Category Archives: Shop Smarter

Lemon Laws

In the automotive world, a new or used vehicle that has been purchased under warranty, which keeps breaking down with the same problem and is never actually repaired, is said to be a lemon. There are laws in every state in the U.S. that protect you in this situation.

No doubt it’s stressful enough that your car breaks down in the first place, especially if it’s brand new. But if it is under warranty and the dealer refuses to fix it, you may be entitled to a new car, a replacement, or your money back. What’s more, it’s not just cars that are protected under the lemon law; many different types of vehicles are covered depending on the state you’re in. For instance, many states also cover trucks, minivans, SUVs, RVs, campers, boats, motorcycles, and even jet skis. To see if your particular vehicle is covered, you can check the Federal Warranty Act in your state.

Lemon Law Claims 

Manufacturers who know they have been selling substandard vehicles have been known to drag their feet when someone complains for fear of massive recalls. On the other hand, some manufacturers may settle fairly quickly if you have a lemon in order to avoid unwanted bad publicity.

One thing you should never do if you suspect you have a lemon is to take the car elsewhere to be repaired thinking that someone else may do a better job. If you suspect you have a lemon, the manufacturer will want to examine your car before making any decisions, and you may even void your warranty by going elsewhere. If your new or used vehicle was bought with a warranty, and it keeps breaking down on you or has had a serious defect with the braking system, then speak to an attorney about the possibility of invoking a lemon law lawsuit. Don’t feel you are being a pain by continually coming back with your complaint; keep at it and don’t give in.

What Is a Lemon?

A lemon is a vehicle that continues to have a defect that substantially limits or impairs its use, value, or safety. Generally, if the car has been repaired four or more times for the same defect within the warranty period and the defect has not been fixed, the car qualifies as a lemon. All states differ so you should consult the Lemon Law Summary and the State Statutes for your particular state.

Do I Have a Lemon?

If the paint is peeling, the light switch came out when you pulled on it, the car makes “funny noises” but otherwise drives just fine, or you found 10 things you don’t like about your new car but none of them prevent you from driving it, then you don’t have a lemon.

If on the other hand the brakes don’t work, the car won’t go into reverse gear, the darn thing won’t start on cold mornings or hot afternoons, the rear door opens all by itself, the driver’s seat wobbles, or the car chugs along at 30 mph when it should be going 50 mph, then indeed you may have a lemon provided you’ve given the manufacturer an opportunity to repair the defect. In most states, 10 different defects during the warranty period do not brand the car as a lemon. In some states, a single defect that might cause serious injury makes your car a lemon if the manufacturer cannot fix the problem within one attempt. You may have a lemon, but if you do nothing to protect your consumer rights, such as documenting your repairs and allowing the manufacturer a chance to fix the problem(s), you lose all rights under the various state warranty acts.

Do I Need a Lawyer?

The answer depends upon which state you purchased or registered your car in. In some states and with proper documentation, you simply file a complaint. In other states, you will need to hire an attorney.

Who Pays the Lawyer?

Only about half of the states allow you to recover attorney fees. If your attorney sues under the Magnuson-Moss Warranty Act, you will be awarded attorney fees if you win. Note that an attorney’s fee is based upon actual time expended rather than being tied to any percentage of the recovery. In some states, you must pay the manufacturer’s attorney fees if you lose.

Is a Used Car or a Leased Car Protected?

It depends upon which state the car was purchased or leased in. Some states include used and leased cars in their lemon law statutes. Some states have separate laws for used vehicles, while other states provide protection for new cars only. In certain states, even the Attorney General is unable to tell you if a leased vehicle is covered due to the way the law is phrased. You will be referred to an attorney for clarification of the law.

What about Motor Homes and Motorcycles?

Most states cover the drive train portion of motor homes (the portion of the motor home not used for dwelling purposes). Motorcycles are generally not covered but a few states do include them in their lemon law statutes. If you have a defective motorcycle, motor home, used car, leased car, or a car used for business purposes and your state lemon law does not cover these vehicles, you still have other recourses such as the Uniform Commercial Code and the Federal Magnuson-Moss Warranty Act (providing you were given a written warranty). Consult with an attorney that specializes in this area.

Tips to Protect your Investment

Often times, your new car isn’t suspected of being a lemon until it is too late (out of warranty, over the mileage limit, etc). If you keep a record of every repair visit, starting with the first one, you will protect your rights under consumer laws.

  • Document everything. This includes notes, who you talk to, what is said, dates, and times. Put your complaints in writing and keep a copy for yourself. Be sure to obtain a copy of any warranty repair orders. Demand a copy if necessary and, if the dealer will not give you one, be sure to document the fact. When you pick up your car, obtain an invoice. The dealer may claim that you are not entitled to an invoice because there were no charges (you were not invoiced for any repairs). It is up to you to prove repair attempts. The final invoice shows what was or was not repaired.
  • Make absolutely sure the dealer records your complaint on the repair order exactly as you describe it. You must make sure to describe the defect exactly the same on each repair visit or you may forfeit your rights under the “reasonable attempts to repair for the same defect” clause.
  • Be sure that the date, time in, and odometer reading are recorded as well as the date and time you picked up the car. In most states you are covered by the lemon law if the vehicle has been in the repair shop for an accumulative number of days during the coverage period.
  • If your car fails in the middle of the desert or in rush hour freeway traffic, record the date and time, the amount of time you had to wait for assistance, whether or not you had to rent a car, and your general overall feelings. The emotional trauma dealing with a defective vehicle has a lot of bearing on your case should you need to go to arbitration or court.