When potential buyers get wind of vehicles being offered at a discount thanks to special legal settlements, the notion can be enticing. However, the purchase of a lemon law vehicle is much more than just the price reduction on a used car. These vehicles are among those that manufacturers were compelled to buy back or replace because they had serious defects that were likely to have compromised safety, performance or value. When those vehicles are fixed and resold, they usually come with some kind of clear label that makes it imperative for consumers to fully grasp the risks and the responsibilities associated with them.
The biggest draw of buying a lemon law car is that it’s cheap. Such vehicles often bear lower price tags than similar ones that are never deemed defective. This has the potential to make ownership possible for a budget-conscious buyer. The discount is there for a reason — manufacturers and dealerships are legally obligated to make you aware of the vehicle’s history. While repairs may have addressed the initial issues, there is always a possibility for recurrence.
Often, cars labelled under lemon law laws will have continued electrical issues, tranny troubles or other mechanical matters. This is why buyers must scrutinize the paperwork and look over all repair documentation. Full disclosure of prior failures and remedies during settlement negotiations is a litigant’s right to know and protect against prosecuting the dispute that never seems to die. Failing that scrutiny, and it’s the same headaches for you, the second owner.
There are a couple of other big things to think about – insurance and resale value. Lemon Law cars can be seen as high risk by insurance companies, and this could impact how much you pay for coverage. Also, if and when you’re in the market for selling or trading it in, a model name can lower resale. The long-term consequences, however, may counteract some of the money you will save initially from buying a lemon law car.
But some buyers still score good deals. If the defect in a vehicle was not serious and has been repaired well, and if the discount on price is hefty enough, it might just be worth owning. The trick is independent investigations, legal knowledge and a willingness to deal with potential restrictions. In the end, you’re not really looking to scrounge when you buy such a car as much as manage risk effectively.
Those of you looking to take this approach need a good mix between price and stability. Purchasing a lemon law car can be the answer to a buyer’s problem or lead to years of disappointment, depending on how much they know before signing the contract.
Andrew Richardson is the author of this Article. To know more about new car lemon law in California please visit our website: allenstewart.com
