Consumer Law

Bill Requiring Car Dealers to Pay Off Liens on Trade-Ins is on the Governor's Desk

Posted on September 23, 2009
Many consumers have been burned by used car dealers who failed to pay off the loans on cars customers traded in. Car dealers then sold the cars without disclosing to the buyers that there were liens on the cars. The finance company's lien did not disappear with the sale...

Owner Uses Clunker Program to get Rid of a Lemon Maserati

Posted on August 30, 2009
The Associated Press reports that a Subaru dealer in Golden, Colorado, did a double-take when a customer drove up in a 1985 Maserati Biturbo with 19,000 miles on the odometer. The owner, who had been trying without success to sell the car on his own, offered it in trade-in on a new Subaru Impreza...

Chrysler Reverses Ban on New Product Liability Cases

Posted on August 29, 2009
When Chrysler went through Chapter 11 bankruptcy protection earlier this year the court granted an important request to prevent current owners from suing the new company if they were injured by a safety defect in the future. But Chrysler has had a change of heart...

Enterprise Rent-A-Car Sold Cars with No Side Airbags

Posted on August 16, 2009
Side airbags, an important safety feature, were standard equipment on the 2006, 2007 and 2008 Chevrolet Impalas and on the 2007 and 2008 Chevrolet Cobalts. Even though the airbags were standard equipment, GM allowed fleet buyers to delete the side airbags to save $175 a car...

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Nissan's All Electric Car on Sale in 2010

Posted on August 09, 2009
Nissan will sell an all electric car, the Leaf, in 2010 priced less than $20,000. The Leaf has a range of 100 miles. The cars initially will be produced in Japan; later, cars for the U.S. market will be produced in Smyrna, TN. Nissan is building a battery factory at the same location with the help of a $1...

Consumer Groups Protest Chrysler & GM Avoiding Product Liability Claims

Posted on July 03, 2009
Chrysler and GM are using the bankruptcy proceedings to bar persons injured in accidents due to defects in their vehicles. Thanks to the bankruptcy, owners injured or killed due to product defects in vehicles produced before Chrysler's bankruptcy filing are barred from making any claims...

Chrysler Owners' Lemon Law Rights Are Preserved

Posted on June 10, 2009
The new Chrysler/Fiat corporation that emerged from the bankruptcy proceeding will negotiate settlements with owners of vehicles manufactured by the old Chrysler corporation. This concession was made in response to publicity generated by consumer groups...

Dealer Promises to Pay off the Loan on Your Trade-In Car & then Goes out of Business, What Protection do you Have?

Posted on May 25, 2009
Car dealers routinely accept trade-in cars promising to pay off the existing loan as part of the deal. But what happens when the dealer goes out of business without paying off the loan? That leaves the consumer owing money on the trade-in with the finance company looks to the consumer to keep paying...

Can Consumers Sue the new Chrysler?

Posted on May 20, 2009
Whether Chrysler owners may sue based on the lemon laws or for personal injury caused by product defects is not settled. Christopher Jensen, writing today in the NY Times, said that the new Chrysler, the company that is expected to emerge from bankruptcy court, will honor warranties, but will only be responsible for personal injury lawsuits for vehicles sold after the bankruptcy...

Best Cars for Teen Drivers

Posted on May 19, 2009
Accident rates for teen age drivers are pretty appalling. An aggravating factor is that parents often give older, unsafe cars to the kids. Given their driving habits, the kids should have the safest cars. Columnist Joseph White of the Wall Street Journal analyzed crash tests and reliability data to come up with recommendations for the best used cars for young drivers...

Be Cautious Buying from Dealers Going Out of Business

Posted on May 17, 2009
As everyone knows, Chrysler and GM are disenfranchising thousands of car dealers. Lots of used car dealers have gone out of business because of the rescission and poor sales. When dealers go out of business, bad things can happen to buyers. Dealers may forget to pay off the loan on a trade-in car or to send in the paperwork for an extended warranty or a factory rebate...

Chrysler Bankruptcy Trumps Lemon Law Claims

Posted on May 10, 2009
Chrysler's bankruptcy has left owners of Chrysler lemon vehicles without a remedy. Under bankruptcy law, Chrysler owners with lemon law claims are are merely unsecured creditors who are essentially last in line. Owners may file a claim with the bankruptcy court, but it is unlikely such claims will be paid...

Smart, Yaris & Fit Fare Poorly in Crash Tests

Posted on April 16, 2009
The Insurance Institute for Highway Safety sent the Honda Fit crashing into a Honda Accord, the Smart ForTwo into a Mercedes C-Class and a Toyota Yaris into a Toyota Camry -- each at 40 miles per hour. The results indicate what safety you may be trading for efficiency when your mode of transportation shrinks...

President Nominates Safety Advocate to Head NHTSA

Posted on April 14, 2009
President Obama has nominated safety advocate Charles A. Hurley to head the National Highway Traffic Safety Administration (NHTSA). Hurley has been the CEO of Mothers Against Drunk Driving (MADD) for four years. Before that Hurley was with the National Safety Council and the Insurance Institute for Highway Safety...

Some SUVs Do Poorly in Roll Over Crashes

Posted on March 31, 2009
Some SUVs did not do well in roof crush tests conducted by the Insurance Institute of America. A report in the NY Times by Chris Jensen digests the Institute's findings. Only four of the dozen small S.U.V.?s evaluated in a new test to see how well their roofs held up in a rollover crash got ?good? ratings, and some of the country?s most popular models did not fare well...

Government to Guarantee GM & Chrysler Warranties

Posted on March 31, 2009
A Consumer Reports survey found that more than three-quarters (78 percent) of respondents said they were unlikely to consider buying a new car from an automaker in bankruptcy; 64 percent were very unlikely. Further, more than eight in 10 respondents said they are unlikely to consider buying a new car from a division that is being sold or phased out; 63 percent said very unlikely...

Major RV Manufacturers File Bankruptcy

Posted on March 16, 2009
Fleetwood Motor Homes filed Chapter 11 bankruptcy on March 10, 2009. Fleetwood, the leading RV manufacturer in terms of sales, announced it would continue operations while it reorganized. Fleetwood said it would close its travel trailer operation. Fleetwood joins Monaco Coach Corp and Country Coach in the bankruptcy courts...

Consumer Reports on the Best New Cars & Trucks

Posted on February 28, 2009

Auto Makers Charge Extra for Safety Features

Posted on February 22, 2009
Side air bags and electronic stability control are two of the most effective safety features available on new cars. The good news is that the federal safety agency is requiring auto makers to equip cars with side air bags by the 2010 model year and stability control by the 2012 model year...

Will GM & Chrysler Honor Warranties in Bankruptcy?

Posted on February 21, 2009
Writing in the NY Times auto blog, Chris Jensen explores whether GM and Chrysler will honor new-car warranties if they file Chapter 11 bankruptcy. The bankruptcy experts agree the companies would not have to do so and theoretically creditors could object to being disfavored...

How Car Talk Selects its Callers

Posted on February 19, 2009
The NPR program Car Talk with Tom and Ray Magliozzi, aka Click and Clack, is the most popular car show on the radio. Ever wonder how you get through to talk about your car? It is not a matter of just calling 1-888-227-8255 and waiting to get connected to hosts according to a Wall Street Journal article in its February 18, 2009, edition...

National Database of Wrecked Vehicles Available January 30, 2009

Posted on January 29, 2009
On January 30, 2009, the federal safety agency will make available a national database on stolen and totaled (salvage) vehicles. Consumers may go to www.nmvtis.gov for information on how to use the system. At this time, the database has information from only 27 states that cover 73% of U...

Used Car Buyers Should Not Rely on Carfax Reports

Posted on January 18, 2009
As most car buyers know, Carfax.com sells auto histories. Carfax' website tells consumers, "Don't buy a used car without CARFAX Vehicle History Reports! Order a CARFAX Vehicle History Report. . . the first step to protecting yourself against buying used cars with costly hidden problems...

Chrysler Having to Repurchase 2007 Dodge RAM Diesel Trucks

Posted on January 06, 2009
Chrysler is having repair problems with its 2007 and 2008 Dodge RAM trucks equipped with the 6.7L Cummins turbo diesel engine. Typically, the check engine light comes on causing the owner to take it in to their dealer for warranty repairs. The dealers often find problems with the engine computer controls, the emissions system, the turbo, and the transmissions...

Crooked Dealers Fail to Pay Off Loans on Trade-Ins

Posted on January 06, 2009
Buyers often trade in cars with outstanding loans on the the dealer's promise it will pay off the loan. Honest dealers promptly do so, but a small number of dishonest dealers do not pay off the loan. When that happens, the lien-holder finance company usually finds the car and reposses it leaving the consumer out the down payment, payments, and no car...

Faulty Chinese Auto Parts Worry Safety Advocates

Posted on January 01, 2009
Safety advocates are concerned about defective Chinese auto parts such as tires susceptible to tread separation and child restraints that come apart in an impact. Other examples are tire valves that break and let air escape, glass that does not meet standards for tempered glass, and high-intensity discharged headlights that do not meet U...

Why Small Gains in MPG in Low Mileage Vehicles are Important

Posted on December 18, 2008
People greatly undervalue what small increments in miles per gallon (MPG) in large vehicles means and at the same time overestimate the value of increases in already fuel efficient vehicles. The right way to think about fuel efficiency is to look at gallons consumed per 100 miles according to an article in the June 20, 2008, issue of Science Magazine written by Richard Larrick of Duke University and a co-author...

New Improved EPA Mileage Estimates for 2008+ Models

Posted on November 30, 2008
Most drivers have complained that their cars could not get the mileage promised by the EPA fuel economy figures. Starting with 2008 models, the EPA revised its testing procedures to more accurately reflect real driving conditions. J. D. Power surveyed owners of 2008 cars and found that drivers said there were getting 5% better gas mileage than the EPA estimates...

Bankruptcy Expert's Proposal to Save the American Auto Industry

Posted on November 29, 2008
J. Ronald Trost, a leading expert on bankruptcy law, has a proposal to save GM, Ford and Chrysler. His proposal in the NY Times is a restructuring under the umbrella of a special federal statute. He states ordinary Chapter 11 proceeding won't work for various reasons...

Auto Care Myths Cost Consumers & Harm the Environment

Posted on November 20, 2008
Dealers and oil changer companies typically recommend changing oil every 3 months or 3,000 miles. On November 6, 2008, GM issued a statement that this recommendation is the biggest myth in the car business. GM has a Oil Life System (OLS) in almost all its models that monitors combustion events, engine temperature and other parameters to gauge oil's life...

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