Category Archives: Auto safety tips

CarMax – still selling unsafe cars with lethal safety defects

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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

 

 

 

 

CarMax sells unsafe, recalled cars

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CarMax, the nation’s largest retailer of used cars, claims all its vehicles must pass a rigorous “125 point inspection.” It also advertises that all its cars are so-called “CarMax Quality Certified.”

But instead of living up to its hype, CarMax is selling LOTS of recalled cars with lethal safety defects. CarMax has a gambling addiction. It continues to play “recalled car roulette” with its customers’ lives.

Among the defects on cars waiting for sale on CarMax’s lots:

  • sticking accelerator pedals
  • catching on fire
  • hoods that fly up in traffic
  • faulty brakes
  • steering loss
  • stalling in traffic
  •  seat belts that fall apart in a crash
  • air bags that explode with excessive force and cause blindness or death

An ABC 20/20 undercover investigation found unrepaired recalled vehicles for sale on CarMax’s lot in Hartford, Connecticut. CarMax’s excuse? It can’t be bothered waiting for the FREE repairs.

GM “certified” cars face Federal scrutiny

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The U.S. Federal Trade Commission has confirmed that it is investigating advertising of General Motors’ “certified” used cars, regarding their safety recall status. The FTC is the first federal agency to take action to protect the public from car dealers’ sales of unrepaired recalled used cars. CARS applauds the FTC for acting to police vehicle safety in the used car market, under existing laws.

According to the Detroit News, “GM said it was notified June 3 of the investigation by the FTC that concerned “certified pre-owned vehicle advertising where dealers had certified vehicles allegedly needing recall repairs.”

CARS and our consumer group allies have been urging the Federal Trade Commission to crack down on CarMax, over its sales of unsafe, recalled used cars. CarMax is the largest retailer of used cars in the U.S. CarMax advertises that all its vehicles must pass a rigorous “125 – point inspection” to qualify to be sold as “CarMax Quality Certified” vehicles.

However, CarMax openly admits that it knowingly and deliberately sells cars that are being recalled by the manufacturer because they have lethal safety defects. CarMax neglects to ensure that the cars are repaired and safe to drive, before offering them for sale. The CARS Foundation and CALPIRG Education Fund recently issued the report “CarMax Is Endangering Lives in California” about the unsafe, recalled cars CarMax offered for sale in Oxnard and South Sacramento, CA.

New York City’s Department of Consumer Affairs was the first local agency to crack down on car dealers’ sales of unsafe, recalled used cars, under a law in New York that requires dealers to certify that vehicles they offer for sale are roadworthy.

Read more: Detroit News: GM Faces FTC Investigation

 

Takata air bags: take this recall seriously

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How risky is the Takata exploding air bag defect? Some commentators are downplaying the risk, and may mislead consumers into thinking they can ignore the safety recall. They point to reports about the number of known fatalities linked to the faulty air bags, which have been pegged at 6, with another 100 people suffering serious injuries.

However, as the GM ignition switch defect has taught us, the initial numbers can be deceiving. GM acknowledged only 13 fatalities. But we now know that the toll was actually much higher, numbering over 100 lives lost. Plus many more people suffered serious injuries.

In addition, the Takata air bag defect is getting worse. The problem with the air bags is linked to exposure to the elements. Over time, the number of air bags that are prone to exploding with excessive force will inevitably rise.  So will the risk to drivers and front-seat passengers.

If you own a car that is among those equipped with Takata air bags, here are some steps you can take to stay as safe as possible:

1. Check your car’s safety recall status by entering the Vehicle Identification Number on the website for the National Highway Traffic Safety Administration, here:  https://vinrcl.safercar.gov/vin/

2. Register to receive updates about any changes in your car’s recall status, here: http://www-odi.nhtsa.dot.gov/subscriptions/index.cfm

3. If your car is being recalled to replace one or both front air bags, contact a local new car dealer and get on the list for repair parts.

4. If the repair parts are not yet available, insist that the manufacturer provide you with a rental car from a rental car company that ensures that its rental cars are not subject to a safety recall, such as Hertz, Enterprise, Avis, Dollar Thrifty, Alamo, and other major rental car companies or smaller companies (except Rent-a-Wreck).

5. Be wary of loaner cars, which dealers have on their lots. Dealers argue that they should be able to foist off unsafe, unrepaired recalled cars to consumers as loaner cars. Yes, it’s nuts. But hey, they’re car dealers.

6. If a manufacturer refuses to provide you with a safe rental car, pending repairs, let CARS know. We’re going to publicize stories about manufacturers refusing to provide safe alternative transportation, like they have promised members of Congress and the media.  Sometimes a bit of sunshine can go a long way toward convincing a company to do the right thing.

CA on track to have the worst auto safety recall law in the nation

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Greedy, unscrupulous car dealers are high-fiving themselves, as Democratic and Republic legislators in California continue to vote unanimously to legalize dealers’ sales of unsafe, recalled used cars with lethal safety defects to consumers.

Testifying against the car dealers’ bill: Cally Houck, who lost her two daughters, Raechel and Jacqueline, ages 24 and 20, due to a recalled car.  A steering hose leaked, causing an under-hood fire and a loss of steering control.  The two sisters ended up colliding head-on with an 18-wheeler truck.

As their mother, Cally Houck, told legislators:  AB 287, the car dealers bill, “would protect dealers, not consumers.” The bill is being authored by Assemblymember Richard Gordon, who has said that his father and grandfather were car dealers.

Also testifying against the bill:  Mark Anderson, who testified on behalf of the National Association of Consumer Advocates. According to NACA, if the dealers win, California will become a dumping ground for unsafe, recalled cars that would be illegal for dealers to sell in other states.  That would translate into more fatalities and injuries, and higher risk for everyone who shares the roads.

According to the car dealers’ bill, the defect that killed Raechel and Jacquie would not be considered “serious.”

Read more:

Orange County Register: A record 64 million cars were recalled last year: Here’s what’s being done to make buying safer used cars

Ventura County Star: Capps introduces rental car bill named for Ojai sisters killed in crash

How serious are safety recalls?

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How serious are auto safety recalls?  Ask anyone who has lost a family member, or been severely burned or rendered quadriplegic, as a result of a safety defect, and they can tell you that auto safety recalls should not be ignored.

The National Highway Traffic Safety Administration is working to improve safety recall repair rates. Their goal:  getting 100% of recalled vehicles repaired, the sooner the better. Auto manufacturers are joining in that effort and turning to social media, offering discount coupons, and advertising about safety recalls in multiple languages. All in an effort to persuade consumers take their cars for recall repairs.

However, car dealers in California are so intent on maximizing their profits, they are doing something breathtakingly irresponsible. They are claiming, publicly, that only about 1% of safety recalls are serious. Seriously. Why? They don’t want to frighten people from buying millions of cars with lethal safety defects, like air bags that are prone to exploding with excessive force, spewing metal fragments into drivers’ and passengers’ faces and necks, and blinding them or severing arteries, so they bleed to death.

Just because the cars are unsafe, and there aren’t enough repair parts available to replace the defective air bags, dealers argue that shouldn’t interfere with their selling the unsafe cars to teenagers as their first cars, or to families with young children.

All the more reason not to by a used car from a dealer. Who wants to spend 4 hours on a car lot dickering over cars, only to end up with a vehicle that has a lethal safety defect, and no repair parts available for months on end?

Read more: CBS News: Feds seek ideas on getting more safety recalls done

Caught on video: new car dealer lobbyist admits why they killed bill that would have improved the law against dealers selling unsafe, recalled used cars to consumers.

CARS’ tips for buying a safe, reliable used car without having to set foot on a car dealer’s lot

 

Car Dealers seek to legalize sales of unsafe recalled used cars

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Faced with record numbers of recalled cars and lengthy shortages of repair parts, car dealers are pushing aggressively to weaken state laws that prohibit them from deceiving their customers into buying used cars with lethal safety defects.

Car dealers are eager to foist the unsafe cars off onto their customers, knowing that there is no way they will be able to get the serious safety defects repaired, for months on end. In one horrific case, a father, mother, 13-year-old daughter and brother-in-law were all killed within hours after the dealer handed them the keys to an unsafe car. The publicity surrounding that case led to Toyota’s issuing a massive safety recall, and eventually paying a record fine. However, the dealers do not seem capable of learning from that tragic incident and its aftermath.

Federal law prohibits car dealers from selling recalled NEW cars to consumers until they have been repaired.  There is no similar, specific federal law that prohibits dealers from selling recalled USED cars to consumers. However, broader, more generic state laws in every state, and some federal laws, prohibit merchants, including car dealers, from engaging in fraud, false advertising, unfair and deceptive acts and practices, anti-competitive behavior, reckless endangerment, negligence, and other shady practices. In addition, a whole body of case law exists that prohibits such illicit conduct.

The National Highway Traffic Safety Administration has charged some dealers with violating the federal law against selling recalled new cars to consumers. What’s next? Dealers trying to make that legal too?

KPIX-TV, the CBS affiliate in San Francisco, broadcast this news report about the car dealers’ highly controversial, anti-consumer, anti-safety bill in California. Be sure to watch for the reaction at the end, by the news anchors:

KPIX-TV: Car dealers fight back over recall disclosures

 

 

 

Buy a car – surrender your rights?

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One more reason not to buy a car from a car dealer:  when you do, they force you to give up your right to sue them if they cheat you.  So say good-bye to being able to take advantage of consumer protection laws.

Think a dealer wouldn’t dare roll back the odometer? Think again. They just slip a clause in your contract that says you can’t sue. Then when you find out your low-mileage car actually has over 100,000 extra miles that “disappeared” from the odometer — good luck trying to sue them under the Federal Odometer Act.

Car dealers used to face tough sanctions, including punitive damages, for ripping off consumers. But with rare exceptions, those days are gone.  That’s because car dealers insert “arbitration” clauses into their contracts. Then, after you’ve been shopping, test-driving cars, and negotiating for an average of 4 hours, they shove a stack of documents across a desk and tell you to “sign here, here and here.”

What they don’t tell you is that when you sign, you are giving up your rights under state and federal consumer protection laws. So forget hauling them before a judge or jury, who can throw the book at them. Instead, if you get any hearing at all, it’s before an “arbitrator” whose company just happens to be paid by — you guessed it — the dealer.

Under rulings by the Republican majority on the U.S. Supreme Court, this is perfectly legal.

Ironically, the dealers got a special exemption from Congress that allows them to sue anyone they please. They’re free to use the courts. But you can’t.

Evidence is mounting about how biased and unfair arbitration is. Check out this new report, issued by the Consumer Financial Protection Bureau. No wonder car dealers HATE this consumer watchdog agency. It shows how rigged the game is, when you buy a car from a dealer:

Consumer Financial Protection Bureau report

Don’t end up like Jon Perz, who has been waiting over 7 years for justice, after a car dealer in San Diego sold him an unsafe car.

YouTube Video of used car nightmare — over 1.3 million views

Be a smart shopper. Check out CARS’ car-buying tips for how to get a safe, reliable used car — without having the hassle or risk of buying from a dealer:

CARS Used Car Buying Tips

Happy, safe car shopping!

 

 

 

 

 

 

 

 

Used car buyers have friends in the White House in auto safety battle

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America’s used car buyers and our nation’s roads will be a lot safer if the Obama Administration wins the battle against shady car dealers who sell unsafe, recalled cars to used car buyers.

U.S. Secretary of Transportation Anthony Foxx and the Administrator of the National Highway Traffic Safety Administration, Dr. Mark Rosekind, are urging Congress to make it illegal for car dealers to sell unsafe, recalled used cars to consumers.

They joined the President of Consumers for Auto Reliability and Safety at a press conference in Richmond, VA, along with representatives of Hertz, Enterprise, and Avis, and the American Car Rental Association, who have been working together with CARS to enact federal rental car safety legislation. Auto manufacturers (except GM) and car dealers are blocking the rental car safety bill, and lobbying Congress to weaken protections for America’s car buyers.

It is historic for a President and his safety team to call for people who rent cars, or purchase used cars, to have the same level of protection as new car buyers. Under federal law, it is illegal for car dealers to sell recalled cars with lethal safety defects to NEW car buyers. That has been the law since the 1960’s. But there is no similar federal law to protect people who rent cars or purchase used cars.

“What we need now is for Congress to step up, and to make renting or selling a recalled vehicle [to a consumer] illegal,” said Secretary Foxx.

Read more: US DOT safety recall news

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.

 

“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.