Texas Lemon Law Blog

Published on: July 29, 2007

Why are bad cars called lemons?

Lemons are healthy fruits, rich in vitamin C and other nutrients, used in a myriad of wonderful products, from lemonade and lemon meringue pie to cleaning agents. So, why do we call bad cars lemons?

The Online Etymology Dictionary indicates that there are several possible origins for ‘lemon’ being used to refer to an inferior product. One possibility is that it came from early 20th century American slang, where a ‘lemon’ referred to “a person who is a loser, a simpleton,” as a lemon. Another possibility is that the term originated from British pool hall slang, where a ‘lemon game’ was a game played by a hustler. It seems most likely that that the use of a ‘lemon’ as a bad car came from another British slang term from the early 1900’s in which “to hand someone a lemon” was “to pass off a sub-standard article as a good one.” (Online Etymology Dictionary).

Regardless of the where they came from, the terms ‘lemon’ and ‘lemon laws‘ are now common in our modern vocabulary, and codified in our laws. In the context of and vehicles, most everyone agrees that buying a lemon new car, does leave one with a sour feeling.

Published on: July 7, 2007

Racial inequality in auto loan interest rates

by Kevin Le

You may think that the interest rate of your auto loan depends only on your credit rating, but your race may also play a part. According to recent (2007) analysis by the Consumer Federation of America (CFA) of the Federal Reserve Board’s Survey of Consumer Finances data for 2004, black car buyers pay a much higher interest rate than white car buyers*. For new cars, the median rate for black buyers was 7%; whereas, it was 5% for whites and 5.5% for Hispanics. This racial gap increased from 2001, when the difference in rates between black and white borrowers was 1.3%. The analysis also found that 27% of new car loans taken out by blacks had interest rates of 15% or higher.

The discrepancy in interest rates is likely a result of a combination of several factors. The National Automobile Dealers Association claims that the factors that have the greatest impact on the interest rate a purchaser receives are the individual’s credit history, credit rating, and the prevailing interest rate at the time of purchase. Stephen Brobeck, the executive director of the CFA said that these results likely indicate that there is possibly different treatment based on race (i.e. discrimination).

Regardless of your race, it is always a good idea to shop around for loan rates when you go to buy a car. Frequently, the rates a dealer may offer you are much higher than you could obtain at other lending intuitions, especially if your credit is less than pristine.

Published on: July 2, 2007

Does buying a red car put you at a disadvantage?

by Kevin Le

You may have heard that red cars are ticketed more often and that owners of red cars are charged higher insurance rates. Different colors can have different effects on human behavior and elicit different emotional responses. Blue is sometimes considered a calming color while green may be thought of as refreshing and is easy on the eyes. Red is the most emotionally intense color. It can evoke passion, strength, speed, and even rage. Note that different colors have different meanings to different cultures, so these descriptions may not hold true globally.

(An aside: you may have seen matadors waving their red capes at a charging bull. A bull can not distinguish red from green, so, the red color may be more for the benefit of the spectators. The bull likely charges because of the motion).

Common wisdom has said that, because of differing reactions to color, police are more prone to notice and ticket red cars. Also, insurance companies charge higher rates for red cars- perhaps because they might think that a person who would choose red is one that would be more aggressive driver.

Published on: June 27, 2007

Top 10 Possible non-lemon Small SUVs

by Kevin Le

Potential clients with “lemon law” related claims usually contact my office with bad news about problems with their vehicles. Even the last two previous blog posts are about unreliable and problem cars. This post, however, is about good cars. At least, according to Jon Alain Guzik, the editor-at large of Yahoo! Autos.

Guzik’s conclusion is based on mileage, looks, and price tag. If I were Guzik and was in a position to make my list of top ten small SUVs, my criteria would most likely be different. It would be based on quality, numbers of consumer complaints, and price.

Guzik’s top 10 small SUVS are:

Published on: June 15, 2007

Mercedes car dealer owner sues its own manufacturer for selling lemons

by Kevin Le

A Mercedes-Benz car dealership is suing its own manufacturer over a defective lemon car. Plaintiff Mark Johnston, co-owner of the dealership, alleged that the Mercedes-Benz AMG CLK-GTR Limited Edition Roadster (retail at 2.5 million and bought at 1.7 million) is a defective vehicle, wrought with problems.

Specifically, some of the alleged defects in the car include: the illumination of the oil light, improper shifting, failed hydraulic jack system, and unglued car windows. As of the date of writing this blog, Mercedes claimed that they cannot refund the vehicle.

For more information, go here.

Published on: June 14, 2007

Five Least Reliable (possible lemon) Luxury Cars on the Market

by Kevin Le

Thinking about buying a new luxury car? Here are 5 least reliable luxury cars that are currently on the market. These are cars that may become possible lemons down the road.

Dan Liebert from Forbes.com wrote an article last year about some of the least reliable luxury cars in the market. He compiled his “top five list” from data obtained from the Consumer Reports and J.D. Power & Associates. The award for top five least reliable luxury cars go to…

Land Rover LR3 SUV – Base Price: $39,000

Published on: May 23, 2007

Introduction to the Texas Lemon Law Blog

by Kevin Le

My name is Kevin Le and I am an attorney who handles lemon law related cases throughout the state of Texas. My office is based in Dallas, Texas.

Most of my time, potential clients would call me about a lemon law case and it would be too late because they have missed the deadline to timely file their claim. Other times, they are calling because this is the first time that they have purchased a new lemon car and do not know what to do. Other times, they are calling because they simply want to know what their rights are.

Regardless of what reasons you are here for, I welcome you!