August 17, 2009

Carfax Reports Can Be Unreliable

The Indiana Consumer Law Blog has posted an article reminding consumers that Carfax Vehicle History Reports cannot be trusted for total reliability.

The blog post agrees that certainly it is worthwhile to purchase a report from Carfax, or a similar company, when considering purchasing a used vehicle. If something shows up on the report then it is usually factual.

However, the article warns that if nothing at all shows up on the report then it doesn't really mean anything. Some dealers have found they can purchase a vehicle for much less at auction because of a known defect, and then turn around and sell it for more because of a clean Carfax report.

In short, the article advises that a Carfax report is a good place to start your research into a used vehicle, but shouldn't be the only place you look.

If you have had problems with auto fraud, feel free to contact us.

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May 3, 2009

Auto Thefts Abound in Border States

Cam Simpson of the Wall Street Journal has written an article about the large amount of auto theft in states that border Mexico.

7 out of the 20 cities with the largest numbers of auto theft are close to the Mexican border. These cities include Laredo, TX; San Diego; Albuquerque, N.M.; Tucson, Ariz.; El Centro, Calif.; El Paso, Texas; and Phoenix.

Laredo and El Paso have drastically jumped in ranking. There has been a 47% increase of auto theft in Laredo since 2005. In 2005, El Paso was ranked #81 out of 100 and has since climbed to #17.

Officials say that the Mexican drug cartel isn't responsible for each individual stolen vehicle, but their need for vehicles and money to pay people to take them are important factors.

President Barack Obama will visit Mexico this week to show support for President Felipe Calderón, who is using Mexico's military to crack down on the drug cartels behind an epidemic of violence in northern Mexico. The White House says boosting federal law-enforcement efforts on the U.S. side is a priority.

If you have had issues as a result of a stolen vehicle, feel free to contact us.

Another resource for you is to join our Facebook Fan Page - Alabama Consumer Protection Attorneys where we share useful information about the same types of issues that we cover in this blog.

April 19, 2009

Wrecked Car Records Available to Public

Consumer Rights Law Blog has posted an article about an online database where consumers can find records from junk yards, insurance companies, and salvage yards about wrecked cars. The idea is to help consumers "avoid buying patched up junk cars and trucks."

However, not all states are cooperating.

14 states are not participating while 10 more say they are "in development" but federal law requires full participation by 2010. Until then, you still can't be sure if that great looking used car was totaled in an accident Illinois, Kansas, Maine, Oregon, Washington DC or 9 other states that are not telling the truth about their records. You can see the full list above and check car records here: http://www.nmvtis.gov/
It is unbelievable that California, New York and Pennsylvania are providing wrecked car data to the federal government but have blocked the government's ability to release that data to consumers. If you live in one of those three states, write your state governor and ask why they want to keep it secret. Some media reports say private record-keeping companies are paying those states big money to sell the data privately to them so they can keep charging consumers to see the stolen car and wrecked car records before buying a used car in those and other states.

If you have been sold a wrecked car under false pretenses, feel free to contact us.

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February 28, 2008

My “AS IS” car turned out to be a Lemon. Is there anything I can do?

Just about any car Alabama consumers buy that is not new will be sold “as is.” Does this mean that the seller can sell you a junker or a lemon and you’re just out of luck because you agreed to purchase the car “as is.”

Under Alabama law, you may be able to revoke the purchase. Even though you buy a car “as is,” you still expect the car to work. The technical term under Alabama law, is that the car must be a “conforming good.” In other words, if the dealer sold you a car that he or she represented would be reliable, or said it would be good for getting you to and from work, or some other such representation and the car breaks down within a reasonable time period after your bought it, then the “good” or car is non-conforming. That is, it doesn’t conform to your expectations.

If you buy a used car that turns out has a lot of problems, you have the right to revoke the car. This does not mean you can automatically revoke any “as is” purchase. To revoke the car, you must meet certain criteria set out in the Alabama Code § 7-2-608. These are basically:

- the revocation or return of the car to the dealer must be within a reasonable period of time after the discovery that the car is non-conforming.

- the revocation or return must occur before any substantial change is made to the car, other than the defect you are complaining of, such as attempted repairs, etc

- revocation is not effective until buyer notifies the seller of the car

Upon revocation, you should be put in the same position as if you had never accepted the car. In other words, if you have made payments, you can ask for them back; if you traded in an older car, you should ask for it back (this will often be difficult as the seller usually sells your trade-in shortly after you drive off the lot)

Revocation does not work in all instances and you should probably consult an attorney before doing so. However, as a consumer you need to be aware that you have a right to expect that you are receiving the benefit of your bargain. Though a dealer cannot guarantee there is nothing wrong with a used car, it should meet your basic expectations and not fall apart shortly after you drive it off the lot.

You can also sign up for our free email newsletter sent out every Thursday morning - we cover topics such as the one in this post. We would love to include you! Just fill out the form below:

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