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Ford Lemon Law Buyback and Refund Information

I was researching on Ford‘s Lemon Law statistics yesterday and stumbled upon an interesting article relating to Ford’s Lemon Law buyback and repurchase policies on vehicles. The attached Ford response occurred toward the end of 1995 and was sparked by a petition filed against Ford by consumer groups via the Federal Trade Commission.

In this article, Ford answers some questions regarding its buyback policies and compliance with various state lemon law requirements. The article reveals that in 1994, Ford pays its dealers (including Lincoln-Mercury) approximately $400 to $700 per vehicle repurchase or buyback. Of course, this figure may have increased now since it is currently well over a decade from 1994.

The article further states Ford’s denial against claims that it participates in lemon laundering. In the article, Ford admits that approximately 95% of its lemon law buyback or replacement vehicles ends up in auction, whereby it will later be re-introduced back to the stream of commerce and in the hands of consumers in the pre-owned or used car markets.

When asked how many vehicles are refunded or repurchased each year nationally, Ford refuses to disclose such information, citing confidentiality. In my opinion, it looks like Ford has something to hide…if Ford is so proud of the reliability of its products, then why be afraid to share this vital information? I say that the state of California and Texas, two of largest automobile markets in the US, push for stronger disclosure legislation and force Ford to disclose more information.

For the text of the article, go here… Download file

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