Lemon Law Basics

Federal and state laws protect consumers from fraud and defective products.

The Magnuson-Moss Warranty Act is a federal law that governs written warranties for consumer products. It requires manufacturers and sellers to give consumers clear and transparent warranty information. Its protections cover warranties for most consumer products, including vehicles.

At the state level, "lemon laws" protect consumers from defective vehicles. These laws give car buyers the right to a refund of the full price or a replacement vehicle if the one they bought has irreparable defects or mechanical problems.

Typically, the consumer must allow the car dealer or manufacturer to fix the vehicle's problem before a buyer's rights under lemon laws take effect.

FindLaw's Lemon Law Basics section offers information about state and federal car buyer protections and how state laws govern car repairs. In this section, you can also find:

• Car-buying tools and resources
• State-specific lemon law information
• A guide to hiring an attorney for help with a lemon law claim

The Definition of a Lemon

Each state has its own lemon laws and definition of what qualifies as a lemon. But most states define a lemon as a new car with a substantial defect that mechanics can't fix, even after a reasonable number of repair attempts.

How states define a substantial defect also varies. But most states define it as a defect that affects a serious function or expectation of the car. Examples include:

• Faulty steering or suspension
• Transmission issues
• Electrical system defects
• Engine issues

Most states also require that the vehicle's express warranty cover the defect.

Typically, states allow the manufacturer or car dealer to try to repair the vehicle defect before lemon law applies. Individual states determine what a reasonable amount of repairs is. The number may vary depending on the defect.

For example, California's lemon law applies to any new motor vehicle bought or used for personal, family, or household purposes. It also covers used vehicles still under the original manufacturer's warranty. California law considers at least two repair attempts "reasonable."

Lemon Vehicles and Car Warranty Periods

Lemon law covers vehicles under the original manufacturer warranty.

Most states require consumers to report a defect within the warranty period or a set amount of time—whatever comes first. The time varies by state but typically ranges from one to two years after the vehicle purchase.

Instead of a time frame, you may have to report a defect within a specific mileage range, commonly 12,000 to 24,000 miles.

Most lemon laws don't apply to vehicles in an extended warranty period. This is because most extended warranties are service contracts that provide repair and maintenance coverage. An extended warranty is usually an optional plan you can buy that kicks in after your manufacturer's warranty ends.

A manufacturer warranty is sometimes called a factory warranty.

Arbitration Programs for Lemon Law Disputes

Some states offer arbitration programs to address lemon law disputes. Arbitration is when a neutral third party (the arbitrator) decides how to resolve a conflict between two parties. Arbitration happens outside the court system and is generally faster and less expensive than filing a lawsuit.

For lemon law issues, the arbitrator focuses on determining if there has been a reasonable number of repair attempts and an appropriate remedy. Not every state offers arbitration programs for lemon issues — check with your state's attorney general office or consumer protection agency to find specifics for your state.

Finding a Reputable Mechanic for Car Repairs

Just because your new vehicle needs a repair while under warranty doesn't necessarily mean it's a lemon. A single repair fixes most issues.

Federal law bans the manufacturer or dealership from forcing you to use a particular mechanic or authorized dealer for repair. But they may be able to void a warranty claim if an aftermarket part causes further problems with your vehicle.

Depending on how long you own your vehicle, you will likely need a repair at some point after the warranty expires. You will want to find a reputable mechanic at a fair price, which can be difficult.

There are three primary types of car repair facilities:

• Car dealerships
• General repair shops
• Auto repair chains

Car dealerships are usually a safe choice because the mechanics have experience with your vehicle's make and model. But dealerships are usually more expensive than other types of repair shops. So, most consumers choose to use a dealership if the vehicle's warranty covers the necessary work.

General repair shops usually offer less expensive labor, but parts can cost more than at a dealership. It can also be difficult to know if the mechanics are reliable, honest, and familiar with your type of car.

Finally, auto repair chains generally focus on one or two particular areas of a car. These are good for specific routine maintenance, like oil changes or balancing and aligning tires. They tend to be less expensive because they work on many cars.

You may end up at an unscrupulous repair shop despite your best efforts. While you might be unhappy with the service, if you do not pay for the repairs to your vehicle, the shop may be legally entitled to keep it. Often, the shop owner can get a mechanic's lien, which allows them to keep and sell the car if you do not pay the balance for the repair.

Hiring a Lemon Law Attorney

If you think you've bought a lemon, you have legal rights. While most consumers can resolve a lemon issue on their own, some complicated situations need the help of a lemon law lawyer.

While lemon laws most often cover new vehicles, some used cars, trucks, motorcycles, and motorhomes are also protected. An attorney can review your state's law to determine if it covers your type of vehicle. If your car meets the criteria for a lemon, the dealer may have to buy back the vehicle from you at its purchase price.

If the manufacturer or dealership is difficult and you can't get a refund or replacement vehicle, an experienced attorney can help. They can look at the details to determine if you have a lemon law case. They can negotiate with the dealership and help you take further legal action if necessary. Contact an attorney in your area to learn more.