have the defective part fixed or replaced. Once the conditions have been met, the driver can pursue recourse. If a suitable settlement cannot be reached, litigation may become necessary.

Today, I’ll provide a brief overview regarding the basics of Lemon Law litigation. We’ll explore the entire process from filing a complaint to receiving a verdict. It’s worth noting that most vehicles are built with a higher level quality today than ever. The law exists to address the exceptions to the rule.

Complaint And Response

The process begins with an owner formally files his grievance against the automaker with the court. A copy is sent to the automaker and normally, to the dealership from which the car was purchased. The document should include details regarding any defective parts and why the automaker should be responsible for making recompense.

The auto manufacturer responds by either asking for clarification of the details or offering an explanation regarding why it should not be held responsible. The driver can then formally file a reply in response to the automaker’s answer.

Preparing The Case

The next step is discovery. The legal teams for the driver and the car manufacturer will try to uncover as much relevant information as possible. They might interview employees at the auto dealership’s service shop, review repair and maintenance receipts, and retain certified mechanics who may be familiar with the details.

While discovery is ongoing, the driver should only take his car into dealerships that are authorized by the automaker. Whether the purpose of the visit is to replace an air filter, work on the transmission, or even change the oil, it preserves the integrity of the Lemon Law case.

Lemon Law Trial And Verdict

During trial, the driver and his legal team explain their case to the jury. The car manufacturer explains why they should not be held responsible. After evidence is provided, closing arguments are made, after which the jury is given time to deliberate. Then, they render a verdict.

Keeping Good Notes

If you suspect that your vehicle or a particular car part (for example, the transmission) is defective, start keeping a detailed log of your experience. Take notes regarding the conversations you have with employees at your car dealership’s service shop. Write down dates on which you notice the defect. And of course, keep all of your repair and maintenance records.

As noted, the Lemon Law is rarely necessary because most vehicles are built well and use high-quality parts. That said, in the event that you’re driving a lemon, it’s critical that you keep good records and know your options.

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Potential Hazards When Financing Your Vehicle

Millions of people visit their local car dealership each year with the hopes of driving home in a brand new vehicle. Many of them even research MSRPs and other data that help ensure they secure a good deal. But, a lot of buyers would be floored if they knew how a dealer’s profit can be added into the financing process.

If you’re thinking about purchasing a new car and have already secured financing from your bank or credit union, the only step remaining is to negotiate the price. But, if you’re allowing the dealership to carry the financing, beware. The interest rate and monthly payments they offer can be padded in order to eliminate any savings on the price of the vehicle. To help you prepare, I’ll describe 3 hazards that can siphon thousands of dollars from your bank account.

#1 – Not Setting Your Budget

Before stepping onto the dealer’s lot, establish a budget and stick to it. That includes the price you’re willing to pay for a car and the amount of the monthly payments. Often, prospective buyers are lured into paying more than they should or assuming higher monthly payments than is reasonable. Over the course of a 5-year contract, that can add hundreds of dollars to the amount you end up paying for your new car.

#2 – Get Third Party Financing

A lot of people underestimate the value of third party financing as a negotiating tool. If you arrive at a dealership without an approved auto loan from your bank, you’ll be far less likely to get the best deal on a new vehicle. Remember, the numbers can hide plenty of profit. An interest rate that is 2 percentage points above what your bank would offer you can add thousands of dollars to the price of your car.

Before going to a dealership, speak with your bank, credit union, or an auto loan company to secure financing. In most cases, you’re not obligated to use it; if the dealer offers better terms, accept them. But, at least you’ll have the option.

#3 – Know Your Credit Score

Your FICO score will be the determining factor in the interest rate offered to you. However, it’s worth noting that a lot of dealers will try to pad the rate. The reason they do this is because an extra percentage point can yield hundreds of dollars in profit over a 60-month contract. Know your credit score ahead of time and research the prevailing interest rates in your area.

Buying a new or used car is a simple process of negotiating price if you’re a cash buyer. However, if you intend to make monthly payments to the dealer, use the tips above to avoid paying more than you should. The more prepared you are when you arrive at the dealership, the better the bargain you can expect to negotiate.

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