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BMW & MERCEDES BENZ LEMON LAW BUY BACKS - GOOD DEAL?

by: oewheelsplus( 2 )
10 out of 10 people found this guide helpful.


So you found a great deal on eBay, so you think!  But did you look if it's a lemon? What does that mean to you? Most sellers will hide the fact that a lemon law buy back vehicle in small prints hidden in a thousand other words or they plainly just call it a manufacturer buy back because lemon sounds so.... well LEMONLY...   Lemons are just not worth it just as their name and I'll explain why.

I bought a so called lemon vehicle thinking it was a great deal but after reanalyzing it, it wasn't a smart thing to do.  Let me break it down for you.  Let's just say the difference between a regular car to a lemon car is $5000.  Yes, you are saving that $5,000 right now but think about all the risk you are taking throughout the years.  Being already branded a lemon car, you would hope that nothing else goes wrong.  The BMW or Mercedes Benz Dealerships looks at you differently and treats you differently when you service your car.  They are more reluctant to service you thinking you are trying to pull one on them.  Ok, so you are lucky, nothing went wrong out of the norm through the years.  Now, you want to sell it.  Now that's the fun part.  How are you going to explain selling a lemon to somebody that doesn't even know you?  Come on, admit it, you are not as good as the sales person that sold you that lemon.  Just think, you got $5000 off of it when you bought it, now guess what? You got to sell it for $5000 less the market value for anybody to even look at it.  
Now, where's your $5000 savings?  You gave it all back when you sold it and on top of that, you had to take the risk associated with a lemon car throughout the years.

Below, you'll find FAQ associated with a Lemon Law Buy Back Vehicle.
Ebay description says Other title, which is LEMON LAW TITLE, BRANDED TITLE, MANUFACTURER BUYBACK!  All the same. A lot of dealers on eBay are disguising it with different terms.  All in all, it's a LEMON!  Yes, it is cheap, but you'll pay for it in the long run. 
1. The resale value is 25-50% under market value. 
2. The risk of problems coming back that wastes time and money.
So for you guys that don't know what you are getting into, below are a few glossary explanations from Carfax:
 
Lemon Law Vehicle — A vehicle with major problems that has been repurchased by or had its price renegotiated with the manufacturer. The state marks its official records or issues a title brand for lemon law vehicles. Laws vary by state as to the specific requirements for a "lemon". Most manufacturers issue some buybacks that are not the result of Lemon Laws but rather a courtesy
 
Vehicle Reacquired — A vehicle that has been repurchased by the manufacturer. Manufacturers may choose to buy the vehicle back from a customer after repeated repair attempts or to promote customer satisfaction
 
Manufacturer Buyback or Lemon — A DMV or a state agency marks an official document or issues a Manufacturer Buyback/Lemon title when a vehicle has been repurchased by the manufacturer. Not all states issue manufacturer buyback titles and the specific requirements for a lemon law vehicle vary by state.
 
Title Washing — Title Washing is the process through which a vehicle's title is altered to conceal information that would normally be included. This can be accomplished by either physically altering printed documents or reapplying for a title without disclosing its prior history. Since the CARFAX database retains information about branded titles from all 50 states and the Canadian provinces, the CARFAX Report may help uncover potential title washing.
 
What Is Required of the Manufacturer?
The manufacturer upon reacquiring a vehicle because of specified warranty defect(s) must:
Request the Certificate of Title and Registration Certificate be marked "Lemon Law Buyback."
Title the vehicle in the manufacturer's name.
The manufacturer will attach a decal to the vehicle. The decal will read "Lemon Law Buyback" and will be affixed to the:
Left door frame or
Frame of the major entry into the vehicle such as the front right door frame of a motorhome.
Left side of a vehicle without doors, such as a motorcycle.
 
Additional Requirements:
When a warranty return vehicle is sold, the transferee must be notified, on letter size paper, of the following:
The year, make, model, and vehicle identification number.
That the vehicle title is marked "Lemon Law Buyback."
The nature of each nonconformity reported by the original buyer or lessee of the vehicle.
Repairs, if any, made to the vehicle in an attempt to correct each nonconformity.
 
How Will I Know If a Vehicle Was a Lemon?
Check for display of the decal described above. Look at the vehicle's Certificate of Title and Registration Certificate to see if it is branded, "Lemon Law Buyback." Ask the dealer/seller if the vehicle was a Lemon Law Buyback. The dealer is required by law to disclose this information.
 
What Do I Need If I Purchase a Lemon Law Buyback Vehicle?
You will be notified prior to buying a lemon buyback vehicle by the seller in writing of the nonconformities stated by the previous owner.
 
If you decide to purchase the vehicle, the usual transfer documents and associated fees will be required: 
Certificate of Title, properly endorsed for transfer.
Transfer Fee.
Sales/Use Tax, if applicable.
Smog Certification.
Odometer Disclosure Statement
 
After reading the above, WHO CARES, the car is too cheap to past up
What?  Are you serious?  Lemon Law cars means there has been problems after problems and they couldn't fix it and you want to buy it so you can deal with the problems?  A typical person spends 3 hours in your car everyday, why would you risk your life on something just because it's cheap?
After you deal with the risks, you still pay for it in the long run.  You got the car below market value now, when you sell it, it'll be under market price also.  How did you get a deal?   Only reason you bought it now it's because it's cheap, when you sell it.. You won't get anything for it because the person who would buy it also wants it cheap!  Beside, if you try to trade it in later to any dealership, they wouldn't give you anything for it and some dealerships wouldn't even take it.
 


Guide ID: 10000000010480825Guide created: 02/03/09 (updated 10/26/09)

 
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