Lemon Law Guide: Getting Rid of Defective Vehicles

A new car that spends more time in the shop than on the road isn't just frustrating - it may be a "lemon" entitled to a buyback or replacement. Every state has lemon laws protecting new car buyers, and some cover used vehicles too. The Federal Trade Commission provides guidance on vehicle warranties and lemon law protections. Here's how to exercise your rights.

Attorney Fees Covered: Most lemon laws require manufacturers to pay your attorney fees if you win. This means you can often get representation at no out-of-pocket cost.

What Qualifies as a Lemon

Basic Requirements

  • Substantial defect covered by warranty
  • Defect impairs use, value, or safety
  • Reasonable number of repair attempts
  • Defect not caused by abuse or neglect

Repair Attempt Standards (Vary by State)

  • 3-4 repair attempts for same defect
  • 1-2 attempts for serious safety defect
  • 30+ cumulative days out of service
  • Some states use combination

What Counts as a Defect

  • Engine or transmission problems
  • Electrical system failures
  • Brake or steering issues
  • HVAC malfunctions
  • Water leaks
  • Computer/software problems

Time Limits Apply: Most lemon laws only apply within the first 1-2 years or 12,000-24,000 miles. Document problems immediately - don't wait for it to "get worse."

State vs. Federal Lemon Laws

State Lemon Laws

  • All 50 states have new car lemon laws
  • Requirements vary significantly
  • Some include used cars and leases
  • Often stronger than federal law

Federal Magnuson-Moss Act

  • Applies to any warranted consumer product
  • Covers cars when state law doesn't
  • Allows attorney fee recovery
  • No specific repair attempt number

State-Specific Highlights

  • California: Strong protections, 4 repairs or 30 days
  • New York: Covers used cars under warranty
  • Texas: 4 repairs or 30 days in first 24 months
  • Florida: 3 repairs or 15+ days for safety defect

The Lemon Law Process

Step 1: Document Everything

  • Keep all repair orders
  • Note dates vehicle was in shop
  • Describe problems in your own words
  • Take photos/videos of issues
  • Keep mileage records

Step 2: Continue Repair Attempts

  • Always report problems in writing
  • Give dealer chance to fix
  • Request manufacturer assistance
  • Don't give up too early

Step 3: Send Written Notice

  • Some states require formal notice
  • Describe defect and repair history
  • Reference lemon law
  • Demand buyback or replacement
  • Send certified mail

Step 4: Arbitration or Litigation

  • Some states require manufacturer arbitration first
  • BBB Auto Line is common
  • Can reject arbitration decision (usually)
  • File lawsuit if unresolved

Don't Accept Less: Manufacturers often offer settlements below what you're entitled to. Consult a lemon law attorney before accepting any offer - their fees come from the manufacturer.

What You Can Get

Refund (Buyback)

  • Full purchase price or lease payments
  • Down payment and trade-in value
  • Registration and taxes
  • Finance charges
  • Minus reasonable use offset

Replacement Vehicle

  • Same make and model (if available)
  • Comparable vehicle if not available
  • No additional cost to you

Use Offset Calculation

  • Miles driven before first repair attempt
  • Formula varies by state
  • Typically: (Miles at first repair ÷ 120,000) × purchase price
  • Some states cap the offset

Used Car Lemon Laws

States with Used Car Protection

  • New York, Massachusetts, Connecticut
  • Minnesota, New Jersey, Rhode Island
  • May require dealer warranties
  • Often limited to recent models/low mileage

Certified Pre-Owned Vehicles

  • Manufacturer warranty may trigger lemon law
  • Magnuson-Moss still applies
  • CPO program terms matter

When No Lemon Law Applies

  • Implied warranty claims
  • Fraud or misrepresentation claims
  • General breach of warranty
  • State consumer protection acts

"As Is" Doesn't Always Protect Dealers: Some states don't allow "as is" sales of used cars, or require specific disclosures. Even with "as is," fraud claims may still apply.

Common Manufacturer Tactics

Stalling

  • Claiming they need "one more try"
  • Saying problem is "normal"
  • Blaming driver behavior
  • Waiting out warranty period

Lowball Offers

  • Offering partial refund
  • Excessive use deduction
  • Not including all costs
  • Requiring confidentiality

Denial Tactics

  • Claiming no defect found
  • Blaming aftermarket parts
  • Saying repairs were successful
  • Disputing number of attempts

Finding a Lemon Law Attorney

Why Use an Attorney

  • Manufacturer pays their fees if you win
  • Know the law and process
  • Better settlement outcomes
  • Handle all paperwork

What to Look For

  • Specializes in lemon law
  • Contingency fee (no upfront cost)
  • Experience with your car's manufacturer
  • Good reviews from past clients

Questions to Ask

  • How many lemon cases have you handled?
  • What's your success rate?
  • Will I owe anything if we lose?
  • How long does the process take?

Prevention Tips

Before Buying

  • Research reliability ratings
  • Check for recalls and TSBs
  • Get pre-purchase inspection (used)
  • Review warranty terms

After Purchase

  • Report problems immediately
  • Always get written repair orders
  • Keep copies of everything
  • Follow up in writing

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