Michigan's Used Car Lemon Law
Michigan does have a lemon law, but it does not apply to used cars. However, if you are stuck with a used lemon in Michigan, you still have several options available to you. These options generally involve making a legal claim, but often the threat of a legal claim is enough to make a dealer take your claim more seriously.
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Warranty
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If you purchase a used car and are given a warranty by the dealer, then the federal Magnuson-Moss Warranty Act may apply. Under this act, you can pursue a claim based on the dealer breaking their contract with you. In Michigan, you can sue the dealer under the Magnuson-Moss Act for a breach of express warranty, implied warranty or a service contract. If successful, you may be able to recover damages, attorney's fees and court costs.
Used Car Rule
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The Federal Trade Commission's Used Car Rule requires dealers who sell more than five used vehicles in a 12-month period to post a Buyer's Guide for any car that is displayed for sale. The Buyers Guide is a disclosure document that contains information on any warranty that comes with the car; about mechanical and electrical systems of the car; and on the rights of the consumer. The Used Car Rule applies in Michigan. If your dealer has not followed the used car rule, you may have legal recourse, and they may also be subject to a penalty.
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Unfair Aand Deceptive Acts And Practices
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Michigan, like other states, has Unfair and Deceptive Acts and Practices laws that protect consumers against unscrupulous dealers. For example, if your dealer has misled you by false advertising, or by tampering with the odometer, you may have a legal cause of action. In Colorado civil actions can be brought to recover actual damages, $500 or three times the actual damages, whichever is greater. There must be clear and convincing evidence the seller engaged in bad faith--such as by lying about the condition of the car or about the odometer reading. The winning side may also be awarded attorney's fees. Odometer tampering is also a criminal offense in Michigan.
Dispute Resolution
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If your used car was bought in Michigan through a franchised dealership, you may be able to use the Automotive Consumer Action Program (AUTOCAP). This program provides a binding resolution program run jointly by the National Automobile Dealers Association and participating Michigan dealer associations. Ask the dealer association your dealer is affiliated with if it runs an AUTOCAP mediation program.
Implied warranty
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Under Michigan law, a car dealer has implied obligations, such as that the vehicle will be running and generally fit to drive. If it turns out the vehicle is a lemon and you have not been warned of this by the dealer, you may have a legal cause in action. However, if the dealer has specified that the vehicle is sold "as is," then the implied warranty will probably not apply.
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References
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