How it works: What's a ‘lemon law' and can it help me with my purchase?

Para leer en español, haz clic aquí.

You may have heard of lemon laws – these are laws aimed at protecting consumers when they buy something big, like a car. The requirements can get specific, and laws vary state to state. For this episode of How it Works, we’ll break down the basics.  

“The most basic way to describe the Lemon law is when you purchase a very expensive product, for example, a car, and it's still under warranty and for one or two reasons, you’re having issues with it and the manufacturer or the vendor is not assisting you with the product," Alma Galvan, a spokesperson for the Better Business Bureau, explains.

Galvan says long before you jump into the nitty-gritty of lemon laws and whether or not you qualify, it’s important to know what you’re buying.  

"You want to make sure that you understand the product that you are purchasing and you know, the warranty. It's really important to really, really dive into the warranty and really take the time to read it and see if your purchase and again, if whether it's a card or something else actually falls into the Lemon Law jurisdictions."

There is a federal lemon law and individual state laws. The federal law, officially called the Magnuson-Moss Warranty Act, or “Mag-Moss” for short, provides consumers a smaller payout than many of the state options, but offers a broader scope for what qualifies. In fact, it covers all products that come with a written warranty, where state laws may only cover vehicles.  

According to the BBB, many state lemon laws are limited to cars, light trucks and SUVs, and they must be for personal use. However, a lot of state laws give an open to pay out closer to a full purchase price, while Mag-Moss only covers the difference between the purchase price and what you would have paid if you had known about the defect. And like all state laws, they vary as you cross borders, so make sure you know the rules where you’re shopping.  

For example, in Massachusetts lemon laws cover both new and used vehicles. But over the border in New Hampshire, lemon laws generally only apply to vehicles purchased new.  

And if you’re buying a used car, have it inspected by your own mechanic. And know that if you’re making a private transaction between two individuals, you may not be covered by lemon laws.  

So if you think you have a lemon, where do you start? There are free resources, like the BBB’s Auto Line, that can help navigate the process. Or, if you want legal representation, you can get an attorney. 

 "If you are looking for an attorney, you want to make sure that they're licensed with the state and that they actually do handle lemon law cases. So it does take a little bit of research from consumers," Galvan explained.

And while lemon laws offer some protection, it’s also on you as the buyer to be a savvy consumer and look out for red flags. For example, the BBB saw an issue with flooded vehicles hitting the market this summer.  

"Of course, the vendor's not going to specify that and they're going to tell you that it's still under warranty. So basically you're purchasing a vehicle that has damages that unfortunately, depending again on the state, might not be applicable under a limited law," Galvan said.

Here’s a quick breakdown of the key points of each law in the New England states. While in many cases they are similar, different states may take different approaches to consumer protection.

MAINE 

What it covers: New and used cars, motorcycle, van, truck or RV, purchased or leased from a dealer 

What makes it a lemon: This law covers a vehicle with “a defect that substantially impairs the use, safety or value of the vehicle, and which has not been repaired after a reasonable number of attempts” 

What is the protection period: In Maine purchases are protected under the Lemon law for the length of the manufacturer’s warranty, or three years from the date of delivery to the original buyer, or 18,000 miles of use – whichever comes first. The manufacturer or dealer must be informed of the issue before the protection period ends. 

What it offers: If a vehicle is determined to be a lemon, you are entitled to a replacement vehicle or a refund of your money. There is a free state arbitration program to help the process along if the buyer and seller aren’t coming to an agreement. 

More information from the Maine Attorney General’s Office is available here.

NEW HAMPSHIRE 

What it covers: New vehicles purchased from a New Hampshire dealer 

What makes it a lemon: A car is considered a lemon if “The new vehicle is substantially impaired in use, value, or safety due to a defect covered by the manufacturer's warranty.” Generally, in order to qualify for arbitration the manufacturer or a representative must have made at least three unsuccessful attempts at repair, or the vehicle has been out of service at least 30 business days due to the defect. 

What is the protection period: In New Hampshire purchases are covered for the duration of the manufacturer’s warranty. 

What it offers: After repairs have been attempted the New Hampshire Motor Vehicle Arbitration Board will hear complaints to determine if the vehicle should be taken back as a lemon. The board has the power to determine if the buyer is entitled to a refund, a replacement vehicle of equal value, and may award damages to cover things like loan interest and registration fees. 

More information from the New Hampshire Attorney General’s Office is available here. 

VERMONT 

What it covers: New vehicles purchased or leased from a Vermont dealer, or a vehicle registered in Vermont. Used vehicles may be covered if the first repair occurred within the original manufacturer’s warranty. Excluded vehicles include tractors, motorized highway-building equipment, road-making appliances, snowmobiles, motorcycles, motor driven cycles, the living portion of RVs, and trucks with a gross vehicle weight rating over 12,000 pounds. 

What makes it a lemon: Vermont’s law is concerned with “defect(s)/condition(s) substantially impairs any combination of the use, market value or safety of the vehicle”. They offer two methods for filing – a “three-times-out" method, which is based on the number of attempted repairs, or a “30 days out-of-service" claim, which is filed based on time out of use. 

What is the protection period: In Vermont purchases are covered for the duration of the manufacturer’s warranty. Claims must be filed within a year after the expiration of that warranty.  

What it offers: The Arbitration Board has the option of awarding a pro-rated refund, or a comparable new vehicle replacement. 

More information from the Vermont Department of Motor Vehicles is available here. 

MASSACHUSETTS 

What it covers: Massachusetts has two different lemon laws  - one for new, and one for used. Neither covers commercial-use vehicles.  

The law concerning new vehicles concerns cars, motorcycles, vans, or trucks purchased or leased from a Massachusetts dealer. 

What makes it a lemon: Similar to other New England states, “A vehicle is considered a lemon if it has at least one defect that substantially that impairs the use, safety, or market value and the car has not been repaired after a reasonable number of attempts.” 

What is the protection period: For the law concerning new vehicles, the protection period is one year or 15,000 miles of use from the date of original delivery, whichever is first. 

For used vehicles, it is based on the miles on the odometer 

Less than 40,000 miles	90 days or 3,750 miles driven since purchase
40,000 – 79,999 miles	60 days or 2,500 miles driven since purchase
80,000 – 124,999 miles	30 days or 1,250 miles driven since purchase
More than 125,000 miles	No lemon law warranty

What it offers: For new cars, buyers may be entitled to a replacement vehicle or a contract price refund, minus a reasonable allowance for use of the vehicle. A manufacturer will be required to cover costs list registration fees and sales tax. Buyers can pursue a solution through a dealer directly, and arbitration help is available through the Office of Consumer Affairs and Business Regulation. 

For more details on Massachusetts’ new vehicles lemon law, click here. 

For used cars, click here. 

RHODE ISLAND 

What it covers: Rhode Island’s lemon law covers new and used vehicles sold, leased or replaced by a dealer or manufacturer, including automobiles, trucks, motorcycles, or vans with a registered gross vehicle weight of less than 10,000. It does not cover motorized campers. 

What makes it a lemon: To be eligible for an award, there must be a substantial loss of use, safety, or value. For new cars, Rhode Island looks at if the vehicle has been serviced four or more times for the same defect, or has been out of service for more than 30 days, with the defect still a problem. Used vehicles qualify if the car has been services three times for the same detect or has been out of service for 15 days. 

What is the protection period: New vehicles qualify if the purchase was within one year or 15,000 miles – whichever happens first. A used vehicle qualifies if it is within the dealer warranty period. 

What it offers: Rhode Island law allows buyers to request replacement with an identical or comparable vehicle or refund of the contract price, with a possible mileage fee. Finance charges were usually reimbursed only for the days the car was in repair. Requests for arbitration with the Motor Vehicle Arbitration Board can be made through the Rhode Island District Attorney’s Office. 

More information is available from the Rhode Island District Attorney’s Office here.

CONNECTICUT 

What it covers: Connecticut’s lemon law covers vehicles bought or leased new in the state that are registered as “passenger” “combination” or “motorcycle.” 

What makes it a lemon: a defect that “substantially impairs the use, safety or value of the motor vehicle and required repairs that were attempted during the eligibility period.” 

What is the protection period: Connecticut’s lemon law looks at defects that occurred within the first two years after the original owner took delivery or within the first 24,000 miles on the odometer - whichever comes first. 

What it offers: Connecticut’s law sets up an informal arbitration process. A buyer may be eligible for replacement with a comparable new car, or a refund of the contract price. Arbitrators may or may not include a mileage deduction in their awards. 

Learn more about Connecticut’s law through their Department of Consumer Protection. 

Lemon laws are just one form of consumer protection. Many state programs are designed to make them easily accessible to the consumer without an attorney. If you run into an issue that is not covered by these specific laws, your state may offer other forms of recourse.

If you have a consumer problem, contact NBC10 Boston Responds by filling out our online consumer complaint form. We will get back to you!