New-car buyers file fewer 'lemon' claims
| • | Table: Lemon law complaints, 2001 |
By Shayna Coleon
Advertiser Staff Writer
New-car buyers in Hawai'i filed fewer "lemon law" complaints against automakers in 2001, according to a state report issued yesterday.
The 49 complaints in 2001 marked a 10 percent reduction from the 55 complaints in 2000, said the state Regulated Industries Complaints Office.
Of the 49 complaints, 24 consumers received refunds or replacement cars, 13 reached settlements with carmakers, and 11 complaints were ruled in favor of the manufacturers. One complaint was withdrawn.
A total of $407,068 in refunds and four new vehicles were awarded.
"The number of lemons are dropping every year," said Dave Rolf, executive director of the Hawai'i Automobile Dealers' Association. "Cars are becoming more reliable and the quality is so much more improved because all the manufacturers have focused on that. There are also longer warranties on vehicles."
Hawai'i's lemon law, enacted in 1984, protects people who buy or lease a new car during the first two years or 24,000 miles, whichever comes first. The law says a vehicle is a lemon if it needs repairs three or more times for the same major problem while still under warranty or has been out of service for 30 days during the warranty period.
If the state upholds a complaint, motorists receive a refund or a replacement equivalent to the original vehicle.
"It's not a dramatic change from last year, but it's still nice to see the complaints fall," Rolf said.
The report showed General Motors Corp. continued to lead the percentage of complaints filed with the state, at 31 percent, even though its vehicles represented only 22.3 percent of the Hawai'i market.
Two companies, Honda and Ford, had fewer complaints in 2001. Honda had two complaints, down from 10 the previous year. Ford Motor received only seven complaints in 2001, compared with 12 in 2000.
The report is done yearly as a service to consumers, said Jo Ann Uchida, complaints and enforcement officer for the Regulated Industries Complaints Office.
"We encourage customers to review our annual lemon law results when purchasing a new motor vehicle," Uchida said.
Rolf said that while better vehicle quality explains part of the drop in complaints, the industry also sold fewer cars in Hawai'i last year.
New car sales fell to 51,521, down 1.8 percent from 52,456 sold in 2000, Rolf said.
Reach Shayna Coleon at scoleon@honoluluadvertiser.com or 525-8004.
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