Used Car Lemon Law

When it comes to buying a used vehicle, virtually everyone feels at least a little trepidation. While many used cars are sold after previous owners simply trade them in for new models, the nagging question in many buyers’ minds is, “What was wrong with it?” Unfortunately, when a used vehicle turns out to be a lemon, new owners often feel as though they’re stuck and don’t have any recourse.

While it’s generally true that used car Lemon Laws aren’t as widespread or as standardized as the laws that apply to new vehicles, there’s no need to feel hopeless. Even if your state doesn’t have a specific used car Lemon Law, there are other laws that can help you get a refund, a replacement vehicle, and/or other damages.

New Car Lemon Laws May Help You

If you’ve purchased a used vehicle that was a demonstrator (“demo”), that is still covered by the original manufacturer’s warranty, that was previously a leased vehicle, or that falls within the mileage limits and timeframe of your state’s new car Lemon Law, your vehicle may be covered by new car Lemon Laws. Click here to read about your state’s Lemon Laws.

Used Car Lemon Laws

There are six states that have used car Lemon Laws that are comparable to those for new vehicles: New York, New Jersey, Massachusetts, Minnesota, Rhode Island, and Hawaii. Generally speaking, the laws specify that if there’s a problem and the dealer doesn’t fix it in a reasonable number of attempts, you are entitled to a refund or a replacement vehicle.

Generally speaking, here are the common elements of these used car Lemon Laws:

Sale vs. Lease: Of the six states that have used car Lemon Laws, only New York covers leased vehicles. The other only cover sales of used vehicles.

Definition of “Used”: Some states say that used cars are those that have been driven more than a certain number of miles or are of a certain age. Some states’ Lemon Laws don’t apply to cars that are sold for less than a certain amount of money or that have more than a specified odometer reading.

Who Sold It and Who Bought It: Typically, used car Lemon Laws only apply to car dealers and not to private party sellers. So, for example, if you buy your used car from a family across town, it probably wouldn’t be covered. Likewise, most used car Lemon Laws only apply to a consumer who has bought and uses the vehicle for personal, rather than business, purposes. The notable exception is Massachusetts.

What’s Covered: Typically, used car Lemon Laws say that the dealer has to give you a warranty for the used car that you buy. However, some states say that the warranty doesn’t have to cover repairs if, for example, you fail to properly maintain the vehicle, or for normal wear and tear, maintenance, and so forth. In addition, some states say that the consumer has to pay $50 or $100 toward the cost of the repairs.

Other Types of Legal Coverage

Even if you don’t live in one of the states that have a specific used car Lemon Law, you’re not necessarily stuck with your used lemon. There are six more states that have laws that require used car warranties or govern the standards for selling used cars: Connecticut, Maine, Pennsylvania, Arizona, Nevada, and Illinois. Connecticut’s law covers used cars that cost over $3,000 and under seven years old. Maine requires both inspections and warranties. Pennsylvania law says that sellers must tell you if the car has been damaged or can’t pass a state inspection. Arizona law covers used cars for 500 miles or 15 days. In Nevada, dealers that have had three or more complaints over the previous year have to provide written warranties to buyers. Illinois has a sliding scale of repair costs, depending upon how old the car is: 10% for cars that are three to four years old, 25% for cars that are two to three years old, and 50% for cars that are less than two years old.

There are four other types of laws that can be used to help you in the event you discover that you’ve bought a used car lemon. First, the Federal Trade Commission (FTC) has what’s called the Used Car Rule that requires dealers to provide consumers with a Buyer’s Guide with warranty and other types of information. (Dealers in Maine and Wisconsin don’t have to abide by this rule because those states’ laws have similar requirements.) If the dealer has in any way failed to abide by the FTC Used Car Rule, you may have the basis for a legal claim.

Second, each state has what are called Unfair and Deceptive Acts and Practices (UDAP) laws. If the dealer has, for example, made verbal promises or didn’t tell you about issues relating to your used car, you may have a cause of action. Lastly, the Magnuson-Moss Warranty Act and the Uniform Commercial Code, both Federal laws, are on your side in your fight to get justice.

Getting Help at No Cost

While it’s highly recommended that consumers with new car lemons get legal representation, this is even more crucial if you have a used car lemon. Because used car Lemon Laws are a patchwork of state and Federal laws, finding the right grounds for your claim is critical to your success. As with new car Lemon Laws, if you have a successful claim against a dealer, the dealer is responsible for all attorneys’ fees. In other words, you shouldn’t have to pay anything to a Lemon Law lawyer to handle your case.