Cars with deadly Takata airbags you may not even know about

Last March, Las Vegas teen Karina Dorado was in a low-speed crash that normally wouldn’t have resulted in serious injuries. But she was driving a 2002 Honda with a checkered past. It had once been in a crash and was “totaled” by the insurance company.  Some people might expect that to be the end of the road for that car.

But insurers auction off wrecked cars to the highest bidder. Those wrecks are often purchased by unlicensed, untrained rebuilders who lack the equipment, or the desire, to perform a proper repair.  It would be very expensive to fix the vehicles so that they are safe to drive.

Instead, they cut corners, leaving the vehicles with major problems that can cause death or serious injuries.

According to news reports, the Honda that Dorado was driving had a recycled recalled Takata airbag that was removed from a 2001 Honda Accord. It was not the original one that came with her car. Instead, it was a faulty airbag that was prone to exploding with excessive force, spraying metal fragments into the driver’s face and neck.  When her car was in the crash, metal from the recalled airbag punctured Dorado’s windpipe, almost causing her to bleed to death.

Under the the Transportation Recall Enhancement, Accountability and Documentation (TREAD) Act of 2000, it is illegal to sell a used automotive part that was recalled, but not repaired. However, the law is seldom enforced.

How can you avoid buying a car with a recycled killer Takata airbag?

  1.  Check the federal database of total loss vehicles established by the U.S. Department of Justice. Keep in mind that no database is 100% complete, and there are huge gaps in each of them.  This one includes ONLY vehicles that were “totaled” by the insurer, or self-insured company (such as a rental car company).  It does NOT include vehicles that sustained major damage, but were not totaled, or recalled cars.
  2. ALWAYS get any used car you are considering buying inspected by both a skilled mechanic and a reputable auto body shop of YOUR choosing BEFORE you buy. Make sure they check for signs that the car was in a crash that may have caused the airbags to deploy. Don’t trust the seller. Insist on getting your own inspection. If they won’t let you do that, walk away. They are hiding something. A good place to find a good mechanic and body shop: Car Talk’s Mechanics Files

More tips on how to buy a car, without having to go to a car dealership

Read more:  KSAT Investigative report: Why are recalled Takata airbags being recycled?

Why don’t consumers get unsafe recalled cars fixed?

GM, Fiat Chrysler, Honda, the National Safety Council, the National Highway Traffic Safety Administration, mayors and other elected officials, are investing millions in an attempt to reach owners of older recalled cars and persuade them to take their vehicles to car dealers for recall repairs. They’re using advertisements, social media, even private investigators who track people and find out who owns vehicles that have repeatedly changed hands.

They are trying to impress on the owners that their safety is at stake, and driving without repairing the safety recalls is too risky. The biggest challenge: the millions of older vehicles with Takata airbags that are prone to exploding with excessive force, spewing shrapnel into the faces, necks, and chests of drivers and passengers, causing victims to bleed to death.

But the messages that consumers are getting from the auto industry are extremely mixed. The former Chairman of the National Automobile Dealers Association, Jeff Carlson, a Colorado car dealer, claims that “only 6 percent of recalls are ‘hazardous.'” Carlson and the NADA have been opposing federal legislation that would require dealers to fix all safety recall defects on used cars, prior to sale — in addition to the existing protections under state laws in all 50 states.

He claimed that “Such a move would ground millions of cars unnecessarily and diminish vehicle trade-in values.” That attitude is dangerous, reckless, and irresponsible, but it’s all too common in the car dealer world. By that nutty calculus, none of the following safety defects would be considered “hazardous” — brakes that fail, steering loss, sticking accelerator pedals, catching on fire, wheels that fall off, seat belts that fail in a crash, or a myriad of other safety defects that have claimed hundreds of lives and maimed thousands of people.

No wonder consumers are confused about whether it’s worth taking time off from work to take their car to a dealership that may be over 100 miles away, and where they may not get a loaner car, while their car sits waiting for repairs. Meanwhile, many consumers would be without their only means of transportation to get to work, and get their kids to school, or get to medical appointments.

Car dealers across the country have also been urging state legislatures to allow them to get away with selling unsafe, unrepaired recalled cars without repairing them first. What message does that send to the public about the importance of getting safety recall repairs? If the cars are so unsafe, they should be repaired first, right? Shouldn’t the car dealers, who are the professionals, set the right example? Of course they should.

It appears that the car dealers’ double standard is aimed more at forcing consumers to go to car dealerships for repairs, than at ensuring their safety. Once there, consumers are often subject to high-pressure tactics to sell their car and purchase a new one. Among the scams common at many car dealerships — refusing to return the car keys unless the consumer buys another car.

Recent complaints about car dealers posted on Quora: “I had my car keys taken at the dealership and was almost forced to purchase a car (refused to let me leave).”

Automotive News: Carlson vows to press NADA’s fight against regulation

Bottom line: Consumers should take safety recalls seriously. So should auto dealers. Car dealers need to do the right thing, comply with state laws, and stop selling unrepaired, defective recalled used cars — shifting the burden onto consumers. Auto manufacturers should offer roving repairs to consumers with unrepaired recalled cars where they work or at their homes. And the National Automobile Dealers Association should acknowledge publicly that of course all the cars with Takata airbags and other safety recall repairs are unsafe, and should be repaired immediately.

Lawsuit: Dealer sold “fake” warranties on used cars

Ever wonder what happens when you buy a warranty or service contract from a car dealer?  Unfortunately, some dealers just pocket the money.  Then if your car needs repairs, you are left with no coverage.  Some dealers have faced criminal penalties for engaging in this scam, but often it goes undetected.

A lawsuit filed on behalf of consumers in New Jersey alleges that a dealer in that state repeatedly sold so-called “warranties” or service contracts on expensive used cars, but failed to activate the policies.

See news report:

ABC 7 New York: Dealer of high-end used cars sold “fake” warranties

Don’t fall victim to car dealer scams.  CARS tips for how to get a good deal on a nice, safe, reliable used car — without having to set foot on a car dealer’s lot

 

Buying a car from a dealer in California may get even more hazardous to your financial health

When you buy a car at an auto dealership, you should be able to get all the terms in writing BEFORE you sign anything — right?  Right. But for California car buyers, that may change. Why? Because car dealers are aggressively lobbying to get rid of the consumer protection laws in California that currently prohibit them from using “e-contracting.”

The California New Car Dealers Association and Enterprise Holdings (one of the largest sellers of used cars) are pushing for passage of AB 380, authored by Assemblymember Matt Dababneh (D-Van Nuys), powerful chair of the California Assembly Committee on Banking.

But pro-consumer groups including Consumers for Auto Reliability and Safety, CALPIRG, the Consumer Federation of California, Consumer Action, Public Counsel, the California Reinvestment Coalition, the Center for Responsible Lending, and Public Good are fighting back, to preserve protections for California car buyers.

Who would benefit the most if AB 380 passes?

One of the biggest winners would be Credit Acceptance Corp. What’s their business model?

Mother Jones: “They Had Created this Remarkable System for Taking Every Last Dime from Their Customers: Welcome to the Lucrative, Predatory World of Subprime Auto Loans”

Here’s why groups that work on behalf of consumers and against powerful, crooked special interests are opposing AB 380:

Large coalition of pro-consumer, pro-economic justice organizations opposes AB 380

Consumers for Auto Reliability and Safety opposes AB 380 (Dababneh)

Consumer Federation of California

CALPIRG

What’s wrong with e-contracting in car transactions?

Unscrupulous car dealers and shady lenders LOVE “e-contracting.” A LOT. That’s because the combination of high-pressure sales tactics at the car dealership — aimed at consumers who are often tired and feeling rushed after hours of haggling and test-driving cars — and all-electronic transactions make it much easier for dealers and crooked lenders to get away with fraud, forgery, and other illicit (but oh-so profitable!) flim-flam.

Among crooked car dealers’ favorite e-contracting scams: selling cars in excess of the agreed-upon price, “packing” loans with thousands of dollars in unwanted, high-profit, worthless add-ons, overcharging for license fees and pocketing the difference, selling cars that fail to pass smog,  charging bogus “government” fees, and engaging in other types of fraud.

Unlike with home purchases, where there are strict, built-in protections, auto sales transactions fail to require the seller to provide you with a written, good faith estimate of all the costs three days in advance, before you sign.  Buying a car is much riskier. It’s also riskier than credit card transactions, where there are limits on your liability in the event of identity theft or fraud.

You have a lot to lose

Under the federal Truth in Lending Act, you are entitled to get all the disclosures about an auto loan in writing. BEFORE you sign anything. Like: What will the monthly payments be? How much will you have to pay in interest?  How long will the loan last? Up front. In your own hands. Then if you wish, you can leave the dealership and take that document with you and shop around, to see if you can find another dealer or lender who will beat that offer. You have that important right, thanks to federal law.

California law also prohibits dealers from using e-contracts. That means when you buy a car in California, the dealer should hand you a paper document, with everything in writing, all nicely filled in. You can look at the entire document at one time, or zero in on any part of it. You get to review the whole contract before you decide whether you want to agree to anything. You can tell that “friendly” F & I manager to stop hovering over you, while you read it. You can take it with you while you sip a cup of coffee in a quiet spot. You can show it to your spouse, or friends, or an attorney, or anyone you wish,  BEFORE you sign.

But if the dealers and lenders have their way, and gut California’s law against e-contracting in auto sales, dealers will be able to get away with concealing vital terms on a computer screen that you may not even be able to read. You certainly cannot take the computer or e-pad with you and shop around. It won’t be in your control. Instead, it will be in the dealership’s control.

If  AB 380 passes, car dealers can lure consumers into signing in advance that they agreed to let the dealer use e-contracting, to buy a car.  They can make it sound like it’s no big deal. Then they can use that against car buyers, if there are any disagreements over what they agreed upon. Making matters worse, “signing” can be done by anyone who has access to the computer — with the click of a mouse.  It would become virtually impossible to prove your signature was forged. Your “signature” could be added with a click. By anyone.

And — you won’t get anything in writing, on paper, until AFTER the documents have already been “signed.” By then, it’s too late, and you may be held legally obligated to pay, even if you are the victim of a scam.

Consumers fight back

Some dealers in California have jumped the gun and are already acting as if it were legal for them to use e-contracts. With unfortunate but predictable results. Consumers are starting to complain they didn’t get to see the screen, and dealers are adding thousands of dollars extra, above the purchase price that was negotiated; giving the consumers thousands less than the agreed-upon value of their trade-ins; and adding in worthless, expensive service contracts  — even when the consumers rejected them, during negotiations. One dealer added over $4000 in multiple unwanted, worthless extra service contracts onto the purchase of a new car, plus “surface protection” costing over $1200 and “Lo Jack” costing $695 — extremely high-profit items for car dealers.

In some cases, consumers have won the right take these dealers to court, because the judges agreed that the contracts were not binding, citing the existing law that prohibits e-contracting. Otherwise, the consumers could be forced into arbitration, basically being compelled to surrender their Constitutional right to fight back in a court of law.

If the predatory dealers and lenders win, and AB 380 passes, consumers would be likely to lose those court challenges they are winning now, and could be forced to give up their ability to hold unscrupulous dealers accountable.

Winners and Losers

If AB 380 passes, the biggest winners will be large auto dealership chains like AutoNation, which took in over $19 billion in gross revenue in 2014. They are publicly traded on Wall Street. Their biggest investor? Bill Gates.

The biggest losers will be California’s new and used car buyers who can ill-afford to give away thousands of their hard-earned dollars to mega-dealers and big banks for the privilege of being ripped off.

What can you do to help stop AB 380, the crooked car dealers and fraudulent lenders’ favorite bill?

Call your Assemblymember and tell them to vote NO on AB 380. Buying a car from a car dealer in California is already dangerous enough.  Here’s where to find out who your Assemblymember in Sacramento is: Find Your Legislator

Thank you! Every call helps make a difference!

Read more:

Large coalition of pro-consumer, pro-economic justice organizations opposes AB 380

Consumers for Auto Reliability and Safety opposes AB 380 (Dababneh)

More pro-consumer organizations are also opposing AB 380:

Consumer Federation of California

CALPIRG

Public Counsel

Attorney David Valdez, who represents many victims of unscrupulous auto dealers and lenders

 

 

 

CarMax sells cars with recalled, defective airbags — as “CarMax Quality Certified” cars

CarMax advertises that all of its cars must pass a “125+ point inspection.” They even post a long list of components on their website that they supposedly inspect, check, and repair, before they decide that a car qualifies to be sold as “CarMax Quality Certified.”

But — don’t be fooled. CarMax is selling LOTS of cars with defects that have killed and maimed people. Including cars with the dangerous, exploding Takata airbags that have killed at least 11 people and injured about 180 others, sometimes causing blindness or brain damage.  Shockingly, CarMax does NOT bother to get the defects fixed before they sell the cars.

Because of an exploding Takata airbag, one college student in an otherwise survivable crash bled to death. Tragically, CarMax cares more about maximizing its profits than protecting its customers, or their families.  CarMax tries to shift the responsibility for getting safety recalls performed onto its customers. But purchasers who buy cars with recalled Takata airbags are faced with a serious problem. There is a huge shortage of repair parts. Automotive experts predict it may take months, or years, before owners of the recalled cars can get the repairs done. Meanwhile, they are stuck driving a car that is a ticking automotive time bomb.

Read more: NBC: U.S. Confirms 11th Death Linked to Faulty Airbag Inflator

 

Takata admits guilt. But who pays for cars with unsafe airbags?

Thanks to enforcement by the U.S. Department of Justice the Department of Transportation, and the FBI, airbag manufacturer Takata plead guilty to wire fraud and agreed to pay a total of $1 billion in criminal penalties. Why? Because the company had committed fraud, concealing dangerous defects in its airbag inflators, which have caused at least 11 deaths and approximately 180 injuries, including blindness and brain injuries, in the U.S.

According to the law enforcement agencies, Takata executives engaged in a cover-up that lasted for at least 15 years.

According to the DOJ, “Under the terms of the agreement, Takata will pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine. Two restitution funds will be established: a $125 million fund for individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by auto manufacturers who were victims of Takata’s fraud scheme. A court-appointed special master will oversee administration of the restitution funds.”

Sooo — if auto manufacturers are being compensated for losses associated with Takata’s fraud, why are they and their franchised dealers still selling cars with unsafe, unrepaired Takata airbags, which are being passed onto consumers at dealerships such as CarMax?

CarMax is notorious for selling cars with unrepaired safety recalls, including defective Takata airbags that are being recalled.  CarMax advertises that all its cars must pass a “rigorous inspection” in order to qualify to be sold as “CarMax Quality Certified” vehicles. But CarMax fails to get the safety recalls repaired.  Consumers who buy cars with dangerously defective Takata airbags from CarMax and other unscrupulous auto dealers may not realize that there is no way they can get their cars repaired for a long time, due to severe shortages of replacement airbags.

Read more: U.S. Department of Justice: Takata Agrees to Pay $1 Billion in Criminal Penalties for Airbag Scheme

 

DO NOT drive these Honda cars. Get them fixed. NOW.

A 50-year-old Riverside, California woman was recently killed by a faulty, recalled airbag in her 2001 Honda Civic. Cutting corners on safety, airbag supplier Takata produced the airbag with cheap but volatile sodium nitrate.

In even a low-speed collision, the chemical explodes with excessive force, sending shards of metal into the passenger compartment. It’s been described as having a hand grenade go off in the car.

The woman, Delia Robles, was driving to get her flu shot when her Civic collided with a pickup truck. Officials at the National Highway Traffic Safety Administration (NHTSA) have been warning owners of the cars not to drive them, and to get them repaired immediately.  NHTSA found that in a collision where the airbags inflate, the odds of being killed are 50-50.  In other words, those cars are ticking time bombs.

Here are the cars that NHTSA has identified as posing the highest risk:

2001-2002 Honda Civic, 2001-2002 Honda Accord, 2002-2003 Acura TL, 2002 Honda CR-V, 2002 Honda Odyssey, 2003 Acura CL, 2003 Honda Pilot.

Honda is offering to tow these cars to dealerships for repairs. They should also offer to send roving mechanics to the owner’s home or workplace, since a leading barrier to getting repairs is the fact most people have only one car, and they depend on it to keep their job and get their kids to school. For many owners of recalled cars, the closest dealership may be a long distance away, and they may not be able to drop off their car on a weekday, and then get back home and back to work.

Owners of recalled cars may also have difficulty getting time off from work to drive a long distance for repairs. Many at-risk owners may not be proficient in English or Spanish, and may not understand the risks they face.

Some owners have also had bad experiences at car dealerships, and may be fearful of going to a dealership again. Unfortunately, some dealers may take advantage of the safety recalls to pressure them to buy another car, while holding their recalled car for repairs.

Where to check the safety recall status of your car, at a government website:

https://vinrcl.safercar.gov/vin/

If you own one of these recalled cars, here’s what CARS recommends:

Contact Honda directly.  Here is Honda’s toll-free number:  1-888-234-2138

Take Honda’s offer to provide you with a loaner or rental car,  and also have them tow your car to the dealership for the FREE repairs.

Read more:

CNN report: Stop driving these cars NOW.

Daily News report: Many Southern California cars have dangerous airbags

 

 

 

 

 

 

 

Buying a used car? YIPES!!

Comedian and commentator John Oliver lambastes crooked car dealers and greedy auto lenders. These are the unscrupulous characters we’re battling with, to protect consumers.

How can you avoid becoming a victim of greedy dealers and Wall Street bankers? It’s easier than you think. Here’s how you can get a good deal on a nice, safe, reliable used car — without having to deal with professional crooks.

How to get a good deal on a nice, safe, reliable used car

 

 

 

 

Federal Judge warns children not to buy from CarMax

During a hearing before the U.S. Federal District Court in Pasadena, California, Federal Judge Wardlaw tells CarMax’s attorney, “I have to tell you, having read what CarMax does, I have told both my children, don’t you buy a ‘certified’ car from CarMax.”

Watch video: Judge warns children about CarMax

Did CarMax sell you an unsafe recalled car?  We want to hear your story.  The only way to get CarMax to stop selling cars with lethal safety defects is for courageous consumers to speak up.  Contact us at:

http://carconsumers.org/contact.htm

 

Can’t get your car registered? Stopped by Police? You are not alone.

According to the Associated Press, Minnesotan Philando Castile, who was shot and killed during an otherwise “routine” traffic stop, had been pulled over at least 52 times in recent years, in and around the Twin Cities, and cited for minor offenses. He had been assessed over $6500 in fines and fees, although many violations had been dismissed in court.

His tragic death is a stark and heartrending reminder of what can go horribly wrong when car drivers are pulled over by police. It should also raise serious, urgent questions about why some people are being pulled over at all.

Consumer and civil rights groups are raising alarms about a new law that was just enacted in California that will lead to many innocent people being pulled over by police, ticketed, having their cars impounded, and facing severe criminal sanctions. Why? Because car dealers failed to provide them with permanent license plates within the 90-day deadline for displaying permanent plates.

Governor Jerry Brown just signed the bill, AB 516, into law in the nation’s largest, most diverse state. It is now on track to take effect in January, 2019. So there is still time to change it before more innocent car buyers are harmed.

According to the Lawyers Committee for Civil Rights of the Bay Area, “LCCR recently published, in collaboration with other groups, a report entitled Not Just a Ferguson Problem: How Traffic Courts Drive Inequality in California, which shows the many ways that low-income California drivers, and particularly communities of color, are impacted by unfair laws that result in license suspensions and hefty fines, and that lead people into an endless cycle of debt and court involvement from which they cannot extricate themselves. Rather than reverse this trend, AB 516 would contribute to it.”

Here’s why this obvious injustice keeps happening, and how AB 516 would make it worse:

Under California’s current law, car buyers who purchase new or used cars without permanent metal license plates, at a car dealership, pay the dealer $29 for an “electronic vehicle registration or transfer charge” plus an $80  “document processing charge” to handle the registration. Sometimes they pay an additional $100 or more for a “registration /transfer/titling fee.” Then they drive off the car lot with a document that is folded up and taped in the back window that shows the date of sale and other relevant information. The dealer is supposed to handle the registration, and send them the permanent plates, either directly or by hiring a company approved by the DMV.

Car buyers must install permanent plates as soon as they receive them, or within 90 days. There are no exceptions. The law says they have to put them on the car before the 91st day — even if they have not received them, through no fault of their own. No plates? Tough. Hapless car buyers still face being pulled over, ticketed, and having their car impounded.

The kicker: There is NO requirement for dealers to ensure that car buyers receive their permanent plates within the 90 days. Some dealers take advantage of this major loophole in the law to abuse the system and increase their profits. As a result, this scenario plays out all too often:

You pay good money to buy a car from a car dealer. You drive it home. You paid cash, or if you got a car loan, you are making the payments, in full and on time. Life is good. Until….

You are pulled over by the police. Why? Because the temporary registration has expired, and you have not received the permanent plates. Why not? Because the dealer failed to submit the registration documents to the Department of Motor Vehicles.

As in, the dealer went out of business without paying the taxes he collected, or submitting documents to the DMV — some dealers do this to hundreds of people, then go belly up. OR —

  • The dealer entered the wrong Vehicle ID Number (VIN) into the system.
  • The dealer fired the person who handles vehicle registrations and hasn’t gotten around to hiring a replacement.
  • The dealer sold you a car that is registered in another state, which can take months to straighten out.
  • The dealer sold you a car with an unpaid lien, and the lender is demanding payment (which can run thousands of dollars) before it will release the title.
  • The dealer had the permanent plates sent to him, and not to you, so he can demand that you pay more, under threat of being pulled over again and again, and having your car impounded.
  • The DMV has a backlog in issuing permanent plates.
  • The DMV entered the wrong VIN.
  • Or — one of a myriad of other scenarios that are beyond your control.

None of that is your fault. You paid the fees for the dealer to properly register the car, when you bought it. It’s the dealer or the DMV who messed up. But who gets penalized? YOU.

According to consumer attorney Steven Simons, on July 19, 2014, Matthew Smith and his brother Luke bought a 2003 Acura for about $6900 (plus financing) from a dealership in Van Nuys, CA.  They paid the dealer the usual fees to handle the registration. But the dealer failed to follow through and do his job. Despite repeated attempts by the Smiths to get their car properly registered, and their fruitless attempts to get the DMV to assist them, to this day their Acura has not been properly registered, and they have not received their permanent plates. Meanwhile, police officers in several jurisdictions have repeatedly pulled Matthew over, including at gunpoint, and detained him for hours, searching him and his car.

Think this is wrong? We agree! Unfortunately, it’s going to get a lot worse, when AB 516 takes effect.

The author of AB 516 is Bay Area Assemblymember Kevin Mullin (D-San Mateo). The most avid backers are toll authorities, who want temporary tags to be mandated, so they will rake in more revenue. Currently, they lose money when people who don’t have readily traceable plates drive through unattended toll booths without paying.

The other major backers are the car dealers. They keep pushing aggressively to shorten the amount of time car buyers have to install permanent plates, or face criminal penalties. California car buyers used to have 6 months to install permanent plates. Then in 2011, car dealers persuaded legislators to cut the time in half, to 90 days. Recently, car dealers tried to get lawmakers to slice the deadline in half again, to just 45 days. That bill has temporarily stalled, pending enactment of AB 516. But dealers are expected to bring it back.

The author claims that the first ticket you would get is supposedly just a “fix-it” ticket. So what’s the big deal?  Here’s the catch: you cannot fix it. Typically, people caught in this trap call the dealer and the DMV over and over again, file complaints, and even go in person and spend hours at the DMV and dealership waiting around, and pleading with them. What they discover is that getting the registration completed, so they can drive legally, is out of their hands. It is an exercise in extreme frustration.

Sometimes it takes over a year to get things straightened out. By then, many people are pulled over repeatedly and ticketed, and their cars are impounded. Even if they pay all the tickets and the hefty impound fees, they cannot get their cars back because they are not the registered owners.

What happens to many hard-working consumers when their cars are impounded? They often lose their only means of transportation to work, and their jobs. Then they default on the car loan. Guess who swoops in to take back the car? The dealer. Then he turns around and resells the same car, over and over again, making a profit each time. You, on the other hand, get stuck with no car, a repossession that harms your credit for at least 7 years, harassing phone calls from the lender demanding immediate payment of the remaining car loan, and no job.

The bottom line: the bill will play right into the hands of unscrupulous car dealers, who want customers to give up and default on car loans, because they can make bigger profits from reselling the cars, and trashing people’s lives. According to a major series of reports by Ken Bensinger at the Los Angeles Times, some dealers in California engage in the practice of “churning” cars — reselling the same car over and over again — as a regular business practice.

The bill would also make it easier for unscrupulous dealers to engage in an illegal practice known as “yo-yo” financing, which is very common, even among supposedly reputable car dealers. When dealers “yo-yo” a consumer, they sell them a car, hand them the keys, and encourage them drive it away. Weeks later, they reel them back in,  telling them the “financing fell through.” Then threaten to have the consumer arrested for driving with an expired registration, or to report the vehicle as “stolen.” They exploit the fear of criminal sanctions to extract a larger down payment, higher interest rate, or other terms more favorable to the dealer. They refuse to return the down payment or the traded-in vehicle, leaving car buyers over a barrel.

If AB 516 is enacted, dealers will be required to install temporary tags. Good idea. We are in favor of law enforcement agencies being able to properly identify the car and the car buyer. But — the temporary tags will be highly visible, and will have an expiration date that is easy to spot — and easy for a scanning device to pinpoint. Suddenly, people with expired temporary tags will become ridiculously easy to target. Enforcement of that 90-day deadline, which tends to be relatively spotty now, will skyrocket.

Here’s what will happen, only a vastly larger scale: In a village on Long Island, New York, “Since the scanners went live Nov. 2, they have been triggering an average of 700 alarms a day, mainly about cars on the road with expired or suspended registration stickers. Officers have impounded 500 vehicles. They’ve written more than 2,000 court summonses, mostly for minor violations.”

Plus — AB 516 would make altering even just the expiration date on a temporary tag a wobbler/ felony offense, subjecting car buyers to a potential prison sentence of 2-3 years. Imagine: you keep being pulled over by the police because you have not received your permanent plates. If you are detained one more time, making you late for work, you will lose your job. In your desperation you take a magic marker and change the expiration date. For this “horrible crime,” you will be at risk of having to do hard time in prison. Even though you have not altered the number of the temporary tag, and toll agencies and law enforcement can readily identify the car, for toll collection or public safety purposes.

Consumer groups and the California Police Officers Association worked together and drafted amendments to AB 516 that would have addressed these serious problems with the bill, and presented those to the author’s staff, at an in-person meeting. The amendments would have changed the bill so that:

  • When law enforcement officials detect that your car has a temporary tag with an expired date, they would have to check an existing law enforcement database, that they can already access electronically, to find out whether you were issued permanent plates. In a matter of seconds, they can tell. If the plates have not been sent to your address, you would not be issued a citation.
  • It would be an infraction, not a wobbler / felony, to alter just the expiration date on the temporary tag, leaving the rest of the tag unaltered and readily traceable.

The California Police Officers Association, to its credit, expressed the sentiment that its members are not overly eager to pull over and detain people who are already frustrated because they cannot get their permanent plates, so long as they properly display the temporary tags, and the car is readily identifiable for public safety purposes.

However, Assemblymember Mullin refused to accept those amendments. Instead, he added a “fig leaf” to the bill that would require consumers who have not received their permanent plates to prove their own innocence by obtaining a form from the DMV and showing it, if they are detained. That may sound easy, but in reality, it’s just another Catch-22. The form cited in the bill requires that you sign, under penalty of perjury, that you are the “registered owner of record.” But that’s the problem. You are not the registered owner. That is why you didn’t receive your permanent plates. Gotcha.

Read more — letters opposing  AB 516:

Courage Campaign

Consumers for Auto Reliability and Safety

Consumer Federation of California

California Rural Legal Assistance Foundation

Lemon law / auto fraud attorney and Judge Pro-Tem Steven Simons

Lemon law / auto fraud attorney David Valdez

Lemon law / auto fraud attorney Greg Babbitt

Lemon law / auto fraud attorney Balam Latona

Lawyers Committee for Civil Rights of the Bay Area

Citizens United for a Responsible Budget (CURB)

Law firm of Kemnitzer, Barron & Krieg

 

 

 

 

 

 

 

 

 

 

National Automobile Dealers Association in denial about safety

The President of the National Automobile Dealers Association, Colorado car dealer Jeff Carlson, claims that only 6% of recalled vehicles are “hazardous.” That means he thinks that cars like this one, that killed a 17-year-old Texas teenager, are NOT “hazardous.”

ABC News report: 17-year-old killed by exploding Takata air bag

Try telling that to her family.

That also means that he doesn’t consider any of these defects, which have killed and maimed many car drivers and their passengers, to be “hazardous”:

  • Stalling in traffic
  • Catching on fire
  • Faulty brakes
  • Steering loss
  • Seat belts that fail in a crash
  • Axles that break
  • Hoods that fly up while you’re driving in traffic
  • Sticking accelerator pedals
  • GM ignition switches that turn off and eliminate power steering and braking, and cause air bags to fail to deploy

Automotive News report: Carlson vows to press NADA’s fight against regulation

Bottom line: Carlson and NADA cannot be trusted to decide whether a car is safe to sell. When it comes to safety, they are absolutely clueless. And a real danger to American society.

CarMax – still selling unsafe cars with lethal safety defects

CarMax is the nation’s largest retailer of used cars. Unlike some of its competitors, it has a policy of deliberately selling its customers vehicles that it knows are unsafe. Consumers who buy cars from CarMax risk being sold cars with defects that have caused tragic deaths and injuries.  Defects like stalling in traffic, catching on fire, faulty brakes, air bags that spew metal fragments that cause blindness or bleeding to death, seat belts that fail in a crash, axles that break, steering loss, rolling away while supposedly parked, hoods that fly up in traffic, sticking accelerator pedals, and other dangerous defects.

Please warn your family and friends.  Check out these TV reports to find out more about how CarMax is deceiving and tricking people into buying unsafe cars — putting them and their families at risk, and endangering the lives of others who share the roads.

ABC’s 20/20’s investigative report

WCVB 5 Boston report