Cecily Zamora
Lemon laws protect consumers from defective vehicles, both new and used. In the US, several states have lemon laws for used cars, including California, Connecticut, New Mexico, Massachusetts, New Jersey, and Rhode Island, which offer coverage with some age and mileage restrictions. To qualify for lemon law, a used vehicle must be covered by a warranty, either a manufacturer's or dealership warranty, and the defect must be covered by the warranty but remain unrepairable. In California, a used car purchased in a private sale is not covered by lemon law, and the vehicle must be purchased retail.
| Characteristics | Values |
|---|---|
| Lemon law coverage | California Civil Code 1793.33 states that vehicles in California that are still under the manufacturer’s original warranty, new or used, are covered by the lemon law |
| Used car lemon law | California, Connecticut, New Mexico, Massachusetts, New Jersey, and Rhode Island have lemon laws for used cars with some age and mileage restrictions |
| No lemon law | Arkansas, Georgia, Mississippi, Idaho, Montana, North Dakota, South Dakota, Vermont, and West Virginia have no state lemon laws for used cars |
| Warranty requirements | A written warranty must be included for lemon law to apply |
| Lemon law buyback | A lemon law buyback does not void the vehicle's warranty; the balance of the manufacturer's warranty is still in effect for the subsequent purchaser |
| Dealership requirements | The car must be purchased through a dealership; there is no lemon law protection for vehicles purchased through private sales or auto auctions |
| Warranty type | The vehicle must be covered by either a factory warranty (Certified Pre-Owned) or an extended warranty offered by the dealership |
| Warranty period | The warranty period can vary, with some dealerships offering a 30-day/1,000-mile service contract plan or a 30, 60, or 90-day warranty |
| Warranty defects | The issues causing problems must be covered under the warranty but be unrepairable, leaving you with a defective car |
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What You'll Learn
Lemon law buybacks may not void the warranty
Lemon laws protect consumers from being stuck with a defective vehicle. If a car is found to have defects that cannot be fixed after a reasonable number of repair attempts, it may be classified as a "lemon". In such cases, the manufacturer is required to buy back the vehicle.
A branded title is usually assigned to a vehicle that has been bought back under lemon law. This ensures that if the vehicle is resold, the new owner is aware of its history and can agree to a fair purchase price. While a branded title may affect the warranty on the vehicle, it does not necessarily void it completely. In most cases, the balance of the manufacturer's warranty remains valid for the subsequent purchaser.
The impact of a lemon law buyback on a vehicle's warranty can vary depending on the state and the specific circumstances of the case. In California, for example, a lemon law buyback can affect how the warranty is treated moving forward. While the warranty on a lemon law buyback vehicle may still be valid for specific components, manufacturers or third-party warranty providers may be reluctant to extend full coverage due to the vehicle's history.
It is important for buyers to understand the implications of purchasing a lemon law buyback vehicle. While the warranty may still be valid, there is a risk that coverage may be limited or that repairs may be handled differently. To make an informed decision, buyers should carefully review the vehicle's history and determine whether the manufacturer or dealership resolved the initial defect before reselling the vehicle.
To avoid voiding the warranty on a lemon law buyback vehicle, it is generally recommended to follow the manufacturer's recommended maintenance schedule, avoid unauthorized modifications, and use only approved parts and fluids. By taking these precautions, buyers can help ensure that their warranty remains intact and protect themselves from unnecessary repair costs.
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Warranties must be in writing
Warranties are a crucial aspect of the lemon law, which protects consumers from defective vehicles. While lemon laws vary across states, it is generally understood that a vehicle must be covered by a warranty to qualify for lemon law protection. This could be the manufacturer's original warranty, a dealership warranty, or an extended warranty. However, the warranty alone is not sufficient; the issues causing problems must be covered by the warranty and remain unrepairable, rendering the car defective.
In the context of used cars, the warranty period can vary significantly. Some dealerships offer very limited coverage, such as a 30-day or 1,000-mile service contract plan. On the other hand, a Certified Pre-Owned (CPO) vehicle may still carry the factory warranty, providing more extensive coverage. It is important to note that once the warranty expires, lemon law protection is no longer applicable.
While implied warranties, or spoken and unwritten promises by a dealer, may exist, they are rarely covered by lemon laws. Instead, express warranties, which are promises made by the seller in writing or verbally, are given more weight. A dealer warranty is also considered binding and is typically backed by paperwork. Therefore, it is crucial for consumers to understand the warranty terms and conditions when purchasing a used car to ensure they have recourse in case of defects.
In California, specifically, lemon law coverage extends to most vehicles still under the manufacturer's original warranty, new or used. Additionally, if a used vehicle is no longer covered by the original manufacturer's warranty, it may still qualify as a lemon if the dealer provided their own warranty, typically a 30, 60, or 90-day warranty. Importantly, this warranty must be in writing to be valid. California's lemon law also stipulates that qualifying vehicles must be purchased through retail and not private party sales.
In summary, while lemon laws provide valuable protection for consumers, it is essential to understand the specific laws in your state and the terms of any warranties provided. Warranties must be in writing to be valid under lemon laws, and both the vehicle and the specific issues causing problems must be covered by the warranty to qualify for protection.
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Only defects covered by a warranty qualify under lemon law
Lemon laws are designed to protect consumers from mistakes made in the factory. For a car to qualify as a lemon under lemon law, it must have been sold with a warranty and have a significant defect. A defect is considered anything a vehicle does (e.g. the engine makes a knocking sound) or does not do (e.g. the car doesn't start). Most lemon laws consider an issue a defect when it substantially impairs the use, value, or safety of the vehicle, which can be very subjective. This doesn't mean a car has to be completely immobile to be considered defective, but it must have a substantial impact on the car.
Only defects covered by a manufacturer's original warranty (or a dealership warranty) qualify under the lemon law. If a defect occurs while the vehicle is under warranty, you must take it to a manufacturer-certified facility for repairs. If the extended warranty provider has repeatedly fixed the same issue on your used car, and it keeps being defective, the warranty should cover you.
In California, a used car purchased in a private party sale is not covered by the lemon law, even if the car only has 100 miles on it. California's lemon law states that qualifying vehicles must be purchased at retail. Lemon law California only covers defects to factory parts. Aftermarket parts refer to any components that were not produced by the manufacturer, such as alterations to wheels, exhaust, or hydraulics.
Time is critical in a lemon law claim. It's imperative to report any signs of a defect as soon as they are noticed. Under California lemon law, a vehicle is presumed to be a lemon if it meets the state's qualifications within 18 months of the purchase date or before 18,000 miles accrue on the odometer. While there are no guarantees in lemon law, meeting the state's qualifications within these limits will make things much easier.
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Lemon law protections disappear once the warranty expires
Lemon laws offer protection when a vehicle fails to meet quality and performance standards. While most lemon laws provide coverage during the warranty period, it is a myth that lemon law protections disappear once the warranty expires. In some states, there is extended protection beyond the warranty period.
In California, for example, if a car has a defect covered under warranty that the manufacturer can't repair after multiple attempts, the car owner is entitled to have the car repurchased or replaced. If the defect in a vehicle arises before the warranty expires, a Lemon Law claim may still be filed after expiration. However, it is important to note that other time limits restrict when a Lemon Law claim can be filed. In California, there is a four-year statute of limitations. After four years have passed since the owner learned of the issue, they lose the right to file a claim.
To strengthen a lemon law claim, it is essential to document and preserve evidence of the vehicle's defects and repair attempts. Vehicle owners must present carefully-kept records of all repair attempts to demonstrate that the attempts began before the warranty expired. This includes keeping a detailed record of all repairs, including dates, descriptions of the issues, and any communication with the manufacturer or dealership. In addition, all invoices, receipts, and service records related to the repairs should be saved.
It is important to understand the intricacies of vehicle warranties and how they affect your rights under the Lemon Law, especially if you are dealing with a defective car. An extended warranty does not void the manufacturer's warranty but provides additional coverage once the original warranty expires, ensuring continued protection.
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Lemon law may not cover private sales or auto auctions
Lemon laws are designed to protect consumers from defective products, including cars. However, it is important to note that lemon laws may not cover all car purchases, especially when it comes to private sales or auto auctions.
In the United States, lemon laws vary by state, and it is essential to understand the specific laws in your state. For example, in California, the lemon law does not apply to private car sales or vehicles purchased at auctions. The California Court of Appeal has ruled that the lemon law only applies to sales with retailers engaged in selling consumer goods. This means that if you buy a car from an individual or at an auction, you may not have the same legal protections as when buying from a dealership.
Similarly, in New York, the lemon law specifically mentions that it does not cover purchases made from private individuals. If you buy a used car at a retail auto auction, the auction company must be a registered used-car dealer with the DMV to provide lemon-law rights. This highlights the importance of understanding the specific laws and requirements in your state.
It is worth noting that even if a car is sold "as is," it may still be covered by the manufacturer's original warranty or a dealership warranty. In some cases, the remaining time on the warranty can be transferred to the new owner. However, private sellers are not required to provide a warranty or guarantee, and they may not have the same legal responsibilities as dealerships.
When considering a private sale or auction purchase, it is advisable to have a mechanic inspect the vehicle first. Obtaining a written statement outlining the warranty status and any known issues can also help protect your interests. While lemon laws may not always apply in these scenarios, you may still have legal recourse if the seller misrepresents the condition of the vehicle or fails to disclose known defects.
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Frequently asked questions
Lemon laws exist to protect consumers from defective vehicles, both new and used.
For a car to qualify for lemon law, it must be covered by a warranty and have a defect that can’t be repaired in a reasonable number of attempts.
You may be able to return the car or get a replacement. The reimbursement may include the original purchase price or you could opt for a replacement with a comparable car of relative market value.
Yes, used cars can be covered under lemon law in certain states. However, the car must be purchased through a dealership and have a written warranty included.
Generally, no. When a vehicle is bought back by the manufacturer, the balance of the manufacturer's warranty is still in effect for the subsequent purchaser of the vehicle.
