THE GOODS : Ways You Can Avoid Buying That Old Lemon

The only thing worse than buying a new car that turns out to be a lemon may be unwittingly buying somebody else’s old lemon.

But that’s exactly what the California Department of Motor Vehicles says Chrysler Corp. set up for motorists.

The DMV charged last month that Chrysler bought back 118 lemons from owners and then resold those cars through an auction house in the San Francisco area without following a state law that requires disclosure that a car has been repurchased for defects.

Chrysler is fighting the charges and has hired former DMV Director George Meese to help with its defense, says Bryan Kemnitzer, a private attorney who assisted the DMV in the suit. A company spokeswoman declined to answer any questions.

GM settled similar charges in April. Rosemary Shahan of the consumer group Motor Voters, which disclosed the DMV case against Chrysler, says the practice is rampant. Private attorneys have filed dozens of lawsuits in similar cases in California.

What can used-car shoppers do to protect themselves? Here are some suggestions:

* Most recycled lemons are cars that are 1 or 2 years old. If you are buying a 3- or 4-year-old car, it probably was not the subject of a lemon buy-back.

* Watch out for low-mileage cars sold on used-car lots described as an “executive car” or a demo car.

* Insist on seeing the service records. Even if those records include only oil changes, they will show who owned the car, the state where it was used. and the mileage at various times. By carefully inspecting those dates, mileages and locations, you will get an idea whether the car was in normal use, was serviced at regular intervals, and whether the odometer was altered. Be especially wary of out-of-state cars.

* Read every document you sign and ask for copies of all documents you sign. A disclosure statement on a past defect might be stuck in a stack of documents.

* If you suspect you were duped, write to the car manufacturer asking whether your car was a repurchase. Include the serial number. California law requires manufacturers to disclose this information, although they should have originally branded the title.

* Call the DMV. You can reach DMV Director Frank Zolin at (916) 657-6940.

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Update: The California Senate Appropriations Committee killed a bill to set up a statewide arbitration system to settle auto-defect disputes without requiring owners to file lawsuits. State Sen. Bob Presley (D-Riverside), committee chairman, is credited with leading its defeat.

* Your Wheels is published every other Friday.