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Although not directly related to Texas Lemon Law, it indirectly will affect the way that GM negotiates future lemon law claims for settlement. This morning, GM posted its largest quarterly net loss primarily due to a $39 billion charge related to unclaimed tax credits.

In a nutshell, General Motors reported a net loss of $1.6 billion ($2.80 per share). Other reasons that attributed to the loss includes losses in GM’s other financially related companies such as GMAC and ResCap.

GM is currently considered the largest automaker in the United States. In this quarter, GM’s auto revenue reached $43.1 billion and it sold $2.39 million dollars worth of cars and trucks. For more information, go here.

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The single most important information that consumers need to know about the Texas lemon law is the deadline to filing a timely claim. Unfortunately, the law does not require car dealers or manufacturers to affirmatively disclose this information. Therefore, new car buyers often find themselves ineligible for the Texas lemon law because they rely on the dealer’s promise that the car is fixed and have waited to long to assert their rights.

Under Texas lemon law, a consumer must open a case with the Texas Department of Transportation (DOT) within 24 months from the automobile’s date of purchase or within 24,000 miles, whichever occurs first. Please note that there is a 6 months grace period after the expiration of the deadline, but such grace period is very difficult to assess.

It is recommended that if you suspect that you have a lemon car, that you contact a Texas lemon law attorney as soon as possible — or, at minimum, open a claim with the DOT immediately.

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Recently, the new CEO of Chrysler, LLC, Bob Nardelli, has hinted that he intends to reduce five of Chrysler’s vehicle lineup. There are numerous speculation as to which models will meet its doom. However, suspicion is placed on the Pacifica, Dakota, Commander, and Compass.

As a lemon law attorney who handles defective car cases on a daily basis throughout the state of Texas, I personally would like to see the Chrysler 300 meet its fate on the guillotine. Don’t get me wrong, the car looks great, but there has been so many known issues with it.

Asked why Chrysler is eliminating some of its models, the company answers that several models overlap each other and has arguably self-competed/cannabilized against each other.

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How long does it take to drive across North America? If you are Alex Roy and Dave Maher, the answer is 31:04 . Last year, that was all it took for them to drive their 2000 BMW M5 from New York City’s Classic Car Club to Santa Monica pier in California.

Their M5 had relatively few mechanical alterations. The speed limiter, was removed and the exhaust, shocks and clutch and brakes were replaced. An addition 16 gallon fuel tank added. There were, however, numerous electronic additions including a Valentine 1 radar and laser detector, Blinder laser jammer system, a Garmin 2730, a Garmin 2650 (used as a speedometer and backup system), Uniden 7960 scanner, Uniden BCT8 analog scanner, Uniden BC396 digital handheld scanner (their primary scanner), Uniden Pro520XL CB radio, L3 night vision system (thermal camera mounted in the car’s grill with an Alpine display in the cabin), Whalen siren and sound package with red, white, green, and blue strobes (front and back). In addition to all this in car equipment, they also had a spotter plane overhead watching for police activity and speed traps.

This was not some impulse trip. Alex Roy spent two years mapping out his route on Google Earth and marking detours, construction areas and speed traps. They took Vitamin Water, energy drinks and bars and nutritional supplements with them. Since stopping for bathroom breaks would have wasted precious time, they included a box of TravelJohns. Trip cost was about $150,000 (not including man hours).

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Last week, the Insurance Institute for Highway Safety released the results of tests to evaluate how well midsize SUVs (sports utility vehicles) protect their contents from front and side impacts. Here in Dallas, it seems that almost everyone drives an SUV of some size — so, this testing was quite welcome.

Frontal safety was determined from examining injury (as modeled by a Hybrid III test dummy) and the amount of intrusion into the vehicle’s occupant compartment during a 40 mph offset front crash. In the case of side safety, a side impact was simulated by a mobile barrier impacting the vehicles with an object at 31 mph.

The models evaluated were the: Jeep Grand Cherokee, Chevrolet TrailBlazer, Nissan Pathfinder, Nissan Xterra, Toyota 4Runner, and Ford Explorer. All these models received a rating of “good” for frontal crash protection with the exception of the TrailBlazer which was rated “acceptable”.
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Recently, the Philly Burbs posted a brief question and answer section addressing the fact that Philadelphia’s lemon law does not apply to used or preowned vehicle, regardless of the manufacturer’s certification status.

The article recommends that used or preowned car buyers should check the vehicle’s history by going to carfax.com before buying the vehicle. Also, the article suggests that a buyer should bring a friend who is knowledgeable about cars or a mechanic along to inspect the vehicle before purchasing.

In Texas, the lemon law generally does not apply to used cars. However, there may be limited exceptions. If you purchased a used vehicle that still has existing manufacturer’s warranty, then contact my office for a free over the phone consultation.

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Robert Russo, the former lemon law unit director of New Jersey now leads New Jersey’s Consumer League. Russo is also a (former) mayor of Montclair, NJ and a former political science professor at Rutger and Montclair State University.

The Consumers League of New Jersey is a statewide consumer advocacy and educational group that is associated with its parent group, the National Consumers League.

In his new capacity as president of New Jersey’s Consumers League, Russo plans to advocate for stronger lemon laws for the state of New Jersey. Further, he intends to educate the public on their rights on what to do in the event that the new car they purchased is a lemon.

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Continuing on with the theme of cars that perform beyond the call of duty, today we look at a particular Toyota Hilux. Top Gear, a BBC automotive show, recently set out to test the commonly held belief that Toyota trucks are extremely durable. Top Gear is known for its creative and entertaining tests and this case was no exception.

The staff purchased a Toyota Hilux Diesel with 190,000 miles on it for approximately $2000. The vehicle had some body rust and was battered, but functioned well. They subjected this truck to numerous abuses.

First they drove it around Brsitol, sideswiped a stone wall and drove it into a tree. After prying the fender back, they kept on driving and tethered the truck onto the beach at low tide. The tide came in, the truck broke loose and was completely submerged. It was completely water logged and covered in silt. A mechanic working with only basic tools was able to get the truck drivable again in an hour (they did replace the windshield for safety).

Following the attempt to drown it, Top Gear ran the truck through a shed and dropped a caravan trailer on top of it and hit it with a wrecking ball. The truck sustained further body damage but was still functioning. Finally, they set the truck on fire. Even after this, once the fire burnt itself out, they were able to drive the truck into their set.

This has not been the show’s only encounter with the Hilux. In 2007, two presenters from the show became the first people to drive an automobile to the Magnetic north Pole (as determined by the 1996 measurement).
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Many of us have bought used or pre-own cars (I have bought three in Dallas Texas) and had the experience of wondering if the price you were paying was fair, or if the car was a lemon under the Texas lemon law.

Back in 1970, economist George Akerlof examined this issue. He wrote a paper entitled “The Market for Lemons: Quality Uncertainty and the Market Mechanism.” While he took the used car market as an example, his writing was applicable to many more buyer/seller situations.

Two aspects of the used car transaction were important to Akerlof. Not all used cars (or new cars) are of the same quality – some are in good condition and are solid vehicles, while others have many defects and are undesirable for potential buyers. This wide range of conditions reflects the quality heterogeneity of the pool of vehicles.

The second aspect was the asymmetry of information between the seller and the buyer. The seller may know a great deal about the vehicle being sold while the buyer knows very little. Additionally, some buyers will be able to more accurately assess the true condition of the vehicle that they are purchasing.
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When you buy a new car, how long should you expect it to last? If you purchased a new car and it is a defective lemon and you are negotiating with the manufacturer for a settlement, the issue of how much value you have received from the car will arise. Simply put, for this purpose under the Texas lemon law, a car’s lifetime is presumed to be 120,000 miles.

In other words, if you used a car for 12,000 miles, then you have “used up” 1/10 the value of the car. In reality, there are more details that factor in, such as the first time you had a problem with the car. Ignoring this, we can broadly figure that the manufacturer expects the car to last 120,000 miles.

In the past, it might have been expected for a car to only last that long, but many modern cars can easily make it further. Currently, the US Department of Transportation reports that the lifespan of a car is 12 years and/or 128,000 miles. John Ibbotson, a supervisor with Consumer Reports’ Auto Test Center, says that this figure is so low because of failure of some owners to properly maintain their vehicles. With proper maintenance, you new car might easily make it to 200,000 miles.
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