Finding the perfect deal for your ideal ride takes equal parts patience and research skills, not to mention the ability to secure the financing that best fits your budget. Once a new or used car is found, however, there is a chance that your due diligence before the purchase was all in vain.
A vehicle that has to be repaired multiple times for the same issue within a specific period, known as a lemon, can be a reality for any car owner. Fortunately, vehicle lemon laws are in place to safeguard consumers from buying a faulty car – and being stuck with it indefinitely.
Lemon Laws for Cars, Trucks, and Other Motor Vehicles
Federal Lemon Law – The Magnuson Moss Warranty Act
In 1975, a handful of federal laws were enacted under the Magnuson-Moss Warranty Act. Within these federal regulations lie specific mandates for vehicle manufacturers and dealers requiring detailed information about warranty coverage.
Under the federal lemon law, implied and written warranties, as well as service contracts, are each covered in depth, providing consumers some peace of mind when it comes to their protection when purchasing a vehicle.
In most cases, a warranty from the manufacturer or dealer must include detailed information regarding the requirements to be fulfilled in the event a defect is found, there’s a malfunction, or a total failure of the vehicle takes place.
The issuer of the warranty is typically on the hook for repairing the vehicle and taking care of the cost of such repairs. If the car cannot be repaired after multiple attempts, the buyer has the option to select a replacement or receive a refund of the money paid to purchase the car, truck, or SUV.
State-Specific Lemon Laws
In addition to the federal lemon law under the Magnuson-Moss Warranty Act, consumers are also protected from the woes of purchasing a lemon through their respective state. All 50 states have enacted a lemon law to protect consumers purchasing new vehicles.
State-specific lemon laws work in a similar manner as the federal law, providing new car owners the ability to seek recourse if an issue with a vehicle is not repairable after a certain number of attempts. In most cases, the manufacturer must buy back a vehicle that falls under the state’s definition of a lemon.
When is a Motor Vehicle Considered a Lemon?
Under most state lemon laws a motor vehicle must meet certain criteria before it is considered a lemon. Although different from state to state, a lemon is typically defined as
- A vehicle that has been to a repair shop a certain number of times for the same issue (typically a minimum of three times)
- A vehicle that has been in a repair shop for a certain number of days (typically no less than 30 days)
- A vehicle that has an ongoing issue that is not the result of an accident, alteration, negligence, or abuse of the owner
- A vehicle that has been reported as problematic before reaching a certain number of miles or months in use
Used Car Lemon Laws
While all states have lemon laws specific to new cars, some also have specific laws governing the repair or replacement of used or leased vehicles. Unfortunately, only these seven states have laws relating to used cars:
- California
- Connecticut
- Massachusetts
- Minnesota
- New Jersey
- New Mexico
- New York
In each of these states, the lemon law lays out a used-car warranty statute, most commonly based on the wear and tear of the vehicle (i.e., age or mileage). Should a car show signs of a defect during the warranty period, the dealer has an opportunity to fix the issue at no cost to the buyer.
If the car cannot be repaired after multiple attempts, the car owner is entitled to a replacement vehicle or a full refund directly from the dealer. Most used car lemon laws include minuscule timeframes where the statutory warranty is valid, so it is important to know how the law applies in your situation.
Other Consumer Protection Laws That Apply to Motor Vehicles
Although there are some safeguards in place protecting consumers from buying a lemon, the federal and state laws apply mostly to new car purchases. Used cars and leased vehicles are different animals, making it all but necessary to understand your state-specific consumer protection laws before taking ownership of a vehicle.
While you’re doing the research to find your next car at the right price, take a moment to review the laws federally and in your state to ensure you’re protected against a bad car deal. If you happen to buy a lemon car in a state without a lemon law you may still be covered under an implied warranty, unless the vehicle was sold “as-is.”
Tips to Reduce Your Risk of Buying a Lemon Car
Federal and state lemon laws are in place to protect you as the consumer from getting stuck in the proverbial mud with a vehicle that doesn’t function properly. While federal laws mostly cover new vehicle purchases, state laws have some provisions specifically for the purchase of a used or leased vehicle.
Regardless of the type of vehicle you plan to purchase, it is necessary to take several steps to protect yourself before the sale. Here are six helpful tips to reduce your risk of buying a car that’s a lemon in the first place.
– Fully Research the Vehicle
Just like finding the perfect car at the perfect price requires a bit of research, so does finding a vehicle that won’t cause you unnecessary stress or concerns that it is indeed a lemon.
If you’ve found a specific make and model of a vehicle that you want to purchase, take the time to find out everything about it. Consumer reports, books, newspaper or magazine articles, and owner forums can all lend a helping hand in determining what you can expect with your vehicle of choice.
If any of that research leads you to current claim information that falls under your state’s lemon laws, it may be best to move on to a different dream vehicle.
– Make Sure Test Drive the Automobile
Whether you’re buying a new or used vehicle, the test drive is a critical aspect of protecting yourself from a lemon down the road. The average individual won’t have a solid understanding of the mechanics of a vehicle they want to purchase, but if something feels off during a test drive, that may be an indication to look at alternative vehicles.
You may also want to bring along your mechanic or a car-savvy friend to test drive the potential vehicle with you.
– Follow Your Gut Instinct About the Deal
As with any major purchase, you should feel comfortable with each aspect of the car buying process. Not only are the upfront research and test drive beneficial in reducing your risk of buying a lemon – you also want to feel confident with your auto dealer.
Ask about how long the car has been for sale, the details of any warranty provided, and any specifics with the vehicle that may seem out of place. If something seems too good to be true, it most likely is. Follow your gut instinct and move on to the next selection if anything fails to sit well with you.
– Ask for Warranty Information in Writing
State lemon laws cover both implied and written warranties on vehicle purchases, but any detailed information you can get in writing, you should. New and used car dealers are required to provide documentation on the vehicle’s current mileage, the owner’s manual, and warranty information specific to the purchase.
Make sure to ask for it upfront and maintain a copy for your records for as long as you own the vehicle. If the dealer is not willing to provide written warranty information at the time of the sale, it’s safe to say you’re better off moving on to the next.
– Check the CARFAX Report
Whether provided by your dealer at no cost or not, the CARFAX report is a critical component of your pre-purchase due diligence. Within each CARFAX report is the following essential information:
- A car’s estimated retail and trade-in value
- Major accidents the vehicle was involved in
- Mileage rollback details
- Number of previous owners
- Known structural damage to the vehicle
- History of service to the vehicle
- Rebuild information
- Damage caused by flooding
- Manufacturer recalls
- Whether the vehicle was used for professional services (i.e., taxi, rental, or policy use)
If any of the information detailed within the CARFAX report does not align with what the seller has shared, make sure to ask additional questions or simply walk away from the deal.
– Document Your Conversations with the Seller
When purchasing a new or used vehicle, it is also helpful to document any conversations you have with the dealer or private seller throughout the process. Because some state lemon laws cover implied warranties, you may be better protected by keeping track of what was said in addition to the written information you are provided at the time of the sale.
Maintain a notebook or keep track of words exchanged on your phone or tablet, starting with the first conversation you have regarding a specific vehicle.
Final Thoughts on Reducing Your Risk of Buying a Lemon Vehicle
Lemon laws are in place to protect everyday consumers from buying into a bad deal, but you have to take charge of the process upfront. Do your research on the make and model of the vehicle you want, and make sure to test drive any car prior to signing on the dotted line.
Similarly, it is important to get the details in writing, including the CARFAX report, warranty information, and discussions between you and the dealer. Taking these precautions will be of tremendous help in ensuring you don’t end up with a lemon for the long haul.
What to Do if You Bought a Lemon Car?
As a major purchase, a vehicle is often viewed as an investment for the next five, seven, or 10 years. For most, a significant amount of research goes into finding the right automobile with the right price tag from the right seller, making it not just an investment of money but also of time.
It is no surprise, then, that the fear of buying a new or used car that ultimately ends up being worthless due to costly repairs is high on the list of worries among car buyers.
Fortunately, federal and state lemon laws protect you as the buyer should you face the fact that you purchased a lemon vehicle.
If you’re experienced any of these issues with your motor vehicle, you, unfortunately, may have a lemon. When you’ve found yourself burdened with what you think is a lemon car, here are the steps you should follow to get yourself into a better, safer automobile.
4 Steps to Take if You’ve Bought a Lemon Vehicle
1. Check for Auto Warranties
After you’ve determined your automobile has a chronic issue, it’s necessary to double-check the warranty, if any, provided to you at the time of purchase. Your warranty should detail what vehicle malfunctions are covered and in what timeframe the repairs should be made.
Any repairs done under a warranty agreement should cost you nothing out of pocket, but if you wait too long or have an issue not covered under the warranty, you may need to dig deeper to get your problem resolved.
2. Contact the Car Dealer
If you purchased a new or used vehicle from an auto dealership, contact the company after checking your warranty. Most dealers want to lend a hand in resolving major issues with your automobile, not only to save their relationship with you as a customer but to protect their interest in acquiring new customers down the road.
Take precautions when receiving service or repairs from your dealer by documenting each encounter and keeping track of any conversations with service representatives during your visit. It is also important to voice your concerns if the problem is recurring.
Be sure to contact the dealer even if you’ve purchased the new or used vehicle without a warranty or as-is.
3. Know the State-Specific Automobile Lemon Law
Each state differs in terms of what is considered a lemon car and the steps necessary to correct the issue. If you believe you have a lemon and have had no luck with the dealer in getting repairs completed, your next step is to find out what your state provides for within its lemon law.
Most state lemon laws are readily available online, making it easy to review whether or not your car is covered under state guidelines. Within the state law information, you will be able to determine the correct steps to take for repairs or replacement.
In most cases, you have only a small amount of time to contact your dealer or the vehicle manufacturer to request repairs or a replacement motor vehicle. Knowing this information ahead of time will significantly ease the process of getting you back on the road in a safe, reliable automobile.
4. Consult with an Attorney
Should you run into issues getting your car repaired or replaced by following the steps above, your next and final step is to seek out the advice of a licensed attorney. Finding an attorney who works with individuals battling a lemon vehicle can be done by visiting your state or county’s bar association website or by doing a simple search online.
Most attorneys working in this area of expertise do not require an upfront consultation fee, making it easy to get the information necessary to move forward. They will explain what actions are available to make the situation right, whether that is repair or replacement of your automobile, and they will advise you as to whether a lawsuit is necessary.
Final Thoughts on Dealing with a Lemon Car
Getting stuck with a lemon vehicle is not a joy for anyone, but there are certain steps to follow if you believe you purchased a car, truck, SUV, or another motor vehicle that is unsafe or unreliable.
First, know what defines a lemon under your state’s law, and do what you can to understand what provisions are available within your warranty. Follow through by contacting your auto dealer for repairs and be prepared to speak with an attorney should you find yourself without a satisfactory outcome from the seller.
Lemon laws are in place to protect you from having a vehicle that isn’t worth your investment, but you must take the appropriate steps to correct the issue if you believe you have a lemon motor vehicle on your hands.
