Category Archives: Used Car Scams

How to avoid common used car scams.

CarMax sells recalled used cars

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Auto retailing giant CarMax advertises that all of its cars have to pass a rigorous, 125+ point inspection before they are fit to sell. But ever wonder if that inspection includes safety recalls?

Huh?  How could a car pass CarMax’s rigorous inspection and still have a major safety defect that makes it so unsafe, it would be a violation of federal law for it to be sold as a “new” car?

Wellll…  that’s a very good question.

Keep in mind — CarMax recently played a major role in killing first-in-the-nation legislation in California that was backed by consumer and safety organizations, to make it illegal for car dealers to sell recalled used cars to consumers.  Their excuse?  They are not authorized to perform safety recall repairs.

That’s right. Auto manufacturers don’t allow independent dealers like CarMax to perform safety recalls because under federal law, the manufacturers are responsible for ensuring that the recall repairs are done properly.  Which makes sense, since the manufacturer is the one that made the defective product, issues the recall, and oversees the repairs.  Ultimately, if the safety recall repair is inadequate, or isn’t performed properly, and someone is killed or injured as a result, the manufacturer is the one who is held liable. Witness what’s going on with GM.

So watch out. CarMax thinks it’s OK to sell unsafe, recalled used cars to consumers simply because they’re not authorized by auto manufacturers to perform safety recall repairs. Seriously.

See for yourself. Here’s the testimony of CarMax’s Counsel against the California auto safety recall bill:

CarMax:  Don’t make us stop selling unsafe, recalled used cars

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 deathtrap.

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).

GM Loaners May Not be Safer

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From the auto safety advocates who blew the lid on the GM ignition defect — the latest twist.

We’re concerned about the safety of consumers who go to GM dealers expecting to get a safer car — not realizing the dealers may loan them a ticking time bomb.

If GM cares about its customers’ safety, why is it opposing legislation in Congress to stop rental car companies from renting vehicles that are under a safety recall? and why are its dealers opposing legislation in CA to stop them from loaning, renting, or selling recalled used cars to consumers — without bothering to get them fixed first — for FREE?

Read more: GM Loaners May Not Be Safer

Has GM changed its stripes?

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General Motors executives, rocked by revelations about GM’s failure to fix known defects in its 2005 -2007 Chevy Cobalts and other cars the manufacturer produced in 2005 – 2007, seek to portray the company in a more favorable light, claiming  that the mistakes of the past belong to the “Old GM” and the “New GM”  has changed its stripes and is now more responsible and caring.

But — is it? You be the judge. Here’s what’s happening:  At the same time GM struggles to be perceived as a kindler, gentler company that actually cares about its customers’ safety, it is actively blocking legislation in the US Senate to stop rental car companies from renting unsafe, recalled vehicles to consumers. In other words, if an unrepaired, recalled Cobalt happens to show up in a rental car fleet, they are perfectly willing to keep playing “recalled car roulette” with your life.

GM’s position, argued in revealing testimony by Mitch Bainwol, Executive Director of the Auto Alliance, which includes GM, is that they don’t want to have to compensate rental car companies for the down time, when the manufacturers’ unsafe, defective products languish on rental car company lots while the manufacturers and their suppliers crank out the parts necessary to fix the safety defects. The fact the manufacturers are obviously responsible for making the defective products in the first place somehow doesn’t seem to register in their consciousness. To them, it’s all about avoiding any added costs, even if that means putting their customers’ safety at risk.

Adding fuel to suspicions about GM’s supposed change of heart: GM’s now offering concerned owners of the recalled cars a loaner, to be supplied by a GM dealer. However, they have not revealed what standards, if any, the loaner cars must meet. Is GM allowing its dealers to loan out vehicles that are under a safety recall?

If you think this scenario sounds far-fetched, think again. GM dealers are opposing the same federal legislation (S 921), named for Raechel and Jacqueline Houck —  two sisters, ages 20 and 24, who were killed by a recalled rental car. GM dealers are also fighting against a popular bill currently pending in California (SB 686) that would stop them from selling, renting, leasing, or loaning unsafe, recalled used cars to consumers.

Fe Lastrella, who lost her son, daughter, granddaughter (age 13) and son-in-law in a horrific crash near San Diego, after a Toyota dealer loaned her family a runaway Lexus while their new Lexus was in the dealership for routine maintenance, gave heartbreaking testimony in favor of the California loaner car safety measure.

Dealer lobbyists dismissed her testimony as irrelevant, because the crash involved a Lexus that had not yet been recalled — although her family’s tragedy raised public awareness and sparked a massive Toyota recall.  Instead, they argued that anytime there is a delay in getting repair parts, they should not be expected to stop loaning unsafe, recalled vehicles to consumers.

According to statewide polling, 88% of likely California voters disagree, and favor banning dealers from foisting unsafe, recalled vehicles into their customers. Of those, 78% “strongly” favor the restrictions.

Apparently GM and its dealers think the media can only focus on one auto safety disaster story at a time, and won’t connect the dots.

Video of US Senate hearing — GM represented by Mitch Bainwol, from Alliance of Auto Manufacturers, including GM

Senator Barbara Boxer asks: Should a rental car company be able to rent vehicles to the public when they’re under a safety recall?  Responses from auto manufacturers and dealers

Testimony of Fe Lastrella, who lost her daughter, son, granddaughter (age) 13 and son-in-law in horrific crash, due to an unsafe loaner car from Bob Baker Toyota / Lexus

Dealer lobbyists: Don’t stop us from renting, leasing, selling, or loaning unsafe recalled autos to consumers

Other vehicles besides the Chevy Cobalt included in the safety recall (so far):  2007 Pontiac G5s, 2003-7 Saturn Ions, 2006-7 Chevrolet HHRs, 2006-7 Pontiac Solstices, and 2007 Saturn Skys,

GM delayed Cobalt safety recall, while fatalities mounted

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General Motors issued a rare apology, after being hit with a barrage of news reports about faulty ignition switches in the popular Chevy Cobalt, that led to at least 13 deaths. GM engineers first discovered the defect in 2004.

Merely jostling the key in the ignition could lead the car to shut down, including disabling the air bags. But for years, GM denied that any defect existed and failed to issue a safety recall. Instead, the company merely issued a “technical service bulletin,” while their customers continued to die.

The defect means that at the very moment when drivers and passengers need the lifesaving protection air bags provide — in the milliseconds after a crash — the air bags would not inflate.

Twenty-nine year old Brooke Melton of Georgia was killed when she was driving to her boyfriend’s house. A 16-year-old died in a crash in Maryland when the ignition switch turned off and the air bag failed to deploy.

Buyer beware: NEVER trust that a dealer will have the safety recall repairs performed before selling you a car that is being recalled. Dealers are so eager to make a buck, fast, they are unwilling to delay sales long enough to get the safety recall repairs done — for FREE.

Plus — dealers are blocking legislation in Washington, DC and in California to stop them from renting, selling, leasing, or loaning unsafe, recalled vehicles to consumers, until they’ve been repaired.

CARS’ tips on how to buy a safe, reliable used car — without having to risk going to a dealer:

Top 12 used car buying tips

Dealers play “used car roulette” with customers’ lives — and oppose legislation to make them stop

Did a dealer sell you an unsafe, recalled car? We want to hear your story. Contact CARS

 

GM issues safety recall over faulty ignition switches

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General Motors is recalling nearly 780,000 compact cars in the US and Canada due to a faulty ignition switch. The switch can make the engine shut off without warning, causing a crash. The recalled vehicles are 2005 – 2007 Chevrolet Cobalts and 2007 Pontiac G-5s.

GM has acknowledged that 6 people have died in 22 crashes, linked to the problem.

Even something as simple as riding on rough roads or having other keys on the key ring can trigger the ignition switch to move out of the “run” position, cutting off both the engine and electrical power.

As required under federal law, GM will replace the ignition switches for free, through their franchised car dealers. However, it remains to be seen when the dealers will obtain sufficient parts to perform the safety recall repairs.

Meanwhile, GM is urging owners of the recalled vehicles to remove other items from the key rings for the ignition keys, pending repairs.

NOTE: If you are shopping for a used car, NEVER trust the dealer to ensure that the safety recall repairs have been performed. Dealers keep being caught selling unsafe, recalled vehicles to consumers — including so-called “certified” used cars.

Plus — dealers are actively opposing legislation in Washington, DC and in California that would prohibit them from renting, selling, leasing, or loaning unsafe, recalled vehicles to consumers, unless the safety recall repairs have been performed first.

CARS’ tips on how to buy a safe, reliable used car — without having to risk going to a dealer:

Top 12 used car buying tips

Dealers playing “used car roulette” with customers’ lives — and opposing legislation to make them stop

Did a dealer sell you an unsafe, recalled car?  We want to hear your story.  Contact CARS

 

 

 

 

Graco recalls child safety seats

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Graco Children’s Products announced that it’s recalling almost 3.8 million car seats because faulty buckles can stick, leaving children trapped. Some parents have had to cut the straps in order to get their children out of the seats. In addition to being a pain to deal with, the child seats pose a serious hazard to infants and children if the vehicle is in a crash or catches fire.

The National Highway Traffic Safety Administration says that the recall does not include an additional 1.8 million Graco child seats that have the same buckles, and should also be recalled and repaired. NHTSA has indicated that if Graco does not recall the rest of the affected seats, the agency may take legal action to force a wider recall.

The seats in the recall are the 2009 to 2013 model years of the Cozy Cline, Comfort Sport, Classic Ride 50, My Ride 65, My Ride with Safety Surround, My Ride 70, Size 4 Me 70, Smartseat, Nautilus, Nautilus Elite and Argos 70.

Read more: New York Times: Graco recalls child safety seats

WARNING!! Unfortunately, you can’t trust car dealers to make sure that safety recalls are performed before they sell you a used car. Dealers keep getting caught selling unsafe, recalled vehicles to consumers, claiming they’re perfectly safe, when they are not. Dealers are opposing legislation in Congress and in California that would help protect car buyers and their families from unsafe, recalled automobiles.

Read more:  Car dealers play “Used Car Roulette” with customers’ lives

FTC takes action against 9 car dealers over “deceptive” ads

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In a rare move, the Federal Trade Commission (FTC) recently zeroed in on how auto dealers sell, finance, and lease both new and used motor vehicles. The agency called their nationwide sweep “Operation Steer Clear.”

As a result of the FTC’s taking action, nine auto dealers agreed to settle deceptive advertising charges.  The agency alleged that the dealers made a variety of false claims in print, Internet, and video advertisements that violated the FTC Act, deceiving the public about the actual costs of purchasing, leasing, or financing vehicles. One dealer even advertised that consumers had won prizes they could collect at the dealership — only to find, when they arrived on the lot, they had not won.

“Buying or leasing a car is a big deal, and car ads are an important source of information for serious shoppers,” said Jessica Rich, Director of the FTC’s Bureau of Consumer Protection. “Dealers’ ads need to spell out costs and other important terms customers can count on. If they don’t, dealers can count on the FTC to take action.”

According to the FTC, the agency’s ‘Operation Steer Clear’ led to settlements with these dealerships in California:

Casino Auto Sales of La Puente, CA and Rainbow Auto Sales of South Gate, CA. Both allegedly violated the FTC Act by “deceptively advertising that consumers could purchase vehicles at specific low prices when, in fact, the price was $5,000 higher. Both dealers’ ads involved a mix of English and Spanish.

Honda of Hollywood in Los Angeles, CA, and Norm Reeves Honda of Cerritos, CA, violated the FTC Act by deceptively advertising that consumers could pay $0 up-front to lease a vehicle when, in fact, the advertised amounts excluded substantial fees and other amounts. The ads also allegedly violated the Consumer Leasing Act (CLA) and Regulation M, by failing to disclose certain lease related terms. Norm Reeves Honda’s ads also allegedly violated the Truth in Lending Act (TILA) and Regulation Z, by failing to disclose certain credit related terms.

The FTC also settled similar cases with dealerships in Georgia, Illinois, North Carolina, Michigan, and Texas. The Los Angeles Department of Consumer Affairs and the Michigan Department of Attorney General assisted the agency by investigating dealers in those states.

The FTC deserves credit for focusing on harmful auto dealer practices, including at politically potent new car dealerships.  However, no dealer agreed to pay a fine or any restitution to victims. Instead, the dealers agreed to behave better in the future.

The public is invited to comment to the FTC about the settlements, until Feb. 10.

Read more:  FTC Announces settlements with auto dealers

 

 

2011 – 2012 Ford Explorers recalled due to steering defects

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Ford Motor Company is recalling 300 model year 2011-2012 Explorers equipped with steering gear replacement parts that were installed in September 2013 and January 2014. The  gears may lock, resulting in steering loss and an increased risk of being in a crash.

As required by federal law, Ford will notify owners about the safety recall. Ford dealers will replace the defective steering gears with new steering gears, free of charge to the owners of the Explorers.

The recall was expected to begin on January 24, 2014. Customers who have questions may contact Ford at 1-800-392-3673. Ford’s number for this recall is #13S14. Owners may also contact the National Highway Traffic Safety Administration Vehicle Safety Hotline at 1-888-327-4236 (TTY 1-800-424-9153), or go to:

 National Highway Traffic Safety Administration

If you are shopping for a used Explorer, NEVER trust the dealer to tell you whether or not this safety recall has been performed.  Lobbyists for new and used car dealers claim they cannot tell if a car is safe or not, and say it’s too much bother to check safety recalls prior to selling a used car to the public.

They also say that if there is a delay in getting repair parts, they should be able to sell the unsafe car to a consumer, rather than having to wait until the repairs have been performed.

Want to see for yourself what dealers have to say about their right to sell unsafe, recalled used cars to consumers?  Check out YouTube video from official CA legislative hearing:

car dealer lobbyists trying to kill auto safety legislation

 

 

 

 

 

 

 

 

 

NY Times: Ford issues safety recall, NHTSA upgrades investigation into Jeep fires

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WARNING — FORD EDGE and CRYSLER JEEP owners:

“Ford recalled about 28,000 of its 2012-13 Edge crossover utility vehicles for possible fuel leaks on models equipped with the 2-liter 4-cylinder EcoBoost engine, according to a report posted on the National Highway Traffic Safety Administration website. The automaker said the fuel line pulse damper was not manufactured properly by a Michigan supplier, which could allow ‘fuel odor, seepage or a small fuel leak.’ ”

Caution: If you are buying a used vehicle, NEVER  rely on the auto dealer to ensure that the safety recall repairs have been performed. Car dealers have been caught over and over again selling unsafe, recalled cars, pickups, and SUVs.

One large new car dealership in California even sold one that was supposedly a  “certified” used car — that nearly killed the buyer when the safety defect occurred.

How can you find out if a vehicle has a pending safety recall? It’s easy — write down the Vehicle Identification Number and call a local dealer, or check the manufacturer’s website.

Read more: “NY Times report”

Dealers selling unsafe, recalled used cars

 

Attack against Tesla : HUTZPAH

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Automotive News publisher attacks Tesla over safety —
Ignores dealers who oppose having to perform safety recall repairs

“Musk Can Run, but he can’t hide,” writes Automotive News publisher Keith Crain, whose publication caters to auto dealers. Crain echoes the sentiments of auto dealers, who have mounted an aggressive campaign in an attempt to force Tesla to sell vehicles through dealership networks, where they can get a cut of the profits and subject Tesla customers to a wide variety of shady practices that further line the dealers’ pockets.

In his editorial, Crain questions whether Tesla has the ability to perform safety recalls on its cars — which so far have not even been subject to a safety recall.

He writes: “If and when, and it’s bound to be when in my opinion, his car is recalled — if not for the three Model S fires since October 1, it will be something else — he’s going to find it increasingly difficult to take care of all his customers in a timely manner. …I doubt that the National Highway Traffic Safety Administration will allow just anyone to repair a recalled Tesla or let the company ship parts to customers and tell them to install the replacements at their leisure.” (Automotive News: Musk car run, but he can’t hide,” by Keith Crain, Nov. 25, 2013.) Crain implies that Tesla, like other auto manufacturers, should depend on auto dealers to do the safety recall repairs.

What he conveniently fails to write is that auto dealers are aggressively opposing legislation in Washington DC and Sacramento that would require them to get unsafe, recalled rental cars or used cars fixed, before renting or selling them to consumers. A glaring fact that Automotive News has apparently forgotten.

As numerous national and local news organizations have reported, dealers have been caught time and time again selling unsafe, recalled vehicles to unsuspecting used car buyers without bothering to fix them first — even when the repairs are free.

Sample news report: Today Show finds recalled used cars for sale on dealer lots

Unless and until auto dealers show that they actually do place a priority on their customers’ safety, including sales or rentals of recalled cars, they don’t deserve to sell Teslas. They have shown over and over again that they simply can’t be trusted not to sell their customers unsafe cars, knowing full well that the safety recall repairs have not been performed.

Bottom line:  Elon Musk and Tesla are wise to avoid trusting dealers to ensure that recalled cars are safe.

Read more:

Auto dealers oppose rental car safety legislation in Washington, DC

Auto dealers oppose used car safety legislation in Sacramento, CA

Automotive News Editorial: “Musk can run, but he can’t hide”

 

 

 

 

 

Odometer fraud — the “Fountain of Youth” for high-mileage cars

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A lot of people think that odometer fraud is a thing of the past, thanks to digital odometers. Unfortunately, that’s just wishful thinking. In reality — crooks have found ways to hack into vehicle computer systems and re-set odometers. All it takes is a simple gadget that you can buy online — and a lack of scruples.

Making matters worse:  thanks to incredibly stupid rules the National Highway Traffic Safety Administration issued years ago under the Federal Odometer Act, vehicles more than 10 years old are exempt from key provisions of the law. That never did make sense, since all it does is encourage fraud that hits low-income used car buyers the hardest. It makes even less sense now, when RL Polk says that the average age of all light vehicles on the road in the US has hit a record 11.4 years.

One of the worst things about odometer fraud:  an altered odometer can make the warranty void, or make any service contract you buy with the car worthless and void.

According to AOL Autos, a New York man was alerted by friends that his used car miraculously showed less mileage after he sold it on Craigslist:

http://autos.aol.com/article/buying-used-car-tips-odometer-fraud/

How can you avoid getting scammed by an odometer fraudster?

1. Insist on seeing the work orders showing past repairs — and look carefully at the mileage.

2. Call repair shops that worked on the car and are listed on the work orders to confirm the numbers.

3. Have the vehicle inspected by your own independent auto expert BEFORE you agree to buy it. They can hook it up to diagnostic equipment that will access the onboard computer systems — which may reveal telltale records of higher mileage.

Here’s a good place to find a good mechanic:

Car Talk Mechanics Files

 

 

 

 

 

New car dealers’ hidden ties to “buy-here, pay-here” dealerships

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New car dealers like to project the image that they are above engaging in shady practices prevalent at “buy-here pay here” auto dealerships. Among the shameful litany: charging exorbitant interest rates and selling junk cars  that break down soon after purchase, only to be repossessed when the hapless owners can’t drive them, lose income, and fall behind on payments. Then re-selling the same cars over and over again — a practice known as “churning”  —  making a killing on each transaction, and often trapping multiple consumers into paying for the same car.

“Buy-here, pay-here” sales tactics were painstakingly documented in an award-winning series by Los Angeles Times reporter Ken Bensinger, who examined over 2 million records and exposed who the worst “churners” are among “buy-here, pay-here” dealers in California.

But — the reality is that thousands of new car dealers own “buy-here, pay-here” car lots. According to Automotive News, of 20,000 members of the National Independent Automobile Dealers Association, ” ‘just under 10%’ are franchised new-car dealers who have joined under their franchised dealership name or under the names of their separate buy-here, pay-here operations.” — Automotive News, July 22, 2013