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Lemon Law, Explained

A lemon law is a state law that protects people who buy or lease a vehicle with a serious defect the manufacturer cannot fix. If the manufacturer cannot repair it after a reasonable number of tries, the law can give you a refund or a replacement.

The short versionEvery U.S. state and the District of Columbia has a lemon law, and no two are the same. They share one idea: the manufacturer gets a fair chance to fix a serious problem, and if it cannot, it makes things right.

What qualifies

What makes a vehicle a lemon

The details change from state to state, but most lemon laws look for the same four things.

1A real defect

A problem that substantially affects the vehicle's use, value or safety. A rattle you can live with usually is not enough. Brakes, steering, engine, transmission and electrical failures usually are.

2A covered vehicle

Most laws were written for new vehicles still under the manufacturer's warranty. Some also cover used vehicles, leased vehicles, RVs or motorcycles. Check your state.

3A time window

The problem must show up, and be reported, within a set period after you buy or lease, often measured in months or miles.

4A fair chance to repair

The manufacturer or its dealer has tried and failed: the same problem fixed several times, or the vehicle in the shop for a set number of days.

Here is how three states count it, as shown on our state pages:

StateRepair attemptsDays out of serviceWindow to report (from delivery)
New Jersey32018 months
New York43024 months
California23018 months

The numbers come from each state's statute and are summarized on its page in the State Law Library. Special rules apply, for example for safety defects, so read your state's page.

The remedies

What a lemon law can give you

When a vehicle qualifies, the usual remedies are a refund or a replacement, and many cases settle for cash. What You Can Recover Coming soon explains each one.

Refund

The purchase price, taxes and fees, less a deduction for the miles you drove.

Replacement

A comparable vehicle in place of the defective one.

Cash and keep

You keep the car and receive money for the defect and the time you lost.

The cost

What it costs you

Most lemon law attorneys represent consumers with zero out-of-pocket costs. Thanks to state and federal fee-shifting laws, the vehicle manufacturer is legally responsible for paying your attorney's fees when you win or settle your claim. Always review your specific retainer agreement with your attorney.

The path

How a claim usually works

  1. Keep every record. Repair orders, dates, the days the vehicle was in the shop, and anything you sent or received.
  2. Tell the manufacturer in writing. In 19 states the law requires written notice, and a last chance to repair, before you can go further.
  3. Use the manufacturer's dispute program if your state requires it. Some states require arbitration first, and some run their own program.
  4. Resolve it or escalate. The manufacturer may offer a refund, a replacement or a settlement. If not, you can go to arbitration, hire a lawyer, or go to court.

LemonIQ's step-by-step path follows this order.

Two routes

Federal vs state lemon law

There is no single federal lemon law. The federal Magnuson-Moss Warranty Act is a separate route that works alongside your state's lemon law, not in place of it. Many cases rely on one or both.

What to compareState lemon lawsFederal Magnuson-Moss Warranty Act
CoversNew vehicles in every state; used, leased, RVs or motorcycles in someAny consumer product sold with a written warranty, including a vehicle
The testOften 3 to 4 repair attempts, or about 30 days out of service, within a set window (it varies)A "reasonable number" of repair attempts, judged case by case
What you can getRefund, replacement, or a cash settlementDamages for the broken warranty; a refund or replacement where the warranty is a "full" one
Where it goesState court, or a state or manufacturer arbitration programState or federal court, after any dispute program the warranty requires
Attorney's feesPaid by the manufacturer if you win, in many states (27 in our records)The court may order the manufacturer to pay them if you win (15 U.S.C. § 2310(d)(2))
Time limit to sueMany 1 to 3 years, set by each state: check yoursNo federal limit of its own; courts use the state's limit for warranty claims, commonly four years
Often best whenThe defect meets your state's testThe defect misses the state test, but the written warranty was still broken

General information. Which route fits a particular vehicle depends on the state, the warranty and the repair history.

Limits

What usually limits a claim

The vehicle type: new, used, leased, RV or motorcycleBusiness use, in some statesDamage from misuse, accidents or unauthorized changesA warranty that had already endedA problem reported too late
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Sources. State lemon law statutes (cited on each state page); the Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301–2312; the Center for Auto Safety, autosafety.org (state grades and summaries). Lemon Learn is general information, not legal advice.