Lemon Law: New vs. Used Cars

When you purchase a car, new or used, it's expected to serve its purpose and function correctly. However, what happens when the vehicle you've just bought turns out to be a "lemon"?  

To qualify as a lemon, the car must have a significant defect covered by the warranty that occurred within a specific period or after a certain number of miles traveled, have a substantial defect that can't be fixed after a reasonable number of repair attempts, or have spent 30 days or more at the dealership for repairs within the first year of purchase. If you're located in Ohio, there are additional provisions that include eight or more repairs to fix various problems or one attempt to repair a defect that was likely to cause death or serious injury.  

Lemon laws serve as a shield for consumers, offering recourse for those unlucky enough to purchase a defective vehicle. However, the protection offered—and the process to claim it—can differ significantly between new and pre-owned cars. At our firm, we focus on pursuing new vehicle cases, equipping you with the insights to understand your rights and the confidence to enforce them.  

Lemon Law and New Cars

Lemon law primarily applies to new motor vehicles that display significant defects or conditions that impair their use, value, or safety. These defects can range from engine malfunctions, transmission issues, and brake problems, to steering issues or persistent intermittent issues like water leaks, unpleasant smells, or paint problems. In Michigan lemon law covers a range of vehicles, including passenger cars, sport utility vehicles, pickup trucks, and vans.   

If you have a new vehicle that qualifies as a lemon, you must initiate legal action within a specific time frame from the date of the original delivery (state specific). This timeline is crucial, and the case must be filed or resolved within this period. Typically, to seek relief under the lemon law for a new car, you must provide written notice to the manufacturer after certain time frames/events. The best course can be very case specific and should be discussed with an attorney.  

It is essential to note that if a manufacturer has established or participates in an informal dispute settlement procedure, you may first be required to resort to that procedure prior to filing a lawsuit under the lemon law. The procedure must comply with specific requirements, including the consumer's right to pursue remedies provided by the lemon law.  The best course here gets very tricky and I highly encourage you to work through this with an attorney that is familiar with these cases.

Lemon Law and Used Cars

Unlike new cars, used cars are generally not covered by lemon laws, which primarily focus on protecting consumers who purchase or lease new vehicles. However, this doesn't mean that used car buyers have no legal recourse if they encounter significant defects or issues with their purchase.  

In Michigan, the lemon law generally does not apply to used vehicles. However, the lemon law does apply to vehicles that are still under a manufacturer's warranty when purchased. In such an event, any issue must be brought to the attention of the manufacturer or their authorized dealer within one year from the date it was delivered to the original buyer. If those criteria are met, Michigan lemon law may apply to a used vehicle. Under Ohio law, lemon law does not apply to vehicles that are older than one year or have over 18,000 miles.  

When buying a used car, we recommend conducting a thorough inspection of the vehicle, reviewing its history report, and obtaining a warranty or extended service contract. Taking these steps can help mitigate the risk of purchasing a problem vehicle. Additionally, various state and federal consumer protection laws may provide some level of protection for used car buyers.  

If you encounter significant issues with a used car, it's advisable to consult with an experienced attorney who understands consumer protection or used car laws. They can assess your situation, review any applicable laws, and guide you through the available legal options to seek compensation or resolution.  With the rare exception of very low mileage/age cases, my office typically does not handle used car cases.

What Should You Do if You Have a Lemon?

If you suspect that your car is a lemon, it's crucial to act promptly to protect your rights. The first step is to document every issue, repair attempt, and communication with the dealership or manufacturer. Keep a detailed record of all your repair orders, dates, times, and descriptions of the problems. This documentation will be vital if you decide to pursue a claim under the lemon law.  

Next, familiarize yourself with the lemon law in your state as the specifics can vary greatly from state to state. Most states require that you notify the manufacturer in writing about the ongoing issues. This notice should clearly state that you believe your vehicle is a lemon and that you are seeking a remedy under the lemon law. You should provide details of all the problems and repair attempts, and send this communication via certified mail to ensure there's a record of receipt.  There is much more to both the contents of the letter and the appropriateness of the letter, as such, I highly encourage working through this issue with an attorney familiar with the lemon law in your state.

After notifying the manufacturer, they may offer to attempt another repair, or you may proceed to use the state’s lemon law resolution process, which often starts with arbitration. During arbitration, both you and the manufacturer present your cases to a third party, who then makes a decision. Before submitting a case to arbitration, like the notice letter, I highly encourage consumers to reach out to an attorney familiar with the lemon law in your state.   

If you decide to go to arbitration, and it is not in your favor or if you are not satisfied with the arbitration outcome, you may typically then file a lawsuit against the manufacturer if your state laws allow. Considering the complexity of lemon law claims and the potential resistance from manufacturers, consulting with an attorney who is knowledgeable of lemon law can be very beneficial. An experienced lawyer can help you through the process, make sure you meet all the legal requirements, and maximize your chances of a favorable outcome.  

Remember, laws are designed to protect consumers, so exercising your rights and seeking justice for a defective vehicle is entirely within your privilege.  

You Have Rights. Use Them. 

Lemon law provides protection for consumers who purchase or lease new cars with significant defects. It allows them to seek relief, such as a replacement vehicle or a refund, if the manufacturer fails to repair the defects within a reasonable number of attempts or within a specified time frame. However, it's important to note that the lemon law generally does not cover used cars, at least not in the states where I handle cases. If you're dealing with issues related to a used car, it's advisable to consult with a knowledgeable attorney to explore your legal options.   

At Ronald S. Weiss, Attorney, we are here to help you through the particulars of the lemon law. While we are located in West Bloomfield, Michigan, and Toledo, Ohio, we handle cases throughout both states. Reach out to us for any legal assistance you might need.