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Nick C. Thompson 105 Daventry Suite 200
Louisville, Kentucky, 40223 (502)429-0057
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Lemon Automobiles Louisville Kentucky Warranty Information
Chrysler alone processed 1.3 billion in lemon auto refunds from 1995 to 2002. Have you filed your claim?
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The Top 10+ Frequently Asked Questions At our office about Lemon Automobiles
This is not legal advice. Any problem that you have is an individual case. These are the normal answers to frequently asked questions and reading them will give you a good understanding of the top issues in any lemon auto case. We trust that this information is helpful.
If you have a question about your particular case you need to ask your attorney about your facts and your particular circumstances.
The top 3 questions
The top 60 + FAQ question
We are just starting this informational page and we are constantly adding questions to it. Although these Questions are answered by Kentucky Lemon Auto the law of your state is often the same or similar because Lemon Auto cases are based on warranties which are based on some federal laws and Regulations that are the same for all the states however differences are governed by your individual state law and in some cases we explain the range of the exceptions. Please e-mail us questions and we will add your questions and answers to this ever-growing list of commonly asked questions if it is of general consumer interest.
Q1: Why not Mediate? Some states require a last letter or final demand to the manufacturer but Kentucky has no such requirement. In Kentucky you are not required to mediate the problem if mediation will not solve the problem. In some states it is required. If it is required then with Chrysler and GM you may do it through our office.
The problem is that if you ask for mediation of your lemon auto claim through the BBB or a similar office the car manufacturer pay the wages of the mediation hearing officer. This produces a biased opinion. Often the hearing officers are offered high paying jobs handling claims later with the car manufacturers if they produce "good opinions".
Q2: I bought a 97 Chrysler at Bill's Dodge in Lexington, Ky. I need to know if I am able to use the lemon law act on my car. I bought the car July the 26th, 2002. It had a small warranty that has ran out. They tried to get me to take the extended warranty, I couldn't afford it, so I didn't. My transmission and brakes have been acting up in the past week. Do I have a case. No you don’t have a lemon auto case in my opinion. The Lemon auto law covers cars with warranties. Your warranty ran out and these problems happened after the warranty ran out. You chose not to buy an extended warranty. The repairs are now your responsibility. This may not be what you want to hear but that is the law for Kentucky. Lemon auto cases are about warranties some warranties are unwritten but after a car gets so old (normally after 3 years) the warranties run out and the repairs are your responsibility. Some parts are always your responsibility to replace such as tires and brakes which are replaced as the car gets old. However even then a product liability case can occur if the product is poorly manufactured. Car manufacturers warranty the car but unless the tires wore out or blew up within 1000 miles or were other wise defective the tires have no warranty and if they did your complaint would be with Goodyear not Ford.
In Kentucky, the dealership cannot be sued under the lemon law unless the dealer knew of the defect at the time of sale and it is often difficult to prove that the dealer knew about the defect. However the Federal lemon law still makes the dealer liable.
The dealership can have it in his best interest to keep the car in the shop repairing the car over and over again and billing the manufacturer for it. Often a dealer may repair the same item 4, 5 or more times never fixing the real problem. Every time the dealer works on the car he makes more and more profit from the car manufacturer and the Dealer has little or no interest in getting you a refund on what may be a car that will never be right.
When a dealer does repair work he works for a small profit percentage but he does work and make some profit so he keeps on repairing it. It isn't his job to get the refund for you and no one pays him for that. The answer is often to sue the manufacturer for a full refund of the car not the dealership.
Q4: Can I sue the Used Car Lot? You can sue the car manufacturer for his warranty on a used car. But after the new car warranty is gone there are normally no warranties from the dealer. Other state have different local laws. For a used car any warranty or guarantee you have is what is left over from the 3 year 36,000 mile drive train warranty, or your bumper to bumper warranty. There are also some unwritten or implied warranties and product liability claims can be made. If you purchased a warranty from the dealer you may also have that warranty.
But if you paid for one of the warranties from a used car dealer you have also often paid for a useless warranty. Often in Kentucky cars are sold as is in the sales documents. As is means that you are responsible for any wear and tear for the vehicle. If the dealer gives a warranty it is often given for 30 days or 1,000 miles and only on the drive train. However there are other guaranties and warranties that are given. Warnings and disclosures have to be given to the buyer if the car is flood damaged or if it is made from the parts of other cars. Other laws prevent mileage rollbacks. Often fraud like this is used to sue used car dealer for injuries that were later sustained. Used car lemon auto cases are far more difficult to win and they normally don’t rely on the lemon auto statute. With used cars the buyer must be far more careful when he purchases the auto.
Q5: What happens in a normal lemon auto case--what is the process? Normally our lemon auto cases with new car manufacturers follow the following order of events After the initial interview, we file a complaint that requires a 150 dollar filing fee from the client this is refunded as court costs if the client wins the lemon auto case. The manufacturer files an answer within 30 days. The attorney then makes an offer to the opposing counsel as soon as he gets the answer to the complaint. The offer is that the manufacturer buys back the vehicle for it's full purchase price. Every manufacturer we have dealt with has had a buy back program including all the US manufacturers and the Japanese ones. A deduction is allowed for the mileage from the purchase price plus any court costs. This offer is almost always accepted within 20 to 60 days if the defect is substantial or a counter offer is made if the defect is minor. When we accept the offer the vehicle is returned to the dealership and the manufacturer. However it takes time (1-2 weeks) after the vehicle is returned before the check is received from the manufacturer and the check is processed. During that time they have you may have to look for another car plus pay on the old loan.
1. Is my leased car covered by the lemon auto law? Leased Vehicles have always been covered by the lemon law. All the leases are leases with options to buy. It is a part of the UCC and leases that they are in essence a “purchase” however it was years before the law was corrected and explained. Many judges allowed leases as sales years before the law was amended and clarified. Now all the states include leases as sales.
There is a lot of litigation going on to limit leases and car companies often give a lower offer of damages if the car is a lease.
2. What is the statute of limitation? It has been 3 years what kind of chance would I stand in getting my truck "bought back" by the Manufacturer? It has been repaired now but apparently still meets all of the qualifications of being a lemon. Under Kentucky's lemon auto law the defect has to effect performance value or safety but the defect has to first appear within 12 months of purchase but you can bring the suit and sue at a much later date. Under the federal law you have within one year after the warranty runs out.
Under Magnuson Moss the defect has to normally be covered under the Express warranty and appear within the express warranty period to make a claim the limit is the warranty period plus one year. In any case your “case’ is almost always with the Manufacturer and after a point your case becomes too old. Normally the maximum time limit for bringing a case is within one year after the drive train warranty runs out. The time limit is always different. In the case of KIA with a 100,000 mile warranty it runs a long time.
3. Why do I need an attorney for my Lemon Auto claim? Without an attorney what you collect will often be far less. The manufacturer normally won’t voluntarily pay unless you file a lawsuit. Individuals simply don't know how to process a lawsuit and only filing the lawsuit makes the manufacturers want to settle. The average cost of fully litigating the lemon auto lawsuit is far more than the cost of refunding the purchase price of your car. Unless you file a lawsuit the Dealer and the Manufacturer will simply ignore you and hope that you will eventually go away. Unless you file a lawsuit your complaints are only hot air. In 1985 the Mississippi Workers Comp board did a study. That study held that if an attorney represented a person in Mississippi they obtained about twice what the average person got without an attorney. If you want to get your money faster, if you want to get more, use an attorney. If you want to get less or nothing do it yourself.
4. What are the costs? Your initial cost is the $150 dollar filing fee. However if you win your lemon auto case your filing fees and part of the attorney fees are paid by the manufacturer. Why do the work for free, do it, wrong fail and not get paid for it. Litigating the case through appeal will cost the company about $30,000 if you win it costs 60,000 at least plus the car.
5 How much time does it take? Normally these cases are settled within 3-6 months. However litigation is always possible when both sides think that the other is wrong. I never took over a year in my first 20 cases and over 90% are done in far less than 6 months.
6. How do I choose an attorney? It is hard to find an attorney that likes to do this type of case simply because bankruptcy and divorces are the day in and day out common type of case that all attorneys normally do. Because this type of case is different some attorneys do not like to take lemon auto cases. However you can go to www.Bankruptcy-Divorce.com or a lawyer referral service, which will refer you to qualified attorneys that have specifically asked to be referred these types of cases.
7 How much is my used car lot warranty from a buy here pay here worth? Welcome to another form of warranty fraud. If you purchased a warranty from a unscrupulous used car lot you probably paid about 1000 to 1500 for it plus tax and interest which by the time of closing adds about 2000 to the cost of the car. It may require you to use the dealership's shop where he merely turns down the warranty claiming that it was only normal wear and tear and not “defective”. Often if the policy was from Western General the dealership actually owns the insurance company that issued the warranty which never has paid a claim and never will. You just lost another 2000 dollars as the victim of another type of dealership insurance fraud. You rarely get to fully read or inspect such warranties before you buy them. You only see a brochure that promises with misleading wording about covering the power train with wear and tear excluded. When you make a claim everything will be excluded as wear and tear. Generally only extended warranties issued by the manufacturers or by used car section of a new car dealer are reliable.
8 What is auto fraud? The sale or leasing of vehicles (including motorcycles and boats) with known defects and dangerous conditions without proper disclosure is auto fraud. These dangerous conditions may be flood or collision damage or lemon auto histories that the dealer knew about. Also rolled back odometers and other cases of fraud may subject the dealer to harsh penalties. Fraudulently putting a consumer into a lease when she thought she was buying the car, non disclosure of warranty restrictions and limitations, charging for items that weren't actually sold with the car or certain car repair schemes may qualify. The defendants can include insurance companies, car dealers, car manufacturers, extended warranty companies, service contract companies and car finance companies. Fraud cases have even higher awards than normal lemon auto cases if they can be proved. Juries and Judges rarely like the fraudulent concealment of serious defects that can injure you or your family. These defects can cause serious injury to you and to others on the road far beyond the normal risks. Fraud can include forged signatures, falsifying figures on a loan, and even selling a used lemon auto as a new "demonstrator". California's Civil Code requires disclosing any collision damage amounting to over 500 dollars however Kentucky has no such protection specifically in it's code.
9 What can I expect if I try to handle this myself? If your car is new the new car dealer will normally refer you to the manufacturer. After all, the dealer didn't make or design the new car.
The Dealer does the repair work. However when the manufacturer pays for the repair work they will often pay the dealer only once even if he has to repair it again later. Or manufacturers will pay a set flat fee for doing the repair. Therefore even if the repair takes 5 hours the manufacturer may pay for only 3 hours. As a result, some dealers do not want to do warranty work.
The manufacturer will often deny that there is a defect. Often the manufacturer will offer to repair it over and over again even if it can’t be repaired hoping that you will eventually go away. That can be a lot cheaper than litigation and refunding the price of the car.
If your car is used the unethical dealership will often try to blame it on you. This outrageous attitude may be difficult to comprehend, but it is common. The unethical used car dealership will normally claim that you
1. caused the defect or collision damage, or
2. deny that there is any problem, or,
3. if there is one that they cant deny, that they had no way of knowing and that somehow you should have known about it, or
4. they will claim that the damage is very minor and that you should accept it.
These are the "standard" defenses. Used car dealers are never going to admit that they suckered and defrauded you, no matter if it is their day to day practice or how blatant, calculated and disgusting the fraud was. Even if the dealership agrees to settle with you out of court, they will often want you to sign a "release" stating that the settlement is "for a disputed and doubtful claim" and contains a "confidentiality clause" covering up how he put a car that could have killed you and others on the road just for profit. His settlement with you is just a cost of "doing business" and thousands of others will never sue him.
The suffering that unscrupulous Kentucky used car dealerships cause to unwary consumers is difficult to forgive and hard to forget. We have seen a lot of people file bankruptcy. Others have been injured and killed by cars that dealers knew that the cars they sold were unsafe at any speed. You may pay over book value and high interest rates for a used car that is worthless. Then you are stuck with making car payments for a vehicle they can't even use. Then you may not be able to buy another car and at the same time have to pay for the worthless one. If you stop making payments, the car may be repossessed and then ruin your credit, and finally your happiness completely destroyed. In such a case don't sit there get serious legal help. Take a moment to look at your options rather than just live with the problem.
10. Cant I return the car in 3 days? If a person is selling something to you in your home the FTC (Federal Trade Commission) has a rule that you have 3 days to revoke the contract. Often state laws also repeat this guarantee. Auto sales on the dealers lot do not qualify.
Under the UCC (Uniform Commercial Code) you can revoke or rescind a contract for non conforming goods. However to revoke or rescind a contract for goods you have to return the goods immediately as soon as you have had a chance to inspect them. Therefore if you have just left the lot and you revoke the contract by immediately bringing back a car that has a poor engine you have probably properly revoked the contract. If you keep it 3 or more days you have probably waited to long and you have accepted it.
11. What if the warranty is expired or I have over 12 months 12,000 miles? Your car may still be covered ask an attorney because the maximum time limit is 12 months after the warranty expires.
12. What does as is mean? That you are responsible for any repairs and that items with wear and tear from being used are not warranted. Some part of the original warranty may be left over from the manufacturer for instance if the used car only has 12,000 miles on it you get the remainder of the 36,000 mile drive train warranty that almost all cars have some manufacturers have even longer drive train warranties.
13. Is a Demo or Lease covered by the lemon auto statute. Yes however a lot of "lemon" cars are resold as "demonstrators" and factory cars.
14. How do I prevent buying a lemon auto? Insist on the following if you buy a car
get a warranty from the used car dealer even if it is a 30 day warranty. Ask him and yourself if this is such a good car why won’t he guarantee it????
get a statement from the dealer that the car has no collision damage and that it has not been returned to the dealer or the manufacturer for lemon law defects. You can get a printout of it's warranty service history from the nearest auto dealership.
TMU stands for true miles unknown such cars have tampered odometers. LOOK OUT if this is printed in the paperwork anywhere
take at least a 10 mile test drive in varying road conditions
have a mechanic look inspect the car first.
Research car fax NHTSA and any lemon auto sources for any warranty defect and repair info for your model
Carefully consider the extended warranty if the policy is from the car manufacturer or if you are purchasing it from a lot that also sells new cars the policy is probably reputable and I recommend purchasing it if the price is affordable it should not have any disclaimers for wear and tear.
15 Questions From a Client used with the client's permission ............I contacted a lawyer in my area that I had gotten from The Kentucky Bar Association. The gentlemen not only told me he was not experienced with the lemon law but that I should continue and continue to bring the car to the dealer. The whole purpose of the lemon law is to help the consumer from not taking the car in time after time after time. He then told me that charges for this would be enormous and he would require $1500 from me just to research the problem because no lawyer would take the chance of loosing and not being paid by the manufacturer. What do I do? I require the filing fee 120 dollars up front. That is Court Costs not any attorney fee and if you win you get that back. If I don't collect I don't charge....... PERIOD. I normally receive what I can get out of the Car Manufacturer for attorney fees, plus 1/3 of the amount refunded to you after the vehicle loan is paid off as a contingency fee. No win No cost to you over what the filing fee is. The amount refunded to you is what I collect from. The car manufacturer often pays a small amount towards your attorney fees. However this is normally only 500 dollars which doesn't even cover the cost of filing and drafting the petition. I researched this long ago I don't have to research it again. Expect this kind of offer from most attorneys that normally do this type of case. You shouldn't be charged by an attorney for learning how to do his job. You should not have to continue over and over again dealing with a lemon a
If you have been stuck with a lemon auto or if a defective car injured you or a loved, contact Nick C. Thompson for a Free Consultation.
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