I don’t want to get this thread too off topic and turn it into a legal thread, which could be helpful, but maybe best we start a different thread.
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But it doesn’t make sense that simply filing an action will reflect negatively upon the dealer/manufacture
Agreed.
I didn't say that simply filing an action would reflect negatively. I said that starting a claim AND having a subsequent buyback (even if there is no judgment - i.e. even if it is "settled") could reflect negatively. If the particular state's lemon law is written to be the most helpful to the consumer.
In other words, there are (at least) 2 ways a LL could be written.
Version A) Nothing negative happens to the manufacturer until there is a judgment (from a court or arbitration) against the manufacturer. So, if the consumer starts a claim, works through the process for, potentially, months, possibly paying a lawyer the whole time, and then just at the end, the manufacturer says "okay, we'll just go ahead and buy it back", then there is never a judgment against them, so they probably end up buying back every lemon with almost no negative marks.
Version B) If a person starts a Lemon Law claim, then if the manufacturer ends up buying the vehicle back (whether the buyback is voluntary or mandatory) the title is noted as a Lemon. So, if you presume that a particular vehicle will qualify as a lemon under the state's law, then the only way for the manufacturer to prevent getting a negative mark is to make sure the customer never goes as far as starting the LL claim process.
I don't know how every state's law is written. But, my experience in FL was that Ford handled my situation as if it was Version B of the law.
If a person is in a state with a Lemon Law that is like Version B, then starting the LL claim process means they are shooting themselves in the foot. At that point, they have given away all their negotiating power, because no matter what happens after that, if the manufacturer does a buyback the manufacturer is taking the maximum damage. So, in a case like that, by starting the process at all, the consumer has put the manufacturer in a position where the manufacturer only has 2 options: Fight the LL as hard as they can. Or, somehow convince the consumer to keep the vehicle. Once the paperwork is filed, the manufacturer has zero incentive to do anything more than the absolute minimum that the law requires.
Anyway, we're splitting hairs.
I won't make blanket statements about how Lemon Laws work in every different state. But, I will make the blanket statement that, if you are contemplating starting a Lemon Law action, you should talk to your dealer and/or a manufacturer's rep first. Do everything you can to make a deal before you start the action. If they won't play ball, then start the claim process and stick it to 'em hard!