Cameron Miranda
Lemon Laws in Massachusetts are designed to protect consumers who have purchased a vehicle with serious issues or one that is different from what was advertised. These laws apply to both new and used vehicles purchased from a dealer or a private seller, with stronger protections in place for dealer purchases. While the laws outline the process for seeking compensation, there is some ambiguity regarding whether a car dealer can charge lemon law fees. In certain cases, a dealer may charge a one-time repair fee of $100 if this amount is specified in the warranty. However, it is important to note that the laws do not explicitly mention the charging of lemon law fees by dealers, and consumers have the right to pursue compensation without incurring additional charges.
| Characteristics | Values |
|---|---|
| Who does the law apply to? | Consumers who have purchased a car with serious issues or a car that is different from what was advertised. |
| Who does the law not apply to? | Semi-trucks and leased cars. |
| What does the law do? | Protects consumers from dishonest salespeople. |
| What are the conditions for compensation? | The car must have been purchased for personal or family use, not for business. It must have a defect that impairs its use, safety, or market value. The defect must be discovered and subject to repair attempts during the "`term of protection'" of 1 year or 15,000 miles of use from the date of original delivery, whichever comes first. |
| What are the options for compensation? | Costs of repairs, refunds, vehicle buyback, or the option to cancel a sale. |
| What is the process for compensation? | Contact the dealer or manufacturer and allow them to make a reasonable number of repair attempts. Keep complete records of all contact and repair attempts. If the issue is not resolved, pursue arbitration through the Office of Consumer Affairs and Business Regulation or file a case in court. |
| Can a dealer charge lemon law fees? | No, but they can charge a one-time repair fee of $100 if it is written on the warranty. |
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What You'll Learn
Lemon Law requirements and eligibility
Lemon Laws in Massachusetts are designed to protect consumers from dishonest car dealers or private sellers. The laws are stronger if you purchased your vehicle from a dealer, but they also apply to private sellers.
To be eligible for compensation under the Lemon Law, your vehicle must meet the following requirements:
- It must have been purchased, not leased.
- It must have been bought in Massachusetts from a licensed dealer.
- It must be used for personal or family purposes and must not have been bought by or registered to a business.
- It must have been purchased for more than $700, which entitles you to a mandatory express warranty.
- It must have been inspected within 7 days of buying it, and you must have a written statement of failure from a licensed inspection station.
- The cost of repairs or defects must exceed 10% of the purchase price, and you must have a cost estimate from a mechanic or technician.
- It must have at least one defect that substantially impairs its use, safety, or market value, and the dealer must have been given a chance to repair the problem.
If your vehicle meets these requirements, you may be eligible for compensation, which can include the costs of repairs, refunds, vehicle buyback, or the option to cancel the sale. It's important to note that the dealer is allowed to charge a one-time repair fee of $100 if this amount is specified in your warranty.
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Dealer obligations and rights
In Massachusetts, a dealer is defined as someone who sells more than three or four cars in a 12-month period. This includes people who \"flip\" cars online, even if they claim to be private sellers.
Dealer Obligations
If a car is found to be a lemon, the dealer must offer a refund or buy back the car. They can subtract 15 cents or less per mile that the buyer put on the car since buying it. They should also give back the amount paid in finance charges, dealer options, unused extended warranties, credit insurance, and incidental costs. If the dealer refuses to repair, refund, or replace the car, this is considered an "unfair and deceptive act" under Massachusetts law.
Dealers must provide a warranty, or guarantee repair or replacement of the car, within a certain time period. They are also obligated to inform the buyer of any known defects before the sale.
Dealer Rights
Dealers are allowed to charge a one-time repair fee of $100, but only if the amount is written on the buyer's copy of the warranty. If the dealer offers to buy back the car for the full purchase price and the buyer rejects the offer, the dealer may refuse repairs. If the dealer is buying back the car, the buyer must transfer the title back to the dealer.
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Consumer rights and entitlements
In Massachusetts, consumers are protected by a set of laws and regulations that ensure their rights and entitlements when purchasing, owning, and repairing a vehicle. These laws, commonly known as "Lemon Laws," provide consumers with recourse if they encounter issues with their vehicles, especially if the car was purchased with serious issues or was not as advertised. Lemon Laws apply to both new and used vehicles and offer protection for a limited period.
When buying a new vehicle in Massachusetts, there is an automatic "term of protection" that lasts for 1 year or 15,000 miles, whichever comes first. During this period, Lemon Laws protect consumers from issues that affect the vehicle's use, safety, or market value. To prove a reduction in market value, consumers must show that their vehicle is worth at least 10% less than it would be without the problem.
For used vehicles, Lemon Laws apply when a car is purchased from a licensed dealer or a private seller. Dealers are defined as those who sell more than 4 cars in a 12-month period. If a used car has issues, consumers may be eligible for compensation, including repairs, refunds, vehicle buyback, or sale cancellation. The dealer has the right to offer to buy back the car instead of making repairs, and they may charge a one-time repair fee of up to $100 if specified in the warranty.
If consumers encounter issues with their vehicles, they must first provide the dealer or manufacturer with the opportunity to repair the problem. The dealer has up to 3 chances to repair the same problem within 10 business days. Consumers should keep records and receipts of all repair attempts. If the dealer is unable to fix the issue or refuses to repair it, consumers can pursue Lemon Law arbitration through the Office of Consumer Affairs and Business Regulation.
In cases where the dealer refuses to provide a refund or compensate for repairs, consumers can take several steps to protect their rights. They can contact the Attorney General's Office for mediation, a process that helps resolve disputes without going to court. Additionally, consumers can write a demand letter to the dealer or manufacturer under Massachusetts law Chapter 93A, which considers refusal to repair or refund an unfair and deceptive act. If necessary, consumers can file a case in court, either on their own or with legal representation. For claims under $7,000, Small Claims Court provides a more accessible option.
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Warranty and repair history
In Massachusetts, the Lemon Law protects consumers who have purchased a vehicle with serious issues or one that is different from what was advertised. The law applies to vehicles bought from a dealer or a private seller, including those purchased using a loan. It is important to note that leased vehicles are not covered under this law.
Under the Lemon Law, consumers may be eligible for compensation if their vehicle has at least one qualifying defect that impairs its use, market value, or safety. The defect must be discovered and subject to a reasonable number of repair attempts during the "term of protection," which is defined as 1 year or 15,000 miles of use from the date of original delivery, whichever comes first. The vehicle must also be used for personal or family purposes and not primarily for business.
If a consumer's vehicle meets the criteria for a lemon, they have several options for recourse. The dealer has three attempts or 10 business days to fix the issue. If they are unable to do so, they must provide a refund for the purchase price, which may be reduced based on "reasonable use" charges. Consumers can also pursue a buyback option, where the dealer accepts the return of the vehicle and provides a refund, including taxes, fees, and financing charges. This refund, however, does not include lawyer fees, lost wages, excise tax, sales tax, or other costs unrelated to the defect.
It is important to note that the Lemon Law also covers instances where the dealer does not provide a warranty or provides an incomplete or inaccurate one. In such cases, the warranty period is extended until the dealer provides a complete and accurate copy of the warranty. Additionally, any repairs performed during the warranty period carry their own 30-day warranty, starting from the day the repair is completed.
To initiate the Lemon Law process, consumers should notify the dealer of their intent to return the vehicle and provide a copy of the statement of failure and cost estimate. It is recommended to send this notification via certified mail, regular mail, and email. If the dealer refuses to accept the return, consumers can seek mediation through the Attorney General's Office or file a case in court, either with or without legal representation.
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Legal fees and compensation
If you buy a used car or other vehicle in Massachusetts, the Lemon Laws protect you from dishonest salespeople who sell you a car with serious issues or a car that is different from what was advertised. The protections are stronger if you bought your car from a dealer, but they also apply if you bought it from a private seller.
Lemon Law arbitration through the Office of Consumer Affairs and Business Regulation may be available to you. If you apply for this, you could get lower damages, which means you could get less money back. If the company refuses to repair, refund, or replace your car, this is considered an "unfair and deceptive act" under a Massachusetts law known as 93A, and you can write a demand letter to the person or company who sold you the car. If they ignore the letter or do not make a reasonable settlement offer, you may be able to get up to triple damages if you file a case in court. You can file a case by yourself or with a lawyer’s help, and if the claim is under $7,000, you may file it in Small Claims Court, which is easier and cheaper than District Court.
If you choose to ask for a refund, the dealer can subtract the miles the car has been driven. If you opt for a refund or replacement, the dealer should give you back the cost of towing, sales tax, and registration fees. If you opt for a refund, the company should also give you back the amount you paid in finance charges, dealer options, unused extended warranties, and credit insurance, and incidental costs.
Lemon Law attorneys can help you determine whether to pursue a claim under Massachusetts law, federal law, or both. The Massachusetts Lemon Law provides protection against serious defects, defined as defects that "substantially impair" the use, market value, or safety of the vehicle. If a manufacturer or dealer fails to comply with the Lemon Law, the consumer is entitled to have the manufacturer repurchase or replace the vehicle. This also obligates the manufacturer or dealer to return or reimburse the consumer for other incidental or collateral fees and expenses, including taxes, registration and titling fees, insurance charges, finance fees, towing and rental car charges, and other costs.
Both the Massachusetts Lemon Law and the federal lemon law, the Magnuson-Moss Warranty Act, require the manufacturer to pay your attorney fees.
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Frequently asked questions
Lemon Laws are laws aimed at protecting consumers when they buy something big, like a car. Lemon Laws cover both new and used vehicles in Massachusetts.
If your car is a lemon, you may be eligible for compensation in the form of repairs, refunds, vehicle buyback, or the option to cancel a sale. If you opt for a refund, the dealer must also refund you for incidental costs such as finance charges, dealer options, unused extended warranties, and credit insurance.
To be eligible for an award, there must be a substantial loss of use, safety, or value. You must be able to show how the use, safety, or market value are reduced by the car’s problem. To prove the market value went down, you must show that your vehicle is worth at least 10% less than it would be without the problem.
No, a car dealer cannot charge you lemon law fees. In most cases, the manufacturer or dealer will be obligated to pay attorney fees and federal/state laws mandate this. Lemon Laws include fee-shifting provisions to force the manufacturer to pay your attorney's fees when you win.
