With any purchase that involves a significant investment of hard-earned money, it’s best to be an informed consumer. Knowing what a “lemon” is and what is covered in lemon laws for used cars will be a good first step toward avoiding problem cars or solving the “lemon” issue.
According to the American Bar Association, the primary organization for attorneys, lemon laws “usually apply to new cars purchased for personal, family or household use.” These laws provide for a replacement vehicle or complete refund “if your new car is so defective it is beyond satisfactory repair by the dealer.”
The ABA also states that lemon laws cover used cars in a number of states. In some cases the law may even apply to cars purchased from a private seller.
What’s a Lemon?
Before digging into the details of lemon laws for used cars in various states, it may be wise to gather some more information. What makes a car a “lemon?” Generally speaking, a car is a lemon if the defect makes a significant difference in value, safety or general use. Some guidelines use a threshold point of three or four repair attempts within the warranty period.
Laws differ from state to state so it’s always a good idea to become familiar with the specific regulations. At one time it was difficult to get two people to agree on what a “lemon” is, but with new car lemon laws and the laws covering used cars, making this determination is much easier. For instance, paint that peels consistently or continuing problems with brakes or steering may be enough to put the car in the lemon category. However, discomfort with seats or the ride, or general complaints about things the owner doesn’t, like will usually not meet the lemon requirements.
Car owners should also understand that finding half a dozen different problems doesn’t necessarily make a car a lemon. But one continuing issue that makes the car unsafe is often enough evidence.
According to the Law
When we start looking at the details of lemon laws for used cars (or new car lemon laws for that matter) one thing is certain: A car owner may sacrifice all the rights and privileges of a lemon law if they fail to keep clear records of repair attempts and/or if they don’t give the manufacturer, dealer or other seller the opportunity to fix the problem. A car owner should protect his or her interests by reporting problems immediately. In addition, abuse and neglect on the part of the owner may also disqualify a car under the lemon laws.
Laws differ from state to state but nearly every one of the lemon laws for used cars has specific guidelines stating which cars are covered under the law. For example, in New York the used-car law applies to vehicles with 18,000 miles on the odometer or two years from original delivery. Cars covered must not have more than 100,000 miles on the odometer. The dealer must have three opportunities to make the repair. The law applies to personal vehicles.
In Illinois, lemon laws for used cars don’t exist. In fact, the Attorney General’s Web site specifically states that the lemon law does not cover used cars, altered or modified vehicles, motorcycles and boats. The regulations in Illinois are new car lemon laws and apply to vehicles that “have a nonconformity that both substantially impairs the use, market value or safety of the vehicle and is not repairable by the dealer or manufacturer in at least four attempts for the same repair, or is “out of service for a total of 30 or more business days.” Illinois law applies to cars purchased in Illinois.
This same in-state restriction appears in the laws of most states. To give another example, the Colorado lemon law covers “only new, self-propelled vehicles, including pickups and vans, but does not cover motor homes and motorcycles.” (Colorado Attorney General’s Web site) This western state also gives the dealer four opportunities to correct the problem or the vehicle must have been out of service for 30 days or more.
A Big Problem?
By most estimates, about 150,000 vehicles are classified as lemons in a typical year. The problem is significant enough to move every one of the 50 states in the U.S. to pass a lemon law.
Some states include other types of vehicles under their lemon laws for used cars or new vehicle lemon laws. In fact, in some locations the guidelines used in automobile lemon laws have been applied to computers, home appliances and boats.
Not only is the “lemon” issue big enough in the U.S. (and other countries) to put strict laws on the books, the issue of defective and unsafe cars has spawned a legal specialty among attorneys and consumer advocates. Lawyers and non-profit organizations urge individuals to learn more about their rights under new car lemon laws and lemon laws for used cars.
Why? Because the rights included in vehicle warranties and in state laws are sometimes more strict than a dealer or manufacturer will tell you. Legal groups and consumer groups focus on recordkeeping and documentation as one of the key issues for car owners. These third-party advocates emphasize that discussions about a possible “lemon” should never be the dealer’s word against the owner’s word.
An individual who has recently purchased a new vehicle should usually work with the dealer or manufacturer customer service program and give the company sufficient opportunity to make repairs. The manufacturer isn’t obligated to replace the vehicle until all the designated steps have been taken. But with lemon laws for used cars and new car lemon laws, at least the buyer has somewhere to turn when things go bad.