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Chapter 1: A New Car Lemon Story New Car Purchase Contract Here are the details of Mr. and Mrs. Jones’s purchase: The purchase price was $32,000. The manufacturer gave a three year/ 36,000-mile bumper-to-bumper written warranty. Financing: Amount down = $5,000; Number of years on loan = 5; Interest rate = 6.75%; Monthly payment = $300. As is often the case in the real world, unforeseen things happen. The dealership could not install the alarm system when Mr. and Mrs. Jones bought their vehicle because it didn’t have enough units in stock. The dealer gave them a Due Bill for this incomplete action. The Jones’s Drive Home in Their New Car Date: 7/16 Mileage = 5 Your first new car! Living the American dream. When Mr. and Mrs. Jones drove away from the dealership in their new car, they were excited and proud. It was the American dream. As they approached the first red light, the vehicle’s Check Engine light came on and their brand-new SUV stalled. Imagine the disbelief, the bewilderment, the stress, and the blaring horns of those behind them! After the engine had been cranked far too long, it finally started. They drove home, not quite as happy, not quite as proud. They called the dealership the next day. The service department said it could schedule an appointment in two weeks. It was too busy to take the car.

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