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Are car dealers providing unsafe loaner cars to owners of recalled cars?

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U.S. Senators, like Sen. Bill Nelson of Florida, have been urging Honda and Toyota and their dealers to provide loaner cars to customers with faulty Takata air bags, while they wait for repair parts to become available. Sounds like a good idea, right?

But — new car dealers have been vehemently opposing attempts to stop them from loaning out cars that have the exact same safety defects, or different defects, that have triggered a federal safety recall.

So — if you turn in your recalled Honda or Toyota at a Honda or Toyota dealership, and they hand you the keys to a loaner car, is it guaranteed to be any safer? NO!!!!

Here’s video of lobbyists for the new car dealers and CarMax opposing legislation in California that would have prohibited them from renting, selling or loaning unsafe, recalled used cars to consumers:

Car dealer lobbyists oppose safety bill in California

 

 

NHTSA fines Honda the Max — But Honda Should Be Paying More

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Under pressure from the National Highway Traffic Safety Administration, Honda has agreed to pay $70 million in fines for concealing vital information about 1,729  fatalities and injuries in its cars, as well as important warranty information,  in violation of federal auto safety laws.

To its credit, NHTSA is assessing Honda the maximum allowed by law — $35 million, for two separate violations, for a fine totaling $70 million. Plus NHTSA now has more ability to monitor Honda’s compliance with the laws in the future.

But — Honda should be paying more. For a huge multi-national, multi-billion-dollar company like Honda, and such repeated serious offenses, $70 million is not enough to act as a real deterrent.

Why isn’t Honda paying more? Because Congress has failed to act, to give NHTSA the authority to levy higher fines. The Obama Administration has been asking Congress to raise the cap on fines for egregious violations of auto safety laws to $300 million. But so far, only Democrats in Congress have introduced bills to raise or outright eliminate the cap. Despite all the hearings and all the hoopla, no Republican has stood up to the auto industry on behalf of the motoring public and proposed giving NHTSA the authority to levy higher fines.

It’s particularly troubling that U.S. Rep. Fred Upton (R-MI), Chair of the House Commerce Committee, keeps blasting NHTSA for not doing more, but has been totally AWOL when it comes to doing anything to give the agency the authority and resources it needs to do the job. So far, he’s failed to propose a single bill.  He talks a good fight, and can play the tough guy when the cameras are rolling, but when it comes to improving auto safety protections for American families, he has delivered exactly zilch.

Bottom line: thanks to behind-the-scenes special-interest lobbying in Congress against desperately needed, reasonable, effective auto safety reforms, Honda just saved itself a cool $530 million.

 

 

 

 

 

 

 

 

CarMax – Too Risky for Wise Investors?

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Thinking of investing in CarMax? You may want to take a close look at their breathtakingly risky practice of selling unsafe, recalled cars to consumers.

CarMax is already under fire from consumer groups,  faces potential action by the Federal Trade Commission, and has been repeatedly exposed in undercover investigations by TV news organizations, including ABC’s 20/20, over its sales of unsafe, recalled cars to consumers.

Here’s the rub:  CarMax advertises that all their cars must pass a “rigorous 125+ point inspection” before they can be sold as “CarMax Quality Certified” cars.  But how can a car with a killer defect possibly pass a rigorous inspection and meet their standards?

Despite the mounting scrutiny, CarMax recklessly persists in selling “CarMax Quality Certified” unsafe, recalled cars at retail to consumers. Case in point:  Even when competitors like AutoNation have wisely announced their decision to cease selling used cars with unrepaired Takata air bags, CarMax continues to sell them anyway.

Defying common sense and responsible business practices, CarMax somehow seems unable to bring itself to stop selling consumers cars with the notoriously defective air bags, which can explode on impact, hurling shrapnel at the driver and front-seat passenger’s face and neck..  In cases that are making global headlines, the defective air bags have caused  serious injuries, including blindness, while other hapless victims have bled to death.

This particular defect  remains the focus of Congressional investigations in the U.S. Senate and House of Representatives. Takata also faces possible legal action by the National Highway Traffic Safety Administration, and by the US Department of Justice.

So — what does AutoNation know and take into account that CarMax doesn’t seem to grasp?

Is CarMax waiting for a total PR catastrophe, before they stop making that added bit of profit by selling lots of unsafe, defective, recalled cars to consumers, instead of having them repaired or selling them for a somewhat lower price, at wholesale?

Whatever CarMax’s motivation, wise investors may wish to rethink the company’s self-inflicted level of exposure.

 

ABC 20/20 exposes CarMax’s sales of damaged cars and unsafe, recalled cars

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CarMax Admits It Sells Unsafe, Recalled Cars
So — how can a car that’s so unsafe pass their so-called  “rigorous 125+ point inspection”? No one seems to know…and CarMax refuses to go on camera…

From ABC NEWS RADIO:

” CarMax says it has transformed the used car buying experience with no haggling pricing and financing and its “125+ point” inspection process to make sure drivers don’t end up with a lemon. But consumer advocates say CarMax sales reps don’t always disclose the complete history and condition of the vehicles they sell.

A 20/20 investigation found instances on two CarMax lots where vehicles were being sold with reportedly significant accident histories or unrepaired safety recall issues….

When it came to outstanding safety recalls, the Hartford dealership salesman was recorded on hidden camera telling Benitez that CarMax is unable to sell a car with a major safety recall. “We can’t even sell it until that’s taken care of,” he said. “We take care of any kind of safety concern prior to the car even being out here.”

However, a check of a federal government website revealed that the Toyota Camry at the Hartford CarMax dealership had three outstanding safety recalls on it at the time of our visit, including one for a power switch that could overheat and melt, possibly resulting in a fire. Five other vehicles sitting on the lot also had unfixed safety recalls, according to the government website.

CarMax declined an interview but told 20/20 in a statement that it doesn’t automatically fix recall vehicles before selling them and only does so if a customer requests it. CarMax says it does inform consumers about any open recalls and recently upgraded its website so customers can look up open recalls online through the government database. CarMax also says it retrained its staff on its recall policy.

A coalition of consumer and safety groups filed a petition with the Federal Trade Commission this June, urging the agency to investigate CarMax’s safety recall policy. Rosemary Shahan, head of Consumers for Auto Reliability and Safety (CARS), is calling on the FTC to require CarMax to have all safety recall vehicles repaired before selling them to consumers. “CarMax sells vehicles that are under safety recall without bothering to fix them,” said Shahan. “If they wanted to do it right, it would be very easy for them to do it right.” (Emphasis added)

Read more: ABC 20/20:  What Do Some CarMax Sales Reps Tell  Consumers?

“Regional” auto safety recalls place military families at risk

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The refusal by Takata and some manufacturers to expand the safety recall of defective, exploding air bags to cover the entire nation is jeopardizing the safety of many of America’s military families.

If you are a member of the Armed Forces, under Federal law, you are allowed to register your car in your official state of residence. Regardless where you are stationed, or the state where you and your family members are actually driving your car.

Auto manufacturers use data from RL Polk to identify owners of recalled vehicles and send them notices. But that data is based on where their vehicles are registered.

So if you are serving  in the military, and register your car in New York, but are stationed in a high-humidity state like Florida, you may not receive the safety recall notice for your car.  Even though  Honda, Toyota, and other manufacturers, as well as the air bag supplier Takata, now acknowledge the air bags should be recalled in high-humidity states like Florida.

That’s because, as far as RL Polk and the manufacturer are concerned, cars that are registered in New York are being driven in New York. They fail to account for the fact that if you’re serving in the military, you may have registered your car in New York, but be stationed for years in a high-humidity state like Florida.

Florida is home to at least 29 Navy, Marine, Air Force, and Coast Guard bases, with over 50,000 active duty personnel.  No doubt many of them have chosen to register their cars in their official state of residence, where the taxes may be lower, or it is simply more convenient.

What are Takata and auto manufacturers who installed the potentially deadly air bags in their cars doing to protect military families?  It appears that the answer is nothing.

We hope that Members of Congress and the National Highway Traffic Safety Administration will pressure the manufacturers to ensure that members of the Armed Forces and their families are alerted to the hazards, and their cars are repaired, regardless where they are stationed, or where their cars are registered.

Better yet, all auto manufacturers and Takata should make the safety recall national, so all owners and their families can have the safety recall repairs performed, without having to pay out of pocket for the mistakes made by Takata and the manufacturers — and without being injured or killed by flying shrapnel from the defective air bags.

One more reason NOT to buy a car from a car dealer

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Even the auto dealers themselves have to admit:  many car buyers dread buying cars from auto dealers. Young people are especially wary.  And for good reason.

Car dealers keep selling unsafe, recalled used cars to consumers, putting them, their friends and family, and other motorists at risk of death or serious, debilitating injuries.

And as if that weren’t bad enough, they also insist that you surrender your Constitutional rights as part of the price of buying a car from them.

Good luck trying to buy a car from a dealer without a “gotcha” clause hidden in the contract that says you give up your Constitutional right to take them to court, and benefit from  our nation’s hard-won consumer protection laws. Like laws against rolling back odometers, selling “junk” cars that are advertised as being “in mint condition,” or engaging in other forms of cheating, lying, fraud, and thievery.

And get this:  the dealers got a special exemption from Congress — just for car dealers —  that allows them to keep THEIR Constitutional rights. So they can take anyone they want to court, and use the laws that benefit THEM. But they killed a bill that would have protected YOU from losing your rights when you sign on the dotted line to buy a car from them.

If you’re fed up with car dealers and their scams, check this out:

Cleveland Plain Dealer: Arbitration: What you don’t know about fine print can hurt you

And let your local car dealers know you’re not buying from them until they clean up their act, and you don’t have to surrender your rights to buy a car from them.

ABC 30 investigation finds dangerous recalled cars for sale on dealer lots

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“A record number of vehicles are getting recalled this year. Car makers have pulled about one of every five vehicles on the road, 58 million of them. But many of the potentially dangerous cars are hiding in plain sight on used car lots here in the [Central] Valley.

The truth is: they’re all over the place, and you may never know it until it’s too late.”

ABC 30 investigation finds dangerous recalled cars for sale on dealer lots

 

CarMax — caught on Camera AGAIN selling unsafe, recalled cars

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An undercover investigation by WSB-TV in Atlanta, GA found CarMax is still selling unsafe, recalled cars — while claiming they take care of safety recalls.

Instead of cleaning up their act, and ensuring the cars they sell are safe, CarMax says they plan to keep leaving it up to car buyers to get the safety recall repairs done — AFTER they buy the car. For millions of recalled cars, it could take months before repair parts are available, and meanwhile CarMax customers will be stuck driving ticking time bombs.

Watch video: WSB-TV report: CarMax under Fire over Recall Policy

CarMax sells unsafe, recalled cars

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CARS continues to hear from more consumers who bought cars from CarMax, believing that they were safe. They were astonished and dismayed to find out that their car or truck was so unsafe, it was being recalled by the manufacturer due to safety defects.

One consumer in Richmond, VA called to say that he bought a GM car from CarMax, which advertises that all its cars must pass a rigorous “125+-point inspection” and be “CarMax Quality Certified” to be offered for sale. Then he found it that GM had recalled it because of the notorious ignition switch defect, which causes the car to die in traffic without warning, and also disables the power steering, power brakes, and air bag. A local GM dealer told him that it could take months before repair parts are available.

CarMax told him that was his problem, not theirs.

Meanwhile, he is afraid to drive the car. So he and his partner have a very expensive lawn ornament in their back yard.

Did CarMax sell you an unsafe, recalled car? Here’s what you can do:

1. Contact CARS. We want to hear your story. The only way we’re going to get CarMax to stop selling unsafe, recalled cars is for enough consumers whose lives are being put at risk, to speak up.

Contact CARS

2. File a complaint with the Federal Trade Commission. The FTC has the authority to crack down on CarMax over its false, misleading advertising, that claims its cars are so safe, they passed a 125+-point inspection. But — CarMax does not even check for safety recalls.

Complain to the FTC

 

 

Car Title Loans — Get a Loan, Lose Your Car

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Thinking about getting a car title loan, to tide you over? Don’t do it — unless you can afford to lose your car. Car title lenders trap consumers in loans they can’t afford, then take their cars.

Warns Tiffany Richardson, a Houston, Texas area nurse who lost both of her cars to a car title lender: “No matter how bad it gets, do not go.” — Texas Tribune, August 23, 2014.

Sometimes they refuse to accept payments made via phone or other means, in hopes you will default. Then they pounce, and grab your car. They make a killing when they get to collect payments from you, plus end up owning your car.

Car title lenders in California often lure consumers into loans bigger then they need. Why?  Because there is no cap on the interest they can charge for loans over $2500. So even if you want a loan of only $600, they will tell you that you should get a bigger loan, over $2500. That way,  they can charge you absurdly high interest rates — and are more likely to end up seizing your car.

Better alternatives:

Borrow from relatives

Get credit counseling from a non-profit credit counselor approved by the Federal Trade Commission who can help you figure out a better way to deal with debt

Sell your car and get a less expensive car, take public transportation, or rent a car while you get back on your feet

Read more:

Texas Tribune / NY Times report “Thousands in Texas lose cars to car title lenders”

 

Honda: “Oh, and by the way, this Honda’s air bags may explode in your face”

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In case you thought that other auto manufacturers were smarter than GM, or at least capable of learning from GM’s mistakes, here’s a reality check:

Honda is now specifically allowing its dealers to sell unsafe, recalled used cars with faulty air bags that are prone to spewing metal fragments that become sometimes-lethal projectiles — as long as they get the used car buyer’s signature on a written “disclosure”  — which the dealer can hide in a stack of documents and slip in AFTER you have already agreed to buy the car, settled on a price, and spent 4 hours at the dealership.

Safety Research and Strategies writes about why cars equipped with  these defective air bags are finally being recalled — because of horrific incidents like these:

“In May 2009, 18-year-old Ashley Nicole Parham.of Oklahoma died in a 2001 Honda Accord, after her vehicle [collided with] another car in the school parking lot, tripping an explosion that sent a piece of metal right into her carotid artery.

In 2010, Kristy Williams, a Georgia college student, was stopped at a light, when her airbags deployed, expelling metal shards, which severed her neck and carotid artery and required two weeks in intensive care. Williams’ case against Honda was settled for an undisclosed sum.

On Christmas Eve, Guddi Rathore was at the wheel of her 2001 Honda Accord, when a U.S. postal service truck pulled out in front of her. The minor fender bender caused the airbag to explode. The metal shards severed the arteries in her neck, killing Rathore in front of her three young children, also occupants in the Accord.”

One of the complaints SRS documents, that was filed with the National Highway Traffic Safety Administration:

“Oncoming driver crossed center line making a left turn in front of Honda driver. Honda struck passenger side of turning vehicle. Both driver and passenger side airbags deployed. However, the diver side airbag inflator ruptured and propelled a one-inch piece of shrapnel into the driver’s right eye. Loss of sight and severe lacerations to nose requiring 100 stitches.”

Even if those disclosures would pass legal muster — and some legal experts think they may be worse than no disclosure at all — what sort of car dealer would deliberately sell their customers a car with an air bag that may explode in their face and blind or kill them?

Read more:

Automotive News: Honda pushes dealers for buyer’s signatures on air bag liability

Safety Research and Strategies: NHTSA finally gets curious about exploding air bags

 

 

 

 

 

 

 

 

 

 

 

CarMax sells unsafe, recalled used cars

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CarMax advertises that each vehicle they offer for sale must pass a rigorous 125+ point inspection. But — does that include ensuring that safety recall repairs have been performed? The answer may surprise you.

Check out this recent news report:

WFMY-TV: Consumer Groups Warn CarMax Has Misleading Ads

Bottom line:  Don’t get snookered by those CarMax ads claiming that all their cars are “CarMax Quality Certified” and passed a “125+ point” inspection.  Unless you don’t mind the fact it could be a certified 125+ point ticking time bomb.

Did CarMax sell you a recalled used car? CARS wants to hear your story. Here’s how to get in touch:

Contact CARS

P.S. Even if you think your CarMax car is safe, it’s a good idea to check the manufacturer’s website for safety recalls, and enter in your car’s Vehicle Identification Number (VIN).