What's A Lemon And Am I Protected If I Buy One?

Getting a new car is usually a cause for celebration. Your new car looks great, has all the latest convenience and safety features, is totally reliable, and has that new car smell. But if you get a lemon — a car that just doesn’t work and can’t be fixed — that wonderful experience can quickly turn into a nightmare. What can you do if you find yourself in this situation?

Consumers who end up with a lemon do have some legal recourse. There are federal protections in place, and every state, as well as the District of Columbia, has its own lemon laws, designed to protect you from a car that just won’t run right, no matter what you do.

What is a ‘lemon?’

New cars come with a warranty that covers most flaws or defects for a specified period of time, or a specified number of miles, whichever comes first. Cars that keep failing and cannot be repaired are in violation of the 1975 Magnuson-Moss Warranty Act. It says the owner of such a car can get a replacement product or a refund of the purchase price. When a car under warranty can’t be repaired, it may be considered a lemon.

To be legally considered a lemon, a motor vehicle must meet certain qualifications, based on the applicable laws in the state where it’s registered. There are some variations from state to state, but to qualify as a lemon, a vehicle usually must:

• Be a new car, covered by a new-car warranty
• Have a substantial defect that is covered by the warranty
• The defect must occur within a certain period of time or within a certain number of miles after purchase
• The defect may not be caused by abuse
• The defect must be one that affects the car’s use, value or safety
• The defect is still there after a reasonable number of repair attempts

Let’s go a little deeper and explain what some of these legal terms mean:

Substantial defect: This usually means a problem related to a vehicle’s primary transportation function, like the engine, brakes, steering or key safety equipment.

Affects the car’s use, value or safety: The defect prevents the owner from being able to properly and safely operate the vehicle under normal conditions.

A reasonable number of repair attempts: The defect has not been fixed after a certain number of tries. The exact number relates to the nature of the problem and the regulations of the state: the more crucial the system, the fewer tries are considered reasonable.

What are lemon laws?

Lemon laws are consumer protection regulations, designed to protect car buyers from defective cars, trucks, SUVs, and sometimes motorcycles. The key provision of lemon laws is that carmakers are required to buy back vehicles with “substantial” defects that they can’t fix within a reasonable amount of time. Lemon laws take all of these factors into account:

• The nature of the vehicle’s problem
• How many days the vehicle is out of service due to repairs related to the problem
• How many attempts to repair the problem were made

Each state’s law specifies a maximum number of days that are allowed to fix the problem. If the repairs cannot be made within that time period, the manufacturer must buy back the vehicle.

Some state lemon laws are stronger than others. Some cover personally owned vehicles but not ones owned by businesses. Some apply only to the original owner, while others cover subsequent owners, as long as the new-car warranty is still in effect. If you’re in a state with a weak lemon law, you may want to pursue a case that uses the federal lemon laws.

How to use lemon laws

Lemon laws exist to protect you, but there are several important steps that you must follow, if you want the law to work for you.

Have the dealer you bought the car from work on it: To use the full power of the lemon laws, the dealer or manufacturer must first make the required number of attempts to fix your car’s “substantial defect.” Crucial safety systems like the steering or the brakes will usually qualify after one attempt. Non-safety related problems may need three or four repair attempts. Your car may also qualify if it has been in the shop for a specified number of days.

Keep all your records and act professionally: Save all of your repair receipts, letters and emails. Include any out-of-pocket costs, such as towing fees and rental car charges, that you have incurred. Document everything that happens, including verbal exchanges with dealer personnel and manufacturer’s representatives. Make a timeline that tracks when your car needed repairs, and how long it was in the shop each time. Stay cool and positive through all of your interactions, and don’t lose your temper.

Do some research on your car: Search online for “(year-make-model of your car) problems defects recalls.” Your search results should provide you with information on whether other owners of the same vehicle have had issues that are similar to yours. Any recalls of your vehicle should also come up. You should also search for “(year-make-model of your car) TSBs.” This will give you a list of technical service bulletins for your car, detailing customer complaints and other issues.

All of this information can provide you with extra ammunition as you go through the lemon law process, proving that you are not the only owner experiencing certain problems.

Send the manufacturer a letter: Notify the company that your car meets the lemon law refund or replacement requirements, and that you want them to make good on it. Include the timeline that tells the story of your car’s problems and its complete repair history. Send the letter by Certified Mail with a return receipt, to provide you with proof of when it was delivered.

Go through the arbitration process: If the manufacturer does not send you a refund check in response to your initial letter, the next step is usually an arbitration process. The carmakers require this because it favors them, compared to going to court. If you live in a state where you have a choice, select the state-sponsored arbitrator over the manufacturer’s choice. You can do this part yourself, but you might want to read down to the next item for the best results:

Hire an attorney: Find a lawyer who specializes in lemon law litigation. Having legal representation in your corner can level the playing field as you go through the arbitration process. If the arbitration does not go your way, your attorney will be fully up to speed and can file a lawsuit to get you a settlement you are entitled to. Best of all, if you win, the manufacturer will be required to cover all of your legal fees.

How long does the lemon law process take? From the time you send the manufacturer your letter, it can take anywhere from one month to three months to get through the arbitration process. If you go on to file a lawsuit after that, it will take longer.