Lemon laws weaker in Georgia than in other states

Every state has a lemon law to protect car buyers from defective cars. Many states have additional laws to protect buyers of used cars, as well. Georgia’s laws seem to be weaker than most, and people who buy cars in that state take on a greater risk than buyers who live elsewhere.

More below.

Lemon laws aren’t the whole story, but they help

Since California and Connecticut passed the first lemon laws in 1982, every state has followed suit. That’s great for consumers, but the laws vary from state to state and the effectiveness of those laws varies, too. While the California lemon law is a tough one, Georgia’s law is one of the weakest. Worse, nearly all laws pertaining to the sales of automobiles in Georgia, either new ones or used ones, favor the dealer over the buyer. If the term, “buyer beware” ever applied to anyone, it applies to those people who dare buy cars in Georgia.

Georgia’s lemon law was passed in 1990, making it one of the last states to pass one. The law covers new cars only; used car buyers are on their own. Worse, there are several issues that commonly come into play when Georgians purchase a used car in that state:

There is no law requiring used car dealers to offer a warranty of any kind. Used cars are generally sold “as-is” and if anything goes wrong after the car is taken from the lot, the buyer is responsible. Court rulings in the state have generally favored the seller and judges have warned consumers that they should have been more inquisitive.

Georgia permits something known as “spot delivery”, a term that allows the buyer to take delivery of the car before the loan has been approved. In cases of used cars and buyers with less than perfect credit, this can often result in sales where the terms change after the fact. Buyers who took delivery of a vehicle in good faith will often find out that the interest rate will be higher than stated on the sales agreement or that the price may have changed.

Georgia requires used car dealers to post a bond of $20,000 which provides restitution should the dealer go out of business or fail to transfer a car’s title. That money could be used to return some money to consumers. The problem is that these days, a single car could cost $20,000 meaning that the bond would cover, at most, only one buyer who got a raw deal. There have been cases of dealers going out of business while owing dozens of people money; the bond, higher in virtually all other states, won’t cover that.

What are Georgians to do? For starters, they should exercise extraordinary caution when purchasing a used car. Another alternative would be to buy a used car from another state, though Alabama and South Carolina also have fairly weak used car laws. One could also buy a used car on the Internet. Under current Georgia law, the rules favor the dealer, so it might not be a bad idea to consult with an attorney prior to making a used car purchase. It’s better to be safe than sorry.

If you own a van, truck, or automobile you must protect your investment. Auto insurance will be expensive, but why pay a lot if you don't have to? InsureMe can provide a quick price quote from an insurance company in your area at a fair price.