May 15 2008
State Buyers will not be Protected by California Lemon Law
The cost of a new vehicle is higher than it has ever been, and prices continue to go up. The price insurance and gasoline are increased. Add it all up, and you will find that the cost of buying and owning a car is quite expensive. Consumers are eager to find the best deal and are often rewarded for their hard work. In the case of CA residents and highly taxed states, the price of sales taxes adds considerably to the cost of buying a new vehicle. Savvy shoppers found a solution to this problem - buy the vehicle out of state and drive it home.
That seems like a good idea. After all, a 2% decrease in the sales tax on a $25,000 car means a savings of some $500, which will buy a few tanks of gas, even at today’s prices. Savings are more significant if the vehicle in question is a $250,000 motor home. There may be a downside to this system, however. California Supreme Court recent court ruling has ruled that the California lemon law applies only to vehicles actually purchased within the state.
This may come as a strong blow to Californians, who enjoy the first, and one of the most powerful, lemon laws in the United States. Out of state consumers, bring their vehcles home, and then find out that they have nonconformities that prevent them from being repaired will find out that they have no protection under California law. Worse, they may have no protection under any law. State lemon laws require that the vehicles must be purchased in that state. Most lemon laws require that anyone filing a claim under the law must also be a resident of that state. This may leave buyers who purchase a vehicle and drive it to another state out of luck.
California state attorneys called the ruling fair, pointing out that enforcing the statute costs money, and that it doesn’t seem reasonable for the law to represent buyers who don’t pay the sales taxes that support it.
Of course vehicle warranties will still apply,and if the problems with the vehicle can be repaired under warranty then they will be covered. Owners of these vehicles may pay for any additional repairs not covered under warranty. They are not entitled to replacement or refund in case the repairs are unable to resolve the problem permanently .
Anyone planning a purchase in lower-taxed state should be aware, however, that the savings may turn out not to be all that significant if the vehicle turns out to be defective. A $5000 savings on a defective, useless quarter of a million dollar motor home is no bargain. Buyers should exercise caution.
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