car buying and arbitration clause

[paul123]

Anyone buy their car with arbitration clause? Seems I did :shrug: I was rather hasty in my car purchase, and after burning a couple of hours at the dealership, and going through a tedious stack of papers, this gem got dropped on me near the end of the process, and I hadn't given it any thought beforehand. They gave me the slick sales "this is the standard now" and "everyone is doing it", and "we can't sell you the car if you don't sign". I don't envision a Lemon Law / sue situation but I am little annoyed at voluntarily giving up my rights, particularly if it was avoidable. Any potential impact on Lemon Law?


http://www.consumerreports.org/cro/...our-right-to-sue-without-knowing-it/index.htm
Are you giving up your right to sue without knowing it?
When you buy, you may be agreeing to arbitration terms that tip the scales against you
Last updated: March 12, 2015 02:30 PM

Limited rights
The clause said that the parties agree to use arbitration as the exclusive method to settle any claims, including those involving consumer fraud, Lemon Law, and Truth in Lending.


No class actions

Preliminary survey results by the Consumer Financial Protection Bureau show that *almost all mandatory, binding arbitration agreements for financial products and *services, including credit cards and checking accounts, bar class actions

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[stoli]

Without seeing the agreement you signed, it's impossible to speculate on what you agreed to.

 

[paul123]

Without seeing the agreement you signed, it's impossible to speculate on what you agreed to.

even I don't want to read what I signed. :faint:

It's been a long time since I have bought a new car. And I must have researched everything except this.

highsight is 20/20 but I think in realm of new car buying:

no arbitration clause >> arbitration clause

more rights >> less rights

 

[Iceman2733]

I have bought two new cars in the last year and I never signed anything to the such with either purchase.


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[cyberbro]

I belive all lemon law proceedings are via a arbitration anyway. I had one car (VW) go back because of the lemon law and we had to go to an arbitrator or maybe thats just New York. It's not a big deal.

 

[TruBlue16]

Sounds like you should've walked out the door before signing that. :doh:

http://www.autoissues.org/arbitration.htm

 

[skytop1]

Remember, you have NO OBLIGATION to purchase from a difficult, slick, oily dealer!

You strongest negotiation tactic is to USE YOUR FEET and walk out. Never stay in a dealer very long if they are being difficult.

Also, ONLY go into a dealer on a snowy or a rainy day. Try to deal with a GM or a very senior sales manager. You are wasting your time with 'junior' salesman.

 

[Jackie Chan]

Id venture to guess that almost every new car dealer in Florida has an arbitration cluase on the retail purchase order. Pretty standard stuff.

 

[Falconetti]

Id venture to guess that almost every new car dealer in Florida has an arbitration cluase on the retail purchase order. Pretty standard stuff.

I say most would, arbitration is a much more low key way for a business to handle disputes and easier and quicker in my opinion.

 

[ColdShotxx]

If I remember correctly, you can't inadvertently waive your rights of liability, even a signed document, under implied warrenty(of merchantability) laws. Also, arbitration isn't necessarily a bad thing for a consumer either.

 

[Flak]

Good luck finding companies that won't use arbitration clauses. Also, good luck trying to recoup your money by suing even if you don't.

I'd rather take my chances through arbitration in most circumstances. You're pretty much screwed either way, though. Everyone uses boilerplate contracts and they're going to tell you 'no deal' long before they let you renegotiate terms for something like buying a car.

 

[paul123]

Noob mistake

I will call around to some other car dealers and see if arbitration is standard operating procedure. If not, I won't make this mistake again. Assuming I don't forget

 

[Blk2015GT]

Most states require lemon law arbitration.

And I've heard all the "internet crap" from watchdog groups about oh dont sign anything with arbitration as the arbitrators are hired by the dealership and dont want to lose their business so side with them. The typical tin foil hat nonsense.

At least here in FL you request arbitration for lemon law which is heard by a 3 member panel of the New Vehicle Arbitration Board, those people being appointed by the Attorney General. It is binding and arbitration you are allowed to introduce evidence, testimony, etc just like a case. Here in the FL the Board may even drive the vehicle themselves. So they take it pretty seriously.

Arbitration will be MUCH cheaper for you. Sure you can do it yourself or hire a lawyer and bring your experts; it will cost you some money but it's one hearing and done; not 3 years of litigation by the hour. Realize to sue Ford being as big as they are you are talking an EASY $10-20k retainer plus hiring experts.

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