Washoe Legal Services - New Car Purchases

Return

Free legal services in Washoe County, Nevada

Washoe Legal Services Information:

Consumer Law: New Car Purchases

How can I make a good deal when purchasing a new vehicle?
What guarantees or warranties does the manufacturer make on my new vehicle?
What can I do if I purchase a "lemon"?
Consumer links related to new car purchases
How can I make a good deal when purchasing a new vehicle?
Buying a new car is difficult. There are many choices. For many buyers, new motor vehicles are be most expensive items that they will purchase in their lifetimes (unless they buy a home). It is especially confusing because the "sticker price" on the windshield is often not the best price you can get.
The Better Business Bureau offers the following tips for purchasing a new motor vehicle:
Decide how much you can spend and what type of vehicle best suits your needs
Research various models to determine those that are the safest, most reliable, and otherwise suitable for you.
Narrow your choices to several cars. Do not make the mistake of having your heart set on one car....it may reduce your bargaining power.
Obtain updated price lists to compare dealer costs with the prices listed on the window sticker. You will know how much bargaining room you have on the basic car and on individual options.
Get a firm quote, in writing, from the dealer.
Shop around several dealerships. Check out their reliability with your local Better Business Bureau.
Keep all negotiations separate. Consider questions about financing, service contracts, trade-ins, or other extras only after you have settled on a price.
If negotiating over prices bothers you, consider a car-buying service.
Shop around for financing and service contracts and compare the terms carefully.
Test drive the car before purchasing.
Read and understand the contract thoroughly before signing.
Inspect your new car carefully before driving it off the lot. How can I protect myself against false statements?
A new car dealer should not make fraudulent misrepresentations regarding the deal, i.e. statements which the dealer knows to be untrue. Under revisions to N.R.S. 598.0915, which were passed by the Nevada Legislature in 1999 & 2001, it is considered to be a "deceptive trade practice" if a dealer knowingly makes any false representation in a transaction or knowingly falsifies an application for credit relating to a retail installment transaction. These laws apply to new car sales and if a dealer violates them, the consumer may sue the dealer for "consumer fraud" under N.R.S. 41.600. If successful, a court could award the consumer could both actual damages and attorney fees. Punitive damages under N.R.S. 42.001,et seq. could also be awarded.
In Nevada, vehicle dealers and brokers must post a $50,000 bond. Under a change adopted by the 2001 Nevada Legislature, N.R.S. 482.345 and N.R.S. 482.3333 were amended to require that the undertaking on the bond includes any breach of a consumer contract and deceptive trade practice in addition to the previously covered fraud and fraudulent representation.
It is difficult to prove false statements, especially if you later sign a contract stating something different. It is best to have another person present as a witness to your conversations with the dealer. It is also wise to read all documents before signing and to insist that any spoken promises are placed in writing. If the dealer will not put his promises in writing they may not be enforceable by a court.
[Return to top]
What guarantees or warranties does the manufacturer make on my new vehicle?
Manufacturers of new cars and trucks typically give "express" warranties that the vehicle is free from defects caused by the manufacturer. Under the federal Magnuson-Moss Act (15 U.S.C.2301-2312), express warranties must be either "full" or "limited". "Full" warranties require repairingand defects within a reasonable time without charge; allowing the consumer to choose either a refund or replacement if the item cannot be repaired. "Limited" warranties are any express warranties that promise something less than a full warranty.
The law requires that express warranties must be clearly disclosed and must state:
who can enforce it
what is covered (i.e., what parts, service, etc.)
how long it lasts
the consumer's duties
whether any informal dispute or settlement mechanisms are available
whether implied warranties are limited
any rights under state law
whether a warranty card must be returned
[Return to top]
What can I do if I purchase a "lemon"?
Nevada law gives you, in essence, a full warranty for up to one year when you purchase a motor vehicle normally used for personal, family or household purposes. The law also protects persons to whom the vehicle is transferred during the life of the warranty. You have the right to bring a lawsuit, if it is necessary, to enforce the law.
If you buy a vehicle that does not conform to all of the manufacturer's applicable express warranties and you should report that nonconformity (defect) in writing to the manufacturer. You must report either before the express warranty expires or no later the one year after the date the vehicle was delivered to the original buyer (whichever occurs earlier), to be covered by the law. After you report the defect, the manufacturer (or its agent or authorized dealer) must make those repairs necessary to conform the vehicle to the express warranties. If you report the problem in time, repairs will have to made even after the warranty or one year period expires. NRS 597.610.
If the manufacturer cannot correct the defect after a "reasonable" number of attempts then you must be given either a refund or a replacement vehicle. NRS 597. 630. It the manufacturer has established an informal dispute process which conforms to federal law (16 CFR 703 et seq.), then you must first submit your claim for replacement or refund under that procedure before following any lawsuit.
Again, the manufacturer must be allowed a "reasonable" number of attempts to repair the defect before you can obtain a refund or replacement. Nevada law (NRS 597.630.1) presumes that a "reasonable" number of attempts have been undertaken if either:
the same defect has been subject to repair four or more times within the warranty period (or one year following the date vehicle was delivered to original buyer, whichever occurs earlier), but the defect continues to exist; or
the vehicle is out of service for repairs for a total of 30 or more days within the time that the warranty is in effect (or within one year following the date the vehicles delivered to the original buyer, whichever occurs earlier). If the necessary repairs cannot be made for reasons beyond control of the manufacturer, the number days must be appropriately extended.
If the manufacturer's informal dispute resolution process is unsatisfactory, the buyer may sue for either replacement of the vehicle or for a refund of the purchase price. Replacement of the vehicle must be with a comparable vehicle of the same model and the same features as the replaced vehicle or, if such a vehicle cannot be delivered within reasonable time, a comparable vehicle substantially similar to the replaced vehicle. Alternatively the manufacturer can accept return of the vehicle from the buyer and refund to the buyer full purchase price with all taxes, fees and other charges. The manufacturer made deduct a reasonable allowance for the buyer's use of vehicle before the first report of the defect to the manufacturer. NRS 597.630.2.
You must bring your lawsuit no later than 18 months after the delivery of the vehicle to the original buyer. It is illegal for a dealer to have a buyer sign a contract waving his right to bring a lawsuit for a refund or replacement.
If you have been sold a "lemon" you should contract an attorney. If you do not know an attorney or cannot afford one, you may contact:
Washoe Legal Services, Inc.
650 Tahoe Street
Reno, Nevada 89509
(775) 329-2727
FAX: (775) 324-5509
[Return to top]
Consumer links related to new car purchases
The following web sites may provide additional information or assistance regarding consumer law:
American Bankruptcy Institute (ABI) Consumer Information Center
http://www.abiworld.org/consumer/A.html
Better Business Bureau
http://www.bbb.org/
Consumer Law Page (Alexander Law Firm)
http://consumerlawpage.com/
Fair Debt Collection (FTC)
http://www.ftc.gov/bcp/conline/pubs/credit/fdc.htm
National Association of Consumer Advocates (andNACA) Home Page
http://www.law.umkc.edu/lawresources/naca/naca-home.htm
National Consumer Law Center
http://www.consumerlaw.org/
[Return to top]