Leased Vehicle Lemon Law in Iowa

Iowa Lemon Law covers leased, new passenger vehicles, SUVs, vans, and trucks under 10,000 pounds, and used vehicles that are leased during the new car warranty period. In order to be considered a "lemon," the vehicle must meet the following requirements:

• Does not conform to the manufacturer's express warranty
• Has substantial defects affecting the use, safety or value of the vehicle
• Has manufacturer's defects that occurred and are reported during the first 24 months from the delivery date or the first 24,000 miles on the odometer (whichever comes first)
• Has been taken in three times for the same defect or one time for a defect likely to cause death or serious bodily injury, or has been out of service for 30 calendar days
• You have notified the manufacturer via certified mail or express mail and given them a final opportunity to repair the vehicle

Under Iowa Lemon Law, you must notify the manufacturer of the problem with your vehicle within 24 months of taking delivery of the vehicle, or within the first 24,000 miles on the odometer (whichever comes first). You should send the notification after three repair attempts or after the vehicle has been out of service for a cumulative total of 20 calendar days. Sample demand letter.

Wherever you are in the Lemon Law claim process, it is generally in your best interest to have an attorney represent you. After all, vehicle manufacturers have teams of lawyers that do nothing but fight Lemon Law claims. As you consider your options, imagine the difference between going up against a team of lawyers on your own, versus having a Lemon Law attorney speak on your behalf. Also keep in mind that being represented by a Lemon Law attorney won't cost you a dime if you go to court; the law says that the car manufacturer has to pay your attorney's fees in successful Lemon Law claims.

However, if you decide to go it alone, before you are eligible to file a Lemon Law claim in court, you must file a request for arbitration with the manufacturer's arbitration program (if the program is certified by the state). You can find the contact information for your manufacturer's arbitration program in the paperwork you received when you bought your vehicle.

Iowa Lemon Law provides several options for a successful Lemon Law claimant. First, you may be awarded a replacement vehicle of the same year, make, and model. If you accept a replacement vehicle, the manufacturer must reimburse you for towing charges and the cost of alternative transportation. Before you receive the replacement vehicle, you must pay the manufacturer for your use of the first vehicle up until the third repair attempt (or the first repair attempt for a serious defect) or to the 20th day that the vehicle was out of service. This payment is calculated by multiplying the mileage by the purchase price and dividing by 120,000.

A refund can include your actual costs and incidental charges, such as towing charges and alternate transportation. The amount of the refund may be reduced by a deduction for your use of the vehicle up until the third repair attempt (or the first repair attempt for a serious defect) or to the 20th day that the vehicle was out of service. This payment is calculated by multiplying the mileage by the purchase price and dividing by 120,000.

In addition, your lease agreement is terminated without any penalties.