The National Highway Traffic Safety Administration (NHTSA), has opened an investigation into engine fires in some 2011 Chevrolet Cruze and 2010 Jeep Wrangler vehicles. Of the ten complaints received, two Chevy Cruze owners reported complete loss of their vehicle, and eight Jeep Wrangler owners stated that the fire started in the engine while driving. The investigation will have the NHTSA reviewing early warning report data to assess the scope and frequency of the alleged defect. If the investigation lead to a recall, almost 180, 000 Cruze and 100,000 Wrangler vehicles could be involved.

The California Lemon Law is complicated, and if you are not experienced in the process, you could be missing out on reimbursements you are entitled to receive. It should also be noted that going through the lemon law process does not damage or harm your credit. The California Lemon Law was brought in to help consumers get out of a difficult situation, and simply returns them to the same financial position they were in before purchasing or leasing their lemon vehicle. The above video is a brief description of the Lemon Law Process.

If you are in California call our Lemon Law Offices:

Anywhere in California (free call): 1.888.ExLemon (395.3666)

  • California Lemon Law in Los Angeles: 310-475-1700
  • California Lemon Law in San Francisco: 415-285-5366
  • California Lemon Law in San Diego: 619-229-6900
  • California Lemon Law in Orange County: 949-856-4333
  • California Lemon Law in Palm Springs: 760-395-1000
  • California Lemon Law in San Fernando Valley: 818-837-0500

The Federal Trade Commission (FTC) is cracking down on automobile dealerships around the country who have been running ads that mislead consumers into thinking the dealership will pay off the remaining loan balance on their existing car when they trade it in. These dealerships then add the cost of the old car loan into the price of the new loan. The buyer ends up with a loan that they must pay off for a longer period of time because they are paying off their old car and new car at the same time. This is known as negative equity auto trade ins. In some cases, dealers force customers to pay off the old loan in cash before they could get their new car.

The dealers named in the FTC’s complaints include:

  • Billion Auto, Inc., in Sioux Falls, South Dakota
  • Frank Myers AutoMaxx, LLC, in Winston-Salem, North Carolina
  • Key Hyundai of Manchester, LLC and Hyundai of Milford LLC, in Vernon and Milford, Connecticut
  • Ramey Motors, Inc., in Princeton, West Virginia

Three of the cases allege violations of the Truth in Lending Act (TILA) and its implementing Regulation Z for failing to disclose certain credit-related terms, and the complaints in two of the cases allege violations of the Consumer Leasing Act (CLA) and its implementing Regulation M for failing to disclose certain lease related terms.

Comments can be electronically submitted using the following web links:

A California Court of Appeal ruling last September may seem like a small victory for one business owner, but the courts decision is setting a precedence that will affect future decisions across the country when it comes to small business automobiles with a gross vehicle weight (GVWR) of 10,000 pounds.

Daniel Joyce, a licensed contractor from Petaluma first started having problems with his Ford F-250 shortly after purchasing it brand-new in 2006. Joyce decided to sue Ford, but the case was overturned saying that the truck was not covered by the lemon law because the GVWR was 10,000 pounds. After a four year battle, court finally issued a ruling siding with Joyce saying that it is the actual weight of the vehicle that counts. This decision is a victory for the consumer and could help other business owners who may be in a similar situation.

General Motors Co. has announced that they will stop production of the Chevrolet Volt hybrid vehicle for five weeks to allow their surplus of inventory to be depleted. This will be the third time that production of the Volt has been stopped for at least a month since the car first went on sale in December 2010. The lack of interest in the Chevy volt is being blamed on several factors:

  • A recent NHTSA investigation into battery fires resulting after crash testing.
  • The lack of charging stations in some states.
  • Electric car technology is still relatively new and problems need to be solved before it can be attractive to the mass market, the biggest complaints being lack of range and performance.
  • The production of electric vehicles by other automobile manufacturers.

GM hoped to sell 10,000 Volts last year, but ended up selling just over 7,600. Some feel the promotion of the electric vehicle by the Obama administration has failed. Even as gas prices continue to climb and government incentives are used, it is still not enough to get consumers to buy electric cars. The plant shutdown is expected to lay off almost 1,300 workers, and slow down companies that supply parts and batteries for the Volt.

A Georgia woman is lucky to be alive after suffering a potentially fatal neck wound from a chunk of metal from an airbag deployment in her 2001 Honda Civic. Kristy Williams wounds are similar to injuries sustained by a teenager in Oklahoma and a mom in Virginia who were not as lucky when their airbags deployed with a deadly force. Medical reports show all three women sustained similar injuries and all women drove 2001 Honda vehicles.

Honda’s first airbag recall came in November 2008, and has been expanded four times to cover 2.5 million vehicles. The recall, however, stops at the 2003 models even though regulators have received 127 complaints about Honda and Acura models over the last 10 model years whose airbag went off with no crash. In Williams case, the surprise deployment was linked to an improper repair after an airbag replacement done to the vehicle before she bought it.

For many buying a new vehicle can be a daunting task, and with dealers selling vehicles at record high prices, the average consumer needs to do their research in order to get the best price. With the internet, a little research, and some luck, you should be able to find the vehicle that suits your needs at a price you can afford. Edmunds.com, for example, offers services that give true market values, predicts pricing trends, and offers calculators that let consumers do their research before setting foot on a car lot. Below are some factors that can affect the price of a new vehicle.

  • When Sales Are Slow: Car salesmen are more likely to give deeper discounts to get your business. Rainy days, holiday periods and shopping during the week, are times when a car sales person may be willing to give you an extra discount just to close the deal.
  • End Of The Month: If a sales person is short of their monthly quota to receive their sales bonuses, they may be willing to give customers discounts in order to meet the quota.
  • End Of The Year: As year end quotas approach, and new models start rolling in, dealers and manufacturers may offer discounts, cash rebates, and lower interest incentives just to get the cars off the lot.
  • Redesigned And Discontinued Models: If the manufacturer has completely redesigned one of their models, they are usually willing to offer bigger discounts and incentives to get rid of the outdated models. If the vehicles has been discontinued completely, the savings are usually even better.

On Tuesday, the National Transportation Safety Board (NTSB) called for a nationwide ban on the use of cell phones and text messaging devices while driving. With over a decade of investigations, the group found that as mobile devices become cheaper and more powerful, the problem of distracted driving has also increased. Right now, 9 states ban the use of hand held phones, and 35 states ban texting while driving, but the NTSB is urging states to go one step further. They have recommended that every state adopt a law that will stop the use of hands free devices as well. According to Deborah Hersman, chairwoman of the NTSB, “Our safety concerns are not just about drivers keeping their hands on the wheel and eyes on the road, but it is also about keeping people focused on the act of driving.”

The Alliance for Automobile Manufacturers, agrees that the problem of driving while distracted needs to be addressed, but it also defends integrated systems that allow drivers to keep their hands on the wheel and eyes on the road while sill staying connected. “Consumers have come to expect 24/7 connectivity, changing and enforcing that could be difficult.” The complete ban on phone use by drivers would also impact many car makers who offer integrated hands-free and voice-activated systems.