What is the lemon law?

Why lemon laws exist

Before these laws, a buyer with a car that kept breaking down had little leverage: the dealer could keep attempting repairs indefinitely, and suing a manufacturer under warranty law was slow and expensive. Connecticut passed the first state lemon law in 1982; every state followed. The laws set a clear point at which the manufacturer must stop trying to fix the car and instead buy it back or replace it.

The usual test

Most state statutes presume a vehicle is a lemon if, within a set period — often the first 12 to 24 months or 12,000 to 24,000 miles — either:

• the same substantial defect has been subject to repair three or four times without success;
• the vehicle has been out of service for repairs for a cumulative 30 days or so; or
• a defect that could cause death or serious injury, such as brake or steering failure, has not been fixed after one or two attempts.

The defect must substantially impair the use, value or safety of the vehicle. Cosmetic faults and problems caused by abuse, accident or unauthorized modification are excluded. The defect must be covered by the manufacturer's warranty and reported during the protection period, even if the repairs continue after it ends.

What vehicles are covered

New cars, light trucks and SUVs purchased or leased for personal use are covered everywhere. Many states also cover motorcycles, the chassis of motor homes, and vehicles bought by small businesses; some exclude them. Coverage of used, leased and certified pre-owned vehicles differs sharply by state, and a handful of states extend lemon protection to other goods, such as wheelchairs or electronics.

What a successful claim yields

Either a replacement vehicle or a refund of the purchase price, including taxes, registration and finance charges, usually less a mileage offset for the use you had before the first repair attempt. Many statutes also make the manufacturer pay the consumer's attorney fees, which is why these cases are often taken without an upfront fee. Some cases end in a “cash and keep” settlement, where the owner keeps the car and receives compensation.

Watch

The steps that decide the case

1. Report the defect to an authorized dealer within the warranty period.
2. Keep every repair order, including the ones that say “could not duplicate.”
3. Send written notice to the manufacturer, which many states require before a claim.
4. Complete the manufacturer's arbitration program where the state makes it a precondition.
5. Claim the refund or replacement, through negotiation, a state program or a lawsuit.

Magnuson-Moss: the federal layer

The federal Magnuson-Moss Warranty Act applies to any consumer product sold with a written warranty, not just vehicles. It does not set a specific number of repair attempts, but it lets a buyer sue for breach of warranty and recover attorney fees. It is often used when a state lemon law does not apply — for a used car with a remaining warranty, for example, or for a defective boat or appliance.

Lemon buybacks and resale

When a manufacturer repurchases a lemon, many states require the title to be branded (for example “lemon law buyback”) and the next buyer to be told in writing. If you later buy a used car and discover it was a buyback that was not disclosed, that can support a separate fraud or consumer-protection claim.

Mistakes to avoid

Do not trade in the car or stop making loan payments while the claim is pending, and do not accept a partial settlement without understanding what you are giving up. Most lemon law firms review cases for free.

Common questions

• Does the dealer decide? No. The claim is against the manufacturer, which issued the warranty; the dealer is only its repair agent.
• What if I bought the car in another state? Usually the law of the state where the car was bought or registered applies — sometimes either.
• Is there a deadline? Yes, often one to two years after the protection period ends, so do not wait.