Tag Archives: used cars

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).

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

 

 

 

 

 

 

 

 

 

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

Dealer ordered to pay off loans on traded-in vehicles

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In response to dozens of complaints from consumers who were stuck struggling to make payments on vehicles they had traded in, plus the cars they bought, Washington State’s Attorney General ordered dealerships owned by Mark Gilbert to pay off the liens on the traded-in vehicles.

Washington state law requires auto dealers to pay off the remaining balance consumers owe on traded-in vehicles within two days after they make a new purchase. Typically, the amount owed on the trade-in — known as “negative equity” — is added onto the price of the newly purchased car.

According to the Attorney General’s office, “The Walla Walla County Superior Court..entered a preliminary injunction, ordering several Northwest auto dealerships owned by Mark Gilbert to comply with Washington dealer and consumer protection laws, requiring prompt payoff of customers’ trade-in vehicles.”

The Attorney General’s legal case involved car dealerships Gilbert owned that sold new Honda, Jeep, Dodge, Chrysler, Nissan, and  Ford vehicles.

How can you protect yourself from this scam? The safest thing to do is to wait to buy your next car until you have paid off the loan on the car you are currently driving. Otherwise, you risk having both cars repossessed if the dealer fails to pay off the loan on the car you trade in.  Plus you sink deeper into debt. And — always insist on seeing the title to the car BEFORE you buy. If the dealer doesn’t have the title, the lender for the prior owner can repossess your newly purchased car — even if you are making all the payments in full and on time to your lender.

Read more:

Washington State Attorney General Press Release

“check engine” light woes

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You’re a smart consumer. So before you buy that used car, you take it for a test drive.  You notice that there are no warning lights on the dashboard. You think everything is fine, and you buy the car.

But — shortly after you drive it home, the “check engine” light comes on. This spells trouble. BIG trouble. This scenario is playing out all over the country. It’s become a frequent complaint among used car buyers. “I just bought it and now the ‘check engine’ light is on.”  Adding to the woes experienced by consumers who are victims of “check engine-itis” — the repairs to get that pesky light to go off can cost $3,000 — $4,000 or more.

Margie Y of Hawthorne, CA contacted CARS and said she bought a used Toyota for her daughter, as a present for her 21st birthday, from a local dealership. Within a day, the “check engine” light came on. Then the alternator blew up, and the car caught on fire. When she had the partly charred Toyota towed to a mechanic, he said it needed a new alternator, catalytic converter, and solenoid — at an estimated cost of over $2400.  Money she didn’t have, since she had paid $6200 cash for the Flaming Toyota, and also traded in a vehicle that was running fine, plus had paid $300 for the tow.

Unfortunately, this story is all too familiar. So — what’s happening?  According to automotive experts, unscrupulous dealers buy “scan tools” over the internet that allow them to simply wipe out the error codes that trigger the “check engine” light. Then they sell the car.  As soon as it’s driven a short distance, the error codes register and — on goes the dashboard warning light.  Some dealers don’t bother to buy the scan tools. They just disconnect the battery, erasing the error codes and getting the “check engine” light to go off just long enough to foist the car off onto an unsuspecting used car buyer.

Not only are the dealers cheating their customers, they’re also falsifying smog test results and polluting the air. They know that chances are good their customers won’t be able to pay for the expensive repairs, and will end up driving the car despite the fact it doesn’t meet emissions standards.  The day of reckoning may come when the hapless consumer tries to register it, and it won’t pass the smog test. But by then, the dealer figures it will be too late for the consumer to take them to court.

What can you do to avoid becoming a victim of “check engine-itis”?  The most effective single thing you can do is to insist on getting your own trusted mechanic to inspect the car before you buy. They should be able to detect the fact the error codes have been wiped clean, and also do a check of the emissions system that will turn up the problems.  Where can you find a good, reliable mechanic?  Car Talk’s Mechanics Files is a terrific resource, where you can find the best mechanics in your area, based on reviews written by their own customers.

Check Car Talk’s Mechanics Files to find a reliable mechanic — before you buy

Tell the seller that you want them to take the car to YOUR mechanic before you’ll agree to buy.  If they balk at that, or try to talk you out of it, well, that’s why God gave you feet — so you can walk away from there. Pronto.  There are plenty of good used cars for sale.You don’t need to get stuck with one that will cause you hassles and headaches.

Unsafe, Recalled Used Cars for Sale on Dealer Lots

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Used car dealers across the nation persist in foisting off unsafe, recalled vehicles on an unsuspecting public. Motor vehicles rank among the most hazardous consumer products in the nation, in terms of fatalities, serious and debilitating injuries, and economic costs to our country.

Fortunately, car dealers are prohibited by federal law from selling or leasing NEW cars that are being recalled by the manufacturer. But unfortunately, there is no such law to protect USED car buyers.

Each year, about 40 million people purchase used cars. But the powerful auto dealer lobby — which received billions of taxpayer dollars during the Great Recession — has blocked attempts in Congress to protect used car buyers from unsafe, defective recalled cars being sold at dealerships.

News organizations have repeatedly identified this problem. In 2010, the non-partisan U.S. Government Accountability Office (GAO) recommended that Congress address the threat posed by unsafe, recalled used cars. But so far, Congress has failed to act. Auto dealers are not even required to report fatal or injury crashes involving recalled vehicles they sell to the public, to the National Highway Traffic Safety Administration.

CBS’ Early Show investigated sales of recalled, used cars and found unfixed, recalled cars on lots scattered across the country.  When they asked if the cars were being recalled, sales personnel assured them that they wouldn’t have them for sale if they were being recalled. If only that were true.

According to CBS’ Early Show: “A dealer in Oklahoma sold Tabitha Gordon a used Durango in 2009. She was driving with her son, Kaden, when the lights, wipers and locks went haywire.  Gordon said of the incident, “I felt like I was in a twilight zone. … The plastic that covers the speedometer had popped, and smoke started billowing into the vehicle.”

She managed to pull over and get Kaden out as the car caught on fire. [“Early Show” Consumer Correspondent Susan] Koeppen said it turns out Gordon was sold a car that had been recalled for an electrical defect.  “We were told that it was safe and it would be a safe vehicle for our family,” Gordon said. “And it wasn’t, it was far from it.”

Watch video: CBS Early Show — Recalled Used Cars Up For Sale

Can you imagine how awful it would be, for your car to catch on fire, when you have your child strapped in a child safety seat in the back? What if you are driving with several children who are strapped in? Would you be able to get all of them out in time, before the car explodes?

Auto dealers complain that it’s too much bother for them to find out if a car is being recalled and get it fixed, before offering it for sale. They would rather risk your life, and your family’s safety, than take the time to call the manufacturer’s toll free number and check the car’s status, or visit the manufacturer’s website, online, and get the car fixed — for free.

CARS believes that even if you can’t afford a new car, or if you simply decide that a used car is a better deal, you and your family still deserve to be safe.

What can you to to protect yourself from unsafe, recalled used cars?  When you find a car you like,  NEVER take the car dealer’s word for it that the car does not have a safety recall pending.  As reporters have repeatedly documented, car dealers are prone to lying about safety recalls, even if you ask them face-to-face about a specific car.

Instead, BEFORE you buy, do your own research.  Note the Vehicle Identification Number (VIN), which is stamped on a small plate on the dashboard, visible through the windshield. Call the auto manufacturer’s toll-free number and ask if all the recall work has already been done. Or check the auto manufacturer’s website, under “safety recalls,” and enter the VIN.  You can also contact a local dealership that sells that make of vehicle, and ask them to double-check for you. Since new car dealers get paid to do recall repairs on makes they sell, at least they have some incentive to tell you the truth.

Read More: CARS tips for used car buyers

 

 

 

 

 

Federal Trade Commission — private car sellers often give “more reliable information” than auto dealers

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We now have an official answer to the age-old question: Are you more likely to be misled if you buy a car from a private individual or from a used car dealer? Obviously, dealers want you to buy from them — and these days, they are boasting about their record profits.

But — auto sales remain the leading cause of consumer complaints to state and local consumer protection agencies. Year after year, new and used car dealers also rank #1 among the most-complained about businesses, in terms of consumer complaints to the Better Business Bureau.

To top it all off, the leading federal consumer protection agency for America’s car buyers recently stated flat-out that you’re more likely to get accurate information about a used car’s history when you buy a car from another consumer, rather than a used car dealer.

Here’s what the Federal Trade Commission stated:

“The Commission concluded that the [Used Car] Rule should not extend to private or casual sellers of used cars because the record failed to support a finding that deceptive sales practices were prevalent in private sales. The Commission noted that in private sales, prospective customers often receive more reliable information about mechanical condition than they do from dealers…” **

    ** Federal Register, Vol. 77, No. 242, Dec. 17, 2012, pages 74761-74762.

Of course, you still have to be on the lookout for “curbstoners” — dealers masquerading as consumers. Be sure to insist on seeing the title and registration, and past work orders from repairs, and make sure that the names on the documents match the seller’s name.

And ALWAYS, ALWAYS insist on getting the car inspected by an independent, reliable, trustworthy mechanic / body shop of YOUR choosing, before you buy. A good place to find an expert to perform the inspection? Car Talk’s Mechanics Files.

It’s a good idea to also check the National Motor Vehicle Title Information System and other vehicle history services before you buy. The more you know, the better. NEVER trust a car dealer to tell you the truth about a car.

Twelve tips for consumers on how to buy a safe, reliable used car — without being cheated by a shady car dealer:

CARS’ Twelve Tips for Used Car Buyers

Happy, safe car buying and Happy New Year!

Buyer Beware: Auto dealers selling unsafe, recalled cars — without fixing them first

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One of the reasons many car buyers purchase used cars from an auto dealer is to get a car that they think is safer. But are they really safe? Not necessarily. Each year, millions of used cars are sold, without the safety recall work being done. Many are being sold by so-called “reputable” auto dealers.

The harsh reality — dealers are prohibited from selling NEW cars that are under a safety recall, but are exploiting a loophole in federal law that allows them to sell USED cars that are under a safety recall, without fixing them first.

Their excuse? They don’t want to bother to take them out of service as loaner cars, or to another dealer, for FREE repairs. After all, that might cut into their profits or be inconvenient.

Never mind the fact they are putting their customers’ lives in jeopardy. And also creating a hazard for other motorists who share the road with the unsafe, recalled cars. This excuse is especially lame, since the repairs are FREE.  By federal  law, the auto manufacturers must pay for the repairs, in full.

According to a report issued by the non-partisan Government Accountability Office, car dealers’ sales of unrepaired, recalled cars is a serious problem that urgently needs to be addressed.

In the wake of the Toyota recall scandal, and in reaction to the GAO report, Congress attempted to require auto dealers to fix recalled used cars before selling them to the public. But under pressure from the powerful auto dealer lobby, that provision was stripped from the national auto safety bill that finally passed.

Tragically, unsafe, recalled cars continue to put unsuspecting car buyers and their families at risk. One investigation by highly respected consumer reporter Joe Ducey, Channel 15 in Arizona found dozens of recalled cars for sale on the lots of major auto dealers:

Cars with unrepaired safety recall issues sold from Valley car lots

Don’t fall prey to this dangerous scam. Be aware you can’t rely on auto dealers not to sell or rent an unsafe, recalled car. In fact, the powerful auto dealer lobby is actively pushing in Congress to keep on putting their customers’ lives in jeopardy. So far, they have prevailed.

Were you sold an unsafe, recalled car by a dealer? If so, CARS wants to hear from you. The only way this reckless policy will stop is when people like you speak up and the truth gets out.

Contact CARS

Meanwhile, here are 11 top tips from CARS, for how to buy a safe, reliable used car — without even having to step foot on a car dealer’s lot:

How to buy a safe, reliable used car — without getting ripped off