Unscrupulous
used car dealers hit consumers full throttle with inadequate disclosures
By Tomi Morris Johnson
tomij@wingcomltd.com
©2002 WingcomLtd. All
Rights Reserved.
Reprinted with
permission from Tomi Morris Johnson.
January 23, 2002, Atlanta, GA…If you’re an
executive or rising business professional hoping to buy a used sports car
in Georgia, buyer beware. There’s no help for consumers if something goes
wrong with an “AS IS” used car, even though fraud may be involved.
Before you take out that five-year loan and
receive the title, remember that you could be stuck with a lemon, even if
you discover you’ve purchased two cars welded together with different VIN
numbers. Try complaining to a consumer affairs administrative officer, the
secretary of state or the governor, and all you’ll get is a runaround.
In Georgia, you could end up driving or getting
hit by a dangerous car that no one but the selling dealer knows is
defective. That makes transportation on the state’s highways dangerous.
Inadequate disclosure on used cars in
Georgia reeks of safety, security, legal AND economic problems.
According to Donald Riner, Used Car
Board Member from Swainsboro, GA who works with Perry Auto Auction,
“There are
some unscrupulous dealers out there, and nothing can be done about it.”
He says that it could take years for state investigators to get back with
you once a complaint is filed, and then zilch will be done on a consumer’s
behalf. Also, you’re up against the statute of limitations that runs out
two/four years after your purchase.
Reiner suggests that Governor Roy Barnes is
where the buck should stop when it comes to rectifying fraudulent
disclosure practices. The Governor
appoints 15 members to the Used Car Board who are used car dealers trying
to police themselves. Of course, the Governor has been known to pass the
buck back to the Secretary of State’s office or the Attorney General’s
Office, and nothing is accomplished.
“I filed a complaint two years ago, and they’re
still ‘investigating’ the situation while my car sits in my driveway with
uni-body damage,” said a BMW owner who wishes not to be identified.
“The state inspector told me my car was cut in
half and put back together with different model year parts on the front
and rear. I learned from a private investigator that the previous owner
totaled the car, but didn’t have insurance. Maybe that’s why there was no
salvage title. The inspector said the
Used Car Board pretty much protects dealers when it comes to full
disclosure of latent defects.”
This looks like the
perfect used 740iL BMW, but it’s actually two different model year cars,
front and rear.
“My car’s wiring harness, transmission, and
motor mounts were all damaged and needed replacement. It should not be on
the road. I’m afraid to drive it much less take my wife and kids for a
ride. It appeared perfect when I purchased it, and there was no problem
with the maintenance records or Car Fax report. All I have is an expensive
driveway ornament and a huge car payment!”
“I didn’t find out my BMW had uni-body damage
until I paid $9,000 in repair bills and later tried to trade it. The
dealer threw the keys back in my face. Another used car dealer told me he
wouldn’t have a business if he couldn’t sell a car with major defects. ”
According to Used Car Board Chairman John Tansey
of Newnan, GA, there is no equal protection under the law – car dealers
who are informed of non-repairable defects on their auction invoices don’t
have to pass that information onto the buyer.
“I was wasting my
time talking to the consumer affairs and state attorney's office. It was
the most frustrating ordeal I've encountered dealing with any state
government offices. It is an embarrassment to all Georgians who go to
their state officials for help, especially when I was not asking for legal
representation. I just wanted to see if the car dealer was in violation of
Georgia fair business practices. They told me to seek private counsel if I
wanted justice.
“I did find a lawyer who agreed to handle the
case. He was the last of a long list of turndowns. Unfortunately, he was
disbarred, and I later found that the case was filed in the wrong court.
He took my file and a $2,000 retainer with him and left the state. Now I
don't trust lawyers!”
Even if you buy a perfect car, that doesn’t
mean you’re safe riding on Georgia’s roadways. Another vehicle having
non-repairable uni-body construction that’s allowed on the road could go
out of control and broadside you. In
Georgia, an out of state car could have a “laundered” title that may not
indicate salvaged vehicle status.
Such automobiles should be sold for parts and
not driven.
Car Fax won’t report this type of
non-disclosure, and Car Max will miss this type of damage while performing
an inspection. This happens more than
you realize, especially with foreign cars that supposedly have good
performance ratings.
In one consumer’s case, BMW of North America
knew absolutely nothing about a car being pieced together. The only
information they had on file was oil change documentation and regular
maintenance records done by an authorized dealer. BMW Financial Services
wouldn’t give out any previous information about the car’s history unless
subpoenaed.
What would happen if this trend could be turned
around? Perhaps Georgia would have fewer traffic accidents related to
vehicle malfunctions, more satisfied used car owners, and a vacant used
car complaint office.
If you have any information regarding used car
nightmares or would like to sound off on this issue, write Jim Strickland,
investigative reporter, WSB TV, 1601 W. Peachtree St NE Atlanta, GA
30309, or contact me via email.
This information is the opinion of
the author and, therefore, should not be construed as libelous. All rights
reserved.
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