A "lemon law" is an American state law that protects and compensates purchasers of substandard cars. Though the Magnuson-Moss Warranty Act protects consumers in all states, each state has its own set of lemon law statutes.
What Is Covered?
Michigan's lemon laws protect purchasers of all passenger cars, including pickups, sport utility vehicles and vans. The purchase must have been made in the state of Michigan or by a Michigan resident and the vehicle must have been covered by a manufacturer's warranty at the time of purchase.
Repairs
To be considered defective and eligible for compensation, a vehicle must have undergone four unsuccessful repair attempts for the same problem (within two years of the date of the first repair attempt,) or have been out of service (and under repairs) for 30 days. A consumer has a year from the date of purchase to report a defect in writing to the manufacturer.
Compensation
Under the Michigan lemon law, a buyer has the right to demand either a refund or a comparable replacement vehicle. A refund includes the initial purchase price, plus the amount of all charges and modifications made by the manufacturer, minus a reasonable allowance for use and any damages not caused by the defect or normal use. The manufacturer is also obligated to reimburse the consumer for towing or rental costs that resulted from the defect.
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