SolveYourProblem eLearning Series:
Got Shafted?
Fight Back if Your Car is a Lemon!
( 27 pages )

The Facts about Lemon Laws

Every state in America now has a Lemon Law that is built to protect consumers from dealerships. It allows the car buyer to exchange the messed up vehicle for a new one or to have the manufacturer buy it back from them.

In most states, the Lemon Law only applies to problems that pop up during the first year or 12,000 miles of ownership. You can obtain the rules and procedures if you need to make a claim under the Lemon Law in your state by calling the administrator of the state which you can find in the phone book.

Once you've established that the manufacturer is going to buy back your car, the battle will switch over and become about the vehicle's value. You want the per-mile charge to be as little as possible so that you can get the most for your money on the return.

The best way that you can guard against getting a lemon in the first place is to buy a car that has a good repair record in the first place. Seems pretty simple right? Well, it can be if you know what to do. Generally you can get an amount of repairs when you submit a VIN number to websites that can check the accident and repair rate for you. I will give you more on that later.

Understanding the
Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act is basically just the federal law that governs and monitors consumer product warranties. This was passed by Congress in 1975, and requires manufacturers and sellers of consumer products to provide their customers with a lot of detailed information about their warranty coverage.

Also, it is worth noting that this Act affects both the rights of consumers and the obligations of warrantors that are offering written warranties.

To understand the Act, it is probably best that the consumer be aware of Congress' intentions when they first passed it.

First of all, Congress wanted to make sure that consumers could get complete information about warranty terms and conditions up front and in their truest form. By providing people with a way of learning what warranty coverage is offered on a product before they buy, the Act actually gives them a way to know exactly what they should expect if something goes wrong, and it also goes a long way in increasing customer satisfaction.

Secondly, Congress wanted to make sure that people could compare warranty coverages before buying their cars because in doing this, consumers can choose a product that has the best combination of price, features, and warranty coverage to meet their individual needs.

Thirdly, Congress wanted to promote competition on the basis of warranty coverage alone. By making sure that consumers can get warranty information, the Act has practically forced dealers and manufacturers into hosting sales promotions on the basis of warranty coverage and this competition among companies has made it much easier for consumers to seek various levels of warranty coverage. (Are you seeing a trend yet?)

Finally, Congress wanted to strengthen the pre-existing incentives for companies to perform their warranty obligations in a timely and efficient manner so that it would be easier to resolve any consumer disputes with a minimum of delay and expense.

Because of this, the Act makes it easier for consumers to seek a private solution for any breach of warranty in the courts, but it also creates a foundation for companies to set up good operating procedures for resolving disputes inexpensively and informally, without litigation.

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