Lemon Law In Indiana: What You Need To Know

Indiana's Lemon Law (The Motor Vehicle Protection Act) provides protection for consumers who purchase late-model, defective vehicles that require repair. The law covers vehicle defects arising under a manufacturer's warranty that substantially impair the use, value, or safety of the vehicle. To qualify for protection under the Indiana Lemon Law, the vehicle must be a car or light truck, purchased in the last 18 months, with less than 18,000 miles on it, and bought or leased from an Indiana dealer.

Requirements for a vehicle to qualify under the law

Indiana's lemon law, officially called the Indiana Motor Vehicle Protection Act, applies to vehicles purchased or leased in Indiana, regardless of the purchaser's residency or the vehicle's registration. The law covers cars and light trucks that weigh less than 10,000 pounds and are intended for use on public highways. To qualify under the law, the vehicle must be purchased in Indiana, have less than 18,000 miles on the odometer, and be less than 18 months old.

The law does not apply to vehicles over 10,000 pounds, conversion vans, motor homes, farm machinery, road-building equipment, motorcycles, mopeds, snowmobiles, or vehicles designed primarily for off-road use.

To be considered a lemon, the vehicle must have a defect covered by the warranty that impairs its use, value, or safety. The manufacturer must be given four repair attempts or thirty days to fix the issue. If the defect remains, the consumer can choose between a refund or a replacement vehicle.

It is important to note that if a refund is chosen, the manufacturer is entitled to deduct a "reasonable use" amount from the refund value, which is calculated based on the vehicle's mileage. This deduction can be significant, as the entire value of a vehicle is considered consumed at 100,000 miles. For example, if a lemon vehicle has 25,000 miles on it, the refund would only be 75% of the purchase price.

What to do if your vehicle is covered by the law

Yes, the lemon law applies in Indiana and offers protection to consumers who have purchased defective vehicles. The Indiana Lemon Law covers new and demonstrator motor vehicles that were purchased, leased, or transferred during the first 18,000 miles of use or within the period of the manufacturer's warranty, whichever comes first. If your vehicle is covered by the lemon law, here are the steps you should take:

Keep a Detailed Record: Ensure you document all issues with your vehicle, including the dates and nature of the problems, and any repairs or maintenance work carried out. Keep all receipts, work orders, and invoices related to the vehicle's service history. This comprehensive record will be crucial when making a claim.

Notify the Dealer and Manufacturer: Contact the dealership from which you purchased the vehicle and the manufacturer. Explain the issues you're experiencing and your intention to pursue a lemon law claim. It's important to act promptly, as there are time limitations for claims. The dealership and manufacturer should be given a reasonable opportunity to repair the vehicle.

Allow for Repairs: Cooperate with the dealership and manufacturer by allowing them to diagnose and repair the issues. Ensure that all repairs are properly documented, and keep a record of the time the vehicle spends in the shop. If the repairs are unsuccessful or the same issue recurs, document this as well, as it strengthens your case.

Send a Demand Letter: If the dealership and manufacturer are unable to fix the issues within a reasonable amount of time or number of attempts, send them a demand letter. This letter should outline the issues, the repair history, and your request for a refund or replacement vehicle. Give them a deadline by which they must respond, and keep a copy of the letter for your records.

Hire an Attorney: Consider seeking legal assistance from an experienced lemon law attorney. They can guide you through the process, ensuring your rights are protected and that all necessary steps are taken. Lemon law cases can be complex, and having legal representation improves your chances of a successful outcome.

Pursue Arbitration or Litigation: If your claim is not resolved through negotiations, you may need to pursue arbitration or file a lawsuit against the manufacturer. Arbitration is often a quicker and less costly option, but it may not always be available or suitable for your case. Litigation involves filing a lawsuit in court, which can be a lengthier process but may be necessary to receive the compensation you deserve.

Remember, it's important to act promptly and keep detailed records throughout the process. The lemon law is designed to protect consumers, and by following these steps, you can increase your chances of receiving a fair resolution, whether that's a refund, a replacement vehicle, or compensation for your troubles.

What happens if the manufacturer disagrees with your claim

Indiana's lemon law, officially known as the Indiana Motor Vehicle Protection Act, provides a remedy for purchasers of new vehicles with a defect that the dealership can't fix. If the manufacturer disagrees with your claim that your vehicle is a lemon, you have the option to file a lawsuit within two years of the date you first reported the problem to the dealer.

Before filing a lawsuit, it's important to determine if your vehicle qualifies as a lemon under Indiana's lemon law or the federal Magnuson-Moss Warranty Act. To qualify as a lemon under Indiana law, your vehicle must meet certain criteria:

• Purchased in Indiana
• Weighs less than 10,000 pounds
• Intended primarily for use on public highways
• The defect must impair the use, value, or safety of the vehicle
• The dealership must have been given four attempts or thirty days to repair the defect
• The defect must have been reported within the first 18 months or 18,000 miles of the vehicle's life

If your vehicle meets these criteria, you can proceed with filing a lawsuit. It's important to note that you may not need to go to court if you can reach a settlement with the manufacturer. Hiring an experienced lemon law attorney can improve your chances of collecting what you're owed and can help you navigate the legal process.

Additionally, if you prevail in the lawsuit (either through a settlement or a trial victory), the manufacturer is responsible for paying your reasonable attorney fees. This means that you can hire a lemon law attorney without worrying about upfront legal costs.

How to get compensated for the purchase of your defective vehicle

Indiana has one of the most consumer-friendly lemon laws in the country. The Indiana Motor Vehicle Protection Act covers vehicle defects arising under a manufacturer's warranty that impair the use, value, or safety of the vehicle.

To qualify for protection under the Indiana Lemon Law, the vehicle must meet the following criteria:

• Purchased in the State of Indiana
• Weighs less than 10,000 pounds
• Primarily intended for use on public highways
• Purchased in the last 18 months
• Less than 18,000 miles
• Bought or leased from an Indiana dealer

If your vehicle meets these criteria, you can determine whether it is a lemon by asking yourself the following questions:

• Does my vehicle have a defect that the manufacturer has failed to repair?
• Is the defect covered by the warranty, or does it substantially impact the vehicle's use, safety, or value?
• Did I give the manufacturer four chances to fix the defect, or has the manufacturer kept the vehicle in service for more than 30 days?
• Was the defect first reported within 18 months or 18,000 miles of the vehicle's life?

If you answered "yes" to all of these questions, your vehicle is a lemon under the Indiana Lemon Law, and you are entitled to your choice of a refund or replacement. If you answered "no" to any of the questions, you may still have a lemon under the federal Magnuson-Moss Warranty Act, which may classify a vehicle as a lemon after just one repair attempt under certain circumstances.

To get compensated for the purchase of your defective vehicle, you should first consult with an experienced Lemon Law attorney to learn about your rights. Hiring a Lemon Law attorney in Indiana improves your chances of collecting what you're owed, and it doesn't cost you anything to do so. Lemon Law attorneys work on a contingency basis, meaning they only get paid if they win your case.

The next step is to file a complaint with the Attorney General's office by calling 1-800-382-5516 or filing a complaint online. Keep in mind that a lemon lawsuit must be filed within two years of the date that you first informed the dealership of the defect.

Vehicles that are not covered by the law

Indiana's lemon law does not cover several types of vehicles, including:

• Conversion vans
• Motorhomes
• Farm tractors
• Road-building equipment
• Semi-trucks
• Road tractors
• Motorcycles
• Mopeds
• Snowmobiles
• Vehicles designed primarily for off-road use

The law also does not cover vehicles that weigh more than 10,000 pounds or were not intended for use on public highways. Additionally, the law does not cover minor issues that do not substantially impair the vehicle's use, value, or safety, such as a slight rattle or a problem with the radio.

It's important to note that even if a vehicle is not covered by Indiana's lemon law, it may still be protected by other laws, such as the federal Magnuson-Moss Warranty Act, which offers similar consumer protections for defective vehicles. This federal law covers used vehicles in Indiana as well, as long as the defects are reported during the warranty period.

Frequently asked questions