Car problems for consumers are almost limitless. Still, certain problems and practices occur more often than others. Fortunately, under Hawaii law, there are good laws on the books to help consumers get redress for many of the most common scams:
· Cars are sold as new that are not new.
· Cars are sold as new and factory equipped when in reality they have been in accidents, with undisclosed damage, and new parts and new paint jobs are put on without the buyer being told.
· Used car sales. Hawai`i has a law regarding the sale of used cars which requires the seller to give certain notices and warranties. However, the law is not always followed, and the consumer unknowingly can get a junk car as a result.
· "Lemon" cars: new cars that keep having significant problems over and over, and are frequently taken in for repairs.
· Car Loans - Loan Packing. This scam often starts with a salesperson who calculates an inflated estimate for a car loan. This creates "room" for the dealership to add in (or "pack") the sale with other products, such as credit insurance, service contracts, environmental protection packages, etc. The Finance & Insurance Manager or Business Manager (the person that closes the deal with the consumer) will often do this "packing," as opposed to the floor salesman, because the "packing" takes special training. Although the manager is adding these optional services to complete the over-calculation of the monthly estimate, he will often tell the consumer that the services are "included" in the monthly payment -- without indicating that there is a corresponding charge and that the car (alone) could be purchased for a lower monthly payment. Even worse, not only is the consumer being charged for something he or she was led to believe was free, the dealerships will overcharge the consumer for those optional services. Ask questions and find out exactly what charges have been added to your monthly payments, over and above the cost of the car itself.
· Insurance Settlements. Insurers sometimes rely on a consumers willingness to accept any settlement regarding a stolen or "totaled" vehicle. It is important that the consumer research the offers made by the insurer to insure a fair settlement. Insist that the insurer provide you with original documentation used to calculate the value of your car. Ask questions about any information that puzzles you. Finally, verify the information used by the insurer personally. This verification includes research on your own about the value of the car at the time of loss, and contacting owners of any sample cars used by the insurer to calculate the settlement offer. Don't be afraid to press the insurer, if the offer doesn't seem fair.
