How Do Lemon Laws Work?

Every state has a lemon law for new vehicles, and some cover used cars, motorcycles or other products. The details matter.

What usually counts as a lemon

State laws generally require (Cornell LII):

• A defect covered by the manufacturer's warranty
• That substantially impairs the vehicle's use, value or safety
• First reported within the lemon law period, often measured in months or miles from delivery
• That the manufacturer could not fix after a reasonable number of attempts

Many states presume a reasonable number of attempts when:

• The same problem was repaired several times without success
• A serious safety defect was not fixed after fewer attempts
• The vehicle was out of service for a cumulative number of days, often around 30

Steps to take

1. Repair at authorized dealers and keep every repair order showing your complaint, dates and mileage.
2. Check for recalls on your vehicle (NHTSA).
3. Notify the manufacturer in writing if your state requires it, giving a final repair opportunity.
4. Use the manufacturer's dispute program if required; many states require arbitration through a certified program before suing.
5. Request a repurchase or replacement.

Remedies

• Repurchase (buyback): refund of the purchase price, taxes and fees, minus a usage offset for miles driven before the first repair attempt in many states
• Replacement with a comparable new vehicle
• Cash and keep settlements in some cases
• Attorney fees paid by the manufacturer under many state laws and under the Magnuson-Moss Warranty Act, which lets successful consumers recover costs and attorney fees (15 U.S.C. 2310(d))

Do you need a lawyer?

Because many lemon laws and the federal law shift attorney fees to the manufacturer, many lemon law attorneys charge consumers nothing out of pocket.

Used and leased cars

Leased vehicles are usually covered. Used cars are covered in some states, or may be protected by dealer warranties, implied warranties and the federal warranty law.

Not a lemon?

If the problem is not covered or did not meet thresholds, you may still have warranty claims or consumer protection claims; see consumer rights.

Find a lawyer who handles lemon law and warranty cases in your state.

Sources

1. Cornell Law School LII: 15 U.S.C. 2310, Remedies in consumer disputes (Magnuson-Moss)
2. Cornell Law School LII: Lemon law
3. NHTSA: Check for recalls