What to Do if You Think You Bought a Lemon
Rest assured, Texas Trader has never sold a lemon. This is probably due to the rigorous tests we perform on each vehicle before delivery. If a vehicle is found defective in any way, we either repair the problem if possible or give the purchaser the option of voiding the deal. If you are purchasing an RV from another dealer, however, their policies may not be as stringent. The likelihood of buying a "lemon" is therefore increased. The following information is provided to familiarize you with your rights and direct you to the proper resources should you need them.
A Consumer Guide to the "Lemon Law"
Contents
Introduction
The Lemon Law
What does it cover?
How do I know if my vehicle is a "lemon"?
How many chances does the dealer get to fix the vehicle?
How long do I have to file a complaint?
Why so many requirements?
Table
Calculating the repurchase price
Policy of Non-Discrimination on the Basis of Disability
On-line Forms
For More Information
The Texas "Lemon Law" is a state law that helps consumers who buy or lease new motor vehicles and have repeated problems getting their vehicles properly repaired. The Lemon Law can help a consumer get the vehicle repurchased, replaced or repaired.* It can be less complicated and less expensive than going to court.
The law was enacted by the Texas Legislature in 1983. A court challenge stalled enforcement of the law, but in 1985, a federal appeals court upheld its validity. In Texas, the Lemon Law is administered by the Texas Department of Transportation's Motor Vehicle Division and its Motor Vehicle Board.
Through mediation and formal hearings allowed under the law, the Motor Vehicle Division has helped resolve many complaints. From 1988 to 1997, the division processed 12,282 complaints. In 1997, the division received 1,291 written complaints and held 182 hearings on complaints that were not resolved informally. In about half the cases heard in 1997, consumers received either replacement, repurchase or repair of their vehicles, or some other appropriate relief.
In 1991, the Legislature changed the Lemon Law to benefit more consumers. The time period for filing a complaint and the definition of a "lemon" were expanded, and consumers may now be reimbursed for certain incidental expenses. Now, a disclosure notice accompanying any vehicle repurchased or replaced under the Lemon Law is also required.
In 1997, the Legislature added towable recreational vehicles (TRVs) to the Lemon Law. Besides being made primarily for temporary human habitation, TRVs must (1) be titled and registered in Texas; (2) be built on a single chassis; (3) contain one or more life support systems, and (4) be towable by another motor vehicle.
[*The relief available to used motor vehicle buyers is limited to repairs only, if the vehicle is still under the original factory warranty.]
The Lemon Law
The Lemon Law applies to new vehicles, including cars, trucks, vans, motorcycles, all-terrain vehicles motor homes and towable recreational vehicles (TRVs) that develop problems covered by a written factory warranty. Demonstrator vehicles are also considered new vehicles.
The law does not cover used motor vehicles (including program vehicles), repossessed vehicles, non-travel trailers, boats or farm equipment. Neither does it cover vehicles with:
- problems caused by the owner's abuse, neglect or unauthorized changes to the vehicle,
- parts or components not authorized or installed by the manufacturer,* or
- problems that do not substantially affect the use or market value of the vehicle. Minor rattles or stereo problems are usually not considered serious under the Lemon Law.
[*When the term "manufacturer" is used, it should be understood to include distributor and converter, as well.]
How do I know if my vehicle is a lemon?
A motor vehicle may be declared a lemon if it meets all of the following conditions:
- The vehicle has a serious defect or abnormal condition.
- The defect or condition is covered by a manufacturer's written warranty.
- The owner reports the defect or condition to the dealer or manufacturer within the warranty term.
- The owner gives the dealer or manufacturer a reasonable number of attempts to repair the defect or condition.
- The owner gives the manufacturer (preferably by certified mail) written notice of the defect and at least one opportunity for repair.
- The defect or condition persists and substantially impairs the vehicle's use or market value, or creates a serious safety hazard.
- The owner files a timely Lemon Law complaint and pays the filing fee.
How many chances does the dealer get to fix the vehicle?*
Determining how many chances a dealer has to fix a defect is easy. Simply see if you pass either the four-times test, the serious-safety-hazard test or the 30-days test.
[*The law presumes you have given the manufacturer or authorized dealer a reasonable number of attempts to fix the defect if you pass one of these tests. The mileage requirements generally do not apply to TRVs.]
Four-times test
If you have taken the vehicle to a dealership for repairs:
- two times for the same problem or defect within the first 12 months or 12,000 miles, whichever comes first, and
- twice more during the 12 months or 12,000 miles after the second repair attempt, and
- the problem is still not repaired--you pass the four-times test.
Serious-safety-hazard test
If you have taken the vehicle for repair of a serious safety hazard:
- once during the first 12 months or 12,000 miles, whichever comes first, and
- once more during the 12 months or 12,000 miles following the first repair attempt, and
- the problem is still not repaired--you pass the serious-safety-hazard test.
30-days test*
If your vehicle has been out of service for repair because of problems covered by the warranty:
- for a total of 30 days or more--not necessarily all at one time-during the first 24 months or 24,000 miles, and
- there were two repair attempts during the first 12 months or 12,000 miles immediately after delivery, and
- a substantial problem still exists, you pass the 30-days test.
[*If a comparable loaner vehicle was provided while the vehicle was being repaired, that time does not count toward the 30 days.]
How long do I have to file a complaint?*
A Lemon Law complaint must be filed within six months following the
earlier of:
1. expiration of the express warranty term;
2. 24 months; or
3. 24,000 miles following the date of delivery of the vehicle (except TRVs)
In other words, the filing period is determined by which of the above events comes first. To be safe, file your complaint as soon as you realize the dealer is having problems repairing the vehicle.
[*Even if you have gone past the time limit allowed for a repurchase, the Motor Vehicle Board may still be able to help you get repairs under your vehicle warranty.]
Most people feel that a seller or manufacturer should replace defective products or refund the purchase price without a lot of hassle. However, it is not practical for automobile manufacturers to do this. Their products are much more expensive than most other consumer goods, and warranty disputes involve more complicated issues. Often, whether the vehicle is really defective is a legitimate question.
Before the Lemon Law, consumers had to file lawsuits to get relief. Most states have passed laws to provide consumers with a relatively quick, inexpensive and easy way to pursue their claim. But, any law requires certain procedures. Our staff, especially our consumer advisors, will try to make it easy for you to understand the legal requirements and procedures.
