Lemon laws protect consumers from cars with defects and unfixable issues. But what many people don’t know is that these cars, also referred to as “lemons,” often end up right back on the market.
In a recent video, TikTok user @jrodsellscars, a dealership worker, pulled back the curtain on this practice, revealing that reselling these cars is entirely legal.
“So I just tried to sell my customer a lemon, and they didn't go for it. Now before you guys start spazzing on me, dealerships are legally allowed to sell you lemons,” he said at the beginning of the video.
Did he try to sell a customer a lemon?
Manufacturers receive lemons, also known as "buybacks," from customers who return them due to a wide variety of recurring defects. This particular buyback, he explains, came back due to a "radio concern," although he demonstrates that the radio seems to be working just fine.
However, he reveals a major catch with selling lemon law buybacks: Limited financing options due to the risk-averse nature of lenders. "There's very, very limited banks who will finance them," he explains, naming Ally as one of the few popular banks willing to approve loans for lemons. As a result, this limited financing pool leads to high interest rates—in this case, a staggering 19%.
"No, we didn't run credit, but I at least wanted to show him what 19% looked like on paper before we got into anything else," the car salesman notes in the video. "And unfortunately, obviously, that's where I lost him. He didn't care that the car was a buyback lemon from the manufacturer. He didn't care about anything. It was just that rate."
Viewers are critical of car dealers that sell lemons
Posted on Oct. 23, @jrodsellscars’s video has so far accumulated over 31,100 views. In the comment section of the video, many users scoffed at the idea of buying a “lemon."
"Why would you sell a customer a lemon, bro? That's messed up," one user commented.
"If it's a lemon, why is the interest rate so high?" a second asked.
Another user, claiming to be in the industry, added, "I sell at a dealer that sells majority buybacks. 70% at least."
One viewer said they’d consider purchasing a buyback “If it made sense.”
How to avoid buying a lemon
While buying a car labeled a lemon doesn’t always mean it’s a bad purchase, there are steps you can take to reduce the risk of ending up with one. LendingTree recommends always asking for a Vehicle History Report (VHR) which will provide basic information about the car’s history.
Their article further states, “Some private companies like AutoCheck or Carfax may provide additional information, such as accident and repair history.”
@jrodsellscars Would you buy a lemon ??? #carsalesman #jrodsellscars #approved #dealership #carbuyingtips
♬ original sound - Joseph Rodriguez
The Daily Dot reached out to @jrodsellscars via TikTok comment.
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