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Fifty billion dollars of taxpayer’s bailout money and numerous lemon cars later, General Motors is attempting to regain consumer confidence and a segment of its lost shares in car sales by offering a sixty days (60) money back guarantee. The money back guarantee sounds enticing, but buyer beware,… like most offers in life, it comes with strings.

String #1: You must purchase a GM vehicle between today (September 14th) and midnight November 30th. Make sure that when you have finally agreed on a deal with the dealership, that all paperwork is dated within this time-frame. Do not allow the dealership to back date any documents you sign.

String #2: The vehicle must be a new 2009 or 2010 Buick, Cadillac, GMC, or Chevrolet. No used or pre-owned cars!

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Even though President Obama enthusiastically praised the “Cash for Clunkers” program as being a major success; lemon-wise, it looks like many new vehicle dealers such as those who sell Ford cars are getting a taste of their own medicine. Instead of lemon cars, Ford car dealers find themselves dealing with a lemon clunker problem.

Due to shortages in personnel in the “Clunker” program, many Ford dealers have yet to be paid back by the government in the form of rebates. Many Ford dealers, along with other dealers of car manufacturers such as Chrysler and Mazda, have decided that they will not honor the program anymore.

The Clunker program ended tonight,…but who knows when Ford dealers will be paid. In the eyes of car dealers, so far, the program appears to be a lemon dud.

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As a lemon law attorney who personally screens my own potential client inquiries, I get calls from folks who wait until it is too late to file a Texas Lemon Law claim because they wanted to give the dealership or car manufacturer (such as Ford or Chrysler) another chance to repair the truck or SUV.

I hear this line all the time and really think it should be written into a play or movie. It goes like this: “the dealership has been very professional and cooperative, but for some reason, the problem still exists.”

Call me pessimistic, but my suspicion is that the dealership representatives and service managers are trained to be polite to the consumer to buy time and stall. The rationale is that you would not open a lemon law claim against an entity that you have good feelings about; or perhaps that when you do decide to open a lemon law claim, that it would be too late to do so, because you’ve spent a good chunk of time within the deadline period being treated kindly and smothered by the dealership.

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After being woken up by a call at 11 pm on a Sunday night from a person who recently purchased a used lemon car, I decided that it’s a good idea to post a blog about the top two misconceptions of the Texas Lemon Law. (Granted, I should re-program my phone answering system to not forward calls to my cell phone after hours to avoid folks calling me at arguably unreasonable hours).

1) Misconception number 1: All cars are covered under the Texas Lemon Law

– Wrong! The Texas Lemon Law mainly applies to NEW vehicles. In some very limited cases, used vehicles are covered to the extent that the manufacturer is required to repair the vehicle, but only if the used vehicle had existing warranty at the time of purchase and you timely file your claim. So, for example, if you have a used Ford lemon car, please do not call my law office. However, if you purchased a NEW Ford lemon car and it is giving you problems, then please contact me.

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In Texas, the administrative body responsible for adjudicating lemon law claims is the Texas Department of Transportation. In other words, if you choose to file a complaint regarding your new lemon vehicle on your own (the law only pays for your attorney fees if the car manufacturer first hires an attorney and notifies you before the hearing), then do expect TXDOT to stand in between you and the car manufacturer to mediate your concerns.

As part of its Lemon Law program, TXDOT provides an annual lemon law consumer report. The report is 64 pages long and provides graphical charts and statistical information about the ongoing issues and number of complaints that occurred. Keep in mind these numbers do not include complaints that: (1) never gets filed with TXDOT, (2) gets filed with other quasi lemon law programs such as the Better Business Bureau AutoLine or the NCDS program, and (3) bypasses the administrative hearing and proceeds straight to court.

In the next few weeks, I will review the report and blog about my thoughts about the information in this report. If you would like to view the report on your own, then go here.

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Often times at my lemon law practice, I get calls from potential clients about non-lemon law related cases, such as a divorce or personal injury matter. I usually refer them to the local bar association for referrals. However, I recently stumbled upon a website that allows folks with a legal issue to have a free consultation with local attorneys. The website is newlawyer.com

The advantage that this site has over other similar sites is that it allows that user to give feedback to their experience with the attorney after the free consultation. Think of it as a version of Ebay’s feedback system, except this feedback system if about the attorneys and not about the auction. Click here to learn more on how the site works.

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Although this article is related to used lemon cars, please understand that my office does NOT handle used lemon car cases. Please do not contact our office for legal advice regarding a used car — you may want to look for an attorney that handles used car cases at NACA.net.

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Automobiles come in a variety of shapes, sizes and colors, and we buy them for a variety of reasons. Some of us look at the snob appeal and buy nothing but the best and most flashy cars in the market while others are more down to earth and prefer practical cars that offer good mileage and a comfortable driving experience. There are times though when we have to settle for a secondhand car, one that has already been driven by someone else and put through a considerable amount of wear and tear. The thing is, although your expenses are considerably lower, buying a used or “pre-owned” car is not as easy as buying a new one because you never know what you are going to get. If you want to protect your money and make sure you get bang for your buck, the Texas lemon law blog has these tips to offer:

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As recent as last year, Mazda announced that it has no plans on designing or manufacturing electric or hybrid (alternative) power train vehicles in the foreseeable future. Less than 12 months later, Mazda has changed its position and now says its goal is to increase its vehicles’ fuel economy by 30 percent by 2015.

Mazda plans to do this by refining the design of its existing gasoline vehicles to be more fuel efficient. When asked how this will be done, Mazda’s chief executive officer, Takashi Yamanouchi, states that consumers should expect to see vehicles that are lighter in weight and with improved aerodynamics. Mr. Yamanouchi also mentions that it is likely that Mazda’s new lineup of hybrid and electric cars will debut on or near 2015.

So, what does this mean in terms of litigation for Mazda lemon electric or hybrid cars? It simply means that we will have to wait until the electric or hybrid cars will actually be manufactured.

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Earlier this year, a husband and wife from Lampasas, Texas (Lampasas is 30 miles west of Killeen, Texas) contacted me in regards to a new 2008 Jeep Liberty that they purchased in 2008 that keeps manifesting an abnormal knocking noise near the engine area. Like most lemon law victims, they took the vehicle in numerous times and the problem never went away.

After months of frustration in dealing with the Chrysler service centers, the couple called my office and I took on their case. I am happy to report that the the case settled in favor of my clients and they are now happy with the results of their lemon law claim. This is the link to their testimonial. (Look for this testimonial entry: T. and D. B., Lampasas, Texas, April 13, 2009).

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With the downturn of the economy, a lot of people are now purchasing used cars and vehicles in order to save money. Generally speaking, new vehicles depreciate so aggressively that purchasing a pre-owned car makes a lot of financial sense.

I have previously written an article about how the Texas Lemon Law treats used car cases (go here for the article). Here’s a paraphrase on the limitations of Texas Lemon Law for used cars on TXDOT’s website:

A used vehicle may be covered under the Lemon Law. However, the coverage applies if your used vehicle is still covered by the manufacturer’s original warranty. Keep in mind that extended service contracts do not apply. Coverage also applies if the problem started while under warranty and it continues to exist, but the remedies are limited to repair assistance of the warranty-related problem,…and not a repurchase or replacement.

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Dallas , TX 75214
Phone: 1 888-333-3813 texaslemon@gmail.com

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