The Lemon Law only applies to new vehicles. A "vehicle"
is a motor vehicle designed as a passenger vehicle, such as a
car, suv, pickup truck or van. Motor homes, busses and larger
trucks are not included.
Does the Lemon Law apply to me?
There are two times when the Lemon Law applies.
The vehicle must have been repaired at least 4 times. The first
repair must have happened within the first year of getting the car.
The other three must have happened within two years from first repair.
For example, if you took possession of the car on July 1st of 2000,
the first repair would have to have happened between July 1st of
2000 and July 1st of 2001. Let’s say the first repair was
on December 5th of 2000. The other three repairs would have to have
happened between December 5th of 2000 and December 5th of 2002.
The other time the Lemon Law applies to you is if the repairs have
prevented you from using the vehicle for 30 or more days during
the first year you had it or during the manufacturer’s warranty
period (whichever is earlier).
The Lemon Law applies to me, now what do I do?
First, you must send what is known as a “last chance letter”
to the manufacturer by “return receipt service.” This
letter must let the manufacturer know what the defect or condition
is. Try to mail this letter before the fourth repair or before the
30 day period expires.
Once you take the vehicle into the designated repair facility,
the manufacturer has 5 days to repair it.
But my vehicle still isn’t repaired! Now what do
I do?
If you’ve notified the manufacturer of the defect, and the
car still isn’t repaired, the manufacturer has 30 days to
do the following:
- If you bought the vehicle, the manufacturer must replace the
vehicle or refund the purchase price
- If you leased the vehicle, the manufacturer must refund the
lease price or replace the vehicle
What if I don’t want the replacement or refund remedies?
What can I do then?
The Lemon Law doesn’t prohibit you from taking action other
than demanding a refund or replacement.
First, many manufacturers may have an arbitration procedure. You
do not have to take this procedure unless it follows FTC regulations
and the manufacturer expressly requires you to use the mediation
process. It is important to note that many manufacturer arbitration
procedures do not conform to FTC regulations. Even if you do use
the mediation procedure, the decision from it is not binding to
you, only to the manufacturer.
Your other option then is to go to small claims court. This is
a legal remedy available to people with lawsuits of less than $3,000.
You do not use an attorney in this sort of litigation. More information
on this is available at: http://www.courts.michigan.gov/scao/resources/publications/pamphlets/TP2.pdf
The
Lemon Law
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