Consumer advocates say more government supervision is needed when it comes to auto dealers financing automobiles for consumers. Next week, a joint congressional committee will be discussing exactly that, as they head into the final stages in overhauling financial regulations.

Dealers that offer financing say they are helping buyers secure the best loans, and that abuses are rare and covered by anti-fraud regulations enforced by state officials and the Federal Trade Commission. But, Tom Domonoske, a Virginia attorney who works on auto financing issues says that while dealers are shopping for the best rates, they often don’t pass the savings on to the consumer. Dealerships have been giving good deals on purchase prices, but have been trying to boost their incomes through service contracts and auto financing. Some say, resorting to questionable tactics.

Auto dealers are fighting back saying it is unnecessary and will add to their costs, ultimately driving up prices for consumers. Last year they successfully persuaded the House to exempt them from oversight by the proposed consumer protection agency, but with strong opposition from the Obama administration, who said members of the military often complain about getting ripped off in buying cars.

After settlements in a series of auto financing discrimination lawsuits in the 1990s, dealers say they agreed to cap their cut at 2% of the amount financed. California is one of the few states with a legal cap on that difference — 2.5% for loans up to 60 months and 2% for longer loans.

Consumer advocates argued that auto dealers are similar to mortgage brokers — making deals with consumers, pocketing a profit and then selling the loans to banks. Mortgage brokers would be covered by the new agency and so should auto dealers.

The summer holidays are just about here and everyone is looking forward to vacations and summertime activities. Unfortunately this also means an increase in accidents and injuries. Inexperienced teen drivers will be spending more time on the roads, children out of school will be spending more time outdoors, there will be an increase in RV’s, bikes, and motorcycles on the roads, and in general, a greater hub of activity everywhere.

  • Safe driving practices are the best way to deal with increased traffic. Try to stay calm, drive at a safe speed and be courteous to other drivers. Speeding, tailgating, weaving in and out of traffic and not yielding the right-of-way can lead to collisions.
  • Make sure everyone in your vehicle is buckled up, and babies and young children are in car seats or booster seats. Proper use of seat belts and child car seats is the best way to reduce vehicle-related injuries and fatalities.
  • Summer also brings increased construction on roads and highways. Keep road workers safe by being prepared to stop and slow down in construction zones. Keep your gas tank full, in case you need to change your route or are caught in traffic along the way.
  • People driving RV’s and trailers are usually inexperienced with such a large load. Take extra precaution while driving these vehicles, and give them the room they need to maneuver. Don’t let items block your view of the road, make sure loads are securely tied down, and slow down.
  • Make sure your vehicle is in good running condition before your go. Always keep a roadside emergency kit and a first aid kit for emergencies.
  • Plan your route before you go. If you don’t have someone to read the map or GPS for you, pull over if you need to review your route. Distractions behind the wheel greatly increased your chance of an accident.
  • Give yourself plenty of time to get where you’re going and if you become tired, stop to rest and stretch your legs. It’s better to arrive late than not arriving at all.
  • Finally, Don’t Drink And Drive!

The $2.25 billion in federal stimulus funds recently awarded to the California high-speed rail project ensures that construction can proceed on a 520-mile route between Anaheim and San Francisco within three years, rail officials said Thursday. Although this project has been in the works for more than a decade, it has been mostly theory. Voters approved a $10 billion bond measure in 2008 and the recent federal stimulus moves the project one step closer to becoming reality.

This stimulus will not only provide much needed jobs for California residence, but promises to reduce the amount of traffic on California roads by getting people to where they need to go, fast and efficiently. The route is also projected to create a profit of $1 billion annually that will initially go back into the high-speed rail system itself for maintenance and further extensions.

But last month a panel of experts in the fields of transportation engineering and city and regional planning urged caution. “It is a complex endeavor and requires a complex understanding of the engineering, economic and environmental issues.” warns Samer Madanat, director of Berkeley’s Institute of Transportation Studies and CEE professor.

There are two proposed routes through the heart of the city, both following an existing railroad track. The plan is for the route to enter Bakersfield from the northwest, stop at a downtown terminal and exit to the east on the way to the Antelope Valley and beyond to Southern California. Because of the speed, both routes deviate a bit from the existing railroad, running through historic areas, causing controversy in the city.

Bakersfield is not the only ones concerned about the path the high speed rail will take. Farmers up and down the San Joaquin Valley are expressing objections. And battles have broken out in the Bay Area and Southern California.

Bringing a high speed rail line through any community will be disruptive, as well as beneficial. Issues of safety and noise will need to be addressed for any route. Rather than deciding that the exact alignment will be, the design engineers and environmental reviewers should be refining a route that would least impact the community. Wherever possible, they need to avoid schools, hospitals, homes, businesses and churches.

If you have ever compared your auto insurance rates with a friend or family member, you will see that they can be quite different for the same coverage. Insurance companies decide how much you pay according to factors that indicate how much of a risk you are. When you buy a new vehicle, it is always a good idea to keep these risk factors in mind to avoid huge rates when you go to insure your new vehicle.

  • New or Used: A brand new vehicle carries a higher value therefore making it a greater risk. What you buy and how much it costs will determine how much repairs will cost and whether you want collision coverage on the vehicle.
  • Driving History: Non-moving violations such as parking tickets have less impact on your premiums than moving violations such as speeding tickets and DUIs.
  • Age and Gender: Insurance companies use statistics to calculate your insurance premiums. Age group, gender, and marital status statistics collected over the years allow insurance companies to classify you either as a high or low risk client.
  • Accidents: If you have had a previous accident, insurance companies see you as higher risk. Depending on the severity of the accident and who was at fault, you may see your premiums go up 20% to 40%. Some accident claims may result in your insurer dropping you completely.
  • Where you live: Some states have higher rates. This has to do with how much traffic is on the roads, road conditions, where your car is stored, and how many automobile thefts are in your area.
  • Gaps in Coverage: Insurance companies view individuals who frequently let their insurance lapse as poor risks. If you are in this group, your choice of providers will be limited and you’ll likely have to pay much higher than normal premiums, even if you have a spotless driving record and claims history.
  • Credit Score: Some insurance companies believe that people with bad credit are higher risk when it comes to automobile insurance. As you shop around for insurance, ask each agent if your credit score determines your insurance rates. You should make sure your credit history is accurate so you don’t pay higher insurance due to false credit information.

When someone buys a new car, it comes with a warranty. We have the California Lemon Laws (aka: Song Beverly Consumer Warranty Act) and the National Highway Traffic Safety Administration (NHTSA) which all work together to protect the consumer when buying a vehicle. We also expect the dealership to deal fairly with consumers and sell us vehicles that are safe and free of defects. One more category of protection that you will never read about in your vehicle warranty documents is the “secret warranty”.

When a car manufacturer builds a new vehicle many of the parts are manufactured all over the world. Once the vehicle is put together, it is tested to make sure there are no defects. Often during the testing phase, problems are found that are regarded as low risk and the automobile will be allowed to go into production. When the problem starts to turn up in a few vehicles most often, they just get repaired. For those few consumers who make a big fuss and threaten to report the problem to the NHTSA, the dealership makes a “special exception” and fixes the vehicle defect at no cost. They know that the problem exists, but it is cheaper to repair the few vehicles that come in rather than issue a recall. Every automobile manufacturer has at least one ‘secret warranty’, and often have three or four. If too many safety defects get reported, the NHTSA will issue a recall.

If you have a defect in your car, do your homework. Go online and find out if other owners are experiencing the same defects. Read about the lemon law and find out if a ‘secret warranty’ exists and get the service you deserve.

The California Lemon Law Offices of Delsack & Associates is recognized as one of California’s best and oldest lemon law firms. We have a nearly 100% success rate of the California Lemon Law cases we accept, and offer statewide services so that wherever you live in California you can put our 22 years of experience to work for you. If you think you have a “lemon,” stop throwing your money away on costly repeat auto repairs. Contact The California Lemon Law Specialists, get A Free consultation and get rid of your CA lemon today!

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

When you think about the technology that runs our automobiles these days, it’s quite impressive. Not only have they made our driving experience much more comfortable, but also much safer. (Anti-lock braking systems, airbags, electronic stability systems, traction control…..just to mention a few.) Even though the computers that controls all these system are usually quite reliable, we know that they can have their flaws as well.

University researchers have taken a close look at the computer systems used to run today’s cars and discovered that hacking into a cars computer system is really not that complicated. In a late 2009 demonstration, they hacked into a test car’s electronic braking system and prevented a test driver from braking a moving car. In other tests, they were able to kill the engine, falsify the speedometer reading, and automatically lock the car’s brakes unevenly. They ran their test by plugging a laptop into the car’s diagnostic system and then controlling that computer wirelessly, from a laptop in a vehicle riding next to the car.

The point of the research isn’t to scare a nation of drivers, already made nervous by stories of software glitches, faulty brakes and massive automotive recalls. It’s to warn the car industry that it needs to keep security in mind as it develops more sophisticated automotive computer systems.

May is Motorcycle Safety Awareness Month and California’s traffic safety partners and their supporters are encouraging riders and vehicle drivers to be aware of motorcycle safety issues.

Home to more than 1.2 million licensed motorcyclists, California has seen an increase in the number of victims killed or injured in motorcycle collisions. According to the California Highway Patrol’s Statewide Integrated Traffic Records System (SWITRS), a record of almost 600 victims were killed and another 13,000 people were injured in motorcycle-involved crashes throughout the state.

Motorcycling is not just for recreation anymore. It is a means of transportation and a way of life for many. Because motorcycles are harder to see and offer less protection for the rider, motorcyclists are more likely to die in a crash than someone in an automobile, therefore, you should always be alert and watch out for them, especially when turning and changing lanes.

As with any motor vehicle, speeding and/or impairment due to alcohol and other drugs is never a good combination on the roads. By encouraging safe riding and cooperation between all motorists and motorcyclists, we can reduce the number of fatalities and injuries on our nation’s highways.

Despite several nationwide campaigns to raise awareness about the dangers of texting while driving, a new survey by the Automobile Club of Southern California says that it has not kept drivers from doing it. The rates of texting while driving dropped off after the ban began in January 2009, but have since risen to nearly pre-ban levels.

Although the California Highway Patrol has issued about 11,600 hand-held cellphone citations each month over the last year, it has issued an average of only 150 citations per month for texting. Catching drivers who are texting is tricky since drivers who are texting often keep their phones hidden in their laps.

The fact that we’re seeing a statistically significant rise in texting despite state bans indicates that additional efforts are needed to help deal with the problem. People are naive to believe that texting while driving does not affect their driving and should take driving seriously if not for their safety, at least for the safety of everyone else on the road.