Originally Posted by prdaga
I am looking to purchase a 2005 E320 and during my research i found that there is some great deals on dealer buy back vehicles. The sellers are stating that the problem that the dealer bought it back for is repaired. Would this be a smart purchase or it would come back to heart me when i go to sell the vehicle? Does anyone have experience with this?
Oh, yeah. Me. There is a reason they are cheap. I bought a brand new 2001 Volvo C70 turbo coupe, on 12-29-2000.
We were the FIRST people who drove it, it only had 7 delivery miles on it. We saw it when it first got to the dealers, it still had the styrofoam plastic on the body panels from the boat. It was brand new. It cost about $39,000.00 loaded at a dealer in California.
Firemist red with gray leather interior.
But it was a lemon. The windshield and dashboard squeaked, and we took it back over and over, the dealer could not fix it, took the dash apart, replaced the windshield, a couple of times, and then the car leaked water when we wahed it too. Infairness, the dealer subbed the windshield job out to different glass installers, but that was THEIR choice to do it lie that. It became VERY apparent we had a lemon. I documented EVERY trip to the Volvo dealer, made notes of every phone conversation, insisted a new repair order be opened with date and mileage stated, (so the dealer couldn't simply open ONE repair order and keep it open) because in California, for the Lemon Law to kick in on a new car, if you take it to the dealer FIVE times for the same problem and they STILL can't fix it, it is automatically eligible for the LEMON LAW dealer buyback.
Usually, they fight like crazy to avoid the buyback, but after a year of this, they couldn't fix anything, we hired a lawyer for $2000 who specialized in Lemon Law,
so we did not have to worry about taking another new Volvo, from the dealer, we just wanted to get rid of the car forever. Too bad, it only had 7700 miles on it, and we kept it as best as we could, always garaged, iit still smelled new. This in spite of the incompetent dealer, who kept returning it to us, with coffe stains on the console, grease on the doors and dash, and foot scuff marks on the door panels, rental loaner cars that got flat tires, what a nightmare it was....
The lawyer got us a pretty good deal, the purchase price returned, less the mileage we put on it deducted at 20 cents a mile, (the dealer/Manufacturer only wanted to deduct 30 cents a mile but the lawyer fought well)
We settled it without going to trial in about February 2002. The car STILL leaked water when it was washed, and still made squeaking and cracking noises in the windshield, it was fixed. The manufacturer's rep. met us in San Francisco, and said he' had never seen a buy back car that new looking, it still had a new car smell inside, and we went to a Volvo dealer and the manufacturer took back the car there, we signed the title over to them, gave him the keys, and got our money back. We never saw the car again.
I asked the manufacturerer what would happen to the car, and he said the SF dealer would be allowed to bid on it to resell it as a used car if he wanted to, but the California would be branded forever as a LEMON LAW - Buyback car (and show up on CARFAX as such. However the car had expired license plates on it, I knew by the time they were to be renewed the car would soon be bought back, by the manufacturer, so I did not bother to pay them (and didn't drive the car anymore.)
What happened to the car after that?
Believe it or not, I found out. the SF dealer did not buy it, wanted nothing to do with it. Volvo North America headquarters is in Montvale, NJ, and that August I was surfing ebay, and low and behold, there was my Lemon Volvo on ebay, for sale by a NJ used car dealer that was close by the Volvo HQ in New Jersey. dealer. It was the same car because the serial number matched my car, and the ebay pictures included the page of the maintenence booklet stamped by the mechanic I had taken the car to for the 5,000 mile service to in San Francisco.
The ebay used car dealer in its ebay description said that it bought some of its cars as manufacturer buyback cars from makers such as Volvo.
What was interesting was the Lemon Law paperwork that the statement signed by Volvo (a picture of it was included in the ebay auction) said : Reason for buyback: Customer complained that car vibrated at speed, problem could NOT be replicated, car bought back as good will (or something to that effect, as I recall). VOLVO NA lied on the buyback statement: The real reeason theyy bought it back because the windshield and dash squeaked and made cracking noise and it leaked water into the interior when the car was washed, and the car could never be fixed.
Did they fix it at Volvo HQ before they sold it to the Jersey used car dealer? I don't know.
But I followed the auction, and this one year old car with 7700 miles on it, with an MSRP of $42,000 (that I paid $39,000 for new, and kept garaged and in mint condition) sold in the auction for $24,000.
So IF the car was fixed perfectly well, that's $15,000 off the price for a low mileage one year old car.
BUT.........the car will have a LEMON title on it forever, (unless some clever later buyer takes it to another state and "washes" the title, which somtimes can be
done, and then resold with a clean title,,,,
AND on the other hand, maybe the squeaks, noises and cracking sounds can never be fixed and the car (we had named it "Camille") still might leak.
A lot of these "LEMON LAW buybacks" can be bought used VERY cheap, but they come with LEMON branded titles which show up forever on the paper work, and on CARFAX, and make the car worth a LOT less in resale.
And usually the dealers and car makers fight like hell to avoid buying back a new car, because they lose a lot when they do, so chances are pretty good that a lemon law buyback car REALLY is a lemon.
And in my case, the manufacturer misrepresented on the Lemon Law paperwork to the dealer they sold the car to, just how bad of a lemon it was. As you can see, I stumbled onto the proof that it could really happen, and in this case, it did.
You can run a CARFAX on this car yourself, if you would like. I stillhave the information.
2001 Volvo C70 HPT turbo coupe, Firemist red, VIN#YV1NK53D81J026072
12-11-00 Shipped from US Virgin Island to Port prep center, Port Hueneme, Calif.
12-29-00 Sold to first owner
05-06-02 7733 miles repair order. (This was mileage at buyback)
To conclude, it is a gamble you take to save money, do you want to do it?