GMC Acadia Forum banner

1 - 13 of 13 Posts

·
Registered
Joined
·
9 Posts
Discussion Starter · #1 ·
I have been reading a lot of the information on here and I am wondering what happens to a "Lemon" when it is bought back?
Do they try to resell it at that same dealership or do they send to another dealership or ship it to an auction??
 

·
Premium Member
Joined
·
3,374 Posts
As far as I know for Florida (others probably similar) the title is "branded" (stamped/entered into DMV database) as a buyback vehicle. At this point it could be resold, but I've never looked into this situation.

EDIT
Found this in Indiana:
http://www.in.gov/legislative/ic/code/title24/ar5/ch13.5.pdf

IC 24-5-13.5-10
Resale; conditions
Sec. 10. A buyback motor vehicle may not be resold in Indiana unless the following conditions have been met:
(1) The manufacturer provides the same express warranty the manufacturer provided to the original purchaser, except that the
term of the warranty need only last for twelve thousand (12,000) miles or twelve (12) months after the date of resale.
(2) The following disclosure language must be conspicuously contained in a contract for the sale or lease of a buyback vehicle
to a consumer or contained in a form affixed to the contract:
"IMPORTANT
This vehicle was previously sold as new. It was subsequently returned to the manufacturer or authorized dealer in exchange for a replacement vehicle or a refund because it did not conform to the manufacturer's express warranty and the nonconformity was not cured within a reasonable time as provided by Indiana law.".
(3) The manufacturer provides the dealer a separate document with a written statement identifying the vehicle conditions that formed the basis for the previous owner's or lessee's dissatisfaction and the steps taken to deal with that dissatisfaction in 10-point all capital type.
As added by P.L.65-1992, SEC.3. Amended by P.L.118-1993, SEC.3.
IC 24-5-13.5-11
Express warranty; written statement of disclosure; buyer's acknowledgment of disclosure
Sec. 11. Before reselling a buyback motor vehicle in Indiana, a dealer must provide to the buyer the express warranty required by section 10(1) of this chapter and the written statement of disclosure required by section 10(3) of this chapter and obtain the buyer's acknowledgment of this disclosure at the time of sale or lease as
evidenced by the buyer's signature on the statement of disclosure.
As added by P.L.65-1992, SEC.3. Amended by P.L.118-1993, SEC.4.
IC 24-5-13.5-12
Manufacturer's acceptance of return of buyback vehicle; duties
Sec. 12. A manufacturer who accepts return of a motor vehicle that is considered a buyback vehicle under this chapter shall do the
following:
(1) Before transferring ownership of the buyback vehicle, stamp the words "Manufacturer Buyback ) Disclosure on File" on the face of the original certificate of title.
(2) Not more than thirty-one (31) days after receipt of the certificate of title, apply to the bureau for a certificate of title in the name of the manufacturer and provide to the bureau a copy of the disclosure document required by section 10(3) of this chapter.
As added by P.L.65-1992, SEC.3. Amended by P.L.118-1993, SEC.5.
IC 24-5-13.5-13
Failure to comply; liability; actual damages; privity; prima facie evidence of violation; limitation of actions
Sec. 13. (a) A person who fails to comply with section 10, 11, or 12 of this chapter is liable for the following:
(1) Actual damages or the value of the consideration, at the election of the buyer.
(2) The costs of an action to recover damages and reasonable attorney's fees.
(3) Not more than three (3) times the value of the actual damages or the consideration as exemplary damages.
(4) Other equitable relief, including restitution, as is considered proper in addition to damages and costs.
(b) Actual damages under this section include the following:
(1) The difference between the actual market value of the vehicle at the time of purchase and the contract price of the vehicle.
(2) Towing, repair, and storage expenses.
(3) Rental of substitute transportation.
(4) Food and lodging expenses.
(5) Lost wages.
(6) Finance charges.
(7) Sales or use tax or other governmental fees.
(8) Lease charges.



BTW, thanks for completely filling in your profile & vehicle info! We may promote you to new member manager!
 

·
Registered
Joined
·
912 Posts
Mollie said:
I have been reading a lot of the information on here and I am wondering what happens to a "Lemon" when it is bought back?
Do they try to resell it at that same dealership or do they send to another dealership or ship it to an auction??
Suprisingly many of them end up in Canada being sold on lots around the country with no branding at all on the title. Here is a little article about this.

The North American Automobile Trade Association says in October 2007, Canadians imported nearly 25,000 American cars. That's up 68 per cent from the month before when the dollar hit parity with its U.S. counterpart — and 5,000 more vehicles than Canadians imported from the U.S. for all of 2000. During the first 10 months of 2007, Canadians imported 112,000 American cars. Meanwhile, a CBC News investigation has found that hundreds of cars previously labelled lemons in the United States have found their way to Canadian dealerships. In one instance, a car that originally sold for $28,100 US in Florida was sold at auction to a Winnipeg dealer for $13,100 US after it was declared a lemon. The CBC's Alex Freedman tracked it down to a Winnipeg car lot where it was on sale for $24,980.

Freedman obtained reports on several cars by using a service that provides vehicle histories through vehicle identification numbers (VIN). He detected a steady increase in the number of lemons imported into Canada as the dollar approached parity.

Between May 1, 2006 and Nov. 5, 2007, Freedman tracked 852 American lemons that were imported into Canada, with more than 110 of those crossing the border since the Canadian dollar reached parity.

You can obtain used vehicle information packages in Canada — in some provinces sellers are required to provide one for each car they sell — but even that has limitations. In Ontario, for instance, all used vehicles must be branded to indicate whether the vehicle has been damaged in the past. The categories include:

Irreparable.
Salvage.
Rebuilt.
None.
Because Ontario does not have a lemon law, there is no designation for "lemon."

If you want to bring back a car from the U.S. yourself, you'll have to make sure it meets Canadian standards. Complete instructions are available through the the Registrar of Imported Vehicles.

Here is the link to the article.
http://www.cbc.ca/news/background/consumers/auto-arbitration.html
 

·
Registered
Joined
·
659 Posts
Although most states in the US do have a lemon law, generally the official reporting on titles only applies to vehicles that are bought back due to legal outcomes. In the real world, most buy backs are done informally through offers and mutual agreements, before there is any legal action, and those vehicles are not identified in any way in their histories. There are a number of legitimate reasons (other than warranty failure) that a vehicle might be bought back without legal process having taken place and many of what we might consider "lemon law" vehicles end up returned with no actual record. Those vehicles generally receive whatever warranty repairs are considered needed and end up at the volume vehicle auctions. The legal "lemons" are really only a very small proportion of actual returned vehicles.
 

·
Premium Member
Joined
·
3,374 Posts
Good point Gerry, I was focusing on those that had been branded. There are of course many more that fall into these definitions and are never branded. A Carfax/history check should show it was sold/registered and detect indicators of this type of situation, since it would take some time/miles for the lemon circumstances to arise. There are also vehicles that are sold, driven a few hundred/thousand miles and returned due to repossession, don't like it, wanted something smaller, etc. On a questionable vehicle, if the vehicle is clean and returned to the selling dealer, the dealer should not have an issue with contacting the prior owner and seeing if they would discuss it with you. Alternatively, you can usually do a DMV search for a fee and get the prior owner's info. Not sure if it is worth it to go to this length for a vehicle that is readily available from other sources.
 

·
Registered
Joined
·
185 Posts
I'll be trading in my Acadia in a few weeks as a "clean" Acadia even after getting a settlement from GM. Just as you have said there will be no way for the next owner to know of the problems I experienced with the car. Fortunately most of the issues have been resolved at this point, but that doesn't keep issues from popping up in the future.

I hope what you say about looking up a prior owner is not true. It seems this information should not be readily available. Once I trade my nightmare into the dealer (and they have every right to inspect it and should get the service records) then it's no longer my problem. I wouldn't want cars from my past coming back to haunt me!
 

·
Premium Member
Joined
·
3,374 Posts
Pete,
The information is not readily available to the public, but it is a public record and like most can be had for a fee from your DMV. The readily available statement dealt with another Acadia that did not have the miles/issues.
 

·
Registered
Joined
·
65 Posts
All the cars that technical schools use for training are buy backs, the manufacturers will donate these to schools, thus they cannot sell them. I have also seen these used at GM's training facilities as well.
 

·
Registered
Joined
·
14 Posts
Our local dealer gets a lot of buy backs.
 

·
Registered
Joined
·
27 Posts
I had my Equinox bought back by GM in 2005. While processing all the paperwork at my Chevy Dealer I asked where it would end up. He said it was going back to Chevy. He didn't know anything beyond that. He did put several signs on the windows and dash that said "Buyback" lest someone end up with my troubled vehicle. My 2nd Equinox was flawless and I learned a valuable lesson - never buy the first year of a new vehicle.

Unrelated but interesting - I'm traveling for business and have as a rental, a 2 month old Chevy Trailblazer. It's nice, but a far cry from our Acadia parked safely in the garage.
 

·
Registered
Joined
·
1,703 Posts
Mr. Plow said:
I learned a valuable lesson - never buy the first year of a new vehicle.
I have said that many many times over the last 30+ years. However, I sometimes cannot help myself. I bought the 1990 Chevy Lumina the first year it came out. Then I bought the 1997 Grand Prix in May of 1996. It was the first one off the truck at my dealer. Then I tried to get the 2007 Acadia but could not find one and ended up with one of the first 2008s (really still within the 1st year of starting production).

So while I agree with that "rule", I cannot seem to abide by it. :)
 

·
Premium Member
Joined
·
2,577 Posts
GAR said:
Mr. Plow said:
I learned a valuable lesson - never buy the first year of a new vehicle.
So while I agree with that "rule", I cannot seem to abide by it. :)
I told myself that after I bought a first year Saturn Vue and had a gazillion problems with it. I still loved the Vue regardless of the issues - but I told myself "Why go through this again? Just don't buy a first year vehicle." And, of course, after I saw the Acadia, I just had to have one... so obviously it's a rule that's difficult to adhere to. ;) I'm thinking that once the 2010 Camaro comes out, I won't have that problem simply because my finances won't allow me to buy it for several years after it comes out. ;D
 

·
Registered
Joined
·
27 Posts
I agree that it's hard. When I first saw the Equinox I fell in love and forgot what my dad told me as a young boy. I remember he really liked the 1978 Buick Regal with the 3.8 Turbo. He waited until the next model year and bought one. What a sleeper car it was. It ended up being my first car. Loved it and the nice hump on the hood for the turbo.
 
1 - 13 of 13 Posts
Top