How Effective Is The Lemon Law In Protecting Used Car

How Effective Is The Lemon Law In Protecting Used Car Buyers

According to federal law, a lemon is a new or used vehicle that has undergone 4 or more repairs for the same problem or more than 6 overall repairs while it is under warranty. Federal lemon laws also cover electronic equipment both new and used under warranty. For the consumer who ends up with a used car lemon, the law seeks to compensate them for the cost of the vehicle. Each state has its own modifications to the lemon law but at the core is the aim to protect and compensate the consumer.

Consumer protection by enforcing lemon law


The lemon laws, both federal and state, are extensive. They detail conditions under which compensation can be provided and the type of redress provided to the consumer. This stipulates the responsibility of both the consumer and the manufacturer.

Responsibility of the consumer under the lemon law

It is the responsibility of the consumer to recognize that the new or used car is a lemon and report this to the manufacturer with proof (this may come in the form of receipts). After the consumer has reported that the vehicle is a lemon, the manufacturer should take the vehicle and attempt to rectify the problem/s by repairing it. In the event that the problem recurs after the warranty period has expired, it is still the responsibility of the manufacturer to fix the vehicle again.

Responsibility of the manufacturer

If the manufacturer has tried to fix the car for what is deemed a reasonable amount of times without success, then they are required by law to compensate the consumer for the full amount of the car including any modifications made to the vehicle. In addition the manufacturer will have to pay all the fees paid by the consumer for registration and other closing costs for the vehicle. If the consumer has also incurred transportation related expenses after first reporting the problem, the manufacturer is legally obligated to pay that too.

The implementation and enforcement of lemon laws exclusively protect the consumers. If however the used car that the consumer has bought is not under warranty then consumers have little to no protection, the lemon laws can only work for those within the stipulated limitations. Compensation for used cars under warranty are clearly stated in these laws but are only available if the consumer reports the problem to the manufacturer before the warranty ends, or proves that all the problems with the vehicle occurred under the warranty period. When these problems are reported it is then the manufacturer's responsibility to rectify the problem to ensure that the consumer receives the proper redress.

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