12 Things Car Buyers Should Know

Dealing with car dealers is usually at the bottom of everyone's list of fun things to do.  Depending on where you are purchasing the vehicle from it can be a miserable experience or a tolerable experience.  It is rarely a great experience.   However, you can have a better experience if you follow some of the tips below. This list is not exhaustive.  It may not work in every situation, but these are some tips I have learned over years of representing clients that have been ripped off by car dealers or people that have bought a Lemon. It is my hope, these tips may assist you in getting a good deal and prevent you from buying a jalopy. 

1) Research the Vehicle Price before going to the dealership:  If you are thinking of buying a new or used vehicle you should be able to price the vehicle through various internet sources.  You can use the Kelly Blue Book or Edmunds guide online to compare prices of vehicles.  You can also compare prices of similar vehicles on Craigslist or Auto-Trader.  If you do this before ever setting foot on the car lot, you will know whether or not the vehicle is over-priced. Once you have a price in mind you stick to it no matter what. If the dealer refuses to accept your offer, then WALK AWAY.  If you are shopping using the "monthly payment" as the maximum amount you will pay then use a payment calculator.  That will tell you the maximum amount of the price you can pay based on the monthly payment and the likely interest rate.

2)  You Don't Have to Tell The Dealer The "Payment Amount" You Are Looking For or Other Information:  Many people end up paying too much for vehicles because they shop for a vehicle based on the payment amount.  The way this typically occurs is the consumer goes to the lot with a price and vehicle in mind.  Most people finance vehicles, so the dealer asks, "What are you looking at keeping your payments at?" The consumer then responds with a number. That number then becomes the starting point.  The dealer knows that if you say you want to keep your payments at $200.00 a month then you will probably agree to a $275.00 a month payment.  Also, the dealer knows that they can tweak the financing and add-ons (see below) in order to keep you at your payment.  For example, they may extend the loan term for a few years at a higher interest rate.  On paper, your payments are what you want, but you end up paying thousands of dollars in interest and you may get locked into a loan on a vehicle for seven or eight years on a used car.   The bottom line is that you can tell the dealer you don't want to discuss financing until after you have agreed on a final price of the vehicle.  If the dealer refuses, then you can walk.  You may also be able to obtain financing from your bank or a local credit union.  If you get pre-approved financing for a certain amount of money, you can focus solely on the price of the vehicle.  This enables you to steer clear of dealer shenanigans. 

3) Research the Vehicle's History Before Going to the Dealer:  In Oregon, the dealer should have the vehicle's identification number (VIN) on the online advertisement.  This allows you to run a carfax or auto check before you ever meet with the dealer.  The vehicle history report may show the vehicle's maintenance history, if it was a fleet vehicle or rental car, and if it has a clean title.  This is invaluable information.   However, be careful and do not rely solely on these vehicle history reports.  Many times it takes the reports a few months to obtain relevant data to include in the reports.  The reports are also not always complete. Dealers know this.  As a result, it is common for a dealer to give a "clean carfax" report and then later a crash shows up that pre-dates the sale to you.  That is why you should have a mechanic inspect the vehicle. 

4) You Can and Should Have the Vehicle Inspected By an Independent Mechanic:  The best way to prevent from buying a used vehicle that is a piece of junk (aka a Lemon), is to have an independent mechanic inspect the vehicle BEFORE you purchase the vehicle. Mechanics can tell you what you are getting into if you are buying a used car.   There are a few different inspection services here in Portland that will actually drive to the vehicle (PDX Inspections, PDX Autoworks, Portland Motor Cars, Etc.)  I don't recommend or endorse any particular mechanic or inspector, but you can contact them.  Also, most dealers will let you drive the vehicle to a mechanic's shop for the inspection.  If you have a mechanic you trust, take the vehicle there.  Be Careful:  Do not use a mechanic recommended by the dealer! 

5) Dealers Are Not Required to do a Thorough Vehicle Inspection:  I often get calls from people that purchased a vehicle that broke down shortly after the purchase.   They often say "the dealer was supposed to do a [insert number here] point inspection."  There is no requirement in Oregon for a dealer to conduct a thorough inspection of the vehicle.  Unless the dealer agrees to do an inspection or advertises one, The Oregon Administrative Rules and other laws dictate the dealer's obligations.  That is why YOU should have the vehicle inspected.

6)  Dealers Make Most of their Money on Add-Ons, So Be Careful:  If you did your homework on the price of the vehicle, then you know the maximum amount you are willing to pay before you go into the dealer.  Once you have that number in mind you have to stick to it.  Dealers are masterful at convincing people to go over that number by adding on various things that are financed into the price of the vehicle.  Common Add-Ons are warranties, service contracts, paint protection, door edge guards, glass etching.  The dealer maximizes profits on these items by marking them up as high as they can.  If you feel it is necessary to purchase an add-on, remember you can negotiate the price of it.  The dealer should tell you what the actual cost of the add-on is to the dealer.  Also, Oregon law prohibits the dealer from conditioning the sale of the car on buying an add-on.  For example, "the dealer cannot say I won't sell you the car unless you buy the warranty."  You should not negotiate add-ons until AFTER you agreed on the final purchase price of the vehicle.

7)  Dealers May Try and Fudge the Financing, So Review the Documents:   Usually once a dealer has you in a car they turn things over to the F&I manager.  This is the person in the "back room" that is unreasonable on price and financing.   Many times at this point you have been at the dealership for hours and just want to get out of there.  Dealers know this.  That is why they will throw dozens of documents in front of you and tell you where to sign.  I have had dealers admit under oath that they are trained to make it difficult for the customer to take the documents off of the table and read them.  They do this by holding the document as it is laying on the table, pointing out where to sign, and then flipping the document over immediately after it is signed. They do this so you have no idea what you are signing.  To prevent this, you have some options.  You can ask the dealer to leave you alone with the documents so you can read them.  You can also have the dealer hand you the documents prior to signing them.  If they refuse, then you should walk out.  You want to review the documents to ensure the purchase price is correct, the trade-in, if any, the amount is correct, the add-ons are things you actually agreed to purchase,  the financing amount is correct, the interest rate is what you agreed on, the term of the loan (number of payments) is correct, and you agree with all of the terms.  Click here to learn more about The Retail Installment Contract.  

8)   You Can Cross Things Out and Refuse to Sign Certain Documents:  We live in a world of pre-printed forms.  Many times people sign things without reading them.  If you reviewed the documents then you will see language that you don't understand or you don't want to agree to.  This is where you can use your phone to look up any terms you don't understand, and you can cross out the conditions and terms you don't want to agree to. For example, you should ALWAYS cross out any language saying you are agreeing to binding arbitration and/or forfeiting your right to a Jury trial.  This is often buried in the "fine print," but you should always cross it out or refuse to sign any clause or stand-alone document that is forcing you into arbitration.   Click here to find out why Arbitration is bad for Oregon consumers. 

9) Negative Equity in Your Trade-In WIll Make Your Payments Much Higher:  Assume you did your homework on vehicle price, you refused the add-ons, and are sticking to your bottom line and you have a trade-in that is worth less than the amount you owe on it.  Dealers have a difficult time rolling in negative equity into a new loan because many finance companies are leery of extending credit to folks in this situation.  This is due to the fact that the collateral on the loan for the new vehicle won't cover the full cost of the loan in the event of a default. However, dealers are crafty and can usually get financing if needed. They may get a co-signer, fudge numbers, claiming non-existent down payments, or other schemes to get the negative equity rolled into the new loan.  If the negative equity is rolled into the new loan then most likely your payments are going to be MUCH higher than you anticipated.  I get calls from many people that get home and review their paperwork only to find out that they have agreed to a $400.00 car payment when they thought they were only agreeing to a $250.00 car payment.  Many times the reason for this is the consumer agreed to roll in the negative equity into the new loan.  

10)  There is No Automatic Right to Return a Vehicle In Oregon: There is a myth that many consumers propagate that if you buy a car you automatically have [insert number here] number of days to return a vehicle.  I have heard people say it is 3 days, 7 days, 14 days, 30 days, and 60 days.  Under Oregon law, there is no automatic right to return a vehicle that you purchased at a dealership.  However, your contract or agreement with the dealer may allow you to do so.  

11) The Dealer May Have 14 Days to Complete Financing for the Vehicle:  Many people drive off of the lot in their new or used vehicle and then get a call from the dealer a week later.  The dealer says financing fell through so they need to come back and agree to new financing terms.  Usually, the dealer wants more money for the down payment or may want to increase the interest rate. This is called a Yo-Yo Scam or a bushing scam.  This is legal, but only if, the dealer follows the law to the letter.  This includes, but is not limited to, telling you that you have the right to immediately receive your trade-in back and/or your downpayment back. At the dealership, the dealer should have the trade-in ready for you to pick up and your downpayment ready for you to get if you do not agree to the new financing terms. Click here for more information on Yo-Yo Scams.  If you review the documents (see above) you will know exactly what the dealer is doing and prevent the dealer from sneaking in new additional terms.

12)  If It Isn't In Writing It Doesn't Count:  Dealers make a lot of promises.  Many dealers will tell a consumer that they will fix something on the car, or make an oral agreement about when the downpayment is actually due.  These agreements typically are not binding, because the Purchase Agreement or the Retail Installment Contract has a clause that says that those documents contain the entire agreement.  The bottom line is if the dealer promises something then get it in writing.  If they refuse, then walk out. 

The list above is not complete and everyone's situation varies.  You MIGHT STILL GET RIPPED OFF even if you follow the recommendations above. Also,  please keep in mind I do not advise clients who are in the middle of purchasing a car.  I am a lawyer that represents Oregon Consumers, I am not a car buying advisor.  This blog could be considered Attorney Advertising.  If you think you have been ripped off by an Oregon Car Dealer or were sold a Lemon then call Ross Law PDX at 503.224.1658.  Jeremiah Ross represents Oregonians in consumer cases, personal injury cases, and other cases where people are harmed by the negligence or intentional acts of others.

Three Things To Know About Oregon's Lemon Law and Motor Homes:

Oregon recently changed its lemon law to protect consumers who purchased motorhomes.   However, consumers should be aware of its limitations and applicability.  Consumers should take note of the limitations prior to contacting an Oregon Lemon Law Lawyer or Auto Fraud Lawyer.  If you have general questions about Oregon's lemon law click here.

Three Things You Should Know: 

Oregon's Lemon Law DOES apply to "Motor Homes" but not "Living Components:"  Oregon recently changed the lemon law to allow it to apply to new Motor Homes.  I don't know how many calls I get from folks who have purchased Motor Homes that have non-conformities.  This new change in the law is likely to result in a new arena of litigation.   Some New Motorhomes are plagued with water leaks, electrical issues, and issues with the living facility components (think flooring, plumbing fixtures, appliances, water heater, fabrics, door and furniture hardware, lighting fixtures, generators, airconditioning units, cabinets, furniture, etc.)   The Lemon Law only applies to some of these non-conformities. The law does NOT apply to any of the living facility components.  If your fridge doesn't keep the fish cold, the lemon law doesn't apply.  If your water heater explodes they day after purchase, the lemon law doesn't apply.  If the plumbing backs up the day after purchase the lemon law doesn't apply.  You get the point.  However, if the engine fails then it would apply.  If the roof Leaks, Oregon's lemon law may apply.    

Oregon's Lemon Law Does NOT Apply to Travel Trailers:  Oregon's lemon law only applies to "Motor Vehicles."  The law specifically excludes:  "a trailer, a camper, van or vehicle manufactured by an entity that primarily manufactures motor vehicles other than motor homes as defined by this subsection." 

The Prevailing Party May Be Awarded Costs Expert Fees, and Attorney Fees:  Oregon's lemon law allows for the prevailing party of a case involving a motor-home to be awarded costs, expert costs, and attorney fees.  This is important to note, because if a consumer loses their lemon law case they may be ordered to pay the manufacturer's costs and fees. This is different than a case involving a car or a truck. 

If you have questions about Oregon's Lemon Law or RV Dealer fraud call Jeremiah Ross at 503.224.1658.  Ross Law PDX handles RV and Motorhome Lemon Law cases throughout Oregon.   Please remember this post is for informational purposes only and is not to be considered advice.  If you have any questions contact a lawyer and do not rely solely on this post.  This post can be considered attorney advertising. 

Bought a Lemon? Five Things To Know About Oregon's Lemon Law

PLEASE NOTE ROSS LAW CURRENTLY CANNOT HANDLE THE VOLUME OF CALLS AND POTENTIAL CLIENTS WITH LEMON LAW AND AUTO-FRAUD CASES.

Auto Fraud and Lemon Law cases are often tragic.  For many people, a vehicle is the biggest purchase of their lifetime.  They spend thousands of dollars on a vehicle and then the vehicle breaks down.   Most of these people hit the internet and attempt to learn as much as they can about Oregon's lemon law and become misinformed.  I field too many calls from uninformed or misinformed consumers.  The five issues below should dispel many myths about Oregon's Lemon Law and help consumers get a basic understanding of Oregon's lemon law.  Remember if you have questions about Oregon's Lemon Law call an Oregon Lemon Law attorney.

1) Oregon's Lemon Law Only Applies in Very Limited Circumstances:  Oregon's lemon law does not cover all of Auto Fraud.  It only covers a limited number of vehicle purchases and has certain hurdles that a consumer must jump through.   Basically, Oregon's lemon law may apply if a person is a "consumer" (see below) under the lemon law; the new motor vehicle does not comply with the manufacturer's express warranties; the consumer reports each non-conformity to the manufacturer (think agent or authorized dealer), with the purpose of allowing the manufacturer to repair or correct the defect or non-conformity. The consumer must report the non-conformity during the two year period after the consumer took original delivery of the motor vehicle, or during a period that ends on the date which the vehicle's mileage reaches 24,000 miles, whichever ends first.  The law also requires the consumer to provide direct written notification to the manufacturer and provide the manufacturer the opportunity to correct the non-conformity.  A written request directed to the manufacturer for "informal dispute resolution" can be considered "Notification" to the manufacturer.   In summary, just because you bought a car that broke down does not mean it is a lemon.

2) Oregon's Lemon Law ONLY applies to NEW Vehicles:  Oregon's lemon law only applies to new vehicles.  The law specifically defines who a "consumer" is under the Lemon Law.  Oregon Law defines a "Consumer"  as,  " the purchaser or lessee, other than for purposes of resale, of a new motor vehicle used for personal, family or household purposes. "  The good news with this definition is that it means that the lemon law protects people that buy and lease vehicles.  The bad news for most people is that the law only applies to brand new vehicles.   That doesnt' mean people that bought used vehicles do not have a remedy.  They just can't use the lemon law.  Instead, they may have to bring an action under the Unlawful Trade Practices Act, Magnuson Moss Act, Contract Law, or common law Fraud.  

3) Oregon's Lemon Law Does NOT Give You An Automatic Opportunity to Unwind The Deal:  People often call and tell me they have a thirty day right to return their vehicle after the purchase.  Some consumers say they have three days to return the vehicle, but the dealer won't take the vehicle back.  In most cases that is incorrect.  Oregon's Lemon Law does NOT have a provision that permits a person to automatically unwind the deal within a specified period of time for any reason.   

4) The Vehicle is Presumed a Lemon In Some Circumstances (Think 3 repairs or 30 days):  Oregon's Lemon Law presumes that a vehicle is a lemon if either of the following occurs: 1) the manufacturer (agent or an authorized dealer) has been attempted to repair or coorrect the non-conformatiy three or more times and had an opportunity to cure the defect, OR; 2) the vehicle is out of service for more than 30 calendar days (60 Days for motor homes) for the purpose of making repairs, OR; 3) the non-conformity involves a defect that is likely to cause death or serious bodily injury and the manufacturer (agent or authorized dealer) has had at least one chance to repair or corrcect the issue and made a final attempt to correct it and it still exists.   This presumption has certain time limitations and only applies if the manufacturer has received prior direct written notification from a consumer and had the chance to repair the defect.  If the presumption doesn't apply your vehicle may still be a lemon, it just becomes a more difficult case.  

5) If You Have a Lemon You May Receive A Substantial Amount of Money:  If the manufacturer forces the matter to court, did not act in good faith, and you win, then the manufacturer may have to pay the consumer up to three times the amount of any damages.  This amount is capped at $50,000.00 though.  The manufacturer may also be required to pay the consumer's court costs, expert fees, and attorney fees. This provision in the law permits lemon law lawyers, such as myself, to take these cases on a contingent fee. 

Auto Dealer Fraud and Oregon's lemon law is a complicated area of law.  The law is always changing and much of the rights and obligations of the parties are found in the contracts between them.   What this means is that most consumers are going to need to discuss their matter with a lawyer rather than jumping to conclusions after some brief internet research. 

REMEMBER!!! There are exceptions to the five issues above and many of the areas addressed are considered gray areas.  Therefore PLEASE do not rely solely on this post.  The law is constantly changing.  This post is not intended to be legal advise and is attorney advertising

If you need to discuss things with a used lemon law and Auto Fraud lawyer call: Hansen and Walgenkim. Please note Ross Law is not affiliated with Hansen and Walgenkim in any way, nor does Ross Law or Jeremiah Ross guarantee they may be able to provide adequate assistance to you.

Jeremiah Ross Named Co-Chair of Oregon Trial Lawyers Association Consumer Law Section

Jeremiah was recently named co-chair of the Oregon Trial Lawyers Association's Consumer Law Section.  Jeremiah proudly represents Oregon Consumers in cases involving automobile dealer fraud, lemon law cases, negligent vehicle repairs, and vehicle warranty disputes.  If you, or someone you know, has been ripped off by a car dealer or you have been sold a lemon, call Jeremiah Ross at 503.224.1658.  Ross Law LLC is an Oregon law firm that represents Consumers and injury clients throughout Oregon.    

Congress Shot Down a Rule Meant to Preserve Your Right to a Jury Trial & What You Can Do About It

Arbitration can kill a consumer's case by preventing consumers from having their day in court. Many people who are ripped off by car dealers or subjected to automobile dealer fraud have no idea they relinquished their right to a jury trial by signing an arbitration clause.   The CFPB was taking steps to limit businesses ability to bar the doors to the courthouse and force people into expensive, business-friendly arbitration.   

Congress didn't do consumers any favors this week by killing the CFPB rule that was intended to protect consumers access to justice. However, there are still ways to stay out of arbitration. The NCLC article has identified the ways to combat arbitration clauses despite Congress' terrible decision. Click here to read more.

If you have additional questions call Oregon Consumer Lawyer Jeremiah Ross at Ross Law.  Call 503.224.1658 for your very breif free case evaluation.

Salvaged Cars Flooding into Oregon

Hurricane Harvey is currently pummeling the Texas Coast line.  Buckets of rain have fallen and are expected to continue to fall over the next couple of days.  Major cities have flooded.  People have left their homes in search of safety until the rain and flooding subsides.  Once the rain stops the clean up will begin. Katrina and Sandy have taught us that clean up can take years.  There are entire industries dedicated to natural disaster clean up. Of particular concern is the industry that has evolved to remove and resell the hundreds of thousands of flood vehicles.

Flood vehicles are vehicles that have been in flood areas and the vast majority of them have been partially submerged for a period of time.  These vehicles can develop terrible mechanical and electrical issues even though they may look great.  I have litigated cases involving Hurricane Sandy cars being sold in, or through, Oregon.  Throughout that litigation, I learned how thousands of cars get out of the flood zone and are resold throughout the country.  

First, an insurance company representative typically will go through neighborhoods seeking out homes and vehicles that are insured by their insurance company.  The insurance company employee, or subcontractor, then briefly inspects the vehicle.  The insurance company often renders the vehicle a total loss on the spot.  Then the insurance company immediately initiates the process to total the vehicle and title it as a Flood Vehicle. The vehicles are then transported from the neighborhood to a large holding area.  Thousands of vehicles are then auctioned off and sold around the Country and the world.  Some of the vehicles will wind up in Oregon.

Prior to coming to Oregon, some of the titles may be washed.  Title Washing is a process where a vehicle with a branded title, such as a Flood Vehicle, will be titled in a state that may issue a clean title to that vehicle. Then the vehicle is re-sold and may wind up at your local used car dealer.  The new Title will not be a "branded" or a "Flood" title, so consumers will not be alerted the vehicle will likely have serious electrical or mechanical issues.  

Some dealers will rip consumers off in a more brazen fashion.  These dealers simply take the consumer's money and then provide the branded title after the funds have cleared. Then the dealer claims they informed the buyer that the vehicle was a flood vehicle.  Dealers often have unwary consumers sign a piece of paper noting the vehicle maybe a flood or salvaged vehicle, However, the dealer will simply state this is a standard form.  Then once the salvaged title is provided to the consumer, the dealer uses the document as a defense to claim the consumer knew of the branded title

Buyers need to beware of flood vehicles over the next few years.   If a consumer unknowingly purchases a flood vehicle, then the seller may be liable for the violations of various State or Federal Laws.   

What you Can Do To Try And Ensure You Do Not Purchase a Flood Damaged Car:  It is important for Oregon Consumers to inspect any vehicle they may buy.  That great deal on Craigslist may actually be a terrible deal for a car that is plagued with electrical issues.   Oregonians should inspect the vehicle.  Consumers should examine underneath the vehicle to ensure there are not any mineral deposits, a "silt line," or significant mud.  The headlights may have mud or debris lines inside of them.  The interior and trunk should be inspected for any discoloration that indicates flooding.  If the vehicle smells funny (either of mold or heavy chemicals) that may be an indication of flooding.  The consumer should turn on and off all of the lights and radio, and operate any electrical features (windows, sunroof, rear windshield wiper)to ensure they all function properly.  

The consumer should also pull a title history report from Carfax or AutoCheck to determine: 1) if the vehicle has a branded title, and 2) to determine if the vehicle is from Texas.  However, these reports are not always accurate so they shouldn't solely be relied upon.   If the vehicle was bought or sold at a "Copart" auction yard that is a big red flag that the vehicle had a salvaged title. These tips may assist consumer's in protecting themselves from buying a flood car, but it may not completely protect you.

If you, or someone you know, purchased a vehicle that you believe is a flood vehicle, lemon, or has a salvaged title, then call Jeremiah Ross for your free case evaluation.  Call Oregon Lemon Law lawyer Ross Law LLC at 503.224.1658.  Please remember this is attorney advertising. 

Ross Law Has Been Busy Getting Results For Clients....

Over the past couple of weeks, we have been very busy.   Two weeks ago we were in a Jury Trial on a motor vehicle crash case.  My client suffered soft tissue injuries. The insurance company made a low offer.  The Jury sided with my client.  The Jury's verdict was more than the defendant's insurance company's best offer by roughly 1/3.  This was a very good result. 

Later that week we resolved a consumer case involving a newer luxury automobile.  My client had taken his vehicle to an authorized dealership for an inspection because it wasn't running right.  The dealer missed a diagnosis and did not notice the oil needed to be changed.  The engine oil sludged up and the engine seized a couple of days after the vehicle was released from the dealer.  We later learned the vehicle's motor had a design issue and the manufacturer had changed the type of oil to put in the vehicle.    We began the process of arbitration.  Then the major local car dealership and a luxury auto manufacturer asked us to engage in mediation.  The dealer agreed to pay to have our dispute mediated.   Prior to mediation the dealership and manufacturer refused to make any offer.  However, the case settled even though we were prepared to arbitrate the case.  My client received money for the engine replacement plus an amount for costs and attorney fees. 

Last week, I was preparing for a trial at the end of the month for an animal bite case.   This case involved a cat bite.  Yes, that is correct, a domestic cat bit my client's hand.  The bite became infected and my client was hospitalized.  Prior to filing the case and preparing for trial, the insurance company refused to make an offer despite tens of thousands of dollars of medical bills.  However, after I worked the case up we were able to settle the case for a substantial sum of money.   My client was thrilled with the result. 

If you or someone you know have any legal issues, call Ross Law LLC at 503.224.1658.  We are happy to discuss your personal injury case, consumer case, or crime victim case.  Please remember that results may vary. Also please note, this is attorney advertisement material.

Is Your Lemon Law Case Ripe for Litigation?

Each week I field calls from people that have purchased a defective vehicle.   The caller typically informs me they recently purchased a "lemon" and the vehicle suffers from various mechanical issues. At that point it is important to ask a few basic questions to determine if this is truly a lemon law case.  Oregon's Lemon Law has a very specific definition of vehicles that are protected by its "Lemon Law." 

It is important to note what Oregon's lemon law is. Oregon's Lemon law is comprised of a group of statutes starting at ORS 646A.400 and continuing through ORS 646A.418.   The law basically states that if a new motor vehicle does not conform to the manufacturer's express warranty, and the consumer alerts the manufacturer or the authorized dealer of the nonconformity then the consumer may be entitled to a replacement or a refund, and damages.  However, just like many things in the law it is not that simple.  The law has certain requirements that must be fulfilled before a lemon law case is ripe for litigation.

First, the motor vehicle must be no more than two years old or have less than 24,000 miles on it, which ever period ends first.  Most consumers cannot meet this first element, because the vast majority of the "material defect" used car cases involve vehicles over 2 years old.  True "lemon law" claims involve new vehicles, not ten year old jalopies.  The Lemon Law also does not apply to travel trailers, because they are not self propelled or a vehicle designed for self propulsion.   

The second big issue the consumer faces are, the consumer must report each "nonconformity" to the manufacturer, or the authorized dealer, for the purpose of repair or correction during the two year period following the date of delivery or before the vehicle's mileage reaches 24,000, whichever comes first. The law basically provides consumers presumptions that the motor vehicle is a lemon if their were a reasonable number of attempts under the vehicle's express warranties, and the manufacturer receives advance notice of the defects before attempting the repairs.  The law presumes a reasonable number of attempts have been made if the vehicle has either been in the shop for 3 or more times, and the defect continues, or the vehicle is out of service by repair for a total of 30 or more calendar days.  There is also another presumption the vehicle is a lemon if there is one attempted repair of a nonconformity likely to cause death or serious injury, but the defect continues. 

The manufacturer must also receive "direct written notification" from the consumer, and has had the opportunity to correct the alleged defect.   Notification, can be a request for an "informal dispute settlement procedure" under ORS 646.608.  This means that the consumer must put the manufacturer or the authorized dealer on notice the vehicle is defective and provide an opportunity to cure the alleged defect. It also means that if the manufacturer has established an informal dispute settlement procedure and notifies the consumer of the procedures then the consumer must  resort to the informal resolution procedure (arbitration)  prior to filing a lawsuit.  

If the consumer can satisfy the legal requirements then their case may be ripe and they may feast on the Lemon Law remedies.  The remedies may include, rescission, replacement of the vehicle, or triple damages (capped at $50,000.00 above the amount owed to the consumer). The court may also award discretionary attorney fees, and costs.  The Lemon law can be a powerful tool.  Unfortunately it can also be a sour pill to swallow if the consumer learns they failed to comply with the notice requirements or there vehicle is too old to qualify as a lemon.

If you or someone you know believe they were sold a lemon, please call Ross Law LLC at 503.224.1658.  Also, please remember this blog is a summary of the law.  Please refer to the actual law or a lawyer for an evaluation of your case.   Do not rely on this post for legal advice.  The law is constantly changing and this post may be outdated.  Please do not cite this post in any governmental proceeding, arbitration, hearing, or negotiations.