Auto dealers say lemon law may backfire on consumers

Thursday, Nov. 13, 1997 | 9:21 a.m.

The law, passed late in the 1997 Legislature, requires cars with more than 75,000 miles to be inspected and any defects disclosed to prospective buyers.

If the DMV finds a dealer has violated the law, then the dealer will have to offer warranties - ranging up to 30 days - for all their vehicles with more than 75,000 miles.

Russ Benzler, chief investigator for the agency's Bureau of Enforcement, says the law will "address the horror stories" told to the Legislature, such as car engines blowing up within blocks of leaving the lot.

"The intent is not to represent a vehicle as a cherry when it's a dog," he added.

But Don Hellwinkel of the COD Garage in Minden says the law will reduce the price paid for trade-in vehicles and inflate the purchase price of used car.

"The little guy is going to be hit," Hellwinkel said following a workshop held Wednesday in Reno by the state Department of Motor Vehicle and Public Safety on proposed regulations based on the new law.

A similar workshop is scheduled for Las Vegas next Tuesday in Las Vegas, and two more hearings will be held in January before the rules take effect.

Dante Frascq of Jones West Ford said one rule would require engines to be torn down, a job that would take five to six hours. That section says the crankshaft, lifters or push rods must be identified as the reason for any knocks or misses.

And Frascq complained a required compression test would require another one to two hours. He suggested the customer be told there is a knock in the engine but not require the dealer to identify the cause.

James Bayus, used car manager for Champion Chevrolet, said that to check for some leaks, as required by the proposal, would mean steam-cleaning the motor and doing dye tests.

"If you factor in all the costs, this will kill the value of the car and the value of the market," Bayus added.

Dolly Volini of the Nevada Franchised Auto Dealers Association urged the state agency to soften its inspection requirements. She suggested it only require "a reasonable inspection," which would include a visual inspection of the vehicle, a test drive and safety and soundness checks.

She said the department should take an "incremental step" rather "than taking a giant leap to fix a problem that involves only a small niche of the industry."