It has already been a big year for recalls. The National Highway Traffic Safety Administration (NHTSA) has logged a record 11.6 million vehicle recalls in the first quarter alone.
Two of the recalls involve over six million Ford vehicles, total. Over 4.3 million vehicles were affected by an electrical system problem, and over 1.7 million were affected by rearview camera failures. The electrical problem can cause loss of trailer brakes, turn signals, and more. The rearview camera failure can cause screen blackouts and flipped images, among other issues.
Another recall pertains to Toyota’s Highlander seatback lock defect, which affected over 550,000 vehicles. If a crash should occur and the seatback doesn’t stay locked, this could contribute to passenger injury.
So what happens if your car is part of a recall?
Federal law requires the manufacturer to fix the vehicle at no cost to you. This is the first phase you would go through, should your vehicle be recalled. Note two things when a recall is issued:
1) Most vehicles are fixed with one visit to the dealer.
2) A recall is not a guarantee that you have a lemon law claim, but sometimes, your vehicle’s problems cannot be fixed, and if they are classed as a substantial defect, you may, in fact, be able to pursue compensation under state lemon laws, and in some instances, under federal law.
Here we’ll review how a lemon law attorney can pursue your claim should your car not be fixed after it has been recalled (these points would apply as the standard lemon law process, too). We will see how state law defines a substantial defect, as that is the crux of all lemon law claims.
But first, there is a variable that can complicate matters.
For more information on arbitration and other frequently asked lemon law questions, click here.
What to Do if You Get an Interim Recall Notice
There is a potentially complex part of recall scenarios that you should know about (or it could be that you are going through this now and need to know what to do). Let’s say you received an ‘interim recall notice.’ That means that the manufacturer is notifying you of a problem but doesn’t have a way to fix the car yet. Being told to wait until a fix is provided, with no definite timeline in sight, can potentially leave you with frustrating and even unsafe options: should you keep driving the car while you wait and hope everything will work temporarily? Should you park the car for fear that it is unsafe?
What about leaving the car at the dealer until the fix is announced? Dealers may block you from dropping the vehicle off there and letting the lemon law ‘days out of service’ clock start ticking. In a complex situation like this, it is best to consult a lemon law attorney for next steps. Take advantage of a lemon law attorney’s free consultation (866-440-2460) to protect your rights.
Lemon Law Definition of a Substantial Defect
As we mentioned, not all defects qualify a vehicle as a lemon under state law. To pursue a lemon law claim, the defect must be substantial, which means it must severely impact the vehicle’s use, value, or safety. It must be unfixable across the state’s number of repair attempts allotted to the manufacturer (often 3–4). The attorney will also take into account the vehicle warranty. They will note if the vehicle was out of service for a certain cumulative number of days (often 30 days within a single year), which could also qualify it as a lemon. Should the vehicle be deemed a lemon, the attorney will notify the manufacturer of the claim. In some states, after the manufacturer is notified of a lemon law claim, it gets a final opportunity to fix the car. If it cannot or will not, the lemon law attorney can move forward with the case.
How an Attorney Pursues a Lemon Law Claim
If your car qualifies as a lemon (cannot be repaired after the state’s allotted number of repair attempts or is out of service for the defined number of cumulative days per year), the lemon law attorney can pursue compensation from the manufacturer. Having the recall admission of a problem is one aspect that can be used to help build the case, and your evidence will help the attorney prove the unfixable defect. All your correspondence with the dealer and manufacturer, photos, videos, repair orders, and more will contribute to the attorney building a timeline showing the defect severely impacting the vehicle’s use, value, or safety.
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Regarding recalls, a lemon law attorney actively monitors the National Highway Traffic Safety Administration website (often with sophisticated software) to track these, Technical Service Bulletins (TSBs—internal manufacturer-to-dealer communications), and consumer complaints. Since a lemon law lawyer is well aware of current recalls and complaints, this allows for a proactive approach against the manufacturer. An attorney can call in automotive professionals to provide expert testimony, further reinforcing the substantial defect’s severity. All of the collected evidence about the defect can provide solid proof of its presence and how it affects the vehicle’s use, value, or safety.
Lemon Law Cases Require Expert Negotiations—Here’s How Your Attorney Can Help You
You might be thinking, “I heard that most lemon law cases don’t go to court. Do I need an attorney for my claim?” One of the most beneficial aspects of working with a lemon law attorney to gain either a buyback or a replacement vehicle from the manufacturer is the attorney’s negotiation skills. Manufacturers often don’t want to go to court. They want to avoid the expense, publicity, and potential of the decision not resulting favorably for them, where they would have to pay more compensation versus agreeing to settle the claim. A skilled lemon law attorney anticipates manufacturer tactics and works to negotiate a settlement that protects their client’s rights to gain the best compensation outcome.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
What Types of Compensation Can You Receive When Winning a Lemon Law Claim?
Early on, when you first meet with the lemon law attorney (866-440-2460), the lawyer will ask you, once the vehicle is deemed a lemon, what form of compensation you desire.
With a buyback, you’ll receive:
- The full amount you paid upfront at the point of sale.
- All principal and interest payments you have made to date.
- The manufacturer pays your lender directly to satisfy the remaining balance and clear the title.
- Reimbursement for state sales tax, finance charges, registration, and title fees.
- Out-of-pocket costs caused by the defect, such as towing bills, diagnostic fees, and rental cars.
If you choose a replacement vehicle, you are entitled to:
- A brand-new vehicle of the same make and model, or an equivalent if yours is no longer produced.
- The new vehicle must be of a similar trim level, powertrain, and factory options as your original vehicle.
- The replacement vehicle must come with a new manufacturer warranty.
- Payment for the new vehicle’s sales tax, registration, and title transfer fees.
- Swapping the collateral on your existing auto loan to the new vehicle (via coordination with your lender), so you keep your original loan terms intact.
Please note: Check with your attorney about the offset fee the manufacturer will deduct from your compensation. This is to account for the miles you drove the vehicle before your first repair visit. Note that some states waive the offset fee for replacement vehicles.
Also note that you will be responsible out of pocket for the difference in price if you choose a replacement vehicle with additional premium features.
Contact Allen Stewart, P.C. for Comprehensive Lemon Law Representation
Allen Stewart, P.C.’s attorneys have won many cases across the country and are well-known lemon law lawyers in California, New York, and Texas. We fight aggressively to protect your rights and to help you secure just compensation. You need the experienced representation we provide because the manufacturer will absolutely defend its position with its legal team.
We’ve discussed several reasons why it’s vital to have a top lemon law attorney protect your rights. Another reason is that sometimes manufacturers may try to blame you for your vehicle’s defect. Our attorneys anticipate these challenges, and we will defend you from actions that may be attempted to intimidate or delay a response to your claim. Our focus is to win your case by proving the vehicle’s substantial defect.
Don’t wait to contact us. Time is of the essence with lemon law claims. Please know that you don’t have to pay us to represent you; the manufacturer is obligated to pay your legal fees when you win your case. Contact Allen Stewart, P.C. now (866-440-2460), or schedule your free consultation online.