Lemon laws exist to protect consumers when their brand-new vehicles go bad. Americans expect their new cars and trucks to work correctly when they buy them – after all, they are likely buying a new vehicle after their last one has failed them in one way or another. However, for many consumers their dream of a new vehicle quickly becomes a nightmare. The National Highway Traffic Safety Administration (NHTSA) estimates American consumers get stuck with 150,000 defective vehicles a year. These “lemons” contain repeating, unfixable defects that substantially impair the use, safety or value of these vehicles.
Defective cars can cost their owners and lessees hundreds and possibly thousands of dollars in unforeseen costs stemming from lost wages, alternate transportation fees, repair costs and other sudden expenses that arise when your car breaks down.
Problems caused by defects legally must be resolved by the manufacturer. Regardless of how the defect occurred – manufacturing mishap, design flaws, shoddy workmanship, substandard materials – it remains the manufacturer’s responsibility to make the consumer whole, one way or another. When they fail to do so, lemon laws empower consumers and their attorneys to find compensation through legal means. Each state has its own version of lemon law, and the federal Magnuson Moss Warranty Act covers all Americans regardless of state.
There are several myths surrounding lemon laws in the United States, but in reality, all Americans are entitled to lemon law protection when they purchase a brand-new vehicle. Most importantly, lemon law protection comes at no cost to them.
One persistent myth surrounding lemon law is that it costs a lot to pursue a lemon law claim, and that it wouldn’t be worth it from a financial standpoint. That’s the furthest from the truth. A key factor in American lemon law is how an attorney’s fees are paid by the manufacturer, if the consumer wins in court. This means the consumer pays the attorney nothing out of pocket. This is one of the cornerstones of American lemon law, making legal protection affordable for all American consumers regardless of finances.
For more information on arbitration and other frequently asked lemon law questions, click here.
Another myth surrounding lemon law is the idea a consumer would be best served handling the claim themselves. While many consumers are savvy and intelligent, they still aren’t lawyers and don’t understand the complexities of the American legal system. Finding a lemon law attorney is the single best step you can take to ensure a positive outcome for your lemon law claim.
The dealership may try and convince you that you don’t have a valid claim, which is another reason you should always seek out a qualified, experienced lemon law attorney. It’s in the dealership’s best interest for you to give up and just deal with your lemon car. A lemon law attorney will review your claim, examine your purchase documents and repair records and determine if you have a valid claim.
Allen Stewart, attorney and owner of Allen Stewart P.C., said a consumer with an attorney backing them has an advocate throughout the claims process. They have someone on their side working for them and their best interests, who knows how the laws work and how the various rules and regulations affect their claim.
“A consumer with a lawyer has someone who knows when they’re being bamboozled,” Stewart said. “Someone who knows when what that company just said isn’t the law, or the truth, or equitable. The consumer with the lawyer has an advocate that has seen many other people in like circumstances and knows what the appropriate standard of care and compensation should be.”
One unfortunate myth is that used cars can be covered under lemon law protections, but the truth is more complex. Throughout most of the United States, lemon law protections only apply to vehicles still covered by their original manufacturer’s warranty. Since most used vehicles are resold after their manufacturer’s warranty expires, they aren’t covered by lemon law. There are a few exceptions to this, however: if the vehicle is resold shortly after it first arrives to a consumer and is still within its warranty period, the lemon law can help.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
Some states do offer protection for used cars. New York, for example, covers used car purchased, leased, or transferred after 18,000 miles or two years afters its original delivery. The vehicle must have been purchased from a New York dealership, have less than 100,000 miles at the time of purchase and be used mostly for personal transportation. It must be reiterated that New York’s protection of used cars is not only narrowly tailored, but also the exception among the states. Used car consumers are, throughout much of the country, out of luck.
Some people believe the only option when struck with a lemon car is getting it fixed by the dealership. However, the defect being easily repaired is the best-case scenario. It’s certainly not the only option for consumers who pursue a lemon law claim and prevail. Consumers have two options when the dealership can’t fix the problem: replacement or repurchase. Replacement is what it sounds like: the dealership replaces the faulty vehicle with a working one. Often the manufacturer gives you the same make and model vehicle (though hopefully one without recurring problems that made the original vehicle defective). When they can’t, lemon law forces the manufacturer to provide one that’s as similar as possible.
Repurchase is simply the manufacturer buying the vehicle back from you. The manufacturer cuts you a check for the vehicle and you’re free to try again with another car. The manufacturer must also pay the ancillary cost of purchasing the car, including tax, title and licensing fees.
However, in both repurchase or replacement, the manufacturer can withhold a certain amount based on the usage of the vehicle before the defect was reported. Manufacturers calculate how much they withhold based on how many miles the consumer drove the vehicle before reporting the problem. This is why it is imperative a consumer report a potential defect the moment they suspect one.
Lemon law attorneys have the facts on how lemon law works and will happily dispel any myths and misconceptions you still have about your claim. The attorneys of Allen Stewart P.C. have combined decades of experience helping consumers like you get the compensation they deserve. Don’t let your lemon car keep you off the road forever. Contact Allen Stewart P.C. today.