Yahoo Autos Lemon Law: What to Know Before Buying a Car
We’ve all heard of the phrase “buying a lemon,” which most commonly refers to the purchase of a defective vehicle. Whether you buy a new car or a used car, you’re making a major purchase and don’t want to incur frequent costly repairs because you bought a damaged vehicle. Luckily each state has enacted a Lemon Law to make sure you’re protected in case you did buy a vehicle that’s inherently defective.
So what does the Lemon Law cover and what should you know as a consumer before you make a vehicle purchase? We have the important answers.
History of the Lemon Law
So how did the Lemon Law come about? The Lemon Law dates back to 1975, when the federal government enacted the Magnuson-Moss Warranty Act. Its purpose was to protect consumers in all states from deceptive warranty practices. Although consumer products are not required to have warranties, if one is given, it must comply with the Magnuson-Moss Act. While lemon laws most commonly refer to new motor vehicles, they also extend to motorcycles and motor homes as well as any appliances and machines. For the purpose of this article, we’re referring to vehicles. Under the lemon law, you have rights for a replacement or refund if you bought a defective product.
In 1982, Connecticut was the first state to put a “Lemon Law” in place. Titled, “An Act Concerning Automobile Warranties,” it referred to defective vehicles at or under two-years-old or within 24,000 miles on the odometer. The law enacted an informal arbitration process to resolve disputes between vehicle owners and manufacturers. Connecticut’s dedication to providing consumer protection paved the way for all 50 states and Washington, D.C. to enact their own versions of lemon laws.
Is My Car a Lemon?
While Lemon Laws vary by state, a car is typically considered a lemon if it:
Has a substantial defect that’s covered by the warranty that occurred within a certain timeframe or number of miles after the car was purchased, and
Is not able to be fixed after a reasonable number of repair attempts.
While this may seem pretty straightforward, both criteria can be open to interpretation. For example, what qualifies as a substantial defect? According to the Massachusetts Lemon Law, ??a substantial defect impairs the car’s use, market value, or safety. This means that minor defects like door handles or loose knobs do not qualify as substantial. The line between minor and substantial can be ambiguous and can vary by state, which complicates many lemon law cases.
The second gray area is what qualifies as a reasonable number of repair attempts. Most state lemon laws indicate that three repair attempts is considered reasonable. Or, if the defect could cause injury or fatality, only one or two repair attempts are required. Because the terms vary by state, it’s important to familiarize yourself with your state’s lemon law.
Also, it’s worth noting that all repairs should be done through the dealership. Taking your vehicle elsewhere for repairs will void the warranty and you will not be protected by your state’s lemon law.
What to Do if Your Car is a Lemon
So you’ve determined that your car meets the criteria to be considered a lemon. Here are the steps you should follow:
Step 1: Gather Detailed Records
Because you’ll need to prove your car’s defects and that there were a reasonable number of attempts to repair it within a certain timeframe, it’s critical that you keep records that detail your car’s defects and service history. This documentation should include records of repair work, dates of when the vehicle’s issues arose, and any communication you had with the manufacturer or dealer.
Step 2: Contact the Manufacturer
In order to get a refund, you need to contact the manufacturer of your vehicle in writing. Your formal letter should include all relevant information including when you bought your car, when problems began to occur, when you contacted the dealer, and dates of attempted repairs. You can find template lemon law demand letters on state attorney general websites and through a number of online sources with a simple google search.
Step 3: Apply for Arbitration
If the manufacturer doesn’t offer you a satisfactory settlement, the next step is legal action. Most states require that lemon law cases go through an arbitration process before reaching the court system.
You can apply for arbitration by filling out an arbitration form on your state’s website. While you can file and go through arbitration without an attorney, you may want to hire one due to the complexity and ambiguity of lemon laws. Also, this will improve your chances as the manufacturer will have a qualified attorney on their side. If you win your case, the manufacturer will reimburse you for your legal fees.
During arbitration, you and the manufacturer present evidence to an impartial arbitrator. If the arbitrator sides with you and finds that your vehicle is a lemon, you’ll be awarded a replacement vehicle or full refund. If the arbitrator rules against you, you will not receive an award. Although most arbitration rulings are final, most states will allow both parties to appeal the decision. If the case is appealed, it will move to court and will be decided on by a judge.
