Definition of Car Lemon Laws

Lemon laws exist in most states and through the federal government's Magnuson-Moss Warranty Act of 1975. Informally named after the American jargon for a purchase that is faulty "out the door," these laws aim to protect consumers against unscrupulous sellers, particularly in the automotive industry.

Significance

Lemon laws assume purchases occur on good faith. In other words, consumers believe the car they're about to buy has been inspected by the seller and certified as worthy. In the event of certain failures that render the car undrivable or simply too costly to maintain, the purchase can be declared a lemon, entitling the buyer to certain remedies.

Types

As far as cars go, these laws usually exceed the protection provided by a manufacturer's warranty. However, they vary greatly from state to state, but all seek to prevent a situation where sellers withhold critical information that would likely prevent a sale. Manufacturers may consider certain problems minor, but under lemon laws, these can void the transaction.

Features

Lemon laws typically only cover new cars and equipment. Most states do not extend them to used cars, modified cars or out-of-state vehicles. Federal law doesn't even specify a lemon law for cars, but rather for all manufactured and warranted goods, so long as they're new. As-is declarations carry little weight in the eyes of lemon laws, as you can't sign away your right to a working product.

Considerations

Two factors play a key role in declaring your car purchase a lemon. First, faults that make it either undrivable, unsafe or simply untenable--if it's in the shop more than on the road, you may have a lemon. Secondly, these faults need to be especially hard to rectify. Most states put the limit at four attempts.

Time Frame

Generally, filing complaints under lemon laws has a one-year limit, but the closer to the purchase date, the better. You may find that your state also adds a mileage cap--usually 12,000 miles.

Warning

Do not take up a lemon dispute with the dealer or seller. Instead, go directly to your state's attorney general. Dealers are licensed and subject to a state motor vehicle dispute board. Should you win, the dealer may have to buy the car back or give you a working replacement.