The first thing to know about so-called Lemon Laws is that they vary from state to state and car to car. For example, the warranties for some used vehicles remain in effect with the sale of the vehicle. GM vehicles manufactured after 2007, for example, have warranties that travel with the car for a specified period of time. But if the problem is persistent, the Lemon Law that applies is in the state where the vehicle is registered. Also, there are several federal laws that cover product deficiencies.
As for dealerships that sell used cars, some offer limited warranties, but the law of the state in which you bought the used vehicle will prevail if--and this is a serious if--the state law addresses the purchase of used vehicles. Most Lemon Laws are directed at the purchase of new vehicles.
The Magnuson-Moss Warranty Act
Magnuson-Moss is a federal law that protects buyers from any defective appliance or product that costs more than $25. The caveat is that the product, including a vehicle, must come with a written warranty. The act targets warranties that are unfair or contradictory. It also permits you to take the manufacturer or warrantor to court to settle a dispute over the terms of the warranty. The law, however, is somewhat limited and weak. It doesn't necessarily solve the problem, but it does allow for the award of attorney's fees.
The Uniform Commercial Code
Again, it's a rather ineffective law but does apply federally (all 50 states, D.C. and Puerto Rico). Again it covers contracts dealing with the sale of products. The UCC gives buyers the right to a refund for a lemon but doesn't define what a lemon is or how a manufacturer or secondary market seller can make amends. The result is that it's up to a court to decide if you've purchased a lemon, and the court has the discretion to require that you receive a refund or a new car. It also permits the award of attorney's fees you may have incurred.
State Lemon Laws
Most state Lemon Laws specify that a manufacturer must provide a refund or replacement for a defective new vehicle when a substantial defect cannot be fixed in four attempts or a safety defect in two attempts, or if the vehicle is out of service for 30 days within the first 12,000 to 18,000 miles or 12 to 24 months. That is just a very general overview. And if that isn't complicated enough, some state laws become much more complex.
Notice and records
It's unlikely you'll want to pursue Lemon Law enforcement under federal laws, because they are vague and recompense is minimal compared to the time and frustration. So knowing your state's law is usually the best way to go, depending on the state. Regardless of state, it is important to know the notification guidelines of the state agency that oversees Lemon Law complaints. You can't notify the state too early to get on record the likelihood that you purchased a lemon. Record keeping is also essential. Make sure that every attempt at repair is given you in writing by the dealership and build a record that will prove your case should legal action or arbitration become necessary.
The warranty
When you purchase a used vehicle from a dealer, read the warranty carefully. There are often exemptions and co-pay requirements that you must know. If the vehicle is in an unsatisfactory or unsafe condition and you've met your requirements in the warranty, usually proceeding under the state Lemon Law is the best route to follow. However, if the warranty itself is unreasonable, the UCC or the The Magnuson-Moss Warranty Act may be a better way to proceed. On whichever path you proceed, fasten your seat belt, because neither is an easy remedy. It is best to consult with a reputable attorney because the road is bumpy and the nuances are many, no matter the direction you take.
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