You finally found the used car that fit all of your specifications: great mileage, clean service history, and a price point that didn’t drain your savings pile. Everything was fine at first. Then came the warning lights, the strange noises, and the frequent trips to the repair shop. Ring a bell?
If your old vehicle is turning into a money pit, you might be dealing with what’s commonly known as a lemon—a vehicle with persistent problems that just won’t stay fixed. And while most of us think lemon laws only apply to brand-new cars, that’s not necessarily true. Federal protections exist that can also be used on used cars, especially if your vehicle came with a warranty. For drivers wondering about lemon law on used cars with no warranty, this related guide provides the answer.
This blog will walk you step by step through what precisely those federal lemon laws are, how they apply to used cars, and what you can do if you believe you’ve bought a lemon. From understanding the Magnuson-Moss Warranty Act to determining when to seek out legal representation, we will guide you through all you need to know in order to protect yourself and potentially get your money back.
When a person refers to a “lemon,” they mean a car that simply won’t quit breaking down. Legally, though, a lemon is a vehicle with a serious defect that is warrantied, and that can’t be fixed after a reasonable number of tries. The defect must seriously reduce the use, value, or safety of the vehicle, not cosmetic or insignificant problems.
The majority of individuals assume lemon laws apply only to new cars. This belief leaves most users of older vehicles helpless when something amiss occurs. While it is also true that the majority of state lemon laws are written with new vehicles in mind, certain federal lemon law protections may cover used cars in certain situations.
For federal consumer protection in instances of faulty products, e.g., vehicles, the most applicable law is the Magnuson-Moss Warranty Act. The federal law, passed in 1975, aimed at making warranties fairer, easier to read, and more enforceable by law.
The Magnuson-Moss Warranty Act protects any consumer product worth over $25 that is sold with a written warranty, and a used car falls into that category. Unlike the majority of state lemon laws, which only cover cars bought new and usually have stringent time or mileage limits, this Act does not care about the age or miles on the vehicle so much, but simply whether or not a warranty was written.
If your used car comes with a manufacturer’s warranty, a limited warranty installed by the dealer, or even an extended third-party warranty, and it turns out to be defective, you may be covered by this federal law.
What the Magnuson-Moss Act protects:
Not all used cars are protected by the Magnuson-Moss Warranty Act, but a lot of them are. The deciding element is whether or not the car was sold under a written warranty. If it was, and the vehicle develops major problems that the seller cannot fix, you may have the right to sue.
Here are the minimum requirements that must be met before the Act becomes effective:
The Magnuson-Moss Act applies only if the vehicle has a written warranty accompanying it. This can be:
Vehicles that are sold “as is” without a written warranty are not included under this law.
The defect must make the vehicle substantially impaired for use, value, or safety. This can include:
You must give the seller or warranty issuer a reasonable number of chances to correct the issue before filing a claim. This shows you’ve made a good-faith effort to give them an opportunity to correct the issue. The exact number of attempts isn’t specified but is often interpreted as two or more visits for the same issue.
In addition to the Magnuson-Moss Warranty Act, a second very important body of law that can protect used car buyers is the Uniform Commercial Code (UCC). While not a “lemon law,” the UCC does have broad consumer protections that can be utilized when a product—a used car, for example—fails to meet minimum standards of quality and performance.
The Uniform Commercial Code is a nationwide code of laws regulating commercial transactions across the United States. Article 2 of the UCC regulates the sale of goods, including automobiles. All states have adopted some version of the UCC, so these safeguards are available nationwide.
The UCC does not use the term “lemons” to describe products, but neither does it state precisely what is to be done in the way of attempts at repair. It does state, though, that the products sold are to be of average quality. This is called the implied warranty of merchantability.
If a used car:
you may have a basis for a claim under the UCC even in the absence of a written warranty.
Although UCC is a good legal tool, it does not lead to an automatic refund or replacement. It also fails to make vendors pay back your lawyer’s fees like the Magnuson-Moss Act. This is the reason claims based on UCC are generally stronger if used in conjunction with a federal claim under Magnuson-Moss or a state lemon law, where available.
If your new used car continues to break down, sputters unpredictably, or spends more time in the repair shop than it does on the road, you might have unwittingly purchased a lemon. Although this is frustrating, the good news is that you might be legally protected, particularly if your car was sold to you with a warranty.
Here is a step-by-step action plan to help you take charge of the situation and protect your rights:
Start by documenting all issues that you have with the car. This involves:
This recordkeeping will be valuable to you if you decide to make a lemon law claim. The more thorough and organized your records are, the stronger your case will be.
Next, review any written warranty that your car had in detail. Ask yourself:
Warranties can be issued by the manufacturer, a third-party provider, or the seller. Even short warranties (i.e., 30 or 90 days) are governed by federal lemon law protection for as long as they remain active.
The statute requires you to give the warranty company a fair opportunity to correct the defect. That usually takes two or more tries at the same defect, or one try when the fault is a significant safety hazard.
Make sure the repair tries are maintained on file and performed by a certified service center that is within the warranty. If the defect remains open, you’ve met this requirement.
If the issue is not yet resolved, it’s time to call a lemon law attorney. Most attorneys practicing lemon law offer free consultations and can tell you whether you have a valid case under federal law.
A lemon law attorney can:
If your car is a federal lemon, you may be entitled to:
Claims will sometimes be resolved by settlement, but in more complex cases, a lawsuit may be required.
Buying a used car should be a source of peace of mind, not a cause for worry and multiple trips to the repair shop. If your vehicle keeps on breaking down and the warranty-reimbursed repairs just aren’t cutting it, you might have a lemon on your hands.
There is federal law, like the Magnuson-Moss Warranty Act, in place to protect consumers like you. No matter if you are owed a replacement, refund, or reimbursement, knowing your rights is the first step. The second step is action.
That’s where we can assist.
At Lemon My Vehicle, we’ve helped more than 3,915 clients across the country get the compensation they deserve, and we do it with no upfront fees. If you think your used car may qualify under federal lemon law, let us review your case for free. You have nothing to lose and potentially thousands to gain.
Don’t wait. Contact Lemon My Vehicle today and take the first step toward getting back on the road with confidence.
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