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Is your new car a lemon? How lemon laws work and where to get help

If your new car keeps going back to the shop for the same problem, your state's lemon law may require the manufacturer to replace it or refund you. Here is how it works and where to start.

By

Founder and Chief Negotiator

Updated 3 min read

A silver car with the hood open, showing the engine bay

A new car that keeps going back to the shop for the same problem is more than an annoyance. In every state, a lemon law can require the manufacturer to replace the car or refund your money when a serious defect cannot be fixed. The details are set by each state, so the first and best stop is your state attorney general’s website, or the state consumer affairs office it points you to.

What is a lemon law?

A lemon law is a state consumer protection law for new vehicles with serious defects that the manufacturer cannot repair within a reasonable number of attempts. If the car qualifies, the manufacturer generally has to offer a replacement or a refund, minus an allowance for the miles you drove. The federal Magnuson-Moss Warranty Act also covers written warranties nationwide, but state lemon laws are usually the faster route for a new car.

What usually qualifies

Every state sets its own rules, but most look at the same things:

  • A serious defect. Something that substantially impairs the car’s use, value, or safety, not a rattle or a cosmetic flaw.
  • A time or mileage window. The problem has to show up within a set period after delivery.
  • Repeated repair attempts. The same defect was not fixed after a set number of tries, or the car was out of service for a set number of days.
  • A final chance for the manufacturer. Many states require you to notify the manufacturer in writing and give it one last repair attempt.

An example: Massachusetts

Here is how one state handles it, using the rules published on mass.gov:

  • The law covers new cars bought or leased in Massachusetts from a dealer for personal or family use.
  • The defect must substantially impair the car’s use, market value, or safety, and it must be reported within one year or 15,000 miles of delivery, whichever comes first.
  • The dealer or an authorized repair shop must have had at least three attempts to fix the same defect, or the car must have been out of service for 15 or more business days.
  • You then notify the manufacturer in writing and give it a final repair opportunity of no more than seven business days.
  • If the car is still not fixed, the state runs an arbitration program through the Office of Consumer Affairs and Business Regulation. You apply online within 18 months of delivery for a new or leased car. There is no application fee. A $300 arbitrator fee is paid once a hearing is scheduled, and it is included in the award if you win. Decisions generally come within 45 days.

Other states use different time limits, repair counts, and programs, which is why your own state’s official page matters.

What about certified pre-owned cars?

New car lemon laws usually do not cover certified pre-owned cars. A CPO car is protected by the manufacturer’s CPO warranty, and some states have separate used vehicle warranty laws. Massachusetts, for example, accepts used car arbitration applications within six months of delivery. Read the CPO warranty terms before you buy, so you know what is covered and for how long. That is one of the things we check on every certified pre-owned deal.

Records to keep from day one

  1. Every repair order, with the date, the mileage, and the problem described in the shop’s own words.
  2. The dates the car was in the shop, so days out of service can be counted.
  3. Copies of every letter or email to the dealer and the manufacturer. Send important notices in a way you can prove, such as certified mail.
  4. Your purchase or lease contract and the warranty booklet.

Where to start

Search for your state’s name plus “attorney general lemon law,” and use the official government page, which usually ends in .gov. It will explain your state’s rules, deadlines, and any free arbitration program. For a dispute that is not resolved there, a consumer protection attorney can advise you, and many lemon laws allow you to recover attorney fees if you win.

The best protection starts before you sign: knowing exactly what you are buying and what the warranty covers. That is part of every deal we negotiate. See how it works.

This article is general information, not legal advice. Lemon laws vary by state and change over time, so confirm the current rules with your state attorney general or an attorney.

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