Auto complaints historically rank near the top of consumer grievances. The best time to resolve problems is before you take delivery of your new vehicle. If trouble develops later, a good relationship with the dealer can eliminate the need for more serious action.
Before You Drive Away
As soon as you leave the dealer's lot, you lose much of your "clout." So, be sure
everything is as you expected before driving your new vehicle home.
Vehicles and dealers keep improving, but problems can still occur. This is true even if you buy a vehicle with a strong track record for reliability, from a dealer with a reputation for good service.
Good treatment during the sale doesn't guarantee the same reception when you return for service, though it's often a good predictor. Here are some tips on addressing problems before they become major hassles:
Service Visits
A few simple steps can increase the chance that your car or truck is fixed
right the first time.
Letting the dealer conduct routine service, such as oil changes, may be wise even if it costs a little more. Regular customers tend to get prompt attention when a problem appears. Your vehicle will also be up to date in the dealer's records, which could be a point in your favor if a serious flaw develops.
Keep a detailed record of service visits, including all receipts. Always be prepared to:
Resolving Disputes
Third-party mediation and arbitration programs should be a last resort. They seldom
produce miracles. It's far better to get any problem resolved in an easier, more
direct way.
In a dispute over service or the performance of your new vehicle, we advise that you exhaust each rung up the ladder of solutions before you consider bringing in a third party. That means starting with the dealership. This will strengthen your case, should you have to proceed to mediation or beyond.
If the dealer can't solve your problem, take it to the manufacturer's district or regional representative. Your owner's manual should contain this address and phone number, or an 800-number for the manufacturer can be obtained from the Council of Better Business Bureaus (http://www.bbb.org/). The regional person should work with the dealer in an attempt to resolve the issue.
Your next avenue should be a mediation or arbitration program. A few automakers mediate customer disputes internally, but most participate in a program that allows dissatisfied owners to seek resolution through an independent third party.
These programs usually involve the consumer and the manufacturer, not the dealer. The consumer presents a complaint, supported by documentation (repair receipts, correspondence, etc.) to a mediator or arbitration panel. The manufacturer's representative presents its side of the story. Then, after considering both sides, the panel issues a decision or a recommendation.
Some findings are binding on the manufacturer. Remedies could range from finally making repair that had been requested (such as repainting the car) to, in rare cases, supplying the customer with a new vehicle. When a panel sides with the manufacturer's position, pursuing the complaint grows difficult for the consumer.
Two mediation/arbitration services handle the bulk of cases:
Both programs first try to settle the dispute in an informal mediation stage that gets both sides of the story on the table and tries to find a solution. The vast majority of cases are resolved this way. If you're dissatisfied with a mediator's recommendation, the next option is arbitration. With Auto Line, unsettled complaints are presented to an impartial volunteer who decides the outcome. With AUTOCAP, a panel of consumer volunteers and dealer representatives decides the outcome.
Some manufacturers, including Ford Motor Co. and Daimler-Chrysler, run their own arbitration programs. Most others work through an outside group. Your owner's manual should tell you which program will be used.
In any program, you'll present your case orally and/or in writing. You'll need complete records, including work orders, letters, receipts, and notices. You must prove the vehicle has a problem that both the dealer and manufacturer have failed to fix in several attempts, and that you've exhausted all other avenues. The manufacturer and/or dealer will then present its case through a representative familiar with repair problems.
Arbitration is similar to a court hearing, though less formal, and a lawyer is not required. The panel's decision is binding only on the manufacturer. The consumer can accept the verdict or go on to the next step: formal legal action.
Less than one-third of consumers have a dispute settled wholly their way. In most mediation and arbitration cases, however, the decision at least partially satisfies both sides.
Lemon Laws
Every state and the District of Columbia has some form of "lemon law," but the
promise usually outweighs the results. Specific information about state laws can be
obtained online through the Council of Better Business Bueaus (http://www.bbb.org/).
Yes, manufacturers can be ordered to refund the purchase price of a new vehicle or replace a vehicle that is proven critically flawed. Such dramatic "buy-back" results are rare, however, and eligibility requirements vary. In most states, you must first exhaust all other possible remedies. That means making a specified number of tries-typically three-at the dealership, then passing through the arbitration process without successful resolution.
This time, you will have to retain a lawyer. To qualify for consideration, a car generally has to be inoperable for at least 30 days during its first 12 months or 12,000 miles. Details vary, so inquire at your state attorney general's office, a consumer protection agency, or the Center for Auto Safety.
As a rule, most of the following conditions must apply for a Lemon Law to be effective:
Even if you "win" a Lemon Law case, the automaker nearly always can deduct value for the mileage you've put on the vehicle.
Government Agencies and Consumer Groups
The arbitration programs, government agencies, and consumer groups listed below may
be able to help with auto-related problems. Many states and some local governments
have their own consumer protection agencies that may respond faster than a federal
agency.
Better Business Bureau Auto Line
1-800-955-5100
Web site: http://www.bbb.org/
Provides reports on dealers and other businesses and operates the Auto Line mediation
and arbitration service between consumers and auto companies regarding manufacturing
defects. Check your local phone book for the nearest office or call 1-800-955-5100
for information. Late in 2004, the BBB joined with J.D. Power and Associates (www.jdpower.com/cc) to provide information on customer
satisfaction ratings and help consumers locate a dealer who is a BBB member.
Center for Auto Safety
1825 Connecticut Avenue, NW
Suite 330
Washington, DC 20009-5708
(202) 328-7700
Web site: http://www.autosafety.org/
Nonprofit group lobbies on behalf of consumer interests regarding vehicle safety and
quality. Also provides information on vehicle defects, common problems, and lemon
laws; and provides a lawyer referral service. You can send a letter explaining your
request with a self-addressed stamped envelope.
DaimlerChrysler Customer Assistance Center
P.O. Box 21-8004
Auburn Hills, MI 48321-8004
US: 1-800-992-1997; Canada 1-800-363-4869 or 1-800-465-2001
Handles complaints not resolved at the dealer or zone-office level and provides
information about Chrysler's customer arbitration boards. Also answers calls for
roadside assistance and inquiries on recalls and other consumer issues.
Federal Trade Commission
Consumer Response Center
600 Pennsylvania Avenue, NW
Room 130
Washington, DC 20580
1-877-382-4357 (FTC-HELP)
Web site: http://www.ftc.gov/
Provides information on arbitration and consumer complaints and publishes brochures
with advice on loans, leasing, and other auto-related topics. Regional offices are in
major cities.
Ford Motor Company
Customer Relationship Center
P.O. Box 6248
Dearborn, MI 48126
1-800-392-3673 (Ford and Lincoln/Mercury)
Handles complaints unresolved at dealer or regional-office level and provides
information on Ford's arbitration program. Also answers calls for roadside assistance
and inquiries on recalls and other consumer issues.
Highway Loss Data Institute (HLDI) and Insurance Institute for Highway
Safety (IIHS)
1005 N. Glebe Road
Suite 800
Arlington, VA 22201
(703) 247-1500
HLDI Web site: http://www.carsafety.org/ or http://www.hldi.org/
IIHS Web site: http://www.highwaysafety.org/
or http://www.iihs.org/
Insurance industry lobbying group compiles information on vehicle and highway safety,
including crash test and other vehicle ratings.
National Automobile Dealers Association
AUTOCAP
8400 Westpark Drive
McLean, VA 22102
(703) 821-7000
NADA headquarters will refer you to a state or local office to answer questions on
the AUTOCAP mediation service and inform you if your dealer is a member. Also
provides information on recalls. For more information, and a list of participating
state car-dealer associations, log onto http://www.driversseat.com/ or http://www.nada.org/.
National Highway Traffic Safety Administration
400 Seventh Street, SW
Washington, DC 20590
1-888-327-4236
Web site: http://www.nhtsa.dot.gov/
NHTSA investigates safety defects and enforces federal safety regulations. Call the
toll-free consumer hotline, or log on to the Web site, for information on crash
tests, safety recalls, service bulletins, consumer complaints, and to report safety
problems.
U.S. Department of Energy and Environmental Protection Agency
1-800-342-5363 (DIAL-DOE) or (202) 272-0167
Web site: http://www.fueleconomy.gov/
Distributes free single copies of the EPA Gas Mileage Guide, which is available in
electronic form on the Web site. Copies of the guide also are required to be
available at new-car dealers.
U.S. Department of Justice
Office of Consumer Litigation
P.O. Box 386
Washington, DC 20044
Web site: http://www.usdoj.gov/
Enforces federal laws covering price labeling of new vehicles and odometer
tampering.
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