The Lemon Law Blog

Dealers and oil changer companies typically recommend changing oil every 3 months or 3,000 miles. On November 6, 2008, GM issued a statement that this recommendation is the biggest myth in the car business. GM has a Oil Life System (OLS) in almost all its models that monitors combustion events, engine temperature and other parameters to gauge oil's life. Using the data, OLS tells drivers exactly when their engine oil should be replaced. Changing oil when OLS indicates it is time to do so, a motorist who drives 15,000 miles a year would make two or three fewer oil changes a year as compared to changing oil every 3 months or 3,000 miles.

If all drivers of GM vehicles equipped with OLS use the system as intended, they would save more than 100 million gallons of motor oil annually compared to the 3,000 mile interval.

There are environmental consequences to too frequent oil changes. The American Petroleum Institute states that 1 billion gallons of motor oil are sold each year of which 185 million gallons are improperly disposed in the trash or down a drain.

The California EPA encourages drivers to follow the manufacturer's recommendations on oil changes. Manufacturers that do not have an OLS system in their cars typically recommend changing oil every 7,500 miles,

Other myths--today's electronically controlled engines do not need "tune-ups" and there is no need for chassis lubrication, annual radiator flushes, or routine wheel alignment.

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Dealer Fraud

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Car bumpers in most new cars are incredibly weak. The Insurance Institute of America testers bumpers of 17 cars by crashing them into a barrier at a mere 6 mph resulting in an average cost to repair of $4,500! Luxury cars were the worst offenders; an Infiniti G35 had more than $5,200 in front end damage. According to SmartMoney magazine, some car manufacturers cram electronics right behind he bumpers increasing the risk of damage.

Today's bumpers are plastic lined with energy-absorbing foam and metal. The bumpers are aligned to the car's body for the sake of appearance and to be more aerodynamic to save fuel.

In the 1980s, the federal bumper standards were lowered with test speeds dropping to 2.5 mph from 5 mph and bumpers were allowed to sustain damage so long as headlights and other safety related components were protected.

Insurance companies say 3/4 of all collision repairs involve the bumpers. The tab in 2006 for minor collision repair approached $1 billion.

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Sixteen years ago, Congress enacted a statute requiring the federal government to
implement the National Motor Vehicle Title Information System (NMVTIS), a single
database that would provide public access to vehicle-history information gathered from
states, insurance companies, and junk and salvage yards. Before purchasing a potentially
dangerous used car, a consumer using the database would be able to instantly check the
validity of the vehicle’s title, verify its mileage, and learn whether it had been stolen or
deemed a junk or salvage vehicle. Congress viewed the database as an important solution
to the problems of auto theft, auto fraud, and the dangers associated with unsafe and
unreliable vehicles, and set a deadline of January 31, 1997, for establishment of the system.

After a 16-year wait, in an emphatic victory for consumers, on September 22, 2008, Judge Marilyn Hall Patel of the Northern District of California ordered the U.S. Department of Justice (DOJ) to make this information available to consumers by the end of January 2009.

Public Citizen, Consumers for Auto Reliability and Safety, and Consumer Action brought the lawsuit against the DOJ saying that the agency’s unlawful delay in implementing the database was putting consumers at risk.

In a press release, Public Citizen said that when Congress passed a law in 1992 calling for the database, no one expected it to take this long to deliver such critical information to consumers. During that time, countless people have unwittingly purchased rebuilt or stolen vehicles.

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Posted In: Auto Safety

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High-tech digital odometers are making it easy to chat unsuspecting used car buyers according to a USA Today article. Unscrupulous sellers can obtain the software or services from the Internet to reset the odometers. Old style mechanical odometers could be reset, but it was fairly easy to detect that the tampering had taken place.

A NHTSA study six years ago estimated that tampered odometers could found on 450,000 cars a year costing consumers $1 billion annually. State and federal prosecutors continue to bring charges against car wholesalers and dealers for odometer fraud.

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Posted In: Buying Used Cars

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Savvy car buyers know that they may save money by buying an extended warranty (service contract) backed by a manufacturer from any authorized dealer. A NY Times article published August 2, 2008, on the subject of extended warranties features a Rhode Island Honda dealer, Saccucci Auto Group, that has made a business of selling discounted Honda Care service contracts over the Internet (www.myhondawarranty.com). According to Saccucci Auto Group, Honda formerly encouraged its dealers to sell the contracts over the Internet. However, in February 2008, Honda announced a new policy banning Internet sales to protect its dealers' profit margins.

Saccucci Auto Group sued Honda in a state court and a judge temporarily enjoined Honda from enforcing the new policy. Honda then removed the case to the federal district court. In October 2008, the case was tried in a federal court, but no decision has been announced.

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Posted In: Service Contracts

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Automotive News reports that BMW's Mini brand sales were up 52.8% in May 2008 from a year ago, but that J.D. Power reports that Mini owners reported 163 defects per 100 vehicles in the first 90 days of ownership. That figure was only topped only by the Jeep brand with 167 defects in the first 90 days.

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Posted In: Buying New Cars

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An ABC news report reveals that aged tires--some as old as 12 years--are being sold as new at leading retailersl After about 6 years of sitting on the shelf, tires dry out and lose their elasticity. The tread will peel off these tires when put in use causing the car to swerve out of control and crash. These tire failures are killing people yet the Rubber Manufacturers' Association and their member tire manufacturers oppose a ban on the sale of tires more than 6 years old, which auto makers and others are recommending. The federal safety agency, NHTSA just this month issued a vague general guideline to "err on the side of caution if you suspect your tires are over six years old."

The tire's date of manufacture is stated on the tire, but in a code consumers cannot readily decipher. The 3 or 4 digit code, which is at the end of a long string of characters,represents the week of the year it was manufactured and the year. For example, 414, means the tire was manufactured the 41st week of 2004. 4202 means the tire was manufactured the 42d week of 2002. Until recently, the code was on the inside of the tire where no one can see it when the tire is on the car!

ABC investigators, some from Channel 7 in San Francisco, shopped tire retailers such as Sears and found tires 4 years, 6 years, and even older available for sale. What is needed is a ban on the sale of tires old tires.

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Posted In: Auto Safety

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California law allows cars dealers to add a so-called document fee of $55 to each auto purchase contract. There is no good reason the law should allow dealers to add this fee because document preparation is just part of the cost of doing business. Not satisfied with the $55 fee, this year, the car dealers sponsored a bill in the California Legislature to raise the fees to $65, which we estimate would cost California car buyers an additional $40 million per year.

The Assembly passed the bill, but this week the author of the bill withdrew the bill in the face of opposition from key senators, including Senator Ellen Corbett, who chairs the Senate Judiciary Committee. Opposition to the bill was led by Rosemary Shahan, who is head of the consumer advocacy group, Cars for Auto Reliability & Safety. Consumers have Rosemary to thank for saving them $40 million!

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Posted In: Lemon Law Advocates

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Bay Area Checkbook has published a survey of 495 auto repair shops in the San Francisco Bay Area. It found plenty of good and bad shops--195 shops were rated superior for overall performance by 90% or more of their customers while 54 shops were rated inferior, the lowest rating, by at least 1/4 of their customers. The leading complaint was work not performed properly (39% of complaints) followed by poor customer service, high costs, performed unnecessary work, and slow turnaround.

Checkbook subscriptions are only $34 per year. Checkbook is a non-profit well worth our support. Checkbook uses survey techniques to rate vendors and service providers of many descriptions.

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Posted In: Buying Used Cars

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Nissan has a new concept car with no reverse. Plus, it is electric. Check it out.http://http://www.cnn.com/video/#/video/tech/2008/05/23/nzekwu.uk.rotating.car.itn

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Green Cars

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RV manufacturers are experiencing drastic declines in sales and revenue. Buyers are scarce due to high gasoline prices and a poor housing market. RV manufacturer National RV went out of business in November 2007. Just in the last two months, Alfa Leisure, Western RV (Alpine), and Travel Supreme closed down.

On May 13, 2007, the Wall Street Journal reported that Fleetwood Enterprises, which has posted five years of losses, recently sold its Riverside, California, headquarters and is looking for buyers for other properties. Fleetwood's motor home shipments were down 27% from a year ago. Coachmen Industries' sales have declined 40% over the past three years.

Anyone owning a lemon RV manufactured by a defunct manufacturer is typically out of luck in terms of seeking damages.

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Posted In: RV Lemon Law

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The Smart ForTwo car is now being sold in by Mercedes-Benz dealers. The tiny car has met with mixed reviews. After the driver's door opened during a side-impact test, the U.S. federal safety agency opened an investigation. The investigation followed a New York Times blog post that includes a video of a Smart car hitting a barrier at 70 mph. The car remained intact, but a door popped open (www.wheels.blogs.nytimes.com/2008/04/04/smart-crash test/).

Separately, in early April 2008, an Automotive News reviewer said the Smart 1.0 liter, 70 hp three-cylinder engine had poor acceleration, the five-speed automated manual transmission makes the car rock back and forth as the driver shifts gears, and on the highway the driver must constantly tug the steering wheel left or right to keep going straight.On the other hand, they are exceedingly easy to park!

Posted by Mark F. Anderson | Permalink | Email This Post

Posted In: Auto Safety , Buying New Cars , New Car Safety

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