Kristy, let me try to clarify this....
1) You have an obligation to educate yourself on any product you purchase. This principal in law is called "Caveat Emptor", which simply means "Let the buyer beware". This means that YOU have the responsibility to check the vehicle out and if it winds up being a POS (as yours sounds) that is YOUR fault. Now, this principal doesn't apply in the case of fraud, as in the dealer telling you things that are untrue. You make no mention of any claims made by the dealer as to the vehicles condition, so you simply allowed yourself to get taken and the dealer has no responsibility. I know that is hard to take... but it is the fact.
As pointed out by IAAL, you had the opportunity (in fact almost the OBLIGATION) to have the vehicle inspected by YOUR mechanic BEFORE the purchase. You apparently opted to not do that (maybe you will next time).
2) Now, lets look at the Ohio 'Lemon Law'.
Here is a KEY excerpt from the law:
"Section 1345.72
(A) If a new motor vehicle does not conform to any applicable express warranty and the consumer reports the nonconformity to the manufacturer, its agent, or its authorized dealer during the period of one year following the date of original delivery or during the first eighteen thousand miles of operation, whichever is earlier, the manufacturer, its agent, or its authorized dealer shall make any repairs as are necessary to conform the vehicle to such express warranty, notwithstanding the fact that the repairs are made after the expiration of the appropriate time period."
Here is a link to the Ohio AG's site on Lemon Law:
http://www.ag.state.oh.us/agpubs/lemonlaw.htm
In reading the Code, it is clear that a claim must be made to the ORIGINAL manufacturer (not your used car dealer) within 12 months of delivery or 18,000 miles, whichever is earlier. So, unless your car meets the time/mileage requirement, you have no protection under the Ohio Lemon Law.
Now, lets get back to your questions:
Q1) "The dealership I went to is a buy-here-pay-here lot as well as a financing lot."
A1) That should have set your alarms off!! These types of car lots are the source of every 'car salesman' scam in the world. In fact, if you were to check the titles of the cars on their lot (at least the ones that are titled) you will probably find that most of the cars are 'repeats' (sold, then repo'd, then resold, etc.).
Q2) "The first car I bought was crap. I spent half of the car's worth in repairs. I finally had enough and they got me approved for financing a newer car."
A2) If you had any alarms at all, they should have been screaming by now. The dealer sells you a POS and you return for more!!! Why didn't you run, no walk, away from this dealer... you already knew what he was???
Q3) "This car is proving to be crap too."
A3) Should we be surprised here?? Not!!
Q4) "I have had it less than a month and it won't start, there is knocking noise when I turn, the brakes pulse, and the driver's side seatbelt stopped working."
A4) Not only does the lemon law not apply here, but unless the seller gave you some type of warranty, his liability ended the minute you turned the key in the ignition!!
Q5) "They claim they can't find anything wrong. When I threatened that I took it to a Saturn dealership and they gave me a printed sheet of all that was wrong, they started to panic. Just talk to the owner, the mechanic said and we can see what we can do."
A5) Personally, I doubt that they 'started to panic', since they have ZERO liability to you. Sorry, but you probably misunderstood their laughter as panic.
Q6) "I spent $75.00 to find out what my dealership said wasn't a problem, was a problem."
A6) That $75.00 would have been better spent having a mechanic look at the car BEFORE you purchased this 'trot line weight'.
Q7) "Also, the price they sold me the car at was over $1000 the book value"
A7) Sorry, you got this one reversed. You should have said, "I agreed to pay $1,000 more than I should because I hadn't researched ANYTHING when I walked in". And the dealer has NO obligation to any sales price... book or otherwise. His only obligation is for YOU to pay as much as you will for his car... and he succeeded.
Q8) "and they lied on my application. They are telling other customers that I lied when it was them, they are tainting my reputation."
A8) How did they lie?? What actual damages have you suffered from this?? Who did they tell this to?? How was your 'reputation' before you did this 'deal'??
Q9) "I have contacted the BBB but have not heard back yet."
A9) Sorry, but they are probably laughing too hard to call you back. Give them some time to calm down first.
Q10) "What are my rights? I'm pissed!"
A10) You have already exhausted your 'rights'. You had the right to be a knowledgable buyer (and didn't). You had the right to have the vehicle inspected (and didn't). You had the right to walk away because their price was too high (and didn't). You now have the obligation to pay for your errors... or suffer the consequences of breach and possible repossession. And guess what... that same car will be back on the lot a few hours after it is repo'd!!
Now, to your later post:
Q11) "You said that the Lemon Law would only apply if the vehicle was still under warranty, it is still under warranty."
A11) Maybe, but do you qualify under the time/mileage requirement.
Q12) "Also, would I be wasting my time and more money if I did a check on the vehicle?"
A12) After the sale, yes. Should have done this BEFORE signing the agreement (contract).
Q13) "There were eight records I found that would tell me if this car was in a major accident or had major work done to it, before I bought it. Isn't the dealership supposed to inform you of these things by law?"
A13) No. The dealer has NO obligation to tell you these things..... unless you ask. Did you?? If you did and the dealer says, "Honey, don't you worry... this is a cherry car", be sure to get him to put that in writing.... and to have the authority to do so!!
Q14) "What about the slander issue, can I do something about them lying to other customers about me?"
A14) See A8. And, if you do think you can go after them.... reality check!!! You will need a few thousand dollars to hire an attorney (no one would take this one on contingency!!), then wait a year or more while this wends its way throught the system, only to have the judge laugh and say, "Case dismissed due to lack of sufficient evidence and proof of damages".