When you go looking for a new vehicle, you probably can’t wait for the advanced features, comfort, and reliability. However, for owners of certain General Motors vehicles, this anticipation has turned into a serious concern. The National Highway Traffic and Safety Administration (NHTSA) has recently initiated a preliminary probe into 877,710 GM vehicles, creating some unease for consumers. The investigation is currently targeting popular models of full-sized trucks and SUVs, including the Chevrolet Silverado, GMC Sierra, Chevrolet Tahoe, Chevrolet Suburban, GMC Yukon, and Cadillac Escalade. The model years range from 2019 to 2024, and they are all equipped with the L87 V8 engine. These vehicles are under scrutiny due to alarming reports of engine failures leading to a seizure of the engine or a connecting rod breaking through the engine block when the engine seizes. This increases the likelihood of a serious crash that puts you at risk. To date, the NHTSA has gathered 39 complaints from concerned vehicle owners, each reporting no signs of malfunction before the engine seized, creating an unpredictable defect. This probe is classified as a preliminary evaluation to determine the extent and severity of the problem. This step helps investigators understand whether a full-scale recall is necessary. General Motors has stated that it will cooperate fully with the NHTSA to resolve the matter efficiently. The potential for sudden engine failure is a significant hazard. Not only does it pose a direct risk to the safety of the vehicle’s occupants, but it also endangers other road users. The abrupt loss of vehicle power, especially on highways, could lead to multi-car accidents with catastrophic outcomes. If you purchased one of these GM models in the last three years and have experienced these engine issues, it’s important to know your rights under the South Carolina Lemon Law. This law protects consumers from the burdens of defective vehicles so that your investment is safeguarded. South Carolina’s Lemon Law provides relief if your vehicle has a persistent defect that the dealer cannot fix even after a number of attempts. Given the nature of these engine failures, where there is no forewarning and immediate resolution isn’t always possible, you might be entitled to a replacement or refund. If you are concerned that your new GM vehicle might be one of the vehicles affected by these engine issues, contact Steve Moskos whose practice focuses on Lemon Law claims and can help you understand your legal rights and options. We are committed to ensuring that you get the help you need. Reach out today, and let us help you find a resolution.
If you prefer, you may listen to this blog post:When it comes to buying a used car, the road can sometimes lead to unexpected and unwanted detours. A recent case adjudicated in Richland County, South Carolina, gives a good reminder of the illegal practices that can be used on unsuspecting buyers. The case involved Midlands Honda, which was handed a $2.38 million punitive verdict for its failure to disclose the true condition of a vehicle sold at auction. Recognize the Red FlagsThe case centered around a 2003 Honda Civic that was sold as a seemingly intact car but was actually a “clipped” vehicle. “Clipped” refers to a car reconstructed using some very controversial methods after being wrecked. Putting this type of vehicle back on the road creates huge safety risks because of the potential structural weaknesses. Awareness of these types of practices is your first shield against fraud. DEmand Full DisclosureMidlands Honda conducted a 159-point inspection certified by Honda, yet the car was sold without any mention of its reconstructed status. Later, when the buyer found out about the damages, the dealership refused a refund, only offering a trade-in deal. Ultimately, the law requires a complete and transparent disclosure of a vehicle’s history before finalizing any purchase. Always ask for a detailed report and verify its accuracy. Know the Legal RequirementsOur firm represented the Plaintiffs. We were reminded how important it is for buyers to fully understand the laws regarding vehicle sales. The law requires dealerships to inform potential buyers of any significant past damage.The dealership failed in this duty by incorrectly reporting that the vehicle had not been wrecked or reconstructed. Legal Recourse is AvailableThe substantial punitive damages award in this case reflects how seriously the state takes these types of fraudulent practices. It serves as a deterrent to other dealerships that might consider deceiving buyers about a vehicle’s condition.
If you find yourself facing a similar situation where the vehicle you’ve purchased has undisclosed or hidden damages, remember you have avenues of recourse. Engaging with a knowledgeable South Carolina consumer law attorney who specializes in lemon laws and auto fraud can get you the help you need so that you aren’t stuck with an unsafe vehicle. We are ready to advocate on your behalf and make sure deceptive sellers are held accountable. Purchasing a used car should not be a leap into the unknown. By being informed, vigilant, and ready to seek legal help when necessary, you can protect yourself from falling victim to fraudulent car sales practices. If your car purchase takes a wrong turn, contact us to set up an appointment with Steven Moskos and explore your rights under South Carolina's consumer laws. When you decide to purchase a new vehicle, you should walk away thrilled and filled with the anticipation of reliable performance and advanced technology. However, for owners of the 2024 GMC Canyon, this expectation has led to unexpected disappointments and safety concerns too often.
A Closer Look at the Car Complaints The 2024 GMC Canyon has 164 registered consumer complaints filed with the NHTSA, making it one of the worst cars of 2024. The most common issues have been linked to exterior lighting. These issues compromise the vehicle’s functionality and pose some very serious safety risks when you’re driving. Exterior Lighting Woes An overwhelming 158 complaints about the GMC Canyon’s lighting system show the severity of the situation. There are issues ranging from headlights that flicker or fail to those that switch to high beam. These all impact your driving and endanger oncoming traffic. Turn signals that behave erratically mislead other drivers about the vehicle’s intended movements.For example, one consumer complaint noted a situation where the driver’s side headlamp remained stuck on high beam, leading to dangerous encounters with oncoming traffic. Braking and Steering Concerns A significant number of complaints have also been made about the vehicle’s braking and steering mechanisms. Many 2024 GMC Canyon drivers have found themselves in a situation where the adaptive cruise control mistakenly applies the brakes or where the vehicle fails to maintain lane integrity. These critical safety features are supposed to improve driver safety and vehicle reliability, but the issues have done the opposite. Recall Repercussions Amid these issues, GMC has initiated two recalls affecting the Canyon, addressing defects from the problematic headlights to improperly secured fuel pumps. These recalls show the systemic nature of the defects, which can increase the risk of accidents and injuries. Your Rights Under Lemon Law When you live in South Carolina and face ongoing issues with your new GMC Canyon purchased in the last three years, understanding your rights under the state’s Lemon Law is important. Steve Moskos helps protect consumers like you from the continued burden of these defective vehicles. If your 2024 GMC Canyon has repeated, unresolvable issues that impair its use, value, or safety, you may be entitled to compensation or replacement. Owning a new GMC Canyon should be a rewarding experience, not a source of endless problems. If your vehicle experience has been less than you expect, it might be time to explore your legal options with a SC Lemon lawyer. Contact us today to evaluate your case. If you prefer, you may listen to this blog.When you decide to purchase a new car, your expectations are high, especially with the attraction of cutting-edge technology and the latest comforts. However, if you recently purchased the 2024 KIA EV9 SUV, you may have noticed that the reality has been less than ideal. Consumers have reported an array of technical difficulties that raise both safety concerns and questions about reliability. You should understand your rights if you’ve been experiencing these frustrating issues with one of the worst cars of 2024.
A Closer Look at the Car Complaints Given the concerning 104 registered complaints to the NHTSA, the 2024 KIA EV9 SUV is proving problematic. It is particularly concerning when you take a deeper look at the failures associated with the electrical systems and driver-assist features. Electrical System Malfunctions A significant number of consumer complaints, 65 to be exact, are associated with the KIA EV9’s electrical system. Issues range from complete shutdowns of the digital display to malfunctions in charging the vehicles. These issues leave drivers without critical driving data like their speed or battery level. Some owners have even been left stranded without power. One customer reported that the car’s comprehensive screen went blank unexpectedly, disabling essential functions like the parking collision and forward collision warnings. Braking Concerns Safety has become a big concern for owners of the KIA EV9, with reported malfunctions in the braking system. There have been multiple instances where the vehicle’s brakes either failed to respond properly or required unusual force to engage, posing a severe risk in traffic situations. These failures compromise your ability to control the vehicle when you need it most. Recall Repercussions With these operational flaws, KIA has issued at least 5 recalls involving various components, from the electrical systems to structural issues. One recall addresses an instrument panel that fails to display vehicle information, such as the speedometer and warning lights, increasing the risk of accidents. This action shows a broader concern over the vehicle’s ability to perform safely and reliably. Your Rights Under Lemon Law Choosing a new car should be a celebration, but when it turns into a source of frustration, knowing your rights can help you navigate toward a solution. Luckily, as a South Carolina resident, you don’t just have to accept it when you find yourself facing continuing issues with your 2024 KIA EV9 if purchased new in the last three years. If your vehicle exhibits persistent defects, there is recourse available. Under the SC Lemon Law, when the defects in your vehicle impair its use, safety, or value, and attempts at repair have been unsuccessful, you may be entitled to relief. Consult with a Lemon Law attorney, like Steve Moskos, who can guide you through the process and advocate on your behalf. If you prefer, you may Listen to this blog.Choosing a new vehicle like the 2024 Jeep Wrangler comes with expectations of reliability and excitement. Excitement is what you bought it for. However, you might have found that your purchase steered toward a road filled with frustration and unexpected stops at service centers. The growing volume of complaints and the severity of the issues reported cast a shadow over the perceived durability and safety of this iconic off-road vehicle, making it one of the worst cars to purchase in 2024. A Closer Look at the Car ComplaintsWith 77 total complaints filed through the NHTSA against the 2024 Jeep Wrangler, this vehicle is becoming known more for its reliability concerns across several critical systems than off-roading fun. Engine FailuresEngine problems are alarmingly frequent, with 37 reports detailing incidents where the engine failed to perform as expected. Owners have found themselves in situations where the engine has completely shut down while driving on the highway, creating a potential risk for accidents and highlighting reliability issues that can’t be ignored. Electrical System MalfunctionsThe electrical system of the 2024 Jeep Wrangler was the subject of 33 complaints focusing on its inconsistency. Drivers have experienced a total blackout of the vehicle’s dashboard during operation, making essential functions like the speedometer and fuel gauge unusable and compromising the driver’s ability to operate the vehicle safely. Braking ConcernsIssues with the Wrangler’s brakes have also surfaced, adding another layer of concern for owners. Multiple complaints have been reported about the braking system, including incidents where brakes failed to engage effectively. These braking issues increase the likelihood of accidents and contribute to the growing distrust in the vehicle’s dependability. Recall RepercussionsThe seriousness of these issues doesn’t stop at the consumer complaints, given the 7 total recalls issued for the 2024 Jeep Wrangler. One critical recall was issued concerning the high voltage battery that could fail and cause fire hazards, affecting over 154,000 units. These recalls reflect systemic failures that expose passengers to serious safety risks. Navigating Your Rights Under SC Lemon Law If you purchased a 2024 Jeep Wrangler, there are safeguards provided for consumers like you through South Carolina’s Lemon Laws. When you find yourself repeatedly dealing with vehicle repairs and safety concerns, and you’ve purchased your new vehicle in the last three years, South Carolina lemon lawyers like Steven Moskos can help.
You purchased your 2024 Jeep Wrangler for its rugged charm, but the significant number of concerns mean that you should proceed with caution. If you find yourself facing ongoing issues with your new Wrangler, we are ready to help you through the Lemon Law process so that your rights are protected. Don’t hesitate to reach out for a consultation to explore your options and regain the peace of mind you deserve with your vehicle purchase. When you go out and purchase your new RV, it should be your first step toward freedom and adventure. However, if you’ve had your eye on a model from Thor, especially their new 2025 lineup, you need to take a few minutes to really understand their warranty conditions. It could complicate your dream journey more than you’d expect. Here’s a closer look at why potential RV buyers should pause and reconsider their choice when it comes to Thor.
Complex Communication Channels In order to initiate any warranty claim with Thor, you’re going to be faced with a tightly controlled communication process. You won’t find a straightforward way to put in a service request. Instead, Thor requires you to begin with a formal email when you want to file a complaint. That might seem simple, but it’s just the beginning of a very convoluted path that is specifically designed to deter you from making a claim. Restrictive Repair Attempts Under Thor’s warranty policy, as an RV owner, you need to prove to them that the exact cause of a defect has failed to be fixed after three attempts or that your RV has spent at least 150 days in repair under warranty conditions. Keep in mind that these three repairs aren’t just for recurring problems—they need to be three failed attempts to fix the exact same underlying cause. On top of that, you need to have scheduled an appointment for that specific repair issue if you want it to count toward the tally. Thor conveniently labels any unscheduled fixes as “goodwill” repairs, and those won’t count toward your warranty claims. Stringent Legal Prerequisites Even if you follow all the required steps for a warranty claim to the letter, Thor gives you another hurdle you need to jump over before you can pursue any type of legal action. Every claimant must send a final, detailed written complaint via traditional mail that includes a specific list of information. Emails won’t be accepted. If you miss any detail, Thor has the right to dismiss your claim entirely. Provable Loss Calculation If you can make it through all of the other warranty requirements successfully and establish a legitimate claim, Thor’s policy then demands one more piece of documentation. You need to provide a conclusive letter that details your calculated financial losses. The calculation must adhere to an “independently verifiable” formula. If you don’t provide this precise calculation, you won’t get any recovery for damages. This leaves customers in a potential financial bind without any recourse. Thor’s warranty stipulations appear to be a strategic move to minimize their responsibility and create as many obstacles as possible for consumers who want justice for faulty RVs. Complaints lodged with the Better Business Bureau for similar issues from previous years reflect a consistent pattern. Many report that Thor deflects blame to dealerships and prolongs parts delivery to nearly the entire duration of the warranty. As an informed buyer, you need to be aware of these warranty pitfalls. If you find yourself trapped by Thor’s stringent policies, remember that you should get counsel from a law firm experienced in lemon laws. Your journey should be about enjoyment and relaxation, not legal battles and lost investments. Listen to this blog postInvesting in a new vehicle like the 2024 Mazda CX-90 SUV should be the start of a fun and safe driving experience. However, you may be facing a rough road filled with mechanical and technical issues, turning your excitement into concern. If you’re noticing persistent problems with your CX-90 in South Carolina, you need to know your rights under the SC Lemon Law to navigate these challenges effectively. Car Complaints Plaguing the CX-90The 2024 Mazda CX-90 has already been the subject of 108 consumer complaints, according to NHTSA, making it one of the worst cars to buy in 2024. There are various defects that could compromise safety and performance. Steering and Brake FailuresOne of the most severe malfunctions you may see revolves around the steering and braking systems. One alarming incident involved a complete brake failure at moderate speeds, leading to a collision. These failures risk your safety and pose a serious hazard to other cars on the road. Engine and Electrical System IssuesThe 2024 Mazda CX-90 has also had 22 engine complaints and 18 electrical system issues. These range from sudden loss of power while driving to critical warning alerts about system redundancies, leading to dangerous situations on busy roads. Forward Collision and Lane Departure MalfunctionsWith 38 complaints about faulty forward collision avoidance and eight on lane departure systems, it’s clear that the CX-90’s safety features don’t reliably protect you in the way they are intended. These technologies should prevent accidents, but instead, they contributed to unsafe driving conditions. Recall Details Impacting SafetyOn top of the extremely high number of customer complaints, Mazda has issued six recalls affecting various components of the CX-90. The recalls address unexpected braking, loss of power steering assist, and faulty camera displays. Each of these issues increases your risk of crashes due to systemic safety issues that could have extreme consequences if they aren’t fixed effectively. Your Rights Under the Lemon LawSouth Carolina’s Lemon Law is designed to protect you when your new vehicle doesn’t meet standard performance and safety specifications. If you purchased your new 2024 Mazda CX-90 SUV recently (in the last three years, as required by the Lemon Law) and it is repeatedly failing to perform safely despite reasonable repair attempts, you might qualify for a replacement or refund through the Lemon Law. If you find yourself constantly addressing the same issues with your CX-90, or if Mazda has not provided a permanent fix, it’s time to act.
Purchasing a new car like the 2023 Chevrolet Bolt should make you excited and hopeful about all the new adventures you will have. However, for many owners, this experience has quickly turned into one associated with frustration and unexpected challenges. The 2023 Chevrolet Bolt, marketed for its innovation and green features, is now notorious for a range of issues that might qualify it for a repurchase under South Carolina's Lemon Law. A Closer Look at the Car ComplaintsThe 2023 Chevrolet Bolt safety concerns are highlighted by the 51 consumer complaints that have been filed with the NHTSA, raising a lot of questions about its reliability and safety. Some of the most common issues you might experience include:
Safety on the Line: Critical Recalls Impacting the 2023 Chevrolet BoltA question under the Lemon Law is whether the defect or condition substantially affects the use, value, or safety of the vehicle. The 2023 Chevrolet Bolt has five critical recalls that show some very serious safety challenges for potential owners. One risk highlighted involves a fire hazard following seat belt pretensioner deployment that could ignite interior carpet fibers after a crash. Additionally, there was a recall concerning the potential for passenger airbags to improperly deploy. All of these make it clear that this vehicle, which was supposed to be technologically advanced, has major safety flaws that could put you and your passengers at risk. Your Rights Under Lemon LawIf you live in South Carolina and bought your new 2023 Chevrolet Bolt in the last three years, you could be protected by the SC Lemon Law from the issues that come with one of the worst cars of 2023. This law is meant to make sure that you don't end up with persistent problems and potential hazards. Protect Your Rights with South Carolina Lemon LawSteve Moskos’ practice concentrates on Lemon Law and auto fraud claims. He understands the complexities of Lemon Law claims and is here to help if your Chevrolet Bolt's defects have not been resolved despite reasonable repair attempts. Contact us to discuss your situation and explore your options under the law.
When considering the purchase of a used vehicle, armed with the right information, you can evade the costly mistake of driving off with a lemon. This term, more than just a colloquial expression, refers to defective vehicles plagued by a manufacturer's defect. We're committed to helping our clients navigate the rocky terrains of the automobile world. Drawing insights from leading consumer reports, we've put together a list of the worst lemon cars for 2023. Chevy Bolt EUV
The Chevy Bolt EUV has been a topic of concern due to recurring issues with its in-car electronics and electric motor. Many consumers have reported unexpected glitches in the infotainment system and unanticipated shutdowns of the electric motor. In addition, there have been complaints about air and water leaks, which can compromise the vehicle's integrity and safety. These defects can be particularly concerning for a car owner, leading some to consult lemon law attorneys for recourse. Pacifica Hybrid The Pacifica Hybrid, while celebrated for its eco-friendly design, has faced recalls stemming from its electrical systems. The vehicles have shown an alarming tendency for their electrical components to pose risks, either by jeopardizing the vehicle's structural integrity or posing a threat to nearby flammable objects. This manufacturer's defect has led to increased attention from Consumer Reports. Kia Sorento The Kia Sorento has garnered attention due to persistent mechanical issues. Engine stalling, a particularly worrisome problem, has been reported frequently. Such malfunctions, especially if occurring while on the road, can pose serious safety risks to both the driver and other road users. Jeep Wrangler 4xe The Jeep Wrangler 4xe, despite its robust appearance, has faced recalls in recent production years. These recalls highlight potential long-term issues that could affect vehicle performance and safety. From malfunctioning battery systems to concerns about its powertrain, the Jeep Wrangler 4xe has given consumers reason to pause. Those considering this vehicle are encouraged to explore consumer reports extensively and seek advice from lemon law attorneys if they suspect they've received a defective unit. Subaru Ascent The Subaru Ascent has been flagged for a variety of mechanical issues. From reports of unpredictable engine behavior to concerns regarding the transmission, this model has found itself under scrutiny. Some owners have even reported minor problems, like infotainment hiccups, adding to the list of concerns. As always, seeking guidance from consumer reports and keeping the advice of a knowledgeable lemon law attorney in mind can prove invaluable when navigating such challenges. While every vehicle has its pros and cons, it's essential to be informed about potential manufacturer's defects or consistent issues. Should you find yourself with a lemon, don't hesitate to seek guidance from a professional regarding the SC Lemon Law, like Steve Moskos, ensuring your rights and investments are protected. In today's bustling used car market, getting value for your money is a top priority. However, amid genuine sellers are a few who might try to dupe you. One of the prevalent frauds that car buyers should be cautious about is odometer tampering. Odometer rollback, as it's often called, is the malicious act of altering a vehicle's mileage to portray it as less driven. But how can you, as a vigilant consumer, safeguard against this kind of fraud? UNDERSTANDING ODOMETER FRAUD Odometer tampering isn't a mere trick—it's a breach of consumer trust. Odometer readings provide potential buyers with insights into a car's history, helping gauge its wear and tear and its potential longevity. By rolling back the odometer, sellers unfairly inflate the car's market price. This act, which is both misleading and fraudulent, has led many to seek advice from a consumer fraud attorney, such as Steve Moskos. SIGNS OF ODOMETER ROLLBACK
Misrepresentations, especially deliberate ones, come with consequences. Knowingly offering false odometer statements is not just unethical but also illegal. In South Carolina, such actions can lead to legal repercussions, including substantial fines and even imprisonment. EMPOWERING YOURSELF AS A CONSUMER Staying informed is your most potent weapon against consumer fraud. If you're considering purchasing a used car:
A Technical Service Bulletins (TSB), in the simplest terms, is a communication from the manufacturer about a known issue or defect in a specific make and model of a vehicle, but one that doesn't warrant a full-blown recall. While they aren't mandates for repair, TSBs guide dealerships and mechanics on how to address and repair consistent issues that owners might face. Vehicle owners can now find some TSBs, or manufacturers communications, for free through the National Highway Traffic Safety Administration (NHTSA). TSBs released earlier than 2012 will not be available through the NHTSA website. Looking up a TSB is a straightforward process:
Additionally, you can request a TSB on your vehicle is through your vehicle manufacturer’s dealership or repair shop. Once you know are armed with the right information, you can begin work on getting it fixed. It's wise to approach a manufacturer’s mechanic since they possess specialized training about the specifics of your vehicle and are more equipped to tackle issues highlighted in TSBs. So, what happens if the TSB does not fix the problem in your new car? You may have rights under the South Carolina Lemon Law. The SC lemon law is geared to protect consumers from manufacturing defects that can't be repaired after a reasonable number of attempts. If you believe you have a lemon, notify the manufacturer in writing about the issue; if unresolved, you may need the help of a SC lemon lawyer, like us at Moskos Law Firm, who can assist you with a possible refund or replacement. For those who discover they've unwittingly purchased a used vehicle that was previously deemed a lemon and repurchased by the manufacturer, it's pivotal to seek advice from an SC consumer fraud attorney who can help. Having a vehicle that constantly fails to function correctly can be an ordeal. But armed with the right information about TSBs, you're equipped to tackle the challenges head-on. If you need a consumer lawyer or a South Carolina Lemon Law attorney, contact us to find out how we can help. Supply chain issues are affecting everyone, not just consumers. Grocery stores can’t get the products they usually sell, and it’s not unusual now to see signs posted at restaurants warning people that some items may not be available due to low or no supplies. This is even true in the automotive industry, and some dealerships are using this issue to their advantage by marking up the price of their vehicles and not just by a few dollars.
To entice buyers, dealerships often lowered the MSRP, or manufacturer’s suggested retail price, by a couple of thousand dollars, maybe more. This gave the impression that the buyer is getting a real deal. But many dealerships now have jettisoned that practice and are selling vehicles at thousands of dollars over MSRP. Why? Because inventory is lower, and once a vehicle is sold, the wait for another one to take its place on the lot can take months. While manufacturers aren’t happy with these dealerships’ choices, according to a recent NPR article, there’s little they can do about it as most dealerships are independent franchises and can set the prices they want to set. Michelle Krebs is an automotive researcher who serves at the executive analyst of Cox Automotive, and she told NPR that this was the first time in her career that she’s seen most dealerships charging at list price or over. That has to do with high demand and low inventory, but also because they can. And sometimes, it’s not just a few thousands of dollars over MSRP. It can be tens of thousands of dollars. Some manufacturers have even urged dealerships to lower the markups or risk not receiving some of their most desired vehicles. But that hasn’t stopped the markups, and it looks like there won’t be a break anytime soon. So Krebs suggests that anyone looking to buy a new vehicle be willing to practice patience and to go outside their comfort zone, which may mean shopping farther away to get a better deal. The author of the NPR article found his next truck over 400 miles away from his home but still ended up paying $2,000 over the list price. So, while shopping farther away can lower the price of your next vehicle, for the most part, you can expect higher prices at car dealerships for the foreseeable future. Last month, Carvana, the online car dealership, laid off 1,500 employees, or 8% of its work force, which, according to CNBC, was comprised mainly of corporate and tech departments, although some operational positions were affected as well. Unfortunately, this isn’t the first time Carvana has eradicated positions as in May, the company laid off 2,500 employees, or about 12% of its workforce, citing lagging sales.
This most recent layoff comes after Carvana’s stock plummeted yet again, bringing its overall total down 97% this year alone. Though sales were robust during the pandemic, interest rates have risen, and with fears of an economic shutdown, consumers aren’t as focused on buying vehicles at present. The layoffs came via an internal email message from Carvana’s CEO Ernie Garcia which was titled “Today is a hard day.” He cited higher finance rates and delayed car purchases as part of the reason for the layoffs and added that the company had “failed to accurately predict how this would all play out and the impact it would have on our business.” Also, in the email, Garcia talked about how the world had continued to get tougher, and that painful choices had to be made to adapt. The company’s problems have escalated since its rapid growth last year, and now, with $6.3 billion in debt and its stock price dropping like hail, it’s uncertain as to whether Carvana can recover from this freefall. It’s something to take note of if you’re in the market for a car as fewer people on the job can affect everything from customer service to financing. You’re excited about your new car. You signed the paperwork, were handed the keys, and drove away from the dealership believing everything was in order. Because obviously, you wouldn’t have been given the keys and the okay to leave if everything wasn’t okay, right? You were told you were financed and even given the paperwork which you have in the glove compartment of the car. (Reminder: Take that into your house and review the documents to make sure they are all there.)
Then, fifteen days later, or maybe even longer, you get a call from the dealership telling you to bring the car back. What? What are they talking about? It seems the dealership was unable to secure financing so they need the car to be returned. They say they could possibly work out another deal, but until then, they need the car. But you have paperwork showing you were approved for financing. But that doesn’t matter, according to the rather brusque sales manager who is insistent that you return with the car. But you’re not taking the car back, not when you have proof you’ve been financed. A few days later, maybe less, you walk out of your office at work to discover your car is missing from the parking lot. You call the dealership and are told they now have it in their possession. You were given the opportunity to bring it back but failed to do so. The dealership had no other choice but to repossess it. Now what? You made a down payment the dealership is telling you is non-refundable which means you’re without the money and the car. You’re going to lose your job if you don’t have a way to get to work. But the dealership has cut off all communication with you. You’re officially on your own. You think there’s nothing you can do. But that’s not entirely accurate. Depending upon all the facts of your situation, you may have recourse. Back in 2011, the Federal Trade Commission published a white paper “Deal or No Deal: How Yo-Yo Scams Rig the Game against Car Buyers” that details how dealerships work this type of scam, which is called a yo-yo transaction. If you’re in this situation right now, you may want to read the paper and ask yourself if anything in it sounds similar to what is happening to you. If the answer is yes, your next step should be to call a lawyer. Now, that phone call isn’t a guarantee you’ll get your car back, but it’s the first step in being proactive. Don’t assume there’s nothing you can do until you’ve spoken to an attorney, specifically one familiar with consumer law. Way back in 1960, Volkswagen created an ad with the slogan “We pluck the lemons; you get the plums.” The ad was about the manufacturer’s high quality when it came to inspecting cars before they left the factory and focused on an inspector’s discovery that the chrome strip on the glove compartment on one car was blemished and had to be replaced. Would that Volkswagen be considered a “lemon” in South Carolina? Under South Carolina law, a new car is considered a “lemon” when it has a manufacturing defect that affects the safety, value, or use of the vehicle. If that defect shows up within the first twelve months or 12,000 miles of a car’s purchase, whichever one comes first, then the manufacturer must fix the vehicle for free. You can’t just arbitrarily decide your vehicle is a “lemon” and return it to the dealership expecting a full refund. Whether the problem you’re having with your car fits the above criterion is something a court would have to decide.
While you’re reading this, you might be thinking, what about my 2001 car that I just bought from the used car dealership? It needs a lot of repairs, and the salesman didn’t tell me about any of this. Doesn’t that mean the car is a “lemon”? Technically, yes, the car is a “lemon”, meaning it’s a bad car, but it isn’t a “lemon” under South Carolina law because it isn’t a new car. Does that mean you have no recourse if you’ve purchased a used car? Not at all. An experienced lawyer knows laws that apply to used vehicles and can help guide you in the right direction. Just because you’ve purchased an “unofficial lemon” doesn’t necessarily mean you’re stuck with it. So, whether you’ve purchased a new “lemon” or a bad car, talking to a lawyer is your best bet. The laws involving vehicles are complicated and can be quite confusing. It just makes sense to get advice from someone who has read and understands those laws. |
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