Lemon Law: Does It Expire After 18 Months?

Lemon laws are a type of law that holds manufacturers responsible for the defective vehicles they sell. In the US, every state has its own lemon law, and the Magnuson-Moss Warranty Act acts as a federal lemon law. Lemon laws cover vehicle nonconformities, which is a term used to refer to defects. These laws protect consumers who have purchased a defective vehicle or good and ensure they receive compensation, which could be a refund or a replacement vehicle. While lemon laws vary from state to state, they generally apply when a reasonable number of repair attempts have been made. In most states, this is at least three attempts, and in some, a single repair attempt may be sufficient for a vehicle to qualify as a lemon. Lemon laws typically apply within the first 18 months or 18,000 miles of purchasing a vehicle, though this may differ depending on the state.

Lemon Law in California

The Lemon Law in California, outlined in Civ. Code § 1793.2 et seq., is designed to protect consumers who have purchased vehicles that are not as they should be. The law limits the number of repair attempts a manufacturer can make before they need to buy back or replace the vehicle.

The law applies to new and used vehicles, as long as they are still under warranty. It covers cars, pickup trucks, vans, SUVs, the chassis and drive trains of motorhomes, dealer-owned vehicles, demonstrators, and vehicles purchased or leased for personal, family, or business use.

For a vehicle to qualify as a lemon in California, it must meet the following criteria:

• The warranty for the vehicle must be current.
• The vehicle must have been taken in for repair to an authorized dealer for the same problem at least 3-4 times. If the issue is severe enough to cause death or serious injury, 2 attempts to repair is sufficient.
• The vehicle must have been inoperable for a total of 30 days (the days do not need to be consecutive).
• The defect or malfunction in the car must severely impact the safety, value, or use of the vehicle.
• The vehicle must have been purchased or leased in California and used for personal, family, or business use.
• The issue or defect must have occurred within the first 18,000 miles or 18 months, whichever comes first.
• The owner must have notified the manufacturer about the problem, if required in the manual.

If a vehicle meets the above criteria, the owner may be entitled to a comparable replacement or a refund of the down payment, payments made towards the vehicle, registration, and other incidental and consequential expenses. The manufacturer is also required to pay the owner's attorney's fees and costs.

California's Lemon Law is a powerful tool for consumers, offering more coverage than many other states' lemon laws. It is important to note that there is a statute of limitations on lemon law claims in California, which is four years from discovering the defect.

Lemon Law in Virginia

In Virginia, the Lemon Law is called the Virginia Motor Vehicle Warranty Enforcement Act. This law applies to new vehicles that are classified as lemons if they have been unsuccessfully repaired three or more times for the same problem, or have been out of service for more than 30 days in a year. The law also applies to used vehicles under certain conditions.

To qualify as a lemon in Virginia, a vehicle must have a problem that "significantly impairs the use, value or safety of the vehicle". The dealership must be given a reasonable number of repair attempts to fix the problem. If the dealership is unable to fix the problem, the manufacturer must be notified in writing, and given 15 days to schedule a final repair.

The Virginia Lemon Law establishes a "lemon law" rights period of 18 months from the date of the vehicle's original delivery to the consumer. All claims must be filed within this period. If arbitration is filed before the 18-month period expires, the deadline to file a lawsuit is extended by 12 months from the date of the arbitrator's decision.

Lemon Law and used vehicles

Lemon laws are a type of law that holds manufacturers responsible for the defective vehicles they sell. In the US, every state has its own lemon law, and the Magnuson-Moss Warranty Act serves as a federal lemon law.

Lemon laws apply to new vehicles, but they can also apply to used vehicles in certain circumstances. For example, California's lemon law covers used cars if there is still time remaining on the manufacturer's warranty. The federal lemon law applies to any used vehicles that meet the Act's definition of a lemon, which means the vehicle must have a defect reported during the warranty period and that still exists after a reasonable number of repair attempts.

State-specific lemon laws often treat used vehicles in a similar manner, in that they don't distinguish between new and used vehicles. Instead, these laws typically declare that repair attempts must occur within a certain period after the original owner takes possession of the vehicle. However, some states specifically exclude used vehicles from protection under their lemon law.

Currently, only seven states have used car lemon laws: Connecticut, California, Massachusetts, Minnesota, New Jersey, New Mexico, and New York. Even in these states, the application of these laws is very limited and rarely helps.

If you have purchased a used vehicle that you believe to be a lemon, it is important to consult with a lemon law attorney to determine your rights and options.

Lemon Law and leased vehicles

Lemon laws exist in all 50 US states, but they vary from state to state. California's Lemon Law, for example, is one of the most comprehensive and favourable to vehicle purchase customers. It also applies to leased vehicles.

California's Lemon Law

California's Lemon Law, or the Song-Beverly Consumer Warranty Act, permits consumers to seek a replacement or reimbursement for vehicles that are defective and cannot be repaired within a reasonable number of attempts.

The law covers new vehicles or certified pre-owned vehicles that are purchased or leased in the state of California, as long as they are still within the manufacturer's new-vehicle, certified pre-owned warranty period or dealership warranty.

A lemon is a vehicle with a defect that continues to exist after a "reasonable number of repair attempts". The exact definition of a "reasonable number of repair attempts" varies by state. In California, it is generally considered to be two to four repair attempts.

The defect must occur during the manufacturer's original warranty, and it must not have been caused by the consumer's modifications, misuse, abuse, or neglect.

The vehicle must have a serious defect that affects its use, value, or safety.

What to Do if You Lease a Lemon

If you have leased a vehicle that turns out to be a lemon, you can ask the manufacturer for a refund of your down payment, all monthly lease payments, and the remaining lease payments, or you can ask them to replace the vehicle with a comparable one.

If the manufacturer refuses, you can sue for damages and keep the vehicle until they repurchase it. You can also request a cash settlement and keep the vehicle, but you will be responsible for making all future monthly payments on the lease.

Business Leased Vehicles

California's Lemon Law also covers small business leased vehicles if the following criteria are met:

• The leased business vehicle must have a serious defect that impairs its use, value, or safety and that cannot be repaired within a reasonable number of attempts.
• The vehicle must weigh less than 10,000 pounds.
• The business must have five or fewer cars registered to it.

Statute of Limitations

Lemon Law claims are subject to statutes of limitation, which vary from state to state. Under the Magnuson-Moss Warranty Act, which applies in all states, you can file a claim for up to four years after your warranty was breached.

In California, there is a four-year deadline to file a lemon claim. This timeframe starts when the consumer experienced substantial problems during the vehicle's warranty that could not be repaired.

Exceptions

Lemon laws do not usually apply to semi-trucks or other commercial vehicles. However, an experienced attorney should be able to help you hold the manufacturer accountable for the defective vehicle under state commercial warranty laws.

Next Steps

If you think your leased car may be a lemon, you should:

• Keep track of all problems, repairs, and service records.
• Consult with an experienced lemon law attorney.
• Be prepared to provide documentation to support your claim, including the original manufacturer's warranty, repair orders, and receipts.

Lemon Law and arbitration

Lemon law arbitration is a process that can be used to resolve disputes between consumers and vehicle manufacturers. It involves a neutral third party, known as an arbitrator, who reviews the situation and makes a decision on how to resolve the issue. This decision could include ordering repairs, initiating partial or full refunds, or replacing the vehicle.

In the context of the Lemon Law, arbitration is often presented as a quicker and cheaper alternative to filing a lawsuit. It is also a requirement in most states before a lawsuit can be filed. However, it's important to note that arbitration may not always be in the best interest of the consumer, as it tends to favour the manufacturer.

In California, for example, the Lemon Law covers new and used vehicles sold or leased with the manufacturer's new vehicle warranty. If the manufacturer or dealer is unable to repair a serious warranty defect after a reasonable number of attempts, they are required by law to replace or repurchase the vehicle. This process can be initiated through arbitration, with the decision typically being made within 40 days. While arbitration is not mandatory, it offers a no-cost option for consumers to resolve their issues without going to court.

However, it's worth noting that manufacturer-sponsored arbitrators may not always be neutral parties. In some cases, these arbitrators are reliant on the manufacturer for their business, or they may even be created by the manufacturers themselves. As a result, consumers often lose their claims or are awarded additional repair visits, which they are already entitled to under the warranty. Therefore, it is generally recommended to consult a specialised lemon law attorney before agreeing to arbitration.

Overall, while lemon law arbitration can be a viable option for resolving disputes, it's important for consumers to be aware of the potential drawbacks and seek legal advice to ensure their rights are protected.

Frequently asked questions