Buying a car can be an exciting event. But how discouraging it can get if a long-awaited car turns out to be defective. When it comes to a used car, a person buying it is usually very cautious, inspecting its ins and outs. However, a car rolled off the assembly line may also hide serious malfunctions. In this article, we are taking a closer look at what a lemon car is and what a person should do if they end up with one.
What Is a Lemon Car?
Let’s first understand what a lemon car is and why it’s called “a lemon”. Well, suppose you have been dreaming about a car since college, and finally, you can afford a brand-new one from a dealer. Now, imagine that this car suddenly breaks down after a few rides. How would you feel? Frustrating and sour, just like when eating a lemon.
Any defect or a combination of defects that substantially impair the safety, use, or value of a motor vehicle, which cannot be fixed within a certain number of repair attempts or a specified period, forms a lemon. It means that if you buy a brand-new car with a substantial defect continuing to have difficulties even after trying to correct it, you’ve bought a lemon. The lemon’s malfunctions include severe engine or brake issues that make the vehicle dangerous to drive. If a car has defects related to comfort or design, it may not be enough to consider a car a lemon.
So, what do you need to know if your newly purchased car appears to be a lemon? Fortunately, you can apply the federal law or state’s lemon laws offering you protection.
Vehicle-Related Legal Forms
Knowing vehicle-related federal and state laws is crucial to protect your rights and to secure yourself from buying a malfunctioning car. And it’s always better to have quality legal templates to create lawyer-approved documents. They may help you to keep track of and gather all the necessary vehicle paperwork.
Lemon Laws and Requirements
The federal lemon law aims to protect consumers in the event that they purchase a defective vehicle. This law is also known as the Magnuson-Moss Warranty Federal Trade Commissions Improvement Act (1975) and applies to car safety defects.
According to the Magnuson-Moss Warranty Act, if a new vehicle has a factory defect but is still under the manufacturer’s warranty (usually 1-2 years), it’s the manufacturer’s liability to fix this issue. Usually, a vehicle is considered a lemon if the automaker tries to eliminate the defect within 30 days or in four attempts and fails. After that, the car becomes subject to immediate redemption by the dealer. In addition to the car’s purchase price, the dealer is obliged to refund all the taxes the consumer pays, including the registration of the car with the local Department of Motor Vehicles.
Apart from the federal law, each state has its own lemon laws. As a rule, state lemon laws complement the federal ones; some states, such as New Jersey, Washington, and Rhode Island, offer detailed regulations specifying the number of car repair tries and a period for defect elimination. Other states, like California and Alaska, use the term “reasonable number of repair attempts.”
Does a lemon law cover used motor vehicles?
A lemon car usually refers to a brand-new car still under warranty but with a significant defect. However, some states also provide regulations for used cars purchased from dealers. For example, you may refer to lemon laws in Massachusetts and New York if your used car is under 15,000 and 18,000 miles, respectively.
As a rule, lemon laws apply to a used car bought from an authorized dealer and are covered by a warranty period. You cannot apply lemon laws if you buy a used car from a private party. Generally, the laws are similar for both new and used automobiles. The main difference between new and used car lemon laws is that a person buying a brand-new lemon vehicle must appeal to vehicle manufacturers, and a person buying a used lemon car must appeal to dealers to fix the issue.
What If You Purchase a Lemon Car?
So, what if life has given you a lemon in the form of a car? Can lemonade be made out of the dud? Fortunately, federal and state lemon laws allow you to claim a replacement or get your money for the vehicle back. Follow the next steps to get rid of your lemon vehicle successfully.
#1. Talk to the seller
It would be best to act fast when you realize your new vehicle is a lemon. First, you must address the dealership or manufacturer and explain the problem. As a rule, they must make all the repairs under warranty. If the problem does not disappear, you must apply the lemon law and start the buyback process.
#2. Check the state lemon law
You must be aware of the lemon law applied in your state. As mentioned above, there may be different requirements regarding a certain number of vehicle repairs or which cars can be considered lemons. If your state does not provide protection in this matter, you should not worry—you can always seek help on a federal level.
#3. Keep track of your actions
Keeping track of all your actions and good records, including repair orders and a vehicle history report, is a must, as it helps to pursue legal action later. This will ensure that you have evidence of trying to fix the necessary number of times and during the required period. It’s also crucial to send a formal letter to the manufacturer specifying the issue and your actions and indicating that the same problem continues to pop up anyway. The letter should also explain your intention to get a refund or replacement vehicle according to the state lemon laws.
#4. File a consumer complaint
Suppose the dealer or automaker fails or refuses to fix your problem with a defective car. In that case, you must ask for mediation through the National Automobile Dealers Association or file a complaint with the National Highway Traffic Safety Administration (NHTSA). If the manufacturer rejects any claims, you are recommended to find a lawyer specialized in such a matter and go to court. However, a lawsuit is considered a last resort since such cases are usually resolved through arbitration.
#5. Get a refund or replacement vehicle
As a rule, the law is on the side of the consumer, and the automaker must repurchase or replace the defective vehicle. In the first case, you will be refunded the money, including the car’s price and any additional charges. In the case of the replacement, a consumer gets an identical vehicle but fully operational.
How to Avoid Buying a Lemon Vehicle?
When it comes to brand-new vehicles, it can be challenging to identify hidden malfunctions. The best thing to do is to check the overall reliability of the car’s model and make. Some brands and models tend to get into the lemon category more often than others. A typical example is the Dodge Dart (1963-66). Such brands as Toyota and Lexus manufacture more or less reliable cars.
Malfunctioning used cars are easier to distinguish. For example, you can request a vehicle history report, inspect the car’s interior and exterior, and look for technical service bulletins (TSB) and auto recalls. You are encouraged to take your time when selecting and buying a vehicle.