Miami, FL car dealer charged with rolling back odometer

According to news reports, Miami-Dade police recently arrested a used car dealer and charged him with rolling back the odometer on a used 2101 Mazda CX9, erasing more than 81,000 miles.

Electronic odometers were supposed to make it harder for car dealers to cheat used car buyers by lopping miles off odometers. But the switch to electronic odometers just spawned a black market in odometer-tampering tools that are cheap and easy to buy online.

The multi-billion $$ fraud continues to plague used car buyers. In fact, it’s ridiculously easy for crooked car dealers to engage in odometer fraud, with little fear of getting caught.

The National Highway Traffic Safety Administration is tasked with policing odometer fraud, but the agency is chronically understaffed and under-funded, and seldom acts unless they find a widespread pattern of illegal rollbacks.

One of the worst impacts of odometer fraud: victims of the illegal practice often end up having to pay out of pocket for expensive, unanticipated repairs that can leave them deep in debt or without a car.

A double whammy — even if you buy an extended service contract, they usually exclude coverage for vehicles with altered odometers.

How can you avoid falling prey to crooked car dealers who alter odometers? Check out CARS’ tips for how to get a good deal on a safe, reliable used car, without having to set foot on a car dealer’s lot.

Read more: Miami Herald: “Miami car dealer rolled back 81,000 miles off odometer, cops say”

It IS against the law for car dealers to sell used cars with unrepaired safety recalls

Contrary to the spin from unscrupulous car dealers, and erroneous reports in the news, it is illegal for car dealers to sell dangerous used cars with unrepaired safety recalls. Injured or misled consumers and their surviving family members who sue dealers that engage in such reckless practices usually win confidential settlements. The dealers insist on confidentiality to cover up their illegal activity.The legal settlements also are a telltale sign that the dealers know perfectly well what they are doing is illegal.

So if you discover that a crooked car dealer sold you an unrepaired recalled used car, you should get expert legal advice and fight back.

Here’s the scoop: There is a FEDERAL law against car dealers selling recalled NEW cars. There is a FEDERAL law against car dealers with fleets of 35 or more rental cars from renting, selling, or loaning recalled rental cars.  But — while there is no FEDERAL law against car dealers selling recalled USED cars, if they do, they risk being held accountable under various STATE laws.

No less an authority than the U.S. Federal Trade Commission has noted:

“…state product safety, tort, and other consumer protection laws, provide important safeguards to consumers affected by defective cars.”

An attorney who advises auto dealers has also warned them that if they sell used recalled cars, they face serious sanctions under state laws. According to a report in Automotive News:

“There are theories of liability that plaintiff attorneys may attempt to attach to these vehicles, even if dealers are using good-faith efforts to identify potential open recalls,” says Shawn Mercer, a partner at Bass Sox Mercer, a Tallahassee, Fla., law firm that specializes in dealership franchise law. There is no federal law against selling a vehicle with an open recall. But “depending on the jurisdiction,” Mercer says, “potential liability can stem from violations of state laws or common law tort claims.”  (Emphasis added)

The article also cautions car dealers:

“Selling a vehicle with an undisclosed safety problem makes for dissatisfied customers and can have legal repercussions, even if the dealership was unaware of the recall.” (Emphasis added)

One legal case that stands out, making the point that state law prohibits dealers and other businesses from failing to exercise due care, or acting with negligence, is Houck vs. Enterprise.  Sisters Raechel and Jacqueline Houck were ages 20 and 24 when they visited their parents in Ojai, California.  On their way back home to Santa Cruz, they were killed by an unrepaired recalled rental car — a Chrysler PT Cruiser that caught on fire, and also lost steering.  They ended up colliding with an 18-wheeler semi-trailer truck.

Their parents sued Chrysler and Enterprise under state laws, for failing to exercise the common law duty of care, and for negligence, resulting in wrongful death.  Eventually, on the eve of trial, Enterprise admitted 100% liability — under state laws.  A jury awarded the Houcks $15 million in compensatory damages.

Years later, the President of the California New Car Dealers Association made the false claim that it wasn’t illegal for dealers to sell unrepaired recalled used cars. The Houcks’ attorneys wrote a scathing letter pointing out that violating state civil laws is illegal. The attorneys cited the unanimous jury decision in the Houcks’ favor, and also cited state laws against negligence and common law torts.

CARS worked closely with Cally Houck, Raechel and Jacqueline’s mother, to get a new federal law enacted to prohibit rental car companies or car dealers from renting, loaning, or selling unrepaired recalled cars. The battle lasted for years, with auto manufacturers and dealers actively opposing the bill, even after the rental car industry had dropped its opposition.  But eventually we won.

That victory means that not only do rental car companies remain liable under state laws, but they also face enforcement by the National Highway Traffic Safety Administration (NHTSA), the nation’s premier auto safety agency.

Thanks to the passage of the Raechel and Jacqueline Houck Safe Rental Car Act, NHTSA now has the authority to issue fines or take other action if a rental car company with a fleet of 35 or more vehicles violates the law — even if no one is injured or killed as a result.  Thus, the federal law works to help prevent more tragedies from happening.

CARS supports the ongoing efforts of Senators Blumenthal and Markey, and U.S. Representative Jan Schakowsky, to enact federal legislation to make it a violation of federal law, enforceable by NHTSA, for car dealers to sell unrepaired recalled used cars.

Meanwhile, victims of crooked dealers who play “recalled used car roulette” with their customers’ lives, should get legal advice and fight back, using existing state laws. It’s also important for state attorneys general to enforce the existing state laws against fraud, violations of express and implied warranties, and other provisions of law.

CARS applauds the District Attorney in Sedgwick County Kansas — one of the few law enforcement officials in the nation who is standing up to the powerful car dealer lobby in order to protect car buyers and others who share the roads.

Read More: The Wichita Eagle:  Wichita car lot hit with $140,000 fine over business practices

 

Did CarMax sell you an unsafe car?

You’ve probably noticed the ads. They’re on TV, at sports events, and on the radio.  CarMax has an enormous ad budget and spends millions to paint  a rosy picture about the cars it sells. But behind all the hype, dangerous cars with killer safety defects are lurking.

CarMax boasts that all the vehicles it offers for sale must pass a rigorous inspection, before they can be sold as “CarMax Quality Certified” vehicles. But what they don’t want you to know is that they fail to get the FREE safety recall repairs done.

Instead, they charge top dollar for cars with killer safety defects. In fact, according to a recent survey of CarMax vehicles for sale in California, Massachusetts, and Connecticut, over 25% of the vehicles they offer for sale have unrepaired safety recalls.  One truck had 6 unrepaired safety recall defects — a deathtrap on wheels.

CarMax is the largest retailer of used cars in the U.S. They took in over $15 billion last year, but they don’t care enough about the safety of their customers to hire employees and give them the job of delivering cars to franchised car dealers for repairs and picking them up when they’re ready.  Instead, they are perfectly willing to put the lives of their customers, their families and friends and other passengers, and others who share the roads, at risk, to maximize their profits.

One of the most common defects in CarMax cars: hazardous Takata airbags that are prone to exploding with excessive force, spewing metal fragments at drivers and passengers. Over 20 people have been killed by these ticking automotive time bombs.  Here’s what can happen at any time to hapless consumers who end up riding in cars with the faulty airbags:

People Magazine: Scott Eastwood’s girlfriend Jewel Brangman died from faulty airbag in crash.

The crash that killed Jewel was basically a fender-bender. The recalled Honda that caused Jewel’s death was sandwiched between two other cars, in a low-speed crash. Everyone else walked away. But a metal fragment from the exploding airbag sliced into Jewel’s neck and she bled to death.

The only way CarMax is going to stop endangering lives is for their own customers to speak up. We hope that happens before there are more tragedies like the one that killed Jewel Brangman.

Did CarMax sell you a car with an unrepaired safety recall?  If they did, we want to hear from you. Such sales are very likely a violation of state consumer protection laws. We encourage you to fight back.

Here’s where to contact CARS. Thank you for helping save lives!

 

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?

Stalling defect in Kia and Hyundai vehicles may lead to expanded safety recalls

Link

Investigators from the National Highway Traffic Safety Administration are delving into stalling problems in nearly 1.7 million Hyundai and Kia vehicles. They are following up on warnings from a whistleblower who had access to documents about the safety defect.

Earlier recalls over the stalling defect may not have included all the faulty cars. According to Reuters, “Kim Gwang-ho, then an engineer at Hyundai, flew to Washington in August 2016 to tell NHTSA the companies should have recalled more vehicles over the problem, citing an internal report. He also reported several alleged safety lapses to both U.S. and South Korean authorities.

On March 31, Hyundai expanded its original U.S. recall to 572,000 Sonata and Santa Fe Sport vehicles with “Theta II” engines, citing the same issue involving manufacturing debris, the NHTSA said. On the same day, Kia also recalled 618,160 Optima, Sorento and Sportage vehicles which use the same engine.”

Stalling in traffic is a serious safety defect, which can lead to a crash, injuring or killing the driver, passengers, and others who share the roads.

If your car intermittently stalls in traffic, or has another safety defect, here is where to file a complaint with the National Highway Traffic Safety Administration. NHTSA has the authority to pressure auto manufacturers to issue safety recalls and to provide repairs at no cost to consumers, for up to 15 years after the recall is issued.

File an auto safety complaint with the NHTSA

Read more: Reuters: U.S. Regulators Open Probe into nearly 1.7 million Hyundai, Kia models

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

 

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

 

 

 

 

 

 

 

How serious are safety recalls?

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

 

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

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

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?

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.

 

CarMax sells recalled used cars

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).