Used Cars And Lemon Law: What You Need To Know

Lemon laws are federal and state consumer protection laws that hold manufacturers and sellers accountable for their goods. While these laws are enacted to protect consumers from defective cars, they are difficult to apply to used cars, especially if the manufacturer's warranty has expired. However, some states have provisions in place for used cars, including New York, where a dealer is required to give a written warranty for repairs on covered parts, and New Jersey, where the lemon law applies to used cars that are a maximum of 7 years old with less than 100,000 miles on the odometer.

Used car lemon laws by state

Lemon laws are federal and state consumer protection laws that hold the manufacturer and seller accountable for their goods. While lemon laws typically apply to new vehicles, some states have used car lemon laws.

• Rhode Island: Applies to new and leased vehicles within one year or 15,000 miles. It also covers used vehicles if the car was serviced three times for the same defect within its dealer warranty period or if the owner could not drive the vehicle for 15 days within the warranty period.
• New Jersey: Applies to new and leased vehicles during the first 2 years or 24,000 miles. The law may also apply to used cars if the vehicle is a maximum of 7 years old (in model years) with less than 100,000 miles on the odometer, and you paid at least $3,000. A used car may qualify for protection under the state’s lemon law if purchased from a licensed dealership.
• New Mexico: Applies to new vehicles or vehicles transferred to a used buyer while still under warranty. It does not cover leased vehicles. It covers your car if a persistent issue impairs its use or substantially lowers the market value within one year after delivery or during the manufacturer warranty term, whichever comes first.
• Hawaii: Applies to new and leased vehicles. You could get a refund or a replacement if your car experiences an issue that makes it hard to use, decreases its value, or makes it unsafe within the first 2 years or 24,000 miles, and the dealer can’t resolve the problem after multiple repair attempts.
• Massachusetts: Lemon laws in this state cover used cars, but the specifics of the law are unclear.
• Minnesota: Lemon laws in this state cover used cars, but the specifics of the law are unclear.
• New York: Lemon laws in this state cover used cars, but the specifics of the law are unclear.
• California: Applies to new, used, and leased vehicles. It covers your car if there’s a problem that makes it hard to use, lowers its value, or makes it unsafe, and the dealer cannot repair the defect after a reasonable number of attempts when a vehicle remains under a new car warranty. For used vehicles, the state’s lemon law applies when it’s still under a manufacturer’s new car warranty.
• Connecticut: Lemon laws in this state cover used cars, but the specifics of the law are unclear.

Other states, such as Florida, Georgia, Idaho, and Alabama, have lemon laws that apply to new and leased vehicles, but it is unclear whether they cover used cars.

What is a lemon car?

A "lemon car" is a term for a car that fails to meet repair or safety guidelines. It is a vehicle with significant defects or issues that affect its value, use, or safety. These defects must be covered by the manufacturer's warranty and must still persist after a reasonable number of repair attempts. Lemon laws exist to protect consumers from being stuck with faulty vehicles.

Lemon laws primarily serve to force manufacturers to buy back defective vehicles or exchange them. The laws vary from state to state but generally require a certain number of repair attempts within a specified amount of time for the same problem or a certain number of days out of service within a specified time frame for any number of problems. For example, in California, a car is considered a lemon if it has been in the shop for repairs for at least 30 days during the warranty period. In Georgia, the lemon law covers a car if there is a problem that makes it hard to use within 2 years or 24,000 miles and impacts its usability, value, or safety.

In addition to the repair attempts, the defect or issue with the vehicle must substantially impair its use, value, or safety. This means the defect must be significant and prevent the car from functioning properly or meeting its intended purpose. Examples include faulty brakes, transmission problems, electrical issues, or suspension defects. Minor problems like a malfunctioning dome light usually wouldn't qualify as a lemon.

It's important to note that lemon laws are difficult to apply to used cars, especially if the manufacturer's warranty has expired. Only a few states have used car lemon laws, and even in those states, the application of these laws is very limited. To avoid buying a used lemon car, it is recommended to get it inspected by a reputable mechanic prior to purchase.

What to do if you get a lemon car

Lemon laws are confusing and vary from state to state. While new car lemon laws exist in every state, only a few states have provisions in place for used cars. These states include Rhode Island, New York, New Jersey, Minnesota, Massachusetts, Hawaii, Connecticut, California, and New Mexico.

If you believe you have purchased a lemon car, there are several steps you can take to seek recourse. Firstly, it is important to keep detailed records of all events surrounding your car's defect. This includes documentation of repair attempts, dates when issues arose, and any correspondence with the manufacturer or dealer. Presenting this evidence to an impartial arbitrator can help determine whether your vehicle qualifies as a lemon. If the arbitrator agrees, you may be awarded a replacement vehicle or a refund, minus any use allowance and previous settlements.

To initiate the process, contact the manufacturer in writing, providing a comprehensive timeline of events, including the date of purchase, when problems arose, and the results of any repair attempts. You can find template letters online to assist you in drafting this correspondence. Additionally, you can request mediation through the Automotive Consumer Action Program, coordinated by the National Automobile Dealers Association. Alternatively, you may seek assistance from a dispute resolution organization or consult an attorney specializing in lemon law through the National Association of Consumer Advocates.

To avoid purchasing a lemon car in the first place, it is recommended to conduct a thorough inspection of the vehicle, including its interior and exterior, and take it for a test drive on local roads and highways. Seeking an independent mechanical inspection can also help identify potential issues.

Dealership obligations

In New York, for example, dealers must provide a written lemon-law warranty for used cars. This warranty outlines the dealer's obligation to repair any defects in covered parts free of charge. If the dealer cannot fix the car after a reasonable number of attempts, the consumer may request arbitration and may be entitled to a full refund. The lemon-law warranty period is extended for each day the car is in the shop for repairs, and the dealer may offer an extended service contract for additional protection beyond the lemon-law warranty.

In New Jersey, the lemon law applies to used cars purchased from a licensed dealership within specific parameters, such as the vehicle's age and mileage. The law defines a used lemon as a vehicle with substantial safety issues, multiple repair attempts, or being out of service for a certain number of cumulative days.

In states without specific used car lemon laws, dealerships may still offer protections for used car buyers. For instance, some dealerships provide certified used cars that have undergone special inspections and are backed by lengthy warranty policies. These warranties outline the dealership's obligation to repair or replace defective parts during the covered period.

It is important to note that dealership obligations may vary from state to state, and consumers should refer to their specific state's lemon laws to understand their rights and the dealership's responsibilities. Additionally, while dealerships are not required to sell vehicles in perfect condition, they are typically obligated to disclose the vehicle's accident history and provide accurate information about its condition.

Odometer tampering

Lemon laws are federal and state consumer protection laws that hold manufacturers and sellers accountable for their goods. Lemon laws are difficult to apply to used cars, especially if the manufacturer's warranty has expired. Only a handful of states have used car lemon laws, and even in those states, the application of these laws is very limited and rarely helps.

If you suspect odometer fraud, you can take the car to a mechanic for a quick and relatively cheap inspection. Have them compare the interior wear with the mileage and age of the car, looking for signs like worn-out seats, steering wheels, and buttons, which can be strong indicators of a tampered odometer. You can also review the selling dealer's records. State and federal laws require that dealerships keep extensive records on every vehicle they buy and sell. A dealership should be able to show you the odometer statement from when they acquired the vehicle, as well as an inspection certificate that includes the date and mileage of the vehicle at the time of inspection.

If you believe a car dealer is trying to scam you by selling a vehicle with a tampered odometer, you can file a civil lawsuit against the dealership. Federal prosecutors rarely file criminal charges for odometer tampering, but you have the right to file a civil lawsuit, and if you win, you may recover $10,000 or treble damages, whichever is the higher amount. You can also contact the National Highway Transportation Safety Administration (NHTSA) Vehicle Safety Hotline or the Office of Odometer Fraud Investigations.

Frequently asked questions