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At least two manufacturing defects are found in the average new car within the first 90 days after purchase.

Although manufacturers' warranties are designed to correct these problems for free during the warranty period, consumers are often dissatisfied with the warranty process. This stems primarily from a dealer's failure to cooperate in working on the repairs or in successfully repairing the defect. Also, most manufacturers do not sell new cars with full warranties but only with warranties for specific parts for a limited duration.

Dealers for most car makers are required to perform repairs covered by warranty for all cars of that make no matter where the car was purchased. The more obvious the defect and the easier it is to fix, the less resistance you're likely to encounter from the dealer. For example, it's hard for the service manager to argue that dangling wires are normal. If it's a judgment call, however, watch out. A distorted windshield may look "just fine" to the service manager.

Warranty work is often less lucrative for the dealer than ordinary repairs, since the factory may not pay the dealer for time spent diagnosing a problem or for clean-up. Nor does the factory pay for minor adjustments. However, that's the dealer's problem, not yours.

Mary noticed a problem with her brakes less than 90 days after she bought a new car. Whenever it rained and she applied the brakes hard, she heard a sharp piercing noise. Mary visited the dealership where she bought the car and complained about the problem. She took along a friend to confirm the problem and to witness the dealer's response. The car was repaired under warranty, and the problem was corrected within two days at no charge for parts, labor, or service. Additionally, Mary requested and was given a replacement car for the two days the car was being inspected and serviced.

If you have difficulty obtaining satisfaction under your warranty, follow these steps:

1.  If the dealer refuses to make a needed warranty repair without charge, call the nearest factory zone manager listed in your owner's manual. Ask for a representative to meet with you and the dealer's service manager. If the problem affects safety, have the repair made immediately, even if you have to pay, and argue about the refund later.

2.  If you don't get satisfaction from the zone office, send a certified letter to the manufacturer's headquarters or main office (or, with an import, to the distributor). Describe the problem briefly; explain what the dealer has offered and what you think should be done.

3.  If the letter fails to get results, consider suing the dealer or automaker in small claims court or through your state's lemon law arbitration proceeding or Better Business Bureau (see Chapter 7).

A secret warranty is a manufacturer's warranty extended beyond the initial warranty period to cover all or part of a specific repair when a component has a high failure rate. It's a secret because the automaker doesn't notify car owners of the extended coverage but merely makes it available to those in the know.

If you think your car troubles might be the result of a defect, first contact your dealer's service manager or customer-service representative. Keep all records of repair work done on your car. If you don't get satisfaction, contact the nearest factory regional office or the manufacturer's home office.

To get information on secret warranties, write to the Center for Auto Safety, 2001 S Street NW, Washington, D. C 20009. The center is a clearing house for automotive complaints. By cataloging owners' complaints concerning different car models, buttressed with information provided by the automakers own dealer service bulletins, the center can tell you if your car's troubles are commonplace and if they are eligible for free repair by the dealer.

Inquiries to the center should include a self-addressed stamped envelope; the make, model, and year of your car; and a description of the specific problem you're experiencing.

In most states, legislation called "lemon laws" attempts to provide consumers with a refund or replacement when the manufacturer is unable, within a reasonable time, to remedy a substantial defect. Used in conjunction with private arbitration as a dispute resolution mechanism, these laws have helped some consumers receive relatively quick, inexpensive, and informal relief

Some of the key features of lemon laws include offering state-certified or state-sponsored dispute resolution, expanding the scope to include leased and used vehicles, increasing the length of the warranty coverage, and reducing the number of repair attempts that qualify a vehicle as a lemon. Some laws also cover commercial vehicles, trucks, and motorcycles. To understand the limits and extent of protection, check your state law.

The majority of state lemon laws force consumers to use the manufacturer's informal dispute resolution mechanism before proceeding to court. These include the Ford Consumer Appeals Board, Chrysler Customer Satisfaction Arbitration Board, Better Business Bureau (BBB) AUTOLINE, and National Automobile Dealers Association AUTOCAP. If you prevail, you will usually be entitled to a refund of the purchase price or a replacement vehicle. (Attorney fees are specifically provided in most states.)

To begin the process, file a form to describe the problem. Your automobile dealer then comments and/or defends the charges in writing. After you have notified the manufacturer of the problem covered by the lemon laws, he or she must make reasonable attempts under particular state laws to repair the vehicle within reasonable limits.

Boards are made up of one or more arbitrators who base their decisions on written statements from the parties involved, testimony at hearings, and physical inspection of the auto. It takes about two months from the date a complaint is received to the date a decision is rendered. The average cost is around $350. Finally, most states allow consumers to file private lawsuits if they are unable to resolve the matter through arbitration. If you cannot afford a private lawyer, speak to your local legal referral service or Legal Aid Society or contact your local Better Business Bureau or state attorney general's office for help.

1.  Choose the proper avenue of arbitration. Dealer arbitrations, such as the Ford or Chrysler programs, are available. In AUTOCAP arbitration, you can usually speak directly to an arbitrator (who may try to settle your matter before the hearing). The BBB AUTOLINE is an alternative.

2.  Carefully read all the information on whatever arbitration program you select. You can get literature from your dealer, manufacturer, or your local BBB or department of consumer affairs. The BBB can answer questions and provide an arbitration agreement that states how the arbitration will proceed and what will be heard. Sometimes the BBB helps prepare your case and discuss your options. For example, do you want a refund or a comparable replacement vehicle? An in-person hearing or only a written presentation? Where do you want the hearing to be conducted? They can also show you how to fill out the forms properly (vehicle identification number, description of defect, redress sought, and so on).

3.  Prepare for arbitration. To prove your purchase and damages, you have to submit:

   • the contract of purchase and/or financing agreement on the amount of your down payment and number of payments made

   • documentation of all attempted repairs within the time period designated in your state's lemon law

   • routine and warranty maintenance previously performed (to show that the car was not misused)

   • your warranty contract (if any)

   • service bulletins that list defects that are under warranty (Be sure to request these.)

   • any other correspondence to help your case

   Organize this information chronologically. Present all records indicating whom you spoke with about the defect, when and where, and make copies of all letters of protest sent.

4.  Have witnesses testify on your behalf You can present signed and notarized affidavits or request that the witness accompany you to the arbitration (this is usually better). If an important witness, such as a neutral mechanic who examined repeated repair attempts, refuses to go, he or she may be subpoenaed by the arbitrator. You will probably have to give the opposing side the names of all witnesses you intend to call to avoid surprises.

5.  Be businesslike. Present your case directly, and answer all questions. Almost any kind of evidence can be presented provided it directly pertains to your case. Do not overburden the arbitrator with emotional rhetoric.

6.  Attend all prehearings with the opposition. This can help you size up your opponent, and you maybe able to agree on certain parameters before the hearing, such as procedural points.

7.  Know the major provisions of your state's lemon law. These laws define language such as "reasonable opportunity to repair." Knowing the technical aspects of the law will help you respond when the opposition claims it honored its side of the bargain.

8.  You can amend your presentation even after initiation of the case. For example, you have the right to review all the materials presented by the other side, clarify points, and respond to ambiguous statements for the record.

9.  If you feel the arbitration was mishandled or that incorrect information regarding your particular arbitration program was furnished to you, contact your local consumer's protection bureau or the FTC for advice.

10.  Speak to an attorney if necessary. You can retain the services of a knowledgeable attorney to assist you in all informal and formal stages of the arbitration if desired.