Automobile Lemon Laws

Automobile Lemon Laws thumbnail
Automobile Lemon Laws

Lemon Laws provide specific remedies for consumers who have purchased an automobile with significant defects--in other words, a "lemon". Most car-purchaser protection comes from individual state laws which set out the process a consumer must follow to obtain Lemon Law relief. Lemon Laws primarily apply to new vehicles, but an increasing number of states' Lemon Laws also cover used cars, particularly those sold with a written warranty.

  1. New, Used, and Leased Cars

    • Every state and the District of Columbia has a Lemon Law providing specific consumer protections relative to new car purchases. According to the American Bar Association, an increasing number of states are extending Lemon Law protections to used car purchases, including, in some instances, purchases from private sellers in addition to commercial car dealers. A few states even apply Lemon Law remedies to automobile leases if the leased car is covered by a warranty.

    Significance

    • Cars are complex mechanical systems which do not fit neatly into general consumer protection laws. Unlike a broken bowl or lamp, which can simply be returned to the store for replacement or refund, car problems are often complicated. Consumers and dealerships often disagree as to whether a car problem is serious enough to warrant returning the vehicle. Lemon Laws specifically protect automotive consumers by setting out numbers and types of repairs that qualify the car as a lemon and warrant refund or replacement.

    Misconceptions

    • Relief under Lemon Laws is not automatic, nor is it necessarily easy. Car purchasers must keep careful track of all records regarding repairs and problems, and be sure to file any notices required by their state's Lemon Law before proceeding to arbitration or court. Although state Attorneys General can be helpful in providing Lemon Law advice, consumers must bring Lemon Law suits on their own, with or without a private attorney.

    Benefits

    • The benefit of proceeding against a car manufacturer under a state Lemon Law is that the matter comes to a firm conclusion, and if the car qualifies as a Lemon under that state's laws, the consumer will likely be entitled to a refund or replacement vehicle. If the consumer is successful she may also get attorneys fees and the costs involved in bringing the Lemon Law action.

    Limitations

    • Although most states' Lemon Laws apply to all new cars sold by a dealership, any protections regarding used cars usually only apply to those sold with a full warranty. Most dealerships or private sellers offer used cars with a limited warranty, or none at all, so Lemon Laws do not apply. Some states' statutes cover off-road vehicles, trucks or recreational vehicles as well as cars, but most do not.

    Considerations

    • Consumers are best protected when they learn about their state's Lemon Laws before they buy an automobile. Because each state has different time limits, repair qualifications and procedural steps for initiating a Lemon Law claim, consumers who are unaware of the Lemon Law may miss important deadlines or fail to keep necessary documents. State Attorney General websites are usually good places to find out the details of Lemon Law protections applicable where the car is being purchased.

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  • Photo Credit Cindy Hill

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