Dear Terry,
Help! I went to a "buy here, pay here" used car dealer, and made a $500 down payment on a 1991 Lexus. While driving, the check-engine light came on. I took it for an inspection. The mechanic informed me that the car also had frame damage -- the trunk of the car had damage indicating a rear-end impact.
I contacted the dealer and was advised to return the car, which I did. I also had to rent a car. When I returned, the owner said he'd look at the Lexus, and after returning the rental I'd paid for, a Honda was offered as a loaner car. I picked up the loaner, and while driving less than 30 miles from my home, the check-engine light came on. I immediately pulled over.
The Honda was towed, and a Honda technician diagnosed the problem, stating there was no antifreeze and the check-engine light indicated that the car had overheated. Also, the spark plugs were soaked in oil, making it impossible to even attempt to repair the problem with the engine.
After the problem with the Lexus, I requested a refund of my deposit, but the dealer told me this was not an option. What are my options at this point?
-- Ms. Mc Phail
Dear Ms. Mc Phail,
The first thing to do here is separate the problem you had with the loaner from the problem with the Lexus, which you contracted to buy.
If the Honda was truly a loaner, why did you take it to a Honda dealer when the check-engine light came on? This car belongs to the dealer and you're not obligated to fix it nor even try to find out what was wrong. You should have simply had it towed to the used car lot and demanded another loaner or your repaired Lexus.
I understand that the failure of the loaner would cause anyone to question the quality of cars that the dealer is selling, but legally the Honda loaner has nothing to do with the Lexus.
In regard to the Lexus, you first need to check with your state's department of motor vehicles or attorney general to see if there's a lemon law that covers used cars. If there is, see if the amount of time the Lexus has been in the shop qualifies you to sue under the lemon law.
Failing that, check the sales agreement to see whether there was any implied or stated warranty that would cover repairs.
As a last resort, you may have to go to small claims court to get your deposit back and void the contract if the dealer can't solve the check-engine problem.
Here are this week's reader questions: