Lemon Law Facts for Used & As-Is Vehicles

Lemon laws consist of regulations that protect car buyers from repeated repairs and malfunctions for new and used cars. An "as is" sale does not mean dealers don't have to meet the requirements. To fall under the lemon law, a vehicle's problem has to affect the use, safety, and value. Vehicles with a questionable paint job, a malfunctioning radio or the like, do not meet the requirements of a "lemon," as long as the car drives without problems or safety concerns.
Misconceptions

Consumers have some misunderstandings about lemon laws, such as the idea that there is one national or federal regulation that covers "lemon" purchases. The law actually varies from state to state. Also, the "three-day cancellation" rule does not apply to vehicle purchases. However, some dealerships may offer their version of the policy, which you should get in writing.
Lemon Laws

Find out how the lemon law works in your state. For example, the Arkansas regulations state that more than one try to fix a problem, which may result in serious injury or a life-threatening situation, constitutes a "lemon." In other states, multiple attempts are needed before a vehicle meets the requirement of a lemon. In New Jersey, the law requires vehicles meeting certain criteria to have warranties to cover repairs. For instance, a car with 24,000 miles, or less, must have a 90-day or 3,000-mile warranty. The law also specifies what items warranties must cover, such as engines and transmissions.
Documentation

Read and make sure you understand the terms of your vehicle warranty. Also, document anything concerning repairs to your vehicle. Sometimes, you won't know you have a lemon until somewhere down the line. Keep copies of documents related to servicing and repair. Save invoices, record details of telephone calls including who you talk to in the repair facility. Keep emails and receipts of payments whenever you have work performed on the vehicle. Keep track of any other time, costs, or efforts associated with the vehicle repair. You want as much evidence as possible to prove your case.
Expert Insight

According to the Car Lemon website, even if your used vehicle's problems do not fall under the coverage of the lemon car laws, you may have some options under consumer protection statutes. UCAN, a nonprofit consumer education organization, encourages individuals to know how to use California's Legal Remedies Act (CLRA), which prohibits "unfair or deceptive" activities associated with the sale of goods or services. For example, you may have a claim if the dealership did not reveal to you that the previous owner returned the vehicle due to multiple repairs and malfunctions.

Always act promptly because dishonest dealers depend on consumers who lack knowledge of the laws and who won't act to protect their rights.
Warning

Make sure you have an authorized repair shop perform all work. If you work on your vehicle or have an unauthorized shop perform the work, you risk voiding the warranty and any future claim. If you use the lemon law to file a lawsuit and lose, some states may require you to pay the attorney fee and legal costs.

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