No one knows what was the first car to be bought back under a lemon law, nor is there any proof to the rumor that it was yellow. But one thing is certain: Lemons happen and leave a bad taste with their owners.
“In 1970, only about 500 lemons were bought back by the car companies,” said Clarence Ditlow, executive director of the Center for Auto Safety, a consumer group based in Washington, D.C. “In 1980 there was a tenfold increase to roughly 5,000 lemons, and in 1996 there were probably 100,000 lemons bought back.” Ditlow emphasized that these estimates are conservative.
Because General Motors told the Federal Trade Commission that it repurchased 46,000 vehicles in 1995, the total number of lemon buybacks should be at least 100,000.
According to the Center for Auto Safety, with an average car costing $20,000 that amounts to at least $2 billion worth of bad cars. And that does not include “trade assist” repurchases, in which the manufacturer provides $1,000 to $3,000 to the dealer to trade the customer out of a lemon and into a new vehicle before the consumer takes legal action.
Some consumers go even further. Thomas Ziemba was so fed up trying to get his car fixed, he flew a plane over the Connecticut State Capitol trailing a sign reading: “My 1982 Chevrolet is why we need a lemon law.”
It wasn’t long before Connecticut became the first state to pass lemon legislation, according to a report in the Lemon Book. Before its 1970 publication, manufacturers bought back virtually no lemons.
What is a lemon? Most states, including Illinois, define a lemon as a car that is returned at least four times for the same problem, or has been in the shop for more than 30 business days in a 12-month period with a defect that impairs safety, value or use.
In Illinois only new cars, light trucks and vans (less than 8,000 pounds) and recreational vehicles are eligible. The Wisconsin law is similar to Illinois’, but Indiana has one of the strongest lemon laws in the country, giving consumers up to 18 months or 18,000 miles to file a claim.
Though nearly all of the millions of cars sold every year are reliable, “do not assume you won’t need to invoke the lemon law,” says Philip Nowicki, president of P.R. Nowicki and Co., a national automotive consulting firm in Tallahassee, Fla. “And don’t accept that old line, `they all do that’ or some other verbal brush-off.”
If you are dismissed so brusquely, “take it to another dealer for a second opinion,” says Nowicki, the former head of Florida’s lemon law agency who wrote much of that state’s law.
If you expect to get restitution, you’ve got to be able to prove your case. From the day you take delivery, save every piece of paper: the purchase papers and maybe even the window sticker and every repair order for each visit to the service department. Log books are not a bad idea but a shoe box or the pouch with your owner’s manual also work.
If you can whip out last month’s order to fix an oil leak that persists, your chances of getting better service this month go way up, as do your chances of winning a lemon judgment.
When you take your car in for repairs, give the service manager a written list of the problems you want fixed and keep a copy. Above all, do not suggest a repair. If your car stumbles when you accelerate, say it that way every time. Don’t say it stumbles one time then say it hesitates the next time because these might be misconstrued as two problems.
Keep track of how many days you didn’t have use of your car. If you had to rent a car to make a living, keep your receipts. Keep track of any missed time at work and how much your pay may have been docked.
Keep notes on any conversations–in person or over the telephone. Include the date, time and the name and title of the person with whom you spoke. The key facts are important. Did the person promise you something? Note it. Did he say they’ve had several cars with a similar problem? Note that, too.
If you feel you are getting the run-around from the service writer, ask to see the service manager, general manager or even the dealership owner.
Always give your car dealer a chance to fix your car. After all, he or she wants to keep you happy so you will buy another new car there some day.
Remember, however, that dealers will not launch a lemon claim for you, no matter what they may say.
If you have a safety-related problem, report it to the National Highway Traffic Safety Administration (a Department of Transportation agency) by phoning the Auto Safety Hotline, 800-424-9393. You will be asked to fill out a complaint form, a copy of which NHTSA sends to the carmaker. Also ask NHTSA for a list of problems with respect to your car, which will cost $20 to $40, based on research time. All the information is on NHTSA’s Website– http://www.nhtsa.dot.gov–so you can conduct your own research.
If the dealership service department keeps giving you the run-around, go to the zone. Most car companies have regional or zone offices and you can usually find the address and phone number in your owner’s manual or warranty book.
Put your concerns in writing.
“Go on record,” advises Nowicki, “and send your letter via certified mail and request a return receipt.”
Zone technical representatives, who are familiar with all the manufacturer’s technical service bulletins (which address repairs for problems that develop), make regular rounds to the dealers. Schedule an appointment to take your vehicle in when a rep is in the area. There might be a factory fix.
If you are still dissatisfied, call the corporate office. Most manufacturers have toll-free customer service hotlines, and complaints are often handled well. The corporate person often contacts the zone or dealership on your behalf. Again, take good notes of your conversation and get the name of the rep. Better yet, put your concerns in writing, and you’ll have a paper trail. If you get the run-around or a form letter, go to the next level–arbitration
After you have begged, pleaded, and cajoled everybody possible, but you car has still not been fixed, put the carmaker on notice that you are exercising your lemon rights. Do this essential first step in writing. Then, be prepared to give them one more chance to fix your car.
If they can’t, an arbitration meeting will be scheduled. If the board rules in your favor, you may get a replacement vehicle or your money back, usually after depreciation for the mileage you put on it.
According to Illinois lemon law, manufacturers must have an “Industry Third Party Resolution Program” to evaluate your claim. Information about arbitration boards is in your owner’s manual or warranty book.
Chrysler and Ford have arbitration systems, and GM and most of the imports rely on the Auto Line division of the Better Business Bureau. You can write the Ford Dispute Settlement Board, P.O. Box 5120, Southfield, Mich. 48086; or call the Chrysler Customer Center, 800-992-1997; or the BBB’s Autoline Program, 800-955-5100.
Though the board’s decision is binding on the manufacturer, it isn’t binding on you. You may reject the deal and still bring a civil suit against the automaker but, according to Nowicki, 60 to 80 percent of arbitration turns out satisfactory to the car owner.
If you reject the arbitration board’s offer, your next step is to file a civil suit. But, unlike in some other states, the Illinois attorney general’s office will not go to bat for you. You have to hire your own lawyer. Look for one familiar with lemon law cases and remember that the attorney’s fees are not automatically included in the settlement.
If you need help finding a lawyer, contact your local bar association. The Center for Auto Safety also has lists of lawyers specializing in lemons. Send a self-addressed, stamped business envelope to: CAS-Lawyers, 2001 S Street NW, Washington, D.C. 20009.
You can order a copy of the Lemon Book, which also gives advice on how to avoid being ripped off when buying a car, by sending $16.50 (includes shipping and handling). You get one free with a tax deductible contribution of $30 or more to CAS. The book is also available in stores (ISBN 1-55921-020-6) and probably your library.
“If I had three bits of advice for consumers who’ve bought lemons,” said Ditlow, “they would be: First, to document everything to establish a paper trail. Second, the squeaky wheel gets the grease, so be persistent and don’t give up until you get satisfaction; the other side hopes to wear you down. And third, if you can’t get satisfaction from your dealer, put the manufacturer on notice that you plan to seek restitution under the lemon law.”
WHERE TO TURN FOR HELP
For a two-page outline of the Illinois lemon law, write to the Office of Atty. Gen. Jim Ryan, 500 S. Second St., Springfield, Ill. 62706. Ryan also has a local office at 100 W. Randolph St., Chicago 60601. The phone numbers are 312-814-3000; TTY: 312-814-3374; and toll-free: 800-386-5438.
Car buyers have recourse under several other laws.
For information, the Federal Trade Commission has several free pamphlets. Write to Public Reference, Federal Trade Commission, Washington, D.C. 20580 and request any or all of the following: “Warranties,” “Service Contracts,” “How to Resolve Consumer Disputes,” and “Road to Resolution: Handling Customer Disputes.”
More free or low-cost publications are available from the Consumer Information Center administered by the U.S. General Services Administration. Request a free catalog from Consumer Information Center, P.O. Box 100, Pueblo, Colo. 81002.
