Texas New Car Return Laws
In 1983, Texas first enacted its consumer protection "Lemon Law." Under the state's current Lemon Law, a buyer who purchases or leases a new car has a right to return his car for a replacement vehicle or receive a refund or free repairs if his car is defective and covered by the dealer's original warranty. To receive benefits under this law, consumers must follow the state's written notice procedures and opportunity to cure.
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Lemon Law Coverage
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The Texas Lemon Law covers all new vehicles including motorcycles, trucks, cars, vans, all-terrain vehicles, towable RVs and motor homes that are leased or purchased from a licensed dealer within the state. These vehicles must be covered by a written factory warranty covering the defect. It does not cover minor problems that do not substantially affect the market value or use of that car. Furthermore, it does not cover damages caused by the purchaser's own negligence or defects caused by after-market changes or alterations to the vehicle. The Lemon Law does not cover most used cars.
Definition of Lemon
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The state's Lemon Law defines a car as a "lemon" if the car suffers a serious defect or condition covered by an original warranty. The defect must significantly impair the driver's use of the vehicle, create a significant danger or substantially impair the car's market value.
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Opportunities for Repair
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Under the state's Lemon Law, manufacturers must have at least one opportunity to repair the vehicle within a reasonable period. The Department of Motor Vehicles uses different tests to determine how many times a buyer must allow the dealer to attempt to repair the defective vehicle. Under the "30-Day Test," dealers have 30 days to fix a safety-related problem. Under the "Four-Times Test," a buyer has given the dealer a sufficient opportunity to remedy a defect if she has taken the vehicle to a dealership for repairs at least twice during the first year or 12,000 miles and at least twice during the next year or 12,000 miles after the first repair attempt, and the vehicle is still unrepaired.
Lemon Law Remedies
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If the owner provides the dealer with an opportunity to fix the car within the allowable warranty period through written notice, and the dealer cannot effectively fix the defect, the buyer can file a written complaint with the Texas Department of Motor Vehicles. Buyers must send the Texas DMV a completed complaint form and a $35 filing fee to process the complaint (see Resources to submit an online complaint). The DMV attempts to resolve the complaint with the dealer or manufacturer within 60 days of filing the complaint. The manufacturer or dealer can repurchase the car or provide a replacement vehicle, if repair attempts did not resolve the defective parts. The DMV may send the case to an administrative law judge for a formal hearing to determine whether the car is a "lemon" under the state's Lemon Law. After the hearing, the judge issues a decision with opportunity to appeal within 15 days. After 15 days, the judge can order a refund, order replacement of the vehicle or order specific repairs with reimbursement for out-of-pocket repairs to the owner.
Considerations
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Since laws can frequently change, you should not use this information as a substitute for legal advice. Seek advice through an attorney licensed to practice law in your jurisdiction.
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References
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