Consumer

Are You Driving A Wreck?

Tens of thousands of drivers around the country didn't know at the time that the used car they were buying had previously been wrecked

Pittsburgh (KDKA) ― Rob Maher says it was love at first sight when he spotted the red 2001 Honda Civic on the used car lot.

Though Maher thought his first car was a good deal at $14,000, he now feels differently. "I don't want it," says Maher. "It's a salvage car."

Maher is one of tens of thousands of drivers around the country who are now finding out that the used car they bought had previously been wrecked.

According to a letter from Pennsylvania's attorney general, State Farm declared the car a total loss before Maher bought it; the company then resold it without the salvage or branded title as required by law -- allowing someone to repair and re-sell the vehicle to an unsuspecting buyer.

As KDKA Consumer Editor Yvonne Zanos explains, State Farm says it made a mistake that dates back to 1997 and involves over 32,000 vehicles.

Bob Beaves says he would never have allowed his son to buy a salvaged vehicle and he can't believe the 'take it or leave it' deal the state is offering on State Farm's behalf. In his case, the state is offering $2700.

"You bought a car that you thought was a cream puff, you paid top dollar for it," Beaves adds, "and now they are telling you you have to turn in a clean title and take a branded title in its place."

Consumers say State Farm won't tell them why their car was totaled in the first place.

Attorney Susanne Kimberland warns that taking this deal could be a bad move for consumers.

"These people did not get the value of the vehicle they paid for," explains Kimberland. "Their insurance premiums are based upon the value they paid for the vehicle. They are having other issues with warranties, inspections and to top it off the attorneys general have made an agreement that would actually limit their possibility of recover."

Essentially, she warns, by accepting the deal, consumers are giving up their right to sue.

State Farm could not be reached for comment, but the insurance company did report its eight year mistake to attorneys general around the country.

While State Farm has also promised a $40 million settlement, there are no promises on individual payments until after consumers sign the deal.

Click on the following links for more information:

State Farm Salvage Title Lawsuit Lemon Law Attorneys Kimmel & Silverman

"Before buying a car, print out the 'Lemon Dodger' to help you avoid problems BEFORE they occur," Kimmel & Silverman