Wednesday, February 24, 2016

Lemon Laws on a Private Sale

Lemon laws protect buyers from purchasing automobiles with major mechanical problems, typically defects affecting the safety and overall drivability of the vehicle. These laws, for the most part, do not extend to minor cosmetic or electronic defects and rarely extend to private sales. Lemon laws pertaining to private sales vary from state to state, so it is important you research your state's laws to understand your rights as a buyer and a private seller.

State Laws

    Your rights are based on the state you live in and where you purchased and registered your vehicle. For instance, in Massachusetts anyone who sells more than four vehicles in a 12-month period is considered a car dealer and is privy to dealer laws.

Disclosure

    Typically, private vehicles are sold "as-is." However, a seller is responsible for disclosing any information on a vehicle's condition prior to its sale. If a vehicle has been salvaged, wrecked, flooded or stolen, the buyer could have grounds for legal action if it's not disclosed. Similarly, if an odometer has been rolled back, the vehicle might be eligible for return. Many states offer a period of a few days where a vehicle can be returned if it shows major mechanical failure. These laws vary, though, because it's difficult to determine whether a vehicle was suffering from these mechanical symptoms before the time of sale or whether they were incurred after the time of purchase.

What's Covered

    In many states, the buyer is responsible for having a vehicle inspected within seven days of purchase to have recourse against the seller for problems. Buyers usually have 30 days to return the vehicle. Many states require that the repairs exceed a percentage of the purchase price for the vehicle to be covered under private lemon laws. In some, the buyer has little to no recourse, making it very important to have a vehicle inspected before purchasing.

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