California Lemon Law Lawyer Blog

A new report of driver deaths in auto accidents shows that bigger cars and those with stability control are safer. A new study by the Insurance Institute for Highway Safety published April 19, 2007, shows that the vehicles associated with the lowest death rates are the Chevrolet Astr, Infiniti G35, BMW 7 series, Toyota 4 Runner, Audi A4, Mercedes E & M class, and other larger vehicles. Nearly half of the 15 models with the lowest death rates were SUVs. Not one of the safest cars classified by the Institute were small cars.

Small and sporty cars dominated the list of models with the highest rate of driver deaths. Eleven of the 15 worst performing vehicles, like the Kia Rio and Chevrolet Cavailier, are small or mini.

All but three of the 15 best performing vehicles with the lowest death rate have stability control, a set of systems that helps avoid rollovers and can keep a vehicle from veering off the road. Stability control may save as many as 10,000 lives a year according to the Institute. Stability control is standard in 87% of the 2007 SUV's, 58% of passenger cars and just 8% of pickups. The federal safety agency has mandated that stability control be available in virtually all new vehicles by 2012.

The complete report is available on the Institute's website, www.iihs.org.

Anyone who has had their car repossessed will tell you that the experience is traumatic and difficult. Aside from losing a car--and the upset that goes with a repossessed car--that consumer's credit will suffer. Usually that means it will be more difficult or expensive to get credit in the future.

Even worse, creditors usually sell repossessed cars at private auctions for wholesale prices. These auctions generally net far less for these vehicles than a car dealer would charge for the same vehicle. The creditor then applies the sale proceeds to the balance remaining on the consumer's conditional sale contract. If the money from the sale doesn't cover the amount the consumer still owes on the contract, there is a "deficiency" that the creditor will then try to collect from the consumer.

However, California consumers have some legal defenses against the creditor's right to claim and collect a deficiency. The creditor cannot collect a deficiency unless it sends the consumer a Notice after repossession that exactly complies with California law.

For example, the Notice must tell the consumer how much to pay to redeem the car (pay it off), and itemize that amount. Usually the Notice must tell the consumer exactly what she must do, including how much she must pay, to reinstate the contract (bring it up to date). The Notice must allow consumers to request extra time to redeem or reinstate, and provide an extension form that gives instructions. The Notice must tell the consumer the name and address of the person to whom she must send payment to redeem or reinstate, and give an address where she may pick up her vehicle if she redeems or reinstates. If the Notice does not include all of these items--and a few others--then the creditor is prohibited from collecting a deficiency from the consumer.

If your car has been repossessed and you have a question about whether the Notice you received from the creditor exactly complies with California law, contact us. We will be happy to review your Notice free of charge.

Thousands of Hurricane Katrina cars are being sold in the used car market. Many vehicles were written off as total losses by the insurance companies. Many have been repaired to a point, but there may be hidden damage. You should carefully inspect (or better yet hire professionals) to check the car before you buy. Look for silt in the spare tire area; take the door apart and look for mud inside the door panel. Before you buy, go to National Insurance Bureau Crime Bureau, which has a list of flood cars by VIN number. (Go to the Theft and Fraud Awareness page).

Consumer Reports current newsletter reports that extended warranties on electronic products such as televisions, audio equipment and cameras are a bad buy. One tip off that the service contracts are overpriced is that retailers typically pocket 50% of the purchase price. Buying these products means betting on three unevents happening under the right circumstances: 1) the product breaks during the first three or four years of ownership (unlikely because most products don't break down that time period), 2) that the product will break after the manufacturer's warranty has expired, which is unlikely, and 3) the cost of repair will exceed the cost of the warranty. Consumer Reports surveys show that repair costs are not much higher than warranty costs.