Buying a New or Used Car: Lemon Laws & Car Buyer Protections

A “lemon” is any new vehicle that has a substantial problem that isn’t fixed within a reasonable number of attempts, or that has had a certain number of days out of service. There are federal and state-specific laws to protect consumers against purchasing defective vehicles. Federal laws include the Magnuson-Moss Warranty Act and the Uniform Commercial Code (U.C.C.). The Magnuson-Moss Warranty Act prevents manufacturers from drafting unfair warranties. The U.C.C. gives an auto buyer the right to a refund or replacement of a lemon.

Lemon laws will vary by state, but most specify that a manufacturer must replace the new vehicle, or provide a full refund of the purchase price if the defect cannot be repaired within four attempts (two attempts for a safety defect), or if the vehicle is out of service for 30 days within the first 12,000 to 18,000 miles or 12 to 24 months of ownership. In order to get relief under lemon laws it is important to document everything regarding your car, including all repairs, service records, purchase contracts, warranty book, notes from conversations with the dealership, and a timeline of the number of days your vehicle has been out of service. A lemon law case involving a car worth tens of thousands of dollars is not something you should try to handle yourself. If you believe your new car is a lemon, it is important to consult an experienced attorney.

Used Cars

While lemon laws generally protect buyers against defective new vehicles, used cars are far more likely to be unreliable, leaving the buyer with repair bills that can exceed the value of the vehicle. Only six states — Connecticut, Massachusetts, Minnesota, New Jersey, New Mexico and New York — have used-car lemon laws. Those states provide a statutory used-car warranty, often based upon the age or mileage of the vehicle. Under the warranty, if the vehicle has problems during the warranty period, the dealer gets a chance to repair them; however, if those fixes don’t work after several tries, the dealer must replace the car or refund the buyer’s money. Other states, including Arizona, Connecticut, Illinois, Maine, Nevada, New Mexico and Pennsylvania have some other form of used-car buyers’ rights, requiring used-car warranties or setting minimum standards for the sale of used cars. Most states are not very effective at protecting used-car buyers from being defrauded, and most existing used-car lemon laws are very limited in scope.

To avoid purchasing a lemon, you should take the car to a qualified mechanic and body shop that can spot signs of structural damage before purchase. If you believe you have already purchased a lemon, it is important to run vehicle history reports from Autocheck or Carfax, and to check the federal government’s National Motor Vehicle Title Information System. These reports expose many of the hidden problems associated with used cars, such as prior accidents and branded titles. While it is best to take your car to the mechanic before purchasing it, taking your car to a mechanic after purchasing it is also important in determining the source of the car’s problem.

A good lemon-law attorney can determine whether you’ve got a case against the dealer and can guide you through the required legal process. Many lemon lawyers don’t charge client fees, and collect from the dealer instead. If you’ve recently purchased a lemon or you believe you have been defrauded by an auto dealer, find a lawyer by quickly posting a short summary of your legal needs on www.legalserviceslink.com, and let the perfect attorney come to you!