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FirstGT
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- Joined
- Mar 13, 2017
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- Ingot Silver '18 GT 400a PP1
They get resold
offroadkarter
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- 2016 Mustang GT PP
they get fixed, or "fixed", and re-sold.
Cobra Jet
Well-Known Member
If a Ford Buy Back occurs in a State where a vehicle and its title are branded a Lemon, some States will not allow the resale of a Lemon by law.
Ford’s way around this is to use a closed auction process - pick up the vehicle, move it to a State where it can be resold, repair it and throw it on a Ford Dealer lot. After a Lemon is initially taken back, is when it goes to auction, but must be bought by a buyer from a different State IF it cannot be sold in a State that prohibits the sale or resale of a Lemon’d vehicle.
For those that don’t know, Ford also gives the Dealership who is facilitating the initial Lemon transaction money for taking the collateral back.
Ford is not loosing money on RAV Buy Backs.
Abomination
Well-Known Member
Yup, I'm a car dealer. See them at the auction, they are branded as "lemon law" cars
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Briebee72
Well-Known Member
yeah but can't they then be sold to third party car lots where they are sold as is no warranty? thus just sticking some poor sucker on a junk car. they dont have to disclose its a lemon car on a used mom and pop lot do they?
Abomination
Well-Known Member
Yes, but new car dealers buy them too. They are just normal cars. 99.9% of the time the dealer just didn't have a good enough mechanic to fix it. It will always be some tiny nightmare issue, some random ground wire touching when you hit a bump, while turning, at 45 mph etc. Any obvious or large issues would be caught and fixed already. Buying one from a reputable dealer with an extended warranty well below market value might be a good idea to some people.
There is a nationwide dealer called autosource (they are huge) and all they sell is repaired salvage, frame, flood, tmu, lemon law, etc cars.
The quote above is out of context and sounds Machiavellian but its not. All ford lease returns can only be bought through ford by ford dealers, if they don't sell there they go to a dealer auction. Every manufacturer I've ever worked for is exactly the same.
And fyi all states allow resale of all cars, including lemon law vehicles. There are laws on disclosure that vary in every state.
There is a nationwide dealer called autosource (they are huge) and all they sell is repaired salvage, frame, flood, tmu, lemon law, etc cars.
The quote above is out of context and sounds Machiavellian but its not. All ford lease returns can only be bought through ford by ford dealers, if they don't sell there they go to a dealer auction. Every manufacturer I've ever worked for is exactly the same.
And fyi all states allow resale of all cars, including lemon law vehicles. There are laws on disclosure that vary in every state.
CORNYOTE
Well-Known Member
I bought a “lemon” 2011 Dodge Ram diesel. A $50k truck for $26k because the first owner claimed the brakes were faulty. Never had an issue with the truck. Not one. 160k miles later and still one of my favorite vehicles.
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