Government Lemon Law Information

Sometimes a bargain that looks too good to be true is too good to be true. Even a reputable dealer may sell you a car so defective that it's either unusable or worthless. To protect buyers from being stuck with a clunker, state governments have passed lemon laws, which empower buyers to get a better deal from their dealer. Lemon laws apply only to manufacturers and auto dealers; if you buy a lemon from a private owner, you're out of luck.

Identification

State laws set standards for what constitutes a lemon. In Iowa, for example, if a problem continues after three repair attempts and it's two years old or less, you have a lemon. In Vermont, the Department of Motor Vehicles states that a car out of service 30 days while covered by the express warranty may be a lemon. If the dealer fails three times to repair the same problem and the first repair took place under warranty, that could qualify too.

Solution

Like the definition for a lemon, the remedy for the problem varies from state to state. Many governments, such as the District of Columbia's, give you the right either to request a swap for a comparable vehicle or to claim a complete refund including all the taxes, fees and charges you paid. The seller can, however, deduct from the refund to cover mileage and depreciation. North Carolina also allows you to recover any costs caused by the car's malfunctions, such as towing charges and rental car bills.

Procedure

It may take more than just complaining to the salesperson to get your refund. The Iowa Attorney General's office recommends you keep records of the repair attempts and submit them to the manufacturer along with a formal request for either a replacement or a refund. If the manufacturer refuses, you can sue under the lemon law. In Vermont, you have to go before an arbitration board and make your case. The rights and the exact procedures in your state should be available online.

Considerations

One thing to check is exactly which vehicles are covered in your state. According to the Vermont Department of Motor Vehicles, for example, that state's lemon law doesn't cover motorcycles, but North Carolina's does. North Carolina also covers drivers who lease their cars rather than buy. Some states extend the coverage to boats as well as land vehicles.