Chapter 13 Lemon Laundering

Laundering is the act of taking something dirty and making it clean. Money received from the sale of illicit drugs is frequently laundered to make it appear as though it were legitimately earned. It is an illegal activity and carries heavy penalties.

Once you get rid of your lemon, the last thing you want is for someone else to be stuck with it, having no idea that it is a lemon.

By now you know what a lemon is. You may even be driving one. In chapter 10, you learned that a manufacturer must either repurchase your lemon or replace it with a comparable vehicle. Either way, the manufacturer is stuck with a car that has been through numerous failed repair attempts. The vehicle may be entirely unsafe to drive.

It can hurt them, perhaps permanently.

The vehicle is retitled in the name of the auction company, and then retitled again in the name of the dealership—often from yet another state—that purchases it at auction. In the process, any notation that was once on the title disappears. The title to the car has been washed or laundered. The dealership at the end of the chain then sells the lemon as an ordinary used vehicle to some unsuspecting buyer.

What’s covered in the rest of the chapter?
Chapter 13 discusses the practice of turning a lemon into clean pre-owned vehicle. Find out what you can do.

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