Lemon Law Definition: Understanding Federal Lemon Law
When you buy a new car, you expect it to be problem-free for the foreseeable future. But, while most new vehicles perform according to warranty, there are also vehicles that, even while under warranty, behave like anything but new. In the eyes of the law, these vehicles are often considered “lemons”; that is, vehicles that undergo a significant number of unsuccessful repair attempts (usually about three) for the same defect while still under warranty. There are two types of lemon laws: the state lemon law and the federal lemon law, the latter of which is established by the Magnusson-Moss Warranty Act.
Both state and federal lemon law establish consumers’ right to receive compensation for lemon vehicles, but they differ in terms of how a vehicle’s lemon status is assessed and how consumers’ are compensated. Under state lemon law, a vehicle must experience a persistent defect within a certain number of miles (usually less than 18,000) after its original delivery date. But under federal lemon law, a vehicle can qualify as a lemon as long as it is still under the manufacturer’s original warranty.
State lemon law compensates lemon owners by allowing them to receive either a free comparable replacement vehicle or a refund of the vehicle’s purchase price minus a mileage based allowance, while under federal lemon law, consumers can receive a financial award and keep their vehicle, but cannot receive a free replacement vehicle. Another difference between state and federal lemon law definition is that federal lemon law covers alternative vehicles that most states do not, such as motorcycles, ATVs, personal boats and motor scooters. If you a own lemon vehicle that is still under warranty but isn’t covered by your state’s lemon laws, contact a lemon law attorney to learn more about your rights under federal lemon law today.
How The Federal Lemon Law Differs from State Lemon Law
Many of us have owned a car that we referred to as a lemon car. To legally be considered a lemon, a vehicle must meet certain requirements established by state or federal lemon law. Under state lemon laws, a vehicle must undergo a certain number of unsuccessful repair attempts (usually about three) within a certain number of miles (usually less than 18,000) of its original delivery date. Most states do not cover used cars or alternative vehicles such as motorcycles, boats and ATVs.
Unlike state lemon laws, federal lemon laws do not require that an irreparable defect occur within a certain range of miles, but cover all vehicles that are still under the manufacturer’s original warranty, including used cars and alternative vehicles that are deemed personal vehicles (e.g. dump trucks and bulldozers are excluded). Just as federal and state lemon differ in their lemon criteria; they also differ in terms of how lemon owners are compensated. Under state lemon laws, lemon owners can choose to receive either a free comparable replacement vehicle or a refund of their vehicle’s purchase price minus a mileage-based allowance. Under federal lemon laws, lemon owners receive a cash award and can keep their vehicle, but cannot receive a free replacement vehicle.
Although lemon cases seem straightforward, they can often become frustrating and complex when it comes to dialoguing with an automaker. As a result, most consumers require the help of a lemon law attorney to receive meaningful compensation in a timely fashion. If you are considering handling your own lemon case to avoid attorney fees, be aware that federal lemon laws allow you to recover attorney fees when your case is successful, which is almost always the case when an experienced attorney is on your side.
Lemon Law for New Cars – Frequently Asked Questions
Does The State Lemon Law Cover Alternative Vehicles?
In most states, alternative vehicles are not covered by the lemon law. However, the federal lemon laws cover all types of alternative vehicles, such as motorcycles, ATVs, Personal boats and motor scooters. Federal lemon laws also cover used vehicles that are still under the manufacturer’s original warranty. Although federal lemon law covers alternative vehicles, it only covers vehicles that qualify as personal vehicles. For example, bulldozers, dump trucks and commercial carrier trucks are not considered personal vehicles.
What Type of Reimbursement do you receive for a Lemon Vehicle?
The type of reimbursement received for a lemon vehicle depends mainly on whether a lemon case is brought under state law or federal law. Under state law, lemon owners can choose between receiving a free comparable replacement vehicle and receiving a full refund of the vehicle’s purchase price minus a mileage based allowance. Under federal law, lemon owners can receive a cash award and keep their vehicle but cannot receive a free replacement vehicle.
How do you know When a Vehicle is a Lemon?
The legal definition of a lemon is different at the state level than it is at the federal level. Under state lemon laws, a vehicle is a lemon if it experiences a certain number of repair attempts (usually about three) within a certain range of miles (usually less than 18,000) after its original delivery date. Under federal lemon laws, a vehicle is a lemon if it is still under the manufacturer’s warranty and experiences a defect that cannot be repaired within a reasonable number of attempts, regardless of its mileage.
Is it Necessary to Hire an Attorney to Win a Lemon Case?
It is not absolutely necessary to hire an attorney to receive compensation for a lemon vehicle. However, in the absence of a lemon law attorney, most consumers receive a far lower settlement offer than they would if they hired an attorney. Because federal lemon laws allow consumers to recover attorney fees, having an attorney handle your lemon case is always the best choice.
Lemon Law New Cars: When is a Car a Lemon?
Most vehicles that are called lemons are older vehicles that have high mileage. But it’s also possible for vehicles that are still under warranty to be lemons, with the difference being that the latter situation legally entitles consumers to receive compensation. If your new vehicle requires occasional repairs, it does mean that it is a legal lemon. However, if it has undergone repeated repairs for a defect that is still unresolved, chances are that it is a legal lemon, especially if you drive it with care.
Two types of laws determine lemon status: the state lemon law and the federal lemon law. Under state lemon law new cars, a vehicle is considered a lemon if it undergoes a certain number of unsuccessful repair attempts (usually about three) within a certain range of miles (usually less than 18,000) after its original delivery date. However, federal law applies to all vehicles that are still under the manufacturer’s warranty and experience a defect that cannot be resolved within a reasonable number of repair attempts, regardless of the vehicles’ mileage. Unlike the lemon law in most states, federal lemon law also applies to alternative vehicles that qualify as personal vehicles, such as motorcycles, ATVs, boats and motor scooters.
If you own a vehicle that meets the legal definition of a lemon, the best thing to do is hire a lemon law attorney to resolve your case. Although some consumers choose to dialogue with an automaker on their own, consumers who hire an attorney usually receive a faster response, as well as a higher settlement offer. If you fear hiring an attorney because of attorney fees, it’s important to realize that most state lemon laws and the federal lemon law allow you to recover attorney fees when your case is successful.
Car Lemons: Qualification and Compensation Under State and Federal Lemon Law
In many cases, car lemons exhibit a persistent defect shortly after they leave the dealership, while in other cases, their persistent defect doesn’t appear for thousands of miles. But in either case, consumers are entitled to receive compensation for owning a lemon vehicle, with the only difference being whether they will be compensated under state lemon laws or federal lemon laws.
State lemon laws are more rigid than federal lemon laws, establishing a certain number of miles (usually under 18,000) after a vehicle’s original delivery date within which it must experience a certain number of unsuccessful repair attempts (usually about three) to qualify as a lemon. Therefore, if you’ve driven your vehicle more than 18,000 miles before it exhibits a persistent defect, chances are that it will not be covered under your state’s lemon law. Also of note is that most states do not cover used cars or alternative vehicles, such as motorcycles and boats.
The Federal lemon law does cover alternative vehicles, as well as any vehicle that is still under the manufacturer’s original warranty, regardless of its mileage. Under the state lemon law, lemon owners are entitled to receive either a free comparable replacement vehicle or a refund of the lemon’s purchase price less a mileage based allowance. Under federal lemon laws, lemon owners are entitled to a cash award and can keep their vehicle, but cannot receive a free replacement vehicle. Also of note is that most state lemon laws and the federal lemon law allow consumers to recover attorney fees from an automaker when their case is successful.
Four Misconceptions about Lemon Vehicles
Used Cars and Alternative Vehicles Can’t Qualify as Lemon Vehicles
The misconception that used cars and alternative vehicles such as motorcycles, ATVs, boats, etc. can’t qualify as lemons ignores federal lemon laws. In most states, the lemon law does not cover used vehicles and alternative vehicles. But federal lemon laws cover used cars that are still under the manufacturer’s warranty and alternative vehicles that qualify as personal vehicles (e.g. dump trucks and commercial moving trucks don’t qualify).
A Car Dealership is where you present a Lemon Case
Some consumers mistakenly think that, if an auto dealership sells lemon vehicles, it is responsible for replacing them. However, an auto dealership merely functions as a middleman between an automaker and consumers. Therefore, if you suspect that you were sold a lemon vehicle, don’t waste your time arguing with a car dealership. Contact an attorney and have a demand letter sent to the automaker.
Hiring an Attorney Isn’t Necessary to Win a Lemon Case
Lemon owners that decide not to hire an attorney usually encounter one of two situations: no response from the automaker or a low-ball, inflexible settlement offer. Automakers know that you can’t file a lawsuit on your own. Therefore, many times they either ignore your case or attempt to buy you off for as little as possible. Because lemon laws allow consumers to recover attorney fees, there is no reason to avoid hiring an attorney to handle your lemon case.
Lemon Laws for Cars: Compensation and the State and Federal Level
Next to buying a home, buying a vehicle is the most significant purchase that most people make; and just as some homes present a persistent defect that wasn’t apparent when they were purchased, so do some vehicles. Under state and federal lemon laws for cars, these vehicles are considered lemons, and entitle their owners to receive compensation. However, the definition of a lemon vehicle is different at the state level than it is at the federal level, and so is the compensation that consumers receive for owning a lemon vehicle.
Under state lemon laws, a vehicle is considered a lemon if it undergoes a certain number of repair attempts (usually about three) within a certain number of miles (usually less than 18,000) after its original delivery date. Therefore, even if a vehicle is still under warranty, it cannot qualify as a lemon if the repairs do not fall within the state mileage requirements. It is also important to note that most states do not cover alternative vehicles, such as motorcycles, ATVs and boats. If a vehicle qualifies as a lemon under state law, its owner can choose between two forms of compensation: receiving a free replacement vehicle or receiving a refund of the vehicle’s purchase price minus a mileage based allowance.
Under the federal lemon law, a vehicle is considered a lemon if it is still under the manufacturer’s warranty and experiences a defect that cannot be resolved within a reasonable number of repair attempts, regardless of mileage. Unlike most states, the federal lemon law covers alternative vehicles; with the key being that a vehicle qualifies as personal vehicle (e.g. dump trucks are not personal vehicles). When a vehicle qualifies as a lemon under federal law, its owner receives a cash award and can keep the vehicle. Most state lemon laws and the federal lemon law also allow consumers to recover attorney fees if their case is successful, as well as collateral costs associated with a lemon vehicle, such as licensing and registration, towing and rental car fees.
Mercedes Benz Potential Lemons Are Becoming Increasingly Common
Throughout most of its history, Mercedes has been a vehicle that consumers haven’t thought twice about when it comes to quality. In addition to offering enviable aesthetics, Mercedes has also had a reputation for offering incomparable dependability. But today, with most Mercedes models being mass-produced, that quality is increasingly being called into question. In fact, Consumer Reports recently listed the following Mercedes models as being some of the least dependable autos on today’s market: Mercedes Benz CLK, Mercedes Benz S-Class, E-Class and C-Class, and Mercedes Benz M-Class.
As one might expect, Mercedes is not the only luxury car on the least reliable list. Consumer Reports also lists the Jaguar S-Type and X-Type, Lincoln Navigator, Porsche Cayenne and BMW 5 series and 7 series as vehicles that consumers should stay away from if they care deeply about dependability. However, what does make Mercedes unique in its position on the least reliable list is its corporate offices’ reputation for taking a hard stance to the owners of problematic Mercedes models—and also their attorneys— when they seek compensation under federal or state lemon law.
Nevertheless, Mercedes Benz is subject to the same lemon laws as any other vehicle manufacturer. A Mercedes that fails to live up to its warranty by experiencing a significant number of unsuccessful repair attempts (usually about three) for the same problem can be addressed by state lemon law and/or federal lemon law, the latter of which is established by the Magnusson-Moss Warranty Act. If you own a Mercedes that repeatedly fails to live up to Mercedes’ historical reputation for dependability, don’t fall into the trap of thinking that just one more repair attempt will do the trick. Instead, contact an attorney and get the compensation you deserve.
Always have an Attorney Write your Lemon Law Letter
Owning a new car that consistently fails to live up to its warranty is one of the most frustrating consumer experiences imaginable. Initially, a person feels disappointed that their new car is unreliable. But soon thereafter, disappointment turns into frustration, which leads some people to draft a letter to the automaker demanding compensation. Initially, writing your own lemon law letter—also known as a demand letter—can bring a sense of release. But in many cases, consumer written demand letters are merely a cathartic exercise; because automakers know that only attorneys can file lawsuits, they often ignore consumer written demand letters.
Yet, while some automakers ignore consumer written demand letters, other automakers respond to them with a settlement offer when the vehicle in question has enough documentation to prove it’s a lemon. Yet, as one might expect, a settlement offer in response to a consumer written demand letter is rarely in keeping with attorney negotiated settlements. If you write your own demand letter and receive a settlement offer, the dollar amount may seem attractive. But it’s important to remember that automakers usually do not offer a settlement that is as high as an attorney could negotiate.
Many consumers attempt to handle their own lemon case to avoid attorney fees. But under federal lemon law, which is established by the Magnusson-Moss Warranty Act, consumers can recover attorney fees when their case is successful. Unlike many types of court cases, lemon laws cases are unusually straightforward in terms of evidence. When repair records reveal that a vehicle is a lemon, its owner is more likely to obtain compensation, which explains why the majority of lemon cases are settled out of court. Owning a lemon car is frustrating. But given the consumer friendly nature of the lemon law, there’s no need to add to the frustration by not hiring an attorney.
Understanding State and Federal Lemon Car Law
Owning a vehicle that suffers from an irreparable defect can be more than frustrating. Instead of being able to drive where you want when you want; your car is either in the repair shop or making you to wonder if it won’t break down in the middle of your journey. In such situations, some car owners think that the only solution is to have the vehicle repeatedly worked on until its defect disappears. However, because some defects are the result of faulty design and never go away, there are state and federal laws known as “lemon laws” that protect consumers from owning vehicles that consistently fail to live up to their warranty.
Under the state lemon law, a vehicle qualifies as a lemon when it undergoes a certain number of failed repair attempts (usually about three) within a certain number of miles (usually less than 18,000) after its original delivery date. Once these criteria are met, the vehicle’s owner can choose to receive either a new comparable replacement vehicle or a refund of the vehicle’s purchase price minus a mile-based allowance. Although all state lemon laws cover cars, trucks and SUVs, most states do not cover used cars and alternative vehicles such as motorcycles, ATVs and boats.
Unlike the lemon car law in most states, federal lemon laws cover used cars and alternative vehicles that qualify as personal vehicles (e.g. commercial vehicles such as dump trucks and moving trucks are exempted). A second difference between federal and state lemon law is that the former does not require that a certain number of repair attempts occur within a certain range of miles, but covers all vehicles that are still under the manufacturer’s warranty and experience a defect that cannot be resolved within a reasonable number of attempts. In federal lemon cases, lemon owners receive a cash award and can keep their vehicle, but are not entitled to a free replacement vehicle. The Federal lemon law also allows consumers to recover attorney fees when their case is successful as well as most state lemon laws.