Buyer Beware: Flooded Cars will Soon be Flooding the Used Car Market

“After a total-loss claim is paid, insurers typically sell the vehicle to the salvage market. Because flooded vehicles often bear no signs of physical damage, “they offer a prime opportunity for con men to clean them up and sell them,” said Larry Gamache, a spokesman for Carfax. After other flood events like Hurricane Katrina, he said, “the percentage of cars that ended up in the market was alarming.’” More at: http://wheels.blogs.nytimes.com/2012/11/02/buyer-beware-cars-flooded-by-hurricane-could-turn-up-on-the-market/

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Owners Have More Power over Manufacturers in the Internet Age

With the advent of the Internet, manufacturers have had to pay more attention to disgruntled consumers.

“Just as the advent of social media has handed new power to retail shoppers, hotel guests and other consumers, disgruntled car owners suffering similar problems can more easily combine efforts to pressure auto makers to bend on repair costs. Blogs and government websites make news of widespread maintenance issues easier to find. And auto makers and dealers, many just starting to gain traction after the economic downturn, say they are keen to find and keep potential return customers.” More at:

http://online.wsj.com/article/SB10000872396390443854204578059093585436564.html?mod=djemTEW_t

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Rental Car Companies Agree to Stop Renting Cars that Have Been Recalled

The auto rental industry has agreed to stop renting or selling vehicles that are under safety recall before they’re fixed.

The agreement ended months of dispute between Boxer and three big auto rental companies: Avis Budget, Dollar Thrifty and Enterprise Holdings, which owns the Enterprise, Alamo and National brands. More at http://travel.usatoday.com/news/story/2012-09-27/Rental-car-companies-wont-rent-recalled-vehicles/57849026/1?loc=interstitialskip

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Don’t Fall Prey to Spot Delivery Scams and Yo-Yo Financing

Below is a link to an article on abuses stemming from spot delivery “Yo-Yo” tactics.

http://www.edmunds.com/car-loan/dont-fall-prey-to-spot-delivery-scams-and-yo-yo-financing.html “Regardless of the letter of the law, Kukla says dealerships can pressure unwary consumers to accept new, more expensive terms using a variety of tactics. Some dealers have threatened to repossess cars, while others even say they will report the vehicle stolen. When a would-be buyer asks to simply return the car, some dealers have demanded high rental fees or charged for excessive wear and tear on the brief period of usage.” These types of abuses are common in California. If the dealership you purchased a vehicle from is pressuring you to sign a new contract, contact us. Know your Rights.

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Premier Nissan of San Jose

Auto Fraud Legal Center has recently taken on a client who has strong legal rights against Premier Nissan of San Jose. AFLC will allege on behalf of the clients that Premier Nissan of San Jose committed egregious violations of California law.

Did you purchase a vehicle from Premier Nissan of San Jose? Are you having problems with the vehicle? Did you have problems with the dealership? Contact AFLC for a free case and contract review by one of our attorneys. You can also read up on 12 of the most common auto dealer tricks to see if you were defrauded by Premier Nissan of San Jose or any other dealer in California.

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Sanchez v. San Diego Autos

Auto Fraud Legal Center has filed a lawsuit on behalf of George and Evangelina Sanchez to assert their legal rights against San Diego Autos. Roughly 30 days after the Sanchezes purchased their vehicle, San Diego Autos told them they had to sign a second contract. The Sanchezes allege San Diego Autos did provide them a right to refuse to sign a new contract or to receive a refund of his downpayment and cancel the contract. While dealers have the right to cancel a sales contract, it is a very narrow right. Dealers generally cannot rescind or cancel the contract after 10 days of the purchase.

Even further, the Sanchezes allege that San Diego Autos backdated the second illegal contract to the date of the first contract. Backdating is illegal because it charges the customer interest on a contract that isn’t even in effect.

You can read more about the seller’s right to cancel and other Auto Fraud violations in our Auto Fraud Information Center.

Did San Diego Autos or another dealership in California violate your rights by forcing you to sign a second contract? Did the dealership make you sign a second contract? Contact AFLC at 1-800-4NOLEMON to speak to one of our auto fraud attorneys about your contract.

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Darlene Holland v. Pedder Nissan

Auto Fraud Legal Center has filed a lawsuit on behalf of Darlene Holland against Pedder Nissan. Ms. Holland alleges that Pedder Nissan improperly disclosed a deferred downpayment on the sales contract, a violation of California law. A deferred downpayment is a downpayment not made in cash on the day of the purchase. If you gave the dealership a check to be held for a few weeks, you may have an illegal sales contract.

Not only did Pedder Nissan improperly disclose the deferred downpayment, Pedder Nissan also had Ms. Holland sign a Hold Check Agreement. A Hold Check Agreement has payment terms that are different from your sales contract, a violation of California auto financing law.

Auto Fraud Legal Center believes Pedder Nissan’s illegal practices are widespread. In fact, AFLC filed a class action lawsuit against Pedder Nissan earlier this year. Want to see what other bad things Pedder Nissan has done to its customers? Click “Pedder Nissan” at the bottom of this post.

Did you write a check that Pedder Nissan said it would hold for a few weeks? Did you sign a Hold Check Agreement for a deferred downpayment? If so, contact the law office of Auto Fraud Legal Center for a free contract review to see if you have an illegal sales contract.

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Genesis Ordonez v. Pedder Nissan

Auto Fraud Legal Center has filed a lawsuit on behalf of Genesis Ordonez against Pedder Nissan. Ms. Ordonez alleges that Pedder Nissan improperly disclosed a deferred downpayment on the sales contract, a violation of California law. A deferred downpayment is a downpayment not made in cash on the day of the purchase. If you gave the dealership a check to be held for a few weeks, you may have an illegal sales contract.

Not only did Pedder Nissan improperly disclose the deferred downpayment, Pedder Nissan also had Ms. Ordonez sign a Hold Check Agreement. A Hold Check Agreement has payment terms that are different from your sales contract, a violation of California auto financing law.

Auto Fraud Legal Center believes Pedder Nissan’s illegal practices are widespread. In fact, AFLC filed a class action lawsuit against Pedder Nissan earlier this year. Want to see what other bad things Pedder Nissan has done to its customers? Click “Pedder Nissan” at the bottom of this post.

Did you sign a Hold Check Agreement for a deferred downpayment? Did you write a check that Pedder Nissan said it would hold for a few weeks? If so, contact the law office of Auto Fraud Legal Center  for a free contract review to see if you have an illegal sales contract.

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Assembly Passes Buy Here, Pay Here Consumer Bill

Sacramento – Assemblymember Bob Wieckowski’s (D-Fremont) bill to require “Buy Here, Pay Here” lots to have window stickers disclosing the reasonable market value on their vehicles passed the state Assembly this afternoon 46-27 and now goes before the Governor.

“Buy Here, Pay Here” lots comprise a growing segment of the used car industry, focusing on high interest loans for people with poor credit. Too often, customers end up with overpriced cars and exorbitant interest rates. The industry also uses predatory lending and pricing practices with harsh default terms and swift repossession practices.

“The process of buying a car is already one often filled with anxiety,” Wieckowski said. “This bill, (AB 1534) would not dictate the sale price asked by the dealer, but it would help level the playing field by requiring the sticker. This gives the consumers more information as they consider whether or not to purchase a vehicle. In these difficult economic times, it’s especially important that consumer protection measures are in place to assist low-income families and our military personnel who are too often victims of predatory practices.”

New cars have displayed the Manufacturers Suggested Retail Price on all new cars since 1958 with the passage of the federal Automobile Information Act.

Consumer groups are in strong support of increased regulations over the “Buy Here, Pay Here” lots. AB 1534 is supported by Consumers for Auto Reliability and Safety, Consumer Federation of California, California State Commanders Veterans Association, Consumer Action, the Center for Responsible Lending and the Auto Fraud Legal Center.

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