Lemon Laws and You: What to Do When You Get a Bad Car

Have you recently discovered the new car of your dreams has turned into a nightmare on wheels?   Has your used car only just surpassed the 90 day warranty period and it’s already putting a big squeeze on your pocketbook? What to do?  Don’t despair – you have a few options and as a buyer, there are laws that protect your rights. 

The Magnuson-Moss Warranty Act is a federal law which protects the buyer when purchasing a product that costs more than $25.00 and comes with a written warranty. This act is in place to prevent manufacturers from writing ridiculous warranties.

Lemon Laws were created to protect the buyer when dealerships have sold them a less than satisfactory vehicle and are uncooperative when it comes to repairs.   This doesn’t include things like a faulty radio or peeling paint, but instead concerns serious mechanical problems, such as brakes that stop working, you can’t go in reverse, or your steering suddenly locks up and as if by magic, seems fine again.  After you’ve tried unsuccessfully to resolve these kinds of issues with the dealership to no avail, the vehicle may fall under your state Lemon Laws.  Generally, if your vehicle has serious problems and can’t be repaired or is continuously defective after giving the manufacturer reasonable time to repair the problem and everything took place during the warranty period, chances are you’re a good candidate for some resolution, but you’ll have to check your state Lemon Laws to find out whether your vehicle truly qualifies.  Keep in mind that if you purchased your vehicle “as is,” then Lemon Laws may not protect you - but you should still seek out information to be absolutely certain. 

A good first step is to keep good records, so keep a notebook handy to jot down all problems, attempts at repairs, dates, what the problems are, who you spoke to, etc. and give the manufacturer or dealership a chance to repair the problems.  Keep in mind however, that the manufacturer or dealership isn’t required to issue a refund if the problem doesn’t significantly impair the use and value of the vehicle or the condition is a result of neglect or any unauthorized alterations made by you.

Other than keeping good records, you’ll also have the responsibility of notifying the manufacturer or dealership of any and all problems you’ve experienced within the warranty period - or within the year you purchased the vehicle.   Also, note that many dealerships and manufacturers have a dispute program or arbitrator and chances are that you’ll be expected to attempt to resolve your problem here before taking any further action.

You’ll also need to notify the dealership that you’re claiming a Lemon Law on the vehicle you purchased.  You may have to write a letter and send it certified mail {keep a copy for your records} which spells out the problems you’ve experienced and what you want them to do to correct it.  You may request they buy back the vehicle and replace it with another.  Unfortunately, chances are the dealership isn’t going to take your claim seriously, so be diligent.  Think of it this way - if they honored every claim made against them, they’d be out of business!  Your best bet is to stay calm, keep good records, be diligent in your efforts and don’t stop until everything is resolved to your satisfaction – and it may take a good while, but if you have a strong claim, it will be worth the effort in the end.

Remember, Lemon Laws vary from state to state, so contact the office of the Attorney General in your state for further information.


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