How the Texas Lemon Law Covers ‘Demo’ Vehicles

Demo vehicles occupy a strange place in lemon laws throughout the country, with some states extending lemon law protections to them while others excluding them. Buying a demo vehicle can be a good way to save money on a new-to-you vehicle, and Texas lemon laws have your back.

Consumer Reports defines a demonstration vehicle, or “demo vehicle,” as a vehicle driven by a dealership’s staff or as a test-drive vehicle. The website reported these vehicles can often have hundreds to several thousand miles on them, but if they have never been registered they still legally count as “new.” Once it’s registered, it’s legally considered “used” and its value reduced by mileage and wear and tear.

Andrew Ross, lemon law attorney with Allen Stewart, P.C., says demo vehicles are covered by the Texas lemon law.

“According to the Texas Department of Motor Vehicles, demonstrator vehicles that develop problems under the manufacturer’s written warranty are covered by the Texas lemon law,” Ross said. “This makes sense, as a demonstrator vehicle would essentially be considered a ‘new motor vehicle’ because it has not been sold to anyone yet.”

Vehicles covered by the Texas lemon law include self-propelled vehicles with two or more wheels primarily for the purpose of transporting persons or property on public highways or off-road transportation or towable recreational vehicles.

Your vehicle’s manufacturer is legally required to fix any recalled problems for free. If the dealership refuses to fix the part or tries to charge you for the repair, contact the manufacturer immediately. The Highway Safety Act of 1970, which created the NHTSA, requires car manufacturers to pay for the recall and replacement of a defective part.

If the manufacturer fails to repair, replace, repurchase, or provide your recalled vehicle’s loss value, they are violating the warranty and a lawyer may be able to assist you. Lemon law attorneys help their clients by dealing directly with the manufacturer on the clients’ behalf, working to promptly resolve the issue and get their clients back on the road. Thanks to the Magnuson-Moss Warranty Act, attorneys can seek their fees directly from the manufacturer, meaning a client can obtain legal counsel without having to pay attorneys’ fees directly out of pocket.