Buy Car - Be SMART About Buying and Leasing Cars

Cheap Cars

2008-06-08T12:43:00.000-04:00

The Big Three auto makers in the U.S. are in trouble. Sales have declined steadily over the past few years. Financial losses are mounting. Foreign car makers are taking over.

What does this mean for us as automobile consumers?

It has become largely a buyers' market when it comes to most American-made cars, trucks, and minivans. Manufacturers and dealers are desperate for our business. Prices have been slashed and deals are easily negotiated, especially for slow-selling models. Rebates and other incentives are everywhere.

In times of high gasoline prices, prices for fuel efficient cars go up, especially small used cars. However, SUV and minivan prices go down. So if gas mileage is not a major concern, some great bargains are available on larger, less fuel-efficient vehicles.

In short, these are good times to buy American. See the following article about finding cheap cars.

Leasing Still Misunderstood - Part III

2007-05-26T21:45:00.000-04:00

In Part I and II, I discussed the concept of car leasing and how it works, using a simple example. Here, I'll discuss some of the common problems of leasing.

Nearly all the problems experienced by people who are leasing cars are the result of not understanding how leasing works. Some problems, however, are the result of unfortunate changes in personal health or finances.

Generally, car leasing problems fall into the following categories:

1) Customer was talked into a lease by car salesman because it offered the lower payments. Customer doesn't understand leasing and regrets the decision.

2) Customer wants/needs out of lease early and finds it problematic. Customer doesn't understand why and is looking for an easy and inexpensive way out.

3) Customer gets to end of lease and finds that they are over mileage and have excessive wear and damages. Customer wants to understand options.

Generally, these problems arise out of unwise or unfortunate circumstances and are not easily solved. Many of the problems could have been avoided in the following ways:

1) Understand how car leasing works (see www.LeaseGuide.com) BEFORE you make a decision to lease. Don't get your leasing advice from a friend or car salesman. Make sure that leasing is right for you and your life situation. Otherwise, don't lease, even if payments are lower.

2) If you want out of a lease early, know that it's not cheap or easy. It'll cost you. Therefore, decide if you REALLY want or need out of your lease. In nearly all cases, it's better to stick out the lease until the end. If you understand how leasing works, you know that leases are designed to be completed, not ended early.

3) If you get to the end of a lease and you are over mileage or have excessive wear, know that you can't cheat the lease. If you drove the miles and created the damage, you will pay, which is only fair. You could exercise your option to buy the car to avoid the charges, but the price you pay assumes that you're buying a vehicle with average miles and no damage. Either way, you pay.

Leasing Still Misunderstood - Part II

2007-05-26T21:24:00.000-04:00

In Part I, I described a typical lease scenario that helps explain how leasing works and how it benefits the lessor (party providing the leased vehicle) and the lessee (part driving the leased vehicle).

However, it was not quite complete in that it's lease companies, finance firms, and banks that provide leases, not individuals. That means there some extra rules and fees.

A car lease is a legal agreement. Lease companies make the rules and set fees. When a lessee signs a contract, he or she agrees to the terms of the lease and the specified fees.

There is nearly always an acquisition fee, or bank fee. This is usually several hundred dollars and is much like "points" in a home mortgage. It's a kind of administration fee or lease initiation fee charged by the lease company, not the dealer. This fee is included in the cost of the vehicle and is paid along with the lease. There may be a security deposit of a few hundred dollars, which is returnable at the end of the lease.

Then there's usually a lease-end disposition fee, usually about the same as a single monthly payment. It's billed after a leased vehicle has been returned and is an administration fee for handling the return and getting the vehicle ready for auction. The lessee may also be billed for unusual damages, excessively worn tires, and extra mileage. The details are always spelled out in the lease contract.

Sales tax is typically (in most states) less for leased cars than those that are purchased. That's because only the monthly payment is taxed, not the entire value of the vehicle.

In Part III, I'll discuss some of the most common problems of leasing.

Leasing Still Misunderstood - Part I

2007-05-26T17:56:00.000-04:00

I'm amazed at the number of automotive consumers who don't understand leasing. Of course, I have tried to help in my small way with the Lease Guide and Lease Kit at LeaseGuide.com, established over 10 years ago. But I can't reach everybody.

Some people seem to think they understand leasing, but don't. They often think it's like apartment leasing or car renting. It's not. They tend to give other people misinformed advice, which perpetuates the problem.

Leasing is somewhat more complicated than a conventional car loan, to the extent that many people try to understand it in more simple terms. That's what I'll try to do here.

Imagine that you have $20,000 that you would like to invest. A friend tells you he's looking for a way to drive a nice car for about three years, with the lowest possible monthly cost. He proposes to you that if you buy a certain car that he likes, for $20,000, and let him drive it for three years, he'll pay you interest on the money you have tied up in the car. Then at the end of three years, he'll give you the car back, in good shape, so you can sell it and get your $20,000 back. It's been a good investment for you because you made good money from the interest paid by your friend. It's been good for him because he had no desire to own the car, and only paid interest for the use of your money, thereby avoiding the high cost of car loan payments.

However, there's one thing wrong with your friend's proposal. We all know that the car won't be worth $20,000 at the end of three years, and you won't be able to recover your entire investment. In fact, your experience tells you that the car will have depreciated to only half it's original value - $10,000 - assuming it's driven only average miles (about 15,000 miles per year) and is returned to you in good condition.

Since your friend will be putting mileage and wear on the car, he should be expected to pay you for the depreciation caused by his use of the car. It's only fair. Furthermore, even though you, the owner of the car, would normally be responsible for insurance, maintenance, and repairs, those costs should also rightly be paid by the friend.

So, your friend agrees to have you buy the $20,000 car, let him drive it for three years, pay for all taxes, tags, insurance, maintenance, and repairs, and then return it to you in good condition. For this, he agrees to pay you both interest on the money used to buy the car, AND pay you for three years of depreciation. You agree to spread out the total cost into three years of equal monthly payments. The payment amount is a fraction of a normal car loan payment.

Your friend also agrees that if he returns your car with more than normal wear and tear, or more than normal mileage, he will compensate you for the extra depreciation you'll suffer when you sell the car to recover the remainder of your original investment.

This is leasing.

I'll continue this example with some additional details in another post.

Leasing is Not Renting

2007-05-23T22:33:00.000-04:00

Car leasing is often confused with renting. The two are very different.

Much of the confusion comes from the fact that many people are more familiar with apartment renting and leasing, which are essentially the same thing.

Car leasing is not like apartment leasing. Car leasing is a financing method that is based on paying for the depreciation in value of a car that occurs as it ages and is driven. All cars depreciate in value from the moment they're driven off the dealer's lot.

Lease companies estimate the future resale value of car, called "residual", by looking at past resale history or from standard tables prepared by companies such as ALG. Residual vary by make and model, and by time. The residual value for a vehicle at the end of three years will be less than the value after just two years.

The difference between current value and residual value is called depreciation. This is the primary factor that determines the cost of a car lease. The lease company, who owns the vehicle, is simply getting reimbursed for the loss in value created by the fact that their vehicle is being used by another party.

Some people have asked me if leasing would be free if there was no depreciation -- if a car held it's original value thoughout the lease term. Seemingly, if there was zero depreciation, then the lease should be free.

This is unfortunately not the case. In addition to depreciation there's a form of interest (called money factor in leasing). The lease company used their money to purchase the vehicle from a dealer. That money is tied up in the vehicle and is, in effect, being loaned to the leasing customer. The lease company expects to be paid for the use of their money, just like with any other type of loan.

In summary, car leasing is a special type of financing that is composed of two parts: a depreciation recovery charge and a financing charge (money factor).

Keep Insurance in Mind When Buying a Car

2007-05-23T22:06:00.000-04:00

Most car buyers don't consider insurance cost as part of their buying decision. However, insurance rates can vary considerably between different makes and models. A car that seems like a bargain can be expensive to insure.

Car insurance rates are particularly important for young drivers. Rate variations are greatest for this category of drivers. Selecting the right make and model car can make the difference between affordability and impossibility.

Generally, vehicles with the lowest insurance premiums are those that are inexpensive to replace, inexpensive to repair, have excellent safety equipment, have good crash-test ratings, have lowest accident rates, and are not stolen often.

For example, looking at the Insurance Institute for Highway Safety's statistics for 2003-2005 makes and models, the Mitsubishi Lancer Evolution, a popular car among teenagers, has a much higher than average insurance loss rate in all measured categories: collision, injury, and theft. Therefore, insurance premiums for this vehicle will be very expensive, especially for teens.

By contrast, the Ford Crown Victoria, a favorite with older drivers, has very low loss statistics and will be relatively inexpensive to insure.

Therefore, before making a decision about buying a specific vehicle, check with your insurance company first to determine what you'll have to pay.

Used Car Advice

2007-05-23T20:14:00.000-04:00

I participate in a number of auto consumer discussion boards where I seem to answer some of the same questions over and over. That's a great way to pick topics for this blog. I know the "hot" topics that are of interest to a lot of people.

This post will be related to a question most often asked by young people buying their first car: "Where can I buy a used car for less than $5000 [or some other relatively low price]?"

Behind the question is usually someone who has no experience with selecting cars, buying cars, or financing cars.

Depending on the details of the question, I usually suggest some places to look for inexpensive cars, such as the local newspaper classifieds, free "auto trader" magazines at the supermarket, online at craigslist.com and eBay, and local consignment lots.

I suggest staying away from independent used car lots, especially "buy here, pay here" lots until they have enough experience to recognize the potential pitfalls.

I also stress the importance of test driving, not taking a seller's word about a car's condition, and getting a qualifed mechanic's inspection. I point out that used cars are generally sold "as-is" and that there is usually very little recourse if problems are found after the sale, even if purchased from a large dealer.

First time buyers generally have no established credit history, so getting a loan can be a problem. Most such buyers get a family member to co-sign the loan. I then point out the importance of making payments on schedule and not defaulting on the loan because building a good credit history is very important to their financial future.

Hidden Fee in Leasing

2007-01-31T16:05:00.000-05:00

All car leases contain a fee that is much like the origination fee in a home mortgage. The fee goes by the name "acquisition fee" or "bank fee." It's perfectly legitimate but is rarely disclosed in lease contracts. It's usually simply added into the price of the car.

The fee can be in the range of $495 to $995, or more, depending on the lease company and the vehicle. It is set by the lease company and is usually not negotiable. The amount of the fee has been generally rising over the last few years.

The purpose of the fee, according to lease companies, is to cover the administrative cost of setting up and managing a lease.

Car Dealers Don't Tell

2007-01-31T15:52:00.000-05:00

The most common problem that gets car dealers in trouble is not telling consumers about rolled-over loans on trade-in vehicles.

Car dealers frequently advertise, "We'll pay off your old car loan, no matter what you owe, and get you into a new car." Many car buyers don't understand the full implications of that statement, and dealers don't go out of their way to explain it.

New car buyers are often "upside down" on their car loans, meaning they owe more than the car is worth. If they trade the old car and get a new loan for a new car, the "negative equity" from the old loan is added ("rolled over") to the new loan. This is a fundamental concept but many consumers don't understand it.

Dealers are obligated to tell buyers when this occurs. Many don't. It has become the single largest reason for law suits against car dealers.

Watch Out for Salvage Cars

2006-12-24T12:06:00.000-05:00

Since Hurricane Katrina in 2005, there are thousands of cars on the used car market that were damaged in the storm. In some states, these cars must carry "salvage" or "flood-damaged" titles so that consumers will know what they are buying, along with potential associated problems.

However, in many other states (see list below), cars that have been damaged and written off as total losses by insurance companies can reappear on the market with clean titles. Cars with salvage titles in one state can be moved to a "clean title" state to be sold to unsuspecting buyers. This is called "title washing."

Flooded or storm-damaged vehicles can often appear to be in good condition. Therefore used-car buyers should take extra caution to inspect any vehicle they may be considering. Look for signs of water-stained carpets, trunk liners, mud under the hood, rusted metal, and upholstery damage.

Following are a list of states that do not have salvage titles: Arizona, Arkansas, California, Illinois, Indiana, Kentucky, Maine, Michigan, Mississippi, Missouri, New Jersey, New York, North Dakota, Ohio, Rhode Island, Texas, and Vermont.

Car Models with Highest Resale Values

2006-12-06T15:58:00.000-05:00

Kelley Blue Book has just published its annual report of vehicle makes and models that have the highest predicted future resale values. Generally, it is expected that those vehicles with the best reliability histories will also be those that have the highest resale values. However, this is not always the case. Some models, such as Volkswagen and BMW are on the list, even though these brands don't enjoy high reliability ratings. Sometimes, brand popularity can overcome (or overlook) reliability issues.

Kelley Blue Book reports the following models as having the best resale values in their categories:

Acura TSX (Sedan)
Honda Civic (Coupe)
MINI Cooper (Convertible)
Volkswagen Passat Wagon (Wagon)
Toyota Tacoma (Pick-up)
Acura MDX (Sport Utility)
Honda Odyssey (Minivan)
BMW 5 series (Luxury)
MINI Cooper (Hatchback)
Toyota Prius (Hybrid)

Overall, the top 10 models in all categories are:

Acura TSX
MINI Cooper
Pontiac Solstice
Honda Civic
Volkswagen GTI
Volkswagen Eos
Toyota Prius
Lexus IS
Scion tC
BMW 5 Series

Amazing New Product - PhotoBlocker - Blocks Red-Light Cameras

2006-09-14T21:00:00.000-04:00

Yeah, I know, it sounds like one of those devices that promises to make you car get 500 miles to a gallon of gas. I thought so too.

But the Photoblocker spray seems to be one those products that actually does what it says it does.

What does it do? Using a clear spray on your license plate creates a clear but highly reflective film that reflects red-light and traffic cameras that use a flash (most do). Because you can't see it after you put it on, it's easy to doubt its effectiveness. However, we checked forums and read reviews by the Washington Post, ABC News, Chicago Sun-times, CBS News, and others. All say the product really does the job.

We've ordered Photoblocker for ourselves and will be reporting results here shortly. We don't intend to purposely run red-lights of course, but in my city if you slow down for yellow lights you'll get run over fast. So running a red light is fairly common, unfortunately, whether you intend to or not.
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Photoblocker

Want a 2007 Toyota Camry - Get In Line

2006-08-30T10:38:00.000-04:00

Toyota Camry has been the best selling car in America for the last few years but the new 2007 model looks like it's out to beat its own records. Since its appearance, it has outsold all vehicles in its class by far. Dealers can't keep them in stock and the factory can't produce them fast enough. Customers are on waiting lists at dealerships. And, by the way, there are no incentives and discounts are hard to come by.

So what's the appeal? From all appearances the Camry is an ordinary car with ordinary styling and an ordinary price. It doesn't have a super powerful engine, it doesn't win races, it hasn't won any major design awards, and it doesn't have fad appeal. So, what does it have that makes it so popular?

The answer is - everything together. It has all the right things wrapped into an almost perfect package. It's the outstanding combination of all its elements. It's the right size, combined with the right options, the right performance, the right safety features, the right quality, a reputation for reliability, and the right price.

No other vehicle seems to have achieved the same kind of just-right recipe as the 2007 Toyota Camry.

Want a Peek Inside?

2006-08-22T20:09:00.000-04:00

Automotive News, the leading trade publication and subscription web site for car dealers and auto industry insiders is opening up it's website at www.autonews.com to all comers for free until August 27, 2006.

Normally, dealers and other qualified automotive industry insiders pay $149 a year for this information.

This is a great opportunity to read about what happens behind the scenes at car dealers and car manufacturers. Much of the information and data here is not the kind that you and I see every day. So take a peek and enjoy it while it lasts.

New JD Power Dependability Survey Results

2006-08-10T11:53:00.000-04:00

JD Power and Associates' new auto dependability study is just in. This is the long-term reliablity study, not the 90-day initial quality study that comes out at a different time.

As expected, Lexus (a Toyota brand) comes out as the brand with the fewest problems, as it has for the past 11 years. In fact, Toyota claimed top position in eight of the 19 vehicle categories, and runner-up in nine categories.

Honda and General Motors were next in line with the fewest problems. Ford has a couple of top positions and Mazda had one with it's compact sports car, the Miata MX-5.

Other winners are:

Subcompact - Toyota Echo
Compact - Honda Civic
Compact Premium Sporty - Honda S2000
Midsize Sporty - Chevy Monte Carlo
Midsize - Buick Century
Large - Mercury Grand Marquis
Entry Premium - Acura CL
Midsize Premium - Lexus GS300 and GS430
Large Premium - Lexus LS430
Sporty Premium - Lexus SC430
Compact SUV - Toyota RAV4
Midsize SUV - Toyota Highlander
Large SUV - GMC Yukon
Midsize Premium SUV - Lexus GX470
Van - Honda Odyssey
Large Premium SUV - Cadillac Escalade EXT

Land Rover and Saab placed last in this long-term reliability study. By comparison, Lexus had 136 problems per 100 vehicles, compared to Land Rover with 438 problems per 100 vehicles.

New Chrysler Return Policy

2006-08-08T10:56:00.000-04:00

Chrysler just introduced a new 30-day return offer that looks great at first glance. At second glance, it's not so great. Reading the fine print shows that the customer must pay 5% of the sticker price if he wants to return his recently purchased vehicle. For a $25,000 car, this amounts to a whopping $1250. Plus he has to pay 50 cents for every mile he has driven. Say he drove 1000 miles. He would then owe an additional $500, plus some fees.

This all amounts to a pretty expensive test drive for a new Chrysler product. I'm going to make absolutely sure I want the car before I would buy one, even with the new return policy.

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buy car

Car Prices - Hocus Pocus

2006-07-30T20:09:00.000-04:00

Car manufacturers are like magicians when it comes to vehicle prices -- now you see it, now you don't.

Earlier this year, many manufacturers were going to "value pricing", which we've discussed on this forum. In their way of thinking, if they dropped vehicle prices instead of using rebates and "employee pricing," customers would be just as happy. It hasn't worked out that way.

So now it's back to the old ways. However, they can't keep losing money on incentive programs.

So, how do you give away money and not lose money?

You raise prices. Most customers don't really notice price increases because they aren't keeping track.

Here's how it works. New-years' models are introduced with moderate price increases even though the new models are essentially the same as last years models. Customers don't notice. Part-way through the year, there's another moderate price increase. Customers don't notice. Then there's a rebate or discount program that gives back some or all of the price increases. Customers are happy with the great deals.

Hocus-pocus.

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buy car

Leasing Rates Are Growing

2006-07-26T13:33:00.000-04:00

As you know, my site LeaseGuide.com is about car leasing and helping consumers understand how leasing works. Because of my attention on leasing, I monitor key business indicators to see how automotive customers are acting regarding leasing.

The number of leased vehicles has been growing over the last year or so. This year about 3.4 million new leases will be written. Earlier, however, leasing had dropped off a bit due to car manufacturers' focus on 0% loans and other non-lease incentives. Now, manufacturers have gone back to less agressive sales techniques and interest in leasing has been revived.

Leasing has always been popular with "payment buyers" who are looking for low payments and low entry cost. Surprisingly, however, it is luxury and near-luxury vehicles that have the highest lease rates. Many people who lease luxury vehicles can easily afford to pay cash but prefer to conserve their cash for more productive purposes. Of course, there are other people who may not be wealthy but simply want to drive a luxury car with non-luxury payments.

Nearly half of all luxury vehicles are leased. Some brands such as Saab, Volvo, BMW, Mercedes, and Jaguar have lease rates as high as 70%.

Micro-Cars are Coming

2006-07-18T16:09:00.000-04:00

It's going to be interesting to see how new micro-cars affect the hybrid market.

There is the Toyota Yaris, the Honda Fit, the Nissan Versa, and the new Smart ForTwo from DaimlerChrysler. These vehicles are small in size and power but are agile, cute, and get outstanding gas mileage.

Many hybrid buyers are noticing that gas mileage doesn't quite live up to EPA estimates. This makes the higher price of hybrids harder to justify. However, the micro-cars, although lower in performance, have lower prices and achieve better gas mileage than most hybrids, such as the Toyota Camry Hybrid.

Micro-cars have been popular for many years in Europe's crowded cities where traffic is maddening and fuel prices are higher than in the U.S. It will be interesting to see how they catch on here.

I suspect that young drivers will adopt the new micros quickly, particularly those who live in large metro areas. I also believe the bloom will soon be off the hybrid rose as micros, alternative fuels, and alternative engine technologies begin to have an impact.

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buy car

Trade-In Values Falling for SUVs

2006-06-20T19:36:00.000-04:00

If you're considering trading your full-size SUV in the near future, be prepared for a shock.

With rising fuel prices, the value of gas-guzzler SUVs and trucks have been dropping as demand declines. Dealers are no longer interested in paying full trade-in value for such vehicles because they know the vehicles are going to be tough to sell from their used-car lot.

Essentially, here's how it works. In the past, a dealer would evaluate a trade-in vehicle's value based on mileage and condition, and offer the customer a (hopefully) fair price. Now, things have changed. Dealers are making price offers as if the vehicle had higher mileage and was in worse condition to make a lower offer. Customers who have done their homework and have researched trade-in prices with Blue Book or NADA price books will often find that dealers are not offering those prices any longer. Customers often feel cheated and don't understand why they aren't being offered a "fair" price.

The reality of this situation is that vehicle prices, particularly trade-in prices, change with market demand. Market demand can change quickly and be affected by all sorts of factors, including day-to-day fuel prices in the case of SUVs. Dealers stay in business by being aware of such changes in demand in order to adjust prices to compensate for the changes.

Car Buying Scam Back in Full Force

2006-06-15T09:16:00.000-04:00

You would think that everyone has heard about the infamous car buying scam by now, but I get new emails at a rate even higher than in the past.

Visitors to my Used Car Advisor scam alert page (www.used-car-advisor.com/car-buyer-scam.htm) see the article because they're selling a used car and get an offer that looks a little fishy to them. They then search and find my article, which confirms that the deal is a scam. They are then very appreciative and send me copies of the emails from the scammer. We post many of them in the article to help others avoid getting caught in this very damaging fraud scheme.

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buy car

Dealers Can't Wait Until Your Loan Ends

2006-06-10T17:45:00.000-04:00

Car dealers are now looking at new ways to get customers back in the showroom, according to Automotive News, several years earlier than the customer might have planned.

With 60 month, or longer, loans, customers don't see dealers often enough, so dealers say. Dealers know that many customers often begin to get the itch at around 36,000 miles when the manufacturer's warranty runs out and maintenance costs start to increase. However, in most cases, the customer is upside down on his loan.

The concept is one in which dealer salespeople are trained to contact mid-term customers and explain to them that being upside down is not a bad thing, and that it's possible to get into a brand new vehicle if they trade now.

Here's the potential catch. The new vehicle deal is a lease, which means that even after the negative equity from the old loan is rolled in, the payments won't seem so bad.

There is nothing inherently wrong with this concept or with leasing, assuming 1) the negative equity is not so large as to require a large down payment to help pay it off, 2) the customer is qualifed to lease (drives no more than 15K miles per year and understands how leasing works), and is willing to stick out the lease until the end. If, after the first lease, the customer decides to lease again, payments will likely go down dramatically because there is no negative equity being rolled in the second time around.

To understand leasing, see LeaseGuide.com.

Is a Hybrid Car in Your Future?

2006-06-09T22:32:00.000-04:00

Hybrid vehicles have suddenly turned hot. Rising gas prices combined with concerns about the environment have created a revived interest in gas-electric hybrid cars, trucks, and SUVs. New Federal tax incentives in 2006 have also helped cause automotive consumers to take notice.

When Toyota introduced the Prius in 2000, it was the only choice. It was expensive, performed poorly, unattractive, and used unproven technology. However, new hybrids from Toyota, Honda, Lexus, Chevrolet, and Ford represent major advances.

Prices have come down significantly, making hybrids not only affordable, but easy to justify when savings in fuel cost are considered. New hybrids are stylish and are often difficult to distinguish from their non-hybrid siblings. The new 2007 Toyota Camry Hybrid has all the great looks and features of the best-selling non-hybrid Camry.

For more details about currently available hybrid vehicles and to view actual owner reports, see Hybrid Vehicle Buyer Reports.

Why Dealers Like Leases

2006-05-09T20:34:00.000-04:00

Some automotive consumers believe that car dealers prefer to have customers lease because he makes more money on leases than loans.

That can actually be true if the customer is uninformed about leasing and the dealer is able to manipulate the lease deal to his advantage. However, if the customer understands leasing and how it works, there is no fundamental reason that a dealer makes more money.

The real reason that car dealers like leases is that it gets the customer back in the store sooner than with loans -- customer retention. In a ten year period, a dealer may only sell one or two cars to a returning loan customer, while he may sell three or four to lease customers. Since lease customers must return their vehicles at lease-end to the dealer, he has more opportunity to get additional business from them. Customer retention rates as high as 80% are common for leasing.

Mercedes and Lemon Laws

2006-05-09T20:18:00.000-04:00

In a recent Automobile magazine interview with Patrick Cousins, a well-known successful lemon law lawyer in Florida, Cousins was asked a number of questions about his extensive lemon law litagation experiences and observations. Three of the most interesting are summarized here.

1) Are cars getting better or worse (from a lemon perspective)? The answer: Worse, primarily because of complex technology that fails frequently.

2) Which car makers are difficult/easy to work with regarding lemon law issues? The answer was that the most difficult was Porsche and the easiest were Honda and BMW.

2) What brands do you see most frequently, least frequently? The answer: He sees more problems from Mercedes than from any other brand. He almost never sees Honda.