Louie Maslinka found the car he was looking for at a Lake County auto dealer in January. He bought a black 1989 Firebird and plunked down another $1,000 for a bumper-to-bumper warranty.
A few months later, Maslinka happened to look in a pouch on the passenger`s side door. There, Maslinka said, he found a state-required buyer`s guide sticker showing that the car had a warranty before he bought one from the dealership.
”The car works pretty good, but I got ripped off on the warranty,” said Maslinka, a 24-year-old from Mundelein. ”I always thought in Wisconsin you had to have (a buyer`s guide) but not in Illinois.”
Maslinka`s experience may not be unique. A state survey released Thursday shows that more than half of the cars inspected on 33 dealer lots in Chicago`s suburbs-700 of 1,292 cars-did not have a federally required buyers guide on their windows. A guide tells a consumer whether the vehicle is being sold ”as is” or with a warranty.
The investigation of used-car rules, conducted by state authorities and the Federal Trade Commission, revealed what Illinois Atty. Gen. Roland Burris said was non-compliance with consumer protection laws at virtually all 78 auto dealers checked across the state Wednesday.
Statewide, 1,401 cars of 2,734 vehicles inspected lacked the buyer`s guide.
”Consumers have a right to know whether a vehicle is being sold with or without warranty coverage,” Burris said. ”They have a right to know that if a vehicle is being sold as is, that they will then be responsible for assuming the cost for any repair work.”
Suburban lots covered in the sweep by federal and state investigators were in Cook, Du Page, McHenry and Lake Counties, including new- and used-car dealerships in Zion, Waukegan, Highwood, Crystal Lake, McHenry, Niles, Highland Park, Morton Grove, Glenview, Tinley Park, Orland Park, Alsip, Oak Lawn, Chicago Heights, Crete, Harvey, Downers Grove, Hinsdale and Westmont.
Officials of the attorney general`s office declined to cite specific dealerships until they finished compiling the results of their sweep.
Burris said he was considering seeking civil penalties of $300 to $400 per dealer and up to $50 per vehicle for violations. FTC officials said the investigation, the largest ever undertaken by the agency to monitor compliance of its used-car rule, will result in federal court action only if Burris`
office cannot reach settlement on expected violations of state consumer protection laws.
”During our inspections, some interesting things happened,” Burris said. ”Personnel at some dealerships were seen attaching buyers` guides while we were there. Others had quickly attached guides before we arrived, apparently notified by other dealers that we were on the way. This is simply unacceptable.”
Specifically, the buyer`s guide tells consumers:
– If the vehicle comes with a warranty and whether it is a full or limited warranty.
– What components of the vehicle are covered by a warranty and the time period or mileage that the warranty is in effect.
– What percentage of costs the buyer must pay for parts and labor for repairs covered by a limited warranty.
– Or, it must state that the car is being sold as is, meaning the buyer is responsible for all repair work.
Nationally, the FTC has filed 50 cases resulting in $500,000 in fines over the last two years, said Steve Baker, director of the FTC`s regional office in Chicago. Eight cases in Illinois resulted in fines of $40,000, he said.
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”You hear a lot of good stories,” Baker said, ”everything from,
`Vandals just broke out all the side windows, and we just replaced them`
. . . to, `The employee who was supposed to put them up was fired last week.` ”
The rule has been in effect since 1984.
”Car dealers all know about the rule,” he said. ”This is no mystery to them. Part of these sweeps is to let consumers know to look for the buyer`s guide. I`ve had some consumers who thought that it just applied to used cars sold by new-car dealers. Some people just don`t know.”
Dealers across the Chicago area Thursday complained that the inspections could taint all dealers, most of whom are struggling amid tough economic times.
”Dealers are only thinking of surviving, making a living,” said Selim Kerimi, a 12-year veteran of selling used cars who currently works at A-1 Motors, 5670 S. Western Ave. in Chicago. ”They`re not into hurting customers.”
Kerimi said that the state supplies dealers with buyer`s guides but that it does not provide them with literature on their use or on the law.
Ruben Inocencio, 45, a used-car shopper on Chicago`s South Side Thursday, said news of the authorities` inspection surprised him because he always assumed he was buying at his own risk.
”In my mind, if you are buying a used car, they aren`t giving you a warranty,” he said. ”You have to take it as it is.”