Leased Vehicle Lemon Law in Indiana

Indiana 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 18 months from the delivery date or the first 18,000 miles on the odometer (whichever comes first)
• Has been taken in four times for the same defect or has been out of service for 30 business days
• You have notified the manufacturer via certified mail (if required by the manufacturer)
• The vehicle is used primarily for individual, family, or household purposes

Under Indiana Lemon Law, if the manufacturer requires it, you must notify the manufacturer of the problem with your vehicle within 18 months of taking delivery of the vehicle, or within the first 18,000 miles on the odometer (whichever comes first).

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, and if the manufacturer requires it, you must file a request for arbitration with the manufacturer's arbitration program. This only holds true if the manufacturer's arbitration program is certified by the Attorney General. You must do this within 18 months of taking delivery of the vehicle. You can find the contact information for your manufacturer's arbitration program in your vehicle ownership manual.

If the manufacturer does not require that you participate in an informal dispute resolution process, you can take the manufacturer to court. You must file a lawsuit within two years from the date you first reported the problem to the dealer.

Indiana 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 transfer fees, registration fees, and any sales tax resulting from the replacement. In addition, the financing arrangements for the replacement vehicle must be as good as those for the original vehicle. A refund can include:

• All deposit and lease payments
• All credits and allowances for trade-in vehicles
• Attorney's fees

The amount of the refund may be reduced by a deduction for your use of the vehicle before you first took your vehicle in for repair. This is calculated by dividing the number of miles the vehicle has been driven when it is accepted for return by 100,000 and multiplying that by the total lease price of the vehicle.

The leasing company will receive:

• Their purchase cost, including freight and accessories
• Any fee paid to another to obtain the lease
• Insurance premiums or other costs
• Sales tax paid by the leasing company
• Five percent of the purchase cost