Buying a used car can be a blessing or a curse. There are some great deals to be had on used cars, but there is always the fear of getting a lemon. For car shoppers in Indiana, there may be some protection under the law for your used car purchase. An implied warranty is a legal concept mandating that a seller sell you a product that works as advertised. Learning about implied warranty laws in Indiana before buying a used car can help ensure you get the car of your dreams.
Fitness of Purpose
Under Indiana law, specifically the Indiana Uniform Commercial Code, any product being sold has an implied warranty attached to it. In terms of used cars, this essentially means the seller must sell a car that is fundamentally sound and the vehicle must function for the purpose for which you bought it.
If you inform a used car dealer that you are seeking to purchase a vehicle that is capable of hauling your boat, and the dealer sells you a car claiming it can do just that, the vehicle must perform as expected. If not, you may be entitled to return the vehicle to the seller.
Warrant of Merchantability
Under Indiana law, the implied warrant of merchantability dictates that the vehicle shall function properly and be free from material defects that affect its use or safety. Essentially when a dealer sells you a used vehicle, it must be in working condition with no major mechanical or safety defects.
If a dealer sells you a vehicle with a bad transmission, you may be entitled to the cost of repairs from the dealer. The vehicle must function as advertised, given it's age, condition or mileage. If it doesn't the dealer may be in breach of the implied warrant of merchantability.
Federal Law
Whether you are in Indiana or any other state, used car purchases are also governed by the federal Magnuson-Moss Warranty Act. The Act mandates that, under federal law, all manufacturer warranties, express or implied, must be honored be the seller of a vehicle.
In order for the warranty to be valid it must be written, but a written warranty cannot circumvent the basic implied warranty of merchantability. Essentially a dealer must honor at least the Indiana implied warranty not just under Indiana law, but federal law as well.
Lemon Law
If your car is used, but is still covered under the original manufacturer warranty, you may have protection under Indiana's Lemon Law as well. If it is a recently used vehicle, the car must have one or more defects that affects the use, safety or value of the car, appearing within 18 months of the delivery date, or before the first 18,000 miles on the odometer.
If you purchase a used vehicle in Indiana that is less than 18 months old or has less than 18,000 miles on it, the Lemon Law still applies, even though the vehicle is used.
As Is
In Indiana, as in most states, sellers of used vehicles can get around the implied warranty by selling the car "as is." When you buy a car "as is" it is sold with no warranty, express or implied, and you take the car as it is, defects and all. Many used car dealers will sell their cars in just this way. However, in order for a car to be sold "as is," it must be clearly noted as such.
"As is" does not mean the seller can misrepresent the condition of the vehicle. If the seller informs you the engine is in good working condition, and it turns out to have a blown head gasket, you may still be entitled to sue the seller for the cost of repairs.
Be aware that in Indiana, like many other states, implied warranties do not apply to private sellers, such as sellers in the classifieds. All vehicles purchased from private sellers are typically presumed to be "as is."
Remedies
If you have purchased a used car and you feel it does not meet the terms of an implied warranty, you may be able to sue the seller in an Indiana court. Depending on the price of the vehicle you may want to sue in small claims court. Go to In.gov/judiciary/ for information on filing a suit in the Indiana court system.
When bringing a suit for a breach of an implied warranty, the burden is on you to show the vehicle was faulty at the time of purchase. If you are suing for an "as is" purchase, the burden is on you to prove the seller knowingly and materially misrepresented the condition of the vehicle.
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