Lemon Law In Indiana: Your Guide To Applying

Indiana's Lemon Law, officially known as the Indiana Motor Vehicle Protection Act, provides a remedy for purchasers or lessees of defective vehicles that the dealership can't fix. It applies to vehicles purchased or leased in Indiana, regardless of whether the purchaser is a resident of Indiana or the vehicle is registered in Indiana. To qualify for protection, the vehicle must be a car or light truck, purchased in the last 18 months, with less than 18,000 miles, and bought or leased from an Indiana dealer. Consumers can file a complaint with the Attorney General's office by calling their hotline or filing a complaint online.

Vehicle requirements

Indiana's lemon law covers vehicles that meet the following requirements:

Vehicle Type

The law covers cars and light trucks. It does not cover conversion vans, motor homes, farm tractors, road-building equipment, semi-trucks, road tractors, motorcycles, mopeds, snowmobiles, or vehicles designed primarily for off-road use.

Weight

The law applies to vehicles weighing less than 5 tons or 10,000 pounds.

Purchase Location and Registration

The vehicle must be purchased or leased in Indiana from an Indiana dealer. The law also covers consumers who don't live in Indiana but buy a vehicle in the state. The vehicle must be registered or licensed before use or operation and intended primarily for operation on public highways.

Age and Mileage

The law covers vehicles purchased in the last 18 months or with less than 18,000 miles. The defect must be reported within the first 18 months or 18,000 miles of the vehicle's life, whichever comes first.

Indiana Lemon Law basics

Indiana's Lemon Law, officially called the Indiana Motor Vehicle Protection Act, is designed to protect consumers who have purchased or leased a defective vehicle that requires repair. The law covers any consumer who has entered into an agreement or contract in Indiana for the transfer, lease, or purchase of a motor vehicle. The law also protects consumers who don't live in Indiana but buy a vehicle in the state.

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

• Purchased in Indiana
• Weighs less than 10,000 pounds
• Purchased or leased in the last 18 months
• Less than 18,000 miles on the odometer
• Bought for purposes other than resale or sublease
• Primarily intended for use on public highways
• Registered or licensed before use or operation

The law covers "nonconformities," defined as any specific defect or condition that substantially impairs the use, market value, or safety of the vehicle. The defect must also render the vehicle nonconforming to the warranty. Minor issues that do not significantly impair the vehicle's use, value, or safety are not covered. Additionally, problems caused by the consumer's abuse, neglect, or unauthorized modification are not covered.

If you believe your vehicle is a lemon, the first step is to take it to an authorized dealer to report the problem and have repairs made. You must allow the dealer a reasonable number of attempts to repair the vehicle, which is typically considered four repair attempts or 30 days out of service. If the dealer cannot fix the issue within this timeframe, the vehicle is considered a lemon, and the consumer is entitled to their choice of a refund or replacement.

It's important to keep detailed records of all repair attempts and maintain copies of repair orders, as these will be crucial if you need to pursue legal action.

What constitutes a reasonable number of repair attempts?

In Indiana, a "reasonable number" of repair attempts is generally considered to be four (4) attempts. If the issue with the vehicle is a serious safety defect, federal law reduces the number of repair attempts to one (1). If the dealer or manufacturer cannot repair the vehicle after four attempts (or one in the case of a serious safety defect), the manufacturer must allow you to return the vehicle for a refund or replacement.

Vehicles may also qualify as lemons if they have been out of service for repairs for a cumulative total of 30 business days or more. In this case, if the defect is still present after 30 days, the vehicle is considered a lemon, regardless of the number of repair attempts.

Arbitration

In Indiana, arbitration is a mandatory step before filing a lawsuit under the Lemon Law. Some manufacturers have established an informal procedure to handle Lemon Law claims, which must be certified by the Indiana Attorney General. If the manufacturer has such a procedure, it will be outlined in the warranty for the vehicle. If not, the consumer must check their warranty and owner's manual to see if written notice of the problem is required before a refund or replacement vehicle is provided. If written notice is not required, the consumer may file a lawsuit without notifying the manufacturer of their claim.

The arbitration process is free for consumers, with the manufacturer responsible for any costs incurred. Consumers may need to fill out forms and paperwork with extensive details about their vehicle purchases and provide comprehensive documentation of repair attempts. It is recommended that consumers consult with a lawyer to ensure they are taking the correct steps in the arbitration process.

Lemon law arbitration hearings usually involve the consumer (and their lawyer, if they have one) presenting evidence to support their case, including any witness testimonies. The vehicle manufacturer will also present evidence. The arbitrator will then ask questions of both sides to gain a better understanding of the case. The decision of the arbitrator is usually made within days or weeks of the hearing, but sometimes it can take longer. If the arbitrator rules in favor of the consumer, they may be entitled to a replacement vehicle or a refund for the purchase.

What to do if the manufacturer disagrees with your claim

If the manufacturer disagrees with your lemon law claim, you must file a lawsuit within two years from the date you first reported the problem to the dealer.

Before filing a lawsuit, you must follow the manufacturer's informal dispute resolution procedure if they have one in place. This procedure must be certified by the Indiana Attorney General. If you are dissatisfied with the outcome of the manufacturer's informal dispute resolution, you may then file a lawsuit using the Lemon Law.

If you win the lawsuit, the manufacturer has 30 days to either replace your vehicle with one of comparable value or refund your money. You can recover all your costs, including attorney fees.

Frequently asked questions