Texas Lemon Law Blog

Published on: December 25, 2009

Happy holidays or Merry Christmas

Please remember to celebrate this holiday season safely.

If you will be in the market of purchasing a vehicle, then remember that the Texas Lemon Law generally does not apply to pre-own or used car.

For used vehicles, remember to cross check the vehicle’s history by using both Carfax and Autocheck, as information in one report is not cumulative or comprehensive. The best suggestion to avoid owning a lemon is to use common sense and ask lots of questions. I know that the pre-own car salesperson may be pushy — just push back. For more suggestions, then go here.

Published on: December 15, 2009

Lufkin Texas Lemon Law Information

by Kevin Le

Three days ago, the Lufkin Daily News printed an article about the Texas Lemon Law. Under the paper’s “Ask the Lawyer” section, a consumer wrote to Attorney Jeffrey Bates about a new vehicle that is constantly giving him repair problems.

Mr. Bates responded by providing an outline and overview of the Texas Lemon Law. Of importance is the section regarding “substantial impair.”

Remember, if you think that you may be in possession of lemon car, then remember to contact a lawyer, open a complaint with the Better Business Bureau, or file a case with the Texas Department of Transportation as soon as possible. The deadline to do something will expire before you know it!

Published on: November 29, 2009

A California lemon law Mini Cooper buyback experience

by Kevin Le

A consumer from California named Eric successfully got BMW to buyback his defective Mini Cooper. The vehicle drop-off occurred on November 19, 2009, seven days before Thanksgiving. Eric wrote a blog about his experiences and the steps he took to get BMW to repurchase his vehicle.

As rare as it is from my experience, it looks like BMW did the right thing in this case. I will say that the probability for car manufacturers to do the right thing in California is much higher than in Texas. The lemon laws, although named similarly, are both very different from state to state. California Lemon Law, specifically the Song-Beverly Act, is much more consumer friendly than the Texas Lemon Law.

Among other things, for one, California lemon law has an automatic attorney fee shifting provision that forces the car manufacturer to pay the plaintiff/consumer’s attorney fees. In Texas, the attorney fee shifting is not automatic,…at the lemon law administrative hearing, the only way that the car manufacturer is required to pay the consumer’s lemon law is if the car manufacturer obtained its own attorney and provide the consumer with proper notice. Quite often, the car manufacturer will not hire an attorney and instead, would hire car experts who are trained by attorneys and have attended these hearings on a regular basis.

Published on: November 21, 2009

To Avoid Buying Lemon Cars, Ebay now offers free Autocheck and Carfax

by Kevin Le

I must admit, I love to purchase small items on Ebay. However, when it comes to buying large tickets items, such as a house or automobile, I will most likely stick to the traditional realtor or car dealer. My reasoning stems from the concern that if something goes wrong (such as obtaining a lemon house or car), then it will be easier to hold a person or brick/mortar company responsible.

For years now, Ebay has been utilizing the pervasiveness of the Internet to auction vehicles through its website. Used or pre-owned car dealers will list their inventory on Ebay for a fee. The problem stems from the bad press that Ebay has been receiving regarding the vast amount of lemons that are being sold on Ebay’s car auction site.

Just 2 years ago, I sat in on a lawsuit case about a buyer suing one of the car dealers who listed a lemon and wrecked car on Ebay. The car dealer’s defense was that he knew nothing about the car’s history, even though the facts were very clear that there was a history of tamper and accidents linked to the car. The dealer ended up losing and the car buyer was awarded several thousands in damages.

Published on: October 26, 2009

Top Lemon Laws Consumers Should Know About

by Kevin Le

Lemon laws protect car buyers who have repeatedly tried to fix cars, to no avail. While laws vary by state, one of the strongest is the Texas lemon law, on which other state laws are modeled. There are also federal laws that further protect consumers. Consumers can use these lemon laws to get a refund or replacement for cars that require excessive repairs to fix warranty-covered problems.

Texas Lemon Law: The law applies to new automobiles, trucks, motorcycles, all-terrain vehicles, RVs, and towable recreational vehicles. These vehicles must have problems covered by a written factory warranty; claims must be filed within 6 months of the expiration of the warranty, 24 months, or 24,000 miles, whichever comes first. The law requires 2 repair attempts in the first 12 months or 12,000 miles and another 2 attempts in the second 12 months or 12,000 miles. If the problem is a serious safety hazard, it only requires 1 repair attempt in the first 12 months or 12,000 miles and at least one more in the second 12 months or 12,000 miles. The law also covers vehicles that are out of service for 30 days.

California Lemon Law: This law applies only to vehicles used for home or personal use. It requires 4 repair attempts or 30 days out of service within 18 months or 18,000 miles. If the problem could cause death or serious injury, it only requires 2 repair attempts.

Published on: October 25, 2009

Hyundai Lemon Law case over attorney fees

by Kevin Le

Hyundai recently lost a California Lemon Law case over attorney fees in the Court of Appeals of California — Fourth Appellate District. The case revolves around Adina Vasquez’s purchase of a defective 2005 Hyundai Sonata. Vasquez hired a lemon law attorney and sued under the California Song-Beverly Act and the Magnuson–Moss Act.

Vasquez was able to get a repurchase on the vehicle, but the issue of attorney fees remain pending. Thereafter, Vasquez’s attorney sued for attorney fees in the amount of $51,012. Hyundai fought and the trial court agreed with Hyundai — it refused to award any attorney fees to Vasquez’s attorney. Vasquez’s attorney took the case to the Fourth Appellate District Court of California.

In its unpublished decision dated on October 13, 2009, the appellate court sided with Vasquez in stating that Vasquez’s attorney is entitled to “reasonable attorney fees.” The case is remanded back to the trial court to determine the reasonableness of $51,012.

Published on: October 14, 2009

Win a Texas Lemon Law Case by making sure your repair invoices are accurate

by Kevin Le

Often times, potential clients will call me with a set of facts that meets the minimum requirements of the Texas Lemon Law. However, once I ask the potential client to fax me the repair invoices, I learn that the receipts were either inaccurate or unavailable.

Many dealerships, in preparation for a lemon law claim, would find ways to set up the situation against the consumer’s favor. For example, the repair invoice always includes the legal jargon that the “customer states….” so-and-so. It never states that “we the dealership found or discovered a serious defect: — because that would be considered an admission to liability.

Other times, the dealerships will merge two separate repair visits onto one invoice. In the eyes of most Texas Lemon Law administrative judges, one repair invoice equals only one visit. The rule of thumb is that once you’ve driven the car off the lot for a repair invoice and the same problem re-manifests itself, then you should turn around, have the dealership attempt to repair the defect and request a separate repair receipt.

Published on: September 29, 2009

Differences between theTexas lemon law and Toyota’s safety recall

by Kevin Le

Toyota recently issued a safety recall to address its vehicles’ abnormal acceleration while in operation. This will be considered one of Toyota’s largest recall and perhaps most costly recall in the United States relating to the safety of the vehicle.

The reason why this recall is considered so massive is because it applies to numerous Toyota models, including the ever popular Camry, Avalon, Prius, Tundra, Tacoma, and Lexus.

The actual recall itself is still pretty vague. Toyota’s current recommendation is to remove the floor mat underneath the accelerator to prevent it from sticking between the gas pedal. Toyota still has not issues any official notice for a permanent fix.

Published on: September 25, 2009

Ford’s Third China Plant may inevitably produce some lemon cars

by Kevin Le

Amid a decline in car production and sales in the United States, Ford recently made the announcement and is currently working on building its third car plant in China. As in any car plant, the production of vehicles that may be lemon cars subject to the Texas Lemon Law is inevitable.

The real question is whether the number of defective lemon cars produced at this new car plant will be disproportionately higher than Ford cars made in other plants or countries. It is a matter of quality control and I hope that this new China plant will be better than most products I have experienced with that comes from China. Lead and toxic chemicals in children toys come to mind…

This new third Ford car plant has the capacity to build approximately 145,000 to 150,000 cars each years. As speculation, a percentage of those cars may eventually enter into Texas’ stream of commerce.

Published on: September 16, 2009

How General Motor’s Money Back Guarantee will create more lemon cars in the demo and used car market

by Kevin Le

At the end of the day, it’s all a numbers game. For future demo or used GM car buyers, the number might not be in your favor. Here’s why…

General Motors’ new money-back guarantee will most likely attract many consumers and new car buyers between September 14 – November 30. After the wave of car purchasers drive the vehicle for 31 to 60 days, a percentage of these folks will take advantage of the money-back guarantee program and return the vehicle (sometimes between October 15 through December 29).

The reasons for returns, like electronics, may vary from preference (nothing is wrong with the vehicle) to defects (the vehicle’s engine is sputtering black smoke and it’s been taken back 4 times for repairs). Unlike returned electronics, GM has been silent and has not mentioned any refurbish or product re-certification program.