It may not always be a happy story when you purchase a new vehicle. Your brand new car may be spending more time at the dealership then in your possession. If your new vehicle is shuttling between the dealership and your home, it may be time to seek the protection afforded to you by the Illinois New Vehicle Buyers Protection Act which is more commonly referred to as the “Lemon Law.”

A vehicle is a lemon under the Illinois lemon law if:

• It has a nonconformity that substantially impairs its use, market value or safety; and
• The nonconformity is not repaired by the dealer/manufacturer after at least four (4) repair attempts within the first 12 months or 12,000 miles, whichever occurs first; or
• Your vehicle is at an authorized dealership for repairs for a total of thirty (30) or more business days within the first 12 months or 12,000 miles, whichever occurs first.

The Illinois lemon law protects:

• Newly purchased or leased automobiles;
• Light trucks and vans under 8,000 pounds;
• Recreational vehicles excluding its trailers; and
• Vehicles purchased only in Illinois.

The Illinois lemon law DOES NOT cover:

• Used Automobiles;
• Altered or modified vehicles; and
• Motorcycles and boats.

Compensation if you win your Illinois lemon law claim

• A replacement vehicle; or
• A refund of the purchase price of your vehicle.

Options other than the Illinois lemon law: There is in place federal legislation to deal with warranties for new and used consumer products should you fall outside the parameters of the Illinois Lemon Law.  The Magnuson-Moss Warranty Act, 15 U.S.C. Section 2301, et. seq. (“Magnuson-Moss”) is one such law that is widely utilized should you fall short of being protected by the Illinois Lemon Law. Before deciding on a particular course of action, you should definitely consult an attorney who is knowledgeable in the area of both the Lemon Law and Magnuson-Moss to discuss your best option and to determine what your actual rights are against the manufacturer of your vehicle.

Most importantly, document all the events relating to your vehicle.  Make sure to receive and retain repair receipts each and every time you bring your vehicle to a dealership for repairs. These records are critical to your success.

With an acute fluctuation in the economy, people are thinking twice before investing in new cars.  New vehicles depreciate rapidly and it makes a lot of financial sense to buy a pre-owned car. By the time you buy a used vehicle in Texas, its price may have already stabilized to a plateau with only the slightest depreciation towards the next year. Since buying a vehicle is the second most expensive purchase one makes, researching is of the highest priority to avoid buying a used lemon car.

However, while section 2301.602 of the Texas Occupations Code dealing with the Regulation of Motor Vehicles and Transportation refers only to the new motor vehicles, a used vehicle may still be covered under the Texas lemon law.

• The Texas lemon law covers your used vehicle if it is still covered by the manufacturer's original warranty
• The Texas lemon law applies to your used vehicle if the problem started while under warranty
• The Texas lemon law does not cover extended service contracts
• The Texas lemon law remedies are limited to repair assistance in the warranty-related problem of your Texas used vehicle
• The Texas lemon law does not entitle you to a repurchase or replacement of an used vehicle

In view of all these points it is of highest priority that you protect yourself before you purchase an used vehicle in Texas.

If you are planning to buy an used car:

• Research thoroughly online
• Consult newspapers for advertisements
• Visit used car lots/sellers
• Run car history reports from multiple vehicle history service report providers like the AutoCheck and CarFax

Car leasing offers certain advantages and it is an attractive alternative to buying a car. A finance company, also known as a leasing company buys cars from dealerships and leases  it out to you to use for a fixed time in return of your monthly payments. When you return the leased car at the end of your leasing contract, your monthly payments cover the sale price, finance charges and taxes.

• Advantages of leasing a car:
• Lower monthly payments
• Different newer cars
• Fewer maintenance hassles
• Lower upfront cash outlay
• Lower taxes
• No used car problems
• Gap coverage included

However, car leasing requires more personal discipline and commitment than buying as it is rife with many pitfalls.

Concentrate on negotiating the price of the car

To avoid getting into a bad deal of car leasing, concentrate on negotiating the price of the car with the car leasing company.
Lease a vehicle with the dealership rather than with the car leasing company. You should negotiate your car price as if you are the one who is responsible for paying it with the cash from your own hard earned money. Then apply the same negotiated price to the leasing deal. Do not let the salesman know how much you were planning to pay each month on the lease.
Acquaint yourself with the terms like “residual value,” “money factor,” “capitalized cost,” and “capitalized cost reduction”. Knowing the meaning of these terms thoroughly would help you avoid getting into trouble with the deal. You can purchase the vehicle at its residual value when the lease period is over. The residual value should be according to the manufacturer’s suggested retail price (MSRP). Focus on getting a lease contract with the smallest down payment in cash and a very low rate of interest.


Read the fine print in the warranties of the car
To avoid getting into a bad deal of car leasing thoroughly research about your lemon law rights and read the fine print in the warranties of the car you are planning to lease.
Every state has its own “lemon laws” designed to protect consumers from defective cars. If you lease a car that turns out to be a lemon you are covered in most states, except in Alabama, New Mexico, Nevada, Alaska, South Dakota and Colorado. In these states, lemon laws are not expressly extended to lessees. If any protection is afforded, it is only according to the lease agreements and express warranties.

Before you sign the leasing contract:

• Find out if the lemon laws of your state apply to leased vehicles
• Read the warranty on the vehicle thoroughly and check if the manufacturer’s warranty covers the  leased vehicle you are planning to use

Get gap insurance
To avoid getting entangled by ugly problems in case your car is stolen or totaled, get gap insurance. It is highly warranted if the car is expensive.
A gap insurance, lease gap or loan gap comes like a blessing in disguise in a world of carjacks and accidents. If you’re working with a small independent leasing company, make sure to check about gap insurance.

Finance companies provide their own gap insurance in the contract, either by including it as part of the monthly payment or by charging a modest premium.

Advantages of gap insurance:

• Covers the difference if your leased car is totaled or stolen
• Pays if you run into trouble with your cash flow and the loan

Chalk out the route or the places you would need to travel
To avoid getting into a bad deal of car leasing roughly chalk out the route or the places you would need to travel on a sheet of paper. A map of the locality, city, state or the country would help you find the shortest route.
A provision in many leasing contracts restricts the places you can drive. Some forbid you from going out of state or out of the country. If you violate these conditions, you may be considered to be in default, which may mean that you will owe the difference between the balance on the lease and the value of the car. If your leasing company is only a local establishment you may have to put up with more restrictions about the place you may want to travel to.

Calculate how many miles you would drive a year
To avoid getting into a bad deal of car leasing calculate how many miles you would drive a year. The lower are the number of miles you travel, the lower are the depreciation of the lease and monthly payment.

A lease allows you 10,000, 12,000 or 15,000 miles per year and if the lease period is 36 months, you should stay under 30,000, 36,000 or 45,000 miles respectively. In case you travel more than your mileage limit, you will have to pay extra, a minimum of 25 cents per every additional mile. Estimate the number of miles you might travel and it would come handy in negotiating the deal before the contract is written to avoid any angst later.
You can avoid paying for extra miles if you buy the car at the end of the lease by paying the difference between the car’s current value and the total lease amount.

Return your car in good shape
To avoid getting into a bad deal of car leasing, return your car in good shape.

Leasing contracts require you to return your car in good shape. A month before you plan to return the car, make a request to your leasing company to inspect it for wear and tear. If there are any dents or chips, get them fixed ahead and do not let the dealer charge you for them. It’s usually cheaper to get the repairs done on your own. One way to avoid paying for the wear and tear is to buy the car at the end of the lease by paying the difference between the car’s current value and the total lease amount.


Carefully choose the timing for leasing a new model
To avoid getting into a bad deal of car leasing, carefully choose the timing for leasing a new model say, at the beginning of the new model year.

Contrary to what people think, the most expensive time to lease a new car is NOT at the beginning of the model year when vehicles hit the showrooms. Actually, you will get the best deal at the beginning of the new model year because many manufacturers start hiking their prices thrice or four times in a year till a newer model arrives. This is the reason, why a lease is more expensive at the end of the model year than it is at the beginning of it.

Ford Motor Co. will add 4.5 million vehicles from older-model to those already recalled for a defective cruise control switch. These 4.5 million vehicles on tow for recall for defective cruise control switch add up to a 14.3 million registered vehicles over 10 years. This is Ford’s largest cumulative recall in history involving a single problem, a faulty cruise control switch.

Ford recalls are for defective cruise control switch that could cause a fire.

Ford Motor Co. has struggled for a decade with the defective cruise control switch problem:

• Hundreds of complaints and dozens of lawsuits over fires allegedly caused by faulty switches.
• A small number of injuries have also been linked to the problem, though none were reported in the latest recall

Ford began an investigation of Windstar vehicles in February 2008 after receiving a growing number of reports of fires under the vehicles' hoods.

National Highway Transportation Safety Agency (NHTSA) began its own probe of the problem in June 2008.

• Ford’s recall includes 1.1 million Ford Windstar minivans :The vehicle owners reported fires linked to the problem during an internal investigation
• Ford’s recall also includes 3.4 million Ford, Lincoln and Mercury models from the 1992 to 2003 model years: Most of them are trucks and sport utility vehicles and use the same cruise control switches with no reports of fires
• Ford’s recall also includes some vehicles without cruise control: They have the switches with brake fluid routed through them

To repair the problem, dealers will install a harness to help prevent the fluid from flowing where it could be ignited. It is wise to park all the recalled Windstar minivans vehicles outside the garages until they are mailed instructions on how to get repairs.

These vehicle owners will be notified by mail starting at the end of the month with instructions on how to get the repairs done.

NHTSA investigators found that the switches

• Made by Texas Instruments
• Could leak internally
• Overheat
• Potentially ignite

There were four reports of leaking fluid damaging the antilock brake control module, resulting in a fire. The module was charged with electrical current and could ignite the fluid in some cases.

Ford used the Texas Instruments switch till 2003 but stopped using it thereafter. The latest group of vehicles recalled is the last batch that had the switch installed. This is the seventh Ford recall due to the Texas Instruments speed control switches.

Texas Instruments has a different story to tell:

• They manufactured a switch that met and exceeded Ford's specifications
• It is only one component of Ford's cruise control deactivation system
• They quote a 2006 NHTSA investigation that found multiple factors were to blame for fires
• They no longer own the division that made the switches

Only certain vehicles are affected, and concerned owners of are encouraged to wait to receive a recall notice in the mail before scheduling an appointment with their local dealer.

• Ford recalls 1995-2003 Ford Windstar
• Ford recalls 2000-2003 Ford Excursion diesel
• Ford recalls 1993-1997 and 1999-2003 Ford F-Super Duty diesel
• Ford recalls 1992-2003 Ford Econoline; 1995-2002 Ford Explorer
• Ford recalls 1995-2002 Mercury Mountaineer
• Ford recalls 1995-1997 and 2001-2003 Ford Ranger
• Ford recalls 1994 Ford F35 Motorhome

For more information on Ford recalls visit the government-run Web site, Safecar.gov.

In November 2008, American Honda Motor Co., Inc. initiated a safety recall of the driver's airbag in approximately 440,000 older vehicles of 2001-2002 Accords, 2001 Civics and 2002-2003 Acura TLs. The safety recall was due to a potential defect in the airbag's inflation system.

The accident rate for the Audi 5000 sudden acceleration defect was already 1 in 900, one of the highest on record. The problems in the cruise control systems and in the transmission are overlooked.

When Audi management highlighted a floor mat interfering with the pedals was causing the sudden acceleration, and NHTSA stopped its investigation into the car. Audi did not provide the complaints and NHTSA officials did not take any follow-up action to obtain them.

Without the 107 complaints, Audi had only inspected a small percentage of the reported cars and even though the company had failed to provide proof that floor mats were responsible for the sudden acceleration accidents.

Drivers who had the shift lock device installed in their cars were reporting accidents. Less than two months after those installations began, and before Audi installed the devices as part of a safety recall, the Center For Auto Safety warned that the devices were not working.

• Three accidents had already occurred in shift-lock equipped Audis - an accident rate that was higher than on Audis without the device."
• Of the small number of cars which do have the shift-lock device, nearly 40 accidents have been reported, according to CAS
• The shift lock flies in the face of the facts of virtually every runaway Audi accident ever reported to NHTSA
• Drivers consistently report that their foot was not on the accelerator when they shifted from park to drive or reverse - yet the car still accelerated uncontrollably

Audi's sales for February, 1987 were down 56 percent from the year before for the 5000 series and down 58 percent for Audi cars overall.

• In April, Audi took two new steps to bolster its declining image. First, the company sent certificates worth $5000 off the purchase of any new 1987 Audi to owners of 1984 to 1986 cars
• Resale values have dropped drastically for Audi 5000 owners
• Owners with 1986 cars find their cars are only getting $11,000, a 50 percent depreciation in one year
• The 1984 cars are only getting $2,000 on trade-ins and
• Older cars are virtually un-tradable

Audi discontinued the Audi 5000 name and in 1988, the car was known as the Audi 100, a name the car started under in Europe as a desperate attempt at cosmetic changes instead of finding the problem and fixing it.

Defective Regulation: Accelerating Accidents

• On August 15, 1986, the same day that the National Highway Traffic Safety Administration (NHTSA) announced that it would conduct a defect investigation for the Audi 5000, it dropped a similar investigation of sudden acceleration in 60 million 1973 to 1986 General Motors cars with automatic transmissions.
• The investigation involved over 3,000 accidents and 100 deaths with sudden ' acceleration accidents.
• The agency dismissed the problem as being one which was caused primarily by driver error.
• Despite NHTSA's explanation for the problem, sudden acceleration remains an industry-wide concern.
• NHTSA is investigating sudden acceleration in 1980-85 Nissan 280z/300z cars, 1983-84 AMC Alliance/Encore models, 1981-84 Toyota Cressidas and 1982-85 General Motors J-cars, 1985-86 Dodge-Plymouth Colts and 198687 Honda Accords LXI.
• But the agency is not expected to take action on these cases: Since 1980 NHTSA has closed sudden acceleration investigations into 13 car models

For sudden acceleration problems, private engineers have theorized that

• Faulty computer components could cause the computer control systems to malfunction,
• It sends messages to the car to accelerate when it should not.
• these malfunctions would not leave any evidence that could easily be detected
• Most people are focusing on the car's electronic controls: The person shifts and for some reason the computer gives the wrong signal and opens up the throttle
• This is a new generation of defects for a new generation of high technology cars Unlike the earlier defect investigations that often involved a single defective part, sudden acceleration is an example of a system failure

Toyota Motor will issue a recall for at least 3.8 million Toyota and Lexus vehicles. This is to fix a potential safety problem caused by a car's floor mat jamming the accelerator leading to an "unintended acceleration".

The Audi 5000S, considered at the outset one of the best-built automobiles in the world, is the center of a controversy of unintended acceleration.

Unintended acceleration is a phenomenon marked by an unplanned, uncontrollable movement by the vehicle. And the driver will be totally unable to stop the car no matter how hard he or she may apply pressure to the brake pedal.

This recall for unintended acceleration is the largest in Toyota's history. This follows a crash last month in San Diego in which a mat was suspected of snagging a gas pedal on a runaway Lexus, resulting in a fiery crash that killed four family members.

A minute before the crash, the driver called police to say the car had no brakes, the accelerator was stuck and the car was doing more than 120 mph. It hit a sport-utility vehicle, launched off an embankment, rolled several times and burst into flames. The car, equipped with all-weather floor mats, was on loan from a dealership while the driver's own vehicle was being repaired.

The National Highway Traffic Safety Administration urged the following list of vehicles to remove mats or other obstacles that could lead to unintended acceleration:

• 007-2010 Camry
• 2005-2010 Avalon
• 2004-2009 Prius
• 2005-2010 Tacoma
• 2007-2010 Tundra
• 2007-2010 Lexus ES 350
• 2006-2010 Lexus IS 250
• 2006-2010 Lexus IS 350

The affected vehicles accelerate rapidly after release of the accelerator pedal:

• More than 2,000 complaints have been made about General Motors models built between 1973 and 1986
• Owners of Toyotas, Renaults, Mercedes-Benzes and Nissans have also reported unintended acceleration incidents
• The Audi 5000 has the highest percentage of acceleration incidents, about 1 in 400 cars built
• Just about every single car model available with an automatic transmission since 1987 has had reports of unintended acceleration

Unintended acceleration is partly due to use of unsecured mats and particular configuration of the accelerator pedals in the affected vehicles:

• In cars with keyless ignition, a driver must hold the on-off switch for three seconds in order to shut off the engine
• Pedal placement in the Audi 5000 which contributed to its unintended acceleration problem
• Because of the extra space needed by the 4-wheel drive systems, the pedals in the Audi were offset slightly to the left, putting the accelerator pedal almost directly
• Under the center point of the steering column, and the brake pedal off to the left
• The Jeep Cherokee’s unintended acceleration is likely due Jeep's pedals that were placed much like the Audi's, offset to the left

A statistical analysis of all claims of unintended acceleration indicated:

• The position of each car's brake pedal in relation to the steering column
• Significant positive relationship between left offset of the pedals and reports of unintended acceleration
• Cars with brake pedals directly under, or to the right of the steering column have very few complaints against them.
• Cars like the Audi and Jeep have hundreds and thousands complaints against them

Toyota orders inspection of mats after runaway car crash in Santee that killed CHP Officer Mark Saylor, his wife, brother in-law and daughter, have lead authorities to think it may have been the car mat that caused the crash.

It was brought to the attention of The National Highway Safety Transportation Administration because of a 2007 recall on after-market floor mats which could slip and catch on the accelerator.

Toyota will order 1400 Toyota and Lexus dealers nationwide to:

• Inspect their cars for mismatched floor mats to approximately
• Make sure all their cars have the right floor mats
• Ensure they are properly secured

The public is encouraged to inspect their floor mats also.

http://www.examiner.com/examiner/x-18953-San-Diego-Headlines-Examiner~y2009m9d15-Toyota-orders-inspection-of-mats-after-runaway-car-crash

http://www.forbes.com/2009/09/29/automobiles-toyota-recall-business-autos-toyota.html?partner=executive_picks_newsletter

http://www.digest.net/bmw/archive/v7/msg13110.html