In Indiana, state law provides legal protection in the form of lemon laws to help you if you purchase a used car that turns out to have serious defects. The law sets standards that sellers must follow when vehicles are found to have defects after they are sold.
Facts
The Indiana Legislature established the state's lemon law, the Motor Vehicle Protection Act, in 1988. It protects the buyers of new and used vehicles in Indiana and anyone who leases a vehicle under a written agreement. The lemon law protects consumers by providing them with safeguards against anyone selling a car that has serious defects. The laws establish standards requiring manufacturers to make repairs or replace or repurchase a vehicle sold to the consumer when it has substantial defects.
Features
The Indiana lemon law covers defects that substantially impair the use, market value or safety of a new or used motor vehicle. The laws pertain to both warrantied vehicles and those sold as-is. Sellers can argue that the defects or condition of the vehicle do not result in any impairment of use, value or safety. They also can claim that the issues are the result of modifications the buyer made to the vehicle. To claim protection under the law, consumers must take their vehicles to the dealer or seller to report the problem and request repairs.
Time Frame
In Indiana, a buyer has a limited amount of time to make a lemon law claim on a vehicle. After the owner drives the vehicle 18,000 miles or 18 months pass, the law no longer applies, and the buyer's protection expires. If a claim is made before the time expires, the seller or manufacturer must correct the problems. The time limit does not expire after 18 months if the request for repairs is made before the 18-month period ends.
Repairs
When a buyer makes a claim under the Indiana lemon law, the seller or, in some cases, the manufacturer, has the option of repairing the vehicle. The law provides for "a reasonable number of repair attempts." The state describes a reasonable number as four. The law allows 30 business days for repairs. The seller or manufacturer must provide the buyer with free use of another vehicle while the vehicle is being repaired.
Repurchase
According to Indiana's lemon laws, if the vehicle issue persists after attempted repairs, the seller or manufacturer must repurchase the vehicle or provide an equal replacement. The seller has 30 days to do this. The repurchase price must be equal to the total contract price at the time of sale, and it must include all sales tax. It also must include the registration fee and excise tax paid by the buyer at the time the vehicle was purchased. The repurchase price also must include towing costs and rental car costs incurred due to the vehicle issue that caused the nonconformity.
Eligibility
The law applies to vehicles that weigh less than 10,000 pounds, are sold to consumers, are registered in Indiana or are sold to a consumer in Indiana who is not an Indiana resident. The law applies to vehicles for use on public highways and other roads, and it only applies to vehicles for which registration or licensing is required before use.
Considerations
The Indiana lemon law applies to new and used vehicles, but it does not cover conversion vans, motor homes, farm tractors, snowmobiles, motorcycles or ATVs. The Better Business Bureau provides help to U.S. consumers who purchase lemon vehicles and need to negotiate with sellers. BBB Auto Line has helped nearly two million consumers since the program began in 1978. Vehicle buyers can negotiate themselves, and many attorneys will assist in negotiations for a fee. If sellers deny your claim, you can file suit within two years of the date the vehicle problem was reported.
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