North Carolina Lemon Law Blog

Attention Used Car Buyers-Beware of Lemon Laundering

february 26, 2010 09:00am

The NC Lemon Law protects new car buyers should their vehicle turn out to be defective, but used car buyers in the Carolinas have little recourse at this point in time, other than state contract law, when they purchase a defective vehicle. The next time you're on the used car lot, ask yourself this: is a used vehicle everything the seller says it is? Be careful - used car dealers can circumvent the lemon law.
Take steps now to avoid purchasing a laundered lemon.

Used cars buyers are, for the most part, on their own. It's a jungle out there! If you make a poor selection on a used vehicle, you'll likely be stuck with it. There IS a small amount of protection available, but for now at least, that protection comes before you make the purchase, not after.

Most states have strict regulations regarding how manufacturers dispose of vehicles that have been identified as lemons. These vehicles are typically returned to the manufacturers and usually repaired and resold. Most states require that these vehicles be prominently branded as such, usually on the title. While most states require strict declaration of a vehicle's history and that the title be marked, not all states do. Some dealers have been known to buy what they know to be a lemon, title it in a state that has no such requirements, and then transfer it back to a state that requires lemon law vehicles to be branded as such. This "stop" in the other state has, in effect, "laundered" or stripped the vehicle's history so that it is no longer a known problem.

In recent years, there have been a number of instances of people innocently buying used vehicles with notorious lemon histories. When the buyers inquired about the history of these cars, they were often given the run-around or just plain lied to. Perhaps the dealer played dumb, or claimed they bought the vehicle at an auction and simply didn't know. The buyer has no way of knowing whether or not they're being told the truth. Used car buyers need to hang on to that “buyer beware” mentality, making sure they are doing what they can to avoid buying a laundered lemon, no matter how sweet the deal may seem.

The most important thing you can do as a used car buyer is check the Vehicle Identification Number, or VIN. You can get a Carfax report that uses the VIN to trace the history of the vehicle.

Secondly, don't buy impulsively. Shop around, ask around, and do some research first. If you feel confident that the used car you're thinking of purchasing isn't a laundered lemon, check to make sure it meets safety and reliability standards. Consumer Reports issues safety and reliability ratings on most models, new and used, every spring.

They also offer estimates as to how well a car will hold up over time.
Doing a little investigating may help you avoid buying a car that's prone to mechanical problems. You should also ask to take the vehicle to an independent mechanic of your choosing, so that you can have a second opinion on the vehicle.

With a little caution, patience and research, car buyers can avoid issues related to the North or South Carolina lemon law and laundered lemon vehicles. If you live in the Carolinas and you think you may have purchased a lemon, contact Sean Soboleski, your NC and SC lemon law attorney.

Posted By: Sean Soboleski