How to Understand Your Rights if You Purchase a Lemon

The United States has a federal Lemon Law that protects buyers of new and used automobiles. If you purchase a vehicle that was knowingly sold with mechanical and other defects, the sale may be covered under the Lemon Law. Find out what rights you have if you've purchased a lemon.

Instructions

Difficulty: Moderately Easy

Things You’ll Need:

• Computer with Internet access

Know Your Rights

1. Understand that if you purchased an automobile in "as is" condition, the Lemon Law doesn't apply.
2. Understand that vehicles under the manufacturer's warranty, certified by the manufacturer or on an extended warranty automatically qualify under federal law. Consumer protection laws also cover cars without a manufacturer's warranty.
3. Understand that federal law requires sellers to disclose any known mechanical defects or if the car is a salvage project. Stolen and rebuilt vehicles, heavy-use vehicles (former taxis, police cars, and rental cars, for example) and vehicles with manipulated odometers must also be reported as such.
4. Know that Lemon Laws may still apply even if you have had the car fixed. Make sure to keep service records of any work done on the car.
5. Realize that you can still recover money owed to you even if you traded in the lemon. Be sure to keep documentation.
6. Be aware that, in most U.S. states, you have up to four years (sometimes more) to file a Lemon Law claim. This applies to cars which were still under warranty when purchaed. Check locally for state-specific information regarding lemon automobiles without warranties.
7. Use the American Lemon Law Center Web site (see Resources below) to find a lawyer who practices in your state if you decide to take legal action. You will need a copy of the bill of sale as well as documentation of any action taken to fix or trade in the vehicle.

Tips & Warnings

• There are "lemon lawyers" who specialize in helping car buyers who purchase lemons and want to take legal action.