Beware of Lemon Laundering

You are probably wondering what happens to a lemon car when the automaker buys it back. Do you have any options? Well, a lot of consumers are of the opinion that the manufacturers simply get rid of lemon vehicles. Do you really think that they destroy these lemons?  The reality is that in most cases what automakers do is reselling these lemons. Actually, reselling lemon motorcycles, lemon trucks or lemon cars is not a problem, if the consumer is aware of it. Unfortunately, an increased number of vehicle buyers have no access to this information. Thus, an increased number of car shoppers purchase a vehicle having no idea that it is a lemon buyback. This is known as ‘’lemon laundering’’, which may be defined as the misrepresentation of the lemon vehicle’s history. Here is what any informed consumer should know about lemon laundering.

Lemon laundering laws and regulations

Lemon laundering – the practice of selling car shoppers faulty vehicles without revealing the vehicle’s actual history is a serious problem.

It is worth to note that it was in 1995 when certain consumer groups filed a petition with the FTC. What was the main goal of this petition? As a matter of fact, they just desired to urge the FTC to find a solution to lemon laundering. As a result, the Federal Trade Commission succeeded in launching the Vehicle Buyback Disclosure Project.  The FTC aimed to hold a public conference for discussing different lemon laundering proposals.  It also included the one that would make automakers reregister lemon vehicles, which they repurchased.  Furthermore, they had to provide consumers with a notation, which stated that the vehicle is a lemon buyback.

In order to eliminate these deceitful practices and provide a solution to this problem, many states have their laws.  The main requirement for these vehicles is the existence of the following notation: ‘’lemon law buyback’’. This is the key for the subsequent purchasers to have a clear idea of the vehicle’s history.  Sometimes the consumer is willing to become the owner of the vehicle even knowing that it is a lemon buyback. At this point, it is already the purchaser’s personal decision.  He/she is not likely to be surprised by the vehicle’s possible malfunctions that may occur in the future.

California’s lemon law

Laws related to lemon laundering differ from state to state. So, how does California lemon law protect car shoppers?   According to the California Lemon Law, the manufacturer must provide the car shopper with the certain piece of information. It includes the title, non-conformities that made the automaker buy the vehicle back.

How to avoid lemon laundering?

Have you made up your mind to purchase a used vehicle? In this case, the wisest decision is taking certain steps to avoid lemon laundering.  It goes without saying that an essential step is acquiring all the necessary information concerning the vehicle’s history.  You have several options of checking the car’s history. Consider using the services of AutoCheck or CarFax. Also, don’t forget about taking the VIN of the vehicle in question to the dealership. Requesting a copy of the car’s repair history is always a good idea. You should always have this in mind ’’if the price of the low mileage used cars is too alluring to be true, it probably is’’. Finally, another essential step for any well-informed consumer is asking questions. Feel free to ask the car dealer all the questions that you may have regarding the vehicle’s repair history.

Are you the owner of a laundered vehicle?

If you suspect that you have become the owner of a laundered vehicle, don’t panic. Luckily, American consumers can rely on the protection under the federal lemon law and their states’ lemon laws.  Regarding the federal lemon law, you should have a clear idea about the federal Magnuson-Moss Warranty Act.  In fact, another vital issue is this one. Did the dealer fail to disclose the vehicle’s repair history? Did he conceal the fact that it was a buyback? This is a violation of the state Unfair and Deceptive Acts and Practices (UDAP).  Do you have problems with the vehicle’s title? At this point, you may refer to the state laws concerning the Uniform Commercial Code (UCC). American consumers can also expect protection from their state lemon laws, which are different from each other.

It is true that you may find yourself to be one of the unsuspecting victims of lemon laundering. Of course, dealing with such a situation is nothing pleasant. However, you should focus on finding the solution instead of falling into despair. You need to have an appropriate knowledge to determine whether the current vehicle is a laundered lemon. In addition to that, you have to understand exactly which legal avenue may give you more chances to win. Without a professional lemon law attorney’s help, you won’t find the best solution. A qualified lemon law attorney will handle your case successfully and enable you to get justice.