Lemon Law for Leased Cars
If you lease, you have lemon law rights too. In 49 of the 51 jurisdictions in our records, the law covers leased vehicles directly. Nevada and New Mexico are less clear, so read their pages if you live there.
The short versionA lessee can usually bring the same claim as a buyer. The difference is who gets paid: when a leased vehicle is taken back, the leasing company is paid what it is owed first, and you receive the rest, including what you paid in.
You do not have to own it
Lemon laws speak of a "consumer". In most states that includes someone who leases a vehicle for personal use, not only someone who buys one.
The lessor holds the title. A refund therefore has to settle the lease, which is why the lessor is paid first.
The warranty is the manufacturer's. Give it your written notice and repair history, not only the dealer or the leasing company.
For example, Ohio's law covers a lessee of a motor vehicle under a lease at a periodic charge for a term of thirty days or more, where someone other than the user holds the title.
How a refund works on a lease
Your state's law sets the exact list. As a guide:
| What to compare | Usually included | Often limited or deducted |
|---|---|---|
| What you paid in | Lease payments made and any amount paid at signing | A deduction for the miles you drove before the problem was first reported for repair |
| Fees | Fees paid at the start, such as registration and title, where the state allows them | Charges the state does not list as refundable |
| The lease | The manufacturer settles the lease with the lessor, so you are released from it | Early-termination charges: who bears them depends on the state |
| Who is paid first | The lessor receives what it is owed; you receive the balance | Nothing to you if the lessor's balance is larger than the refund |
| Extra costs | Towing, a rental car, meals and lodging you paid while the vehicle was being repaired | Costs you cannot document |
Ohio's refund section, for example, has the manufacturer pay the lender or lessor first, which then remits any remainder to the consumer.
Two states to check
In our records, Nevada and New Mexico do not clearly cover lessees by statute. Read their pages before you rely on a lemon law claim there.
The other 49 jurisdictions are marked as covering leased vehicles in our records. Each state's page has its details.
What is different when you lease
- Keep your lease agreement: it shows the payments, the mileage allowance and the fees
- Keep your lease in good standing while a claim is pending, unless a lawyer advises otherwise
- Ask the leasing company what it needs to release the vehicle and settle the lease
- Keep every repair order and the list of days in the shop, exactly as you would if you had bought
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.
Check My Car Free
Sources. State lemon law statutes (for example Ohio Rev. Code §§ 1345.71 and 1345.72), cited on each state page; LemonIQ's state records; the Center for Auto Safety, autosafety.org. Lemon Learn is general information, not legal advice.