Lemon Law: Bought a Broken Car? Here is Your Refund Guide
Buying a car is expensive; buying a “Lemon” is a financial disaster. While every state protects new car buyers, the rules for Used Cars are tricky. Generally, if your car spends more than 30 days in the shop or fails to be fixed after 3-4 attempts, you may be entitled to a full refund or a replacement vehicle. Here is how to document your repairs and force the manufacturer to buy it back.
1. The Rule: “Substantial Defect”
A rattling cupholder is annoying, but it’s not a Lemon.
The Warranty Link: The defect must occur while the car is covered by a warranty (Factory or Dealer).
Magnuson-Moss Act: This federal law serves as a backup “Lemon Law” for all 50 states, covering any breach of written warranty.
2. Used Car Protections (Checklist)
Not all states are created equal when it comes to pre-owned vehicles.
| State Type | Protection Level | Examples |
|---|---|---|
| Strong Used Car Laws | High | NY, MA, NJ, CA. Mandates dealer warranties for used cars (e.g., 60-90 days). |
| Federal Only | Medium | Most States. Protected only if the car still has the original manufacturer’s warranty. |
| “As-Is” States | Zero | If you sign an “As-Is” Buyers Guide, you bought the car and its problems. |
3. Timeline: The Paper Trail to a Refund
You cannot just demand a refund on Day 1. You must follow the “Reasonable Attempt” process.
| Stage | Count | Critical Action |
|---|---|---|
| Repair Attempts | 1 – 3 | |
| Final Notice | Action | |
| Arbitration/Suit | End |
4. Strategy: The “Final Repair Attempt”
This is the step most consumers miss.
- The Requirement: In many states, after the dealer fails 3 times, you MUST send a certified letter to the Manufacturer (not the dealer) giving them one “Final Attempt” to fix it.
- The Result: They have roughly 7-10 days to send an engineer. If they fail or don’t respond, your Lemon Law claim is solidified.
- The Lawyer: Lemon Law attorneys often work on a “fee-shifting” basis. The Manufacturer pays their fees, not you. Do not pay a retainer upfront.
5. Warning: The “Mileage Offset”
A Buyback is rarely a 100% refund.
⛔ You Pay for Usage
The manufacturer will deduct value for the miles you drove before the first repair attempt.
- The Formula: (Price Paid) x (Miles Driven / 120,000).
- Example: If you drove 12,000 miles before the first breakdown, they might deduct roughly 10% of the purchase price from your refund.
- Tip: Report the problem immediately to keep the mileage offset low.