Lemon Law Guidance for Buyers of New Cars

How do you handle a car dealer dispute?

If you have a dispute with an auto dealership, there are a few things you can do to try and resolve the issue. First, you can try contacting the dealership directly. They may be willing to work with you to resolve the issue without involving legal action. If the dealership is unwilling or unable to resolve the issue, your next step may be to file suit. You can either represent yourself in court or hire an attorney to represent you. If you win your case, the court may order the dealership to pay damages. You may also be able to recover your attorney's fees.

Does the Lemon Law apply to new cars or only used ones?

The Lemon Law is a state law that provides protections for consumers who buy or lease new or used vehicles. The law is intended to provide relief for buyers or lessees of defective vehicles, by requiring the manufacturer to either repair the vehicle or replace it with a new one. The Lemon Law typically applies to defects that affect the safety, use, or value of the vehicle, and which have not been repaired after a reasonable number of attempts.

In some cases, the Lemon Law may also provide for a refund of the purchase price or lease payments. The law does not apply to all used vehicles, but only to those that are covered by a manufacturer's warranty. As a result, it is important to check the terms of any warranty before purchasing a used car and contact a lawyer if you believe you may have been defrauded.

Understanding Your Rights Under the Lemon Law

The Lemon Law is designed to protect consumers who unknowingly purchase defective vehicles. If your car has ongoing issues that the manufacturer or dealer cannot fix, you may be entitled to a refund or replacement.

What Qualifies a Car as a "Lemon"?

A vehicle may be considered a lemon if:

• It has a substantial defect that affects its safety, value, or function.
• The defect is covered under the manufacturer’s warranty.
• The issue has not been fixed after a reasonable number of repair attempts.

Steps to Take If You Suspect You Have a Lemon

• Keep all repair records – These documents prove how many times you’ve tried to fix the issue.
• Notify the manufacturer – They must be given a chance to repair the problem.
• Consult an attorney – A legal expert can help you navigate the Lemon Law claim process.

How Long Do You Have to File a Lemon Law Claim?

• The time limit varies by state but is often between 12-24 months after purchase.
• Some states allow claims within a certain number of miles driven.
• It’s best to file as soon as possible if your car has recurring issues.

Auto Fraud Red Flags to Watch Out For

Some dealerships use deceptive tactics to sell cars. Knowing what to look for can help you avoid being scammed.

Signs a Dealer May Be Engaging in Fraud

• Failing to disclose previous accidents or major repairs.
• Selling cars with rolled-back odometers to hide actual mileage.
• Pressuring buyers into signing contracts with altered terms.

How to Verify a Vehicle’s History Before Purchase

• Check the Vehicle Identification Number (VIN) with services like Carfax or AutoCheck.
• Have a trusted mechanic inspect the car before buying.
• Request a copy of the title to ensure it's clean and not marked as salvage.

Common Dealership Scams and How to Avoid Them

• Bait-and-switch financing – Dealers offer low rates, then change the terms later.
• Fake “certified” cars – Some dealers falsely claim a car passed inspections.
• Yo-yo financing – You drive off the lot, then the dealer demands a higher payment later.

Legal Remedies for Auto Fraud Victims

If you’ve been sold a defective or misrepresented car, you have legal options to seek justice.

What to Do If You’ve Been Sold a Defective or Misrepresented Car

• Document everything – Keep copies of contracts, receipts, and communication with the dealer.
• Request a refund or repair – Dealers may be required to fix the issue under consumer protection laws.
• Report the dealership – File a complaint with your state's Attorney General’s office or consumer protection agency.

How a Lawyer Can Help You Recover Damages

• They can demand compensation for repair costs, lost value, or even a full refund.
• A lawyer can help you sue the dealership for fraudulent sales practices.
• Legal action may also help cover attorney fees if the dealer is found guilty of fraud.

If you suspect fraud or a lemon vehicle, don’t wait. Contact us today to protect your rights and explore your legal options.

Frequently Asked Questions (FAQ) About Lemon Law & Auto Fraud

Does the Lemon Law apply to leased vehicles?

• Yes, in many states, the Lemon Law applies to both purchased and leased vehicles, as long as the defect is covered under the manufacturer’s warranty. Check your state’s specific laws to confirm.

Can I return a car if I regret buying it?

• Unfortunately, most states do not have a "cooling-off period" for car purchases. Once you sign the contract, the sale is typically final unless fraud or misrepresentation occurred.

What should I do if a dealer refuses to give me my contract or paperwork?

• Dealers are legally required to provide copies of all signed documents. If they refuse, you should:
• Demand a copy in writing.
• Check with your lender if the car was financed.
• Contact a consumer protection attorney for legal assistance.

What if my car is constantly in the repair shop but is out of warranty?

If your car is out of warranty, the Lemon Law may not apply. However, you might have legal options if:

• The dealer knowingly sold you a defective car.
• You were misled about the car’s history.
• The repairs are linked to undisclosed prior damage.

Can I sue a dealership for selling me a salvaged or flood-damaged car?

• Yes, you can sue a dealership for selling you a salvaged or flood-damaged car, motorhome, or motorcycle without proper disclosure. Dealers are legally required to inform buyers if a vehicle has a salvage title or has sustained major flood damage. If they fail to do so, you may have a fraud claim and could be entitled to a refund, financial compensation for repairs and loss of value, or legal penalties against the dealership. If you suspect you’ve been misled, contact us today to discuss your options.

How do I prove odometer fraud?

You can prove odometer tampering by:

• Checking service records for mileage history.
• Comparing the title history to past registrations.
• Using a VIN check to verify mileage through databases like Carfax.

What happens if a dealership lies about financing terms?

If a dealer changes your financing terms after you sign, it may be "yo-yo financing" fraud. You should:

• Refuse to sign a new contract if the terms change.
• File a complaint with your state’s consumer protection agency.
• Seek legal action to recover damages or cancel the deal.

Some People Don't Even Know They've Been Cheated

Do not let your dealership give you the slip. Some auto fraud suspects count on the fact that you will not investigate further into something odd that is happening to your engine, or that you do not know enough about cars to understand when you have been cheated. If you think something is wrong with your car, and you suspect that your dealer knew about it and did not disclose it, chances are you have a fraud case on your hands.

Think you’ve been sold a defective car? We can help! Call (888) 577-8520 or contact us to explore your legal options.