Monthly Archives: December 2010

Volvo Recall For Powered Front Passenger Seats

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Volvo has announced that they will be recalling almost 8,000 vehicles for a problem with the front passenger seat rails. The recall involves vehicles with power front passenger seats. According to Volvo, the system may have been improperly manufactured allowing the seat to be moved past the standard maximum. An improperly set seat could lead to increased injury during an accident. The vehicles involved in this recall are:

  • 2009-2011 S40
  • 2009-2011 S60
  • 2009-2011 V50
  • 2010-2011 XC60

Volvo dealers will inspect and repair the affected vehicles at no cost to the vehicle owner. Owners can contact Volvo at 1-800-458-1552, email customercare@volvoforlife.com, or call the National Highway Traffic Safety Administration’s (NHTSA) vehicle safety hot line at 1-888-327-4236 for more information.

U.S. Automobile Sales Strong In November

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You don’t hear much good news coming out of the auto industry lately, but November auto sales are reported to have hit a promising turning point as consumers bought more cars and trucks. Novembers new vehicle sales have been the highest in two years, with the exception of a brief period in 2009 when government rebates encouraged consumers to purchase vehicles that they couldn’t afford. The 17% surge is giving automakers confidence that the industry is on track for a strong year end finish.

Ford, General Motors, Chrysler, Nissan, Hyundai have all reported double-digit increases. Hyundai had the biggest increase, up 45 percent from the same month last year, and Toyota, which has been hurt by a string of safety recalls, had a 3% sales drop.

Industry analysts suggest the solid November sales numbers show that consumers who have kept their jobs through the economic downturn are now feeling confident enough to spend money and replace older vehicles. Incentives on lease deals and rebates also helped push up sales.

Buying A Used Car – The California Lemon Law

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California has one of the best new car lemon laws in the country. For someone who can’t or does not want to buy a vehicle brand new, what lemon law rights are there on used cars? Fortunately, there are used car lemon laws to protect the consumer, and thanks to the large automobile industry, it is one of the most utilized legal tools in the United States.

When purchasing a used vehicle, it is best to avoid buying a lemon in the first place. Doing a bit of research beforehand and getting the vehicle surveyed before purchase is a good start. But a lemon car may not always be that obvious. Often, problems start to arise weeks after the purchaser has brought it home. If you have bought a used vehicle that you think could be a lemon, there are a few steps you can take to get rid of it.

To qualify in California for used car lemon law protection, the vehicle must have been purchased or leased in California for personal, family or business use. Vehicles purchased through a private transaction or from a car lot “as is”, usually will not have lemon law coverage. Under the Magnuson Moss Warranty Act and the Uniform Commercial Code consumers can be protected if the vehicle was bought under false representation. False representation can be:

  • Prior history of mechanical problems known to the seller (‘laundered lemon’)
  • A previously salvaged or wrecked vehicle
  • A fraudulently rolled back odometer
  • A vehicle that was a rental car, police car or taxi
  • A stolen, stripped and rebuilt vehicle
  • A vehicle involved in a flood

By California’s Warranty Act, the first time a lemon buyback is resold at the retail level, it must have one-year factory warranty to cover defects and cannot legally be sold “as is.” The law requires that the car be marked as a “lemon law buyback” and must have a “lemon” sticker on the door jamb. When lemon buybacks are illegally sold, the buyer still has rights under the Lemon Law.

The Warranty Act also applies to used vehicles that are still under a manufacturer’s new car warranty. When a used car covered by a new car warranty is sold, any remaining time left in the warranty protects the car’s new owner. The law covers “certified” used cars, lemon vehicles that are bought back by manufacturers or dealers and then resold and automobiles covered by extended service contracts.

Buying a used vehicle does not mean you will get a lemon, but if you do find yourself in this situation, seeking legal counsel from someone who specialized in the lemon law can be your best solution. A lemon law attorney is experienced in these situations and can help you get the compensation you deserve, fast and efficiently.

Automobile Recalls Affecting Insurance Rates

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The United States has one of the largest vehicle markets in the world. There are over 260 million registered passenger vehicles according to a 2007 Department of Transportation (DOT) study. With vehicles outnumbering licensed drivers, the automobile has become an integral part of American life.

With the amount of work that goes into vehicle design, it is not surprising that flaws occur. If you have been paying attentions to vehicle recalls, it seems like there is a new one coming out almost every day. Since the safety of a vehicle is a factor in determining insurance rates, it would seem logical that if a vehicle has had safety recalls, the insurance rate on the recalled vehicle may raise.

In general, car insurance premiums can be increased every time the policy is up for renewal. While an insurer may do this for a number of reasons, a mechanical defect of the vehicle cannot be controlled by the consumer. But, if the policy holder does not follow the recall notice in a timely manner, and ends up getting into an accident because of a failure of the recalled part, they could be held responsible for the damages. If you do not respond to a recall notice at all, an insurance company may drop you altogether. Another way your insurance rates can be affected by recalls, is the recalls decrease the resale value of the vehicle. If the replacement value of a vehicle decreases the insurance rates should decrease as well.

Safety issues that cause accidents and damages, can hold the car manufacturer responsible and may recoup money from them. In this case the insurance company does not need to gain more money from its policyholders since the car manufacturer is paying for what they are responsible for.

Dealing with the auto insurance industry is never easy and, when the vehicle manufacturers gets involved, it just adds to your problem. For now, there should be no cause of concern so long as you pay the premiums on time and take the vehicle in for repair as soon as you get the recall notice. If you believe your premiums have been raised unfairly or in error, you do have some recourse. Most insurance companies have procedures in place through which a customer can file a complaint. When all else fails, a customer can sign up with a competing insurer. Take precautions however: an auto insurance policy is a legally binding contract between you and the company. You need to give advance notice of cancellation and make certain your new policy is in effect. Don’t just stop paying your premium, or you could be penalized.