When you buy a new car, you expect it to take you where you need to go safely. Even used cars can be reliable for hundreds of thousands of miles. Some cars are not very reliable at all and may have persistent mechanical problems. These cars are usually called lemon cars. Sometimes you’ll hear the term manufacturer buyback, indicating that the problem could not be fixed at all, so the manufacturer repurchased the vehicle. Vingurus provides you with the entire car’s history, clearly highlighting notable mechanical problems.
Looking for a reliable car takes time and effort. Our easy to read guide will help you know what to look for, so you can avoid purchasing a lemon car title.
Table of Contents
- What Is a Lemon Car?
- What Qualifies as a Lemon Car?
- What to Do if I Bought a Lemon Car
- How to Avoid Picking a Used Lemon Vehicle
- What is a Lemon Car Law?
- Lemon Car Checklist
- Lemon Car FAQ
What Is a Lemon Car?
A “lemon” title refers to a pre-owned vehicle that has reoccurring issues. These vehicles, which are problematic for any reason, are misrepresented to the buyer. Not knowing the true value of the car, the buyer will pay significantly more than the car’s worth and will continue to pay more through vehicle repairs.
Selling lemon cars is a common scam but is easily avoidable. You can look at the car’s history and get it checked by a trusted mechanic who can verify the car’s condition.
What Qualifies as a Lemon Car?
All vehicles that are significantly compromised in any way are assigned a “branded title.” A lemon car is usually a vehicle that has at least one manufacturing defect that will severely impact the safety or functions of the car. These substantial defects should be covered by the vehicle warranty used and occur during a specific timeframe. The vehicle must continue to have this issue after attempting a “reasonable number” of manufacturer repairs. The laws on what is “substantial” and “reasonable” will vary by state, so be sure to read your state’s lemon title law.
Substantial Defect
Substantial defects are vehicle problems that arise independent of daily use and can severely impair the car’s use, safety, and value. The problem needs to be covered by your vehicle warranty and affect your car’s function, though the specifics vary by state. A common rule across states is the issue must occur within a certain time period or mileage.
A common vehicle problem would be a faulty steering wheel or the brake system as they can affect your safety. Vehicle defects such as a broken glovebox do not qualify since this doesn’t affect the safety or purpose of the car.
Reasonable Number of Vehicle Repairs
Once you’re aware of a defect, the vehicle manufacturer must provide a “reasonable number” of repairs – again determined by your state’s laws. Some issues, such as faulty brakes, will only need to be repaired once, while other repairs can take a few more within a 12-month period. It’s very dependent on the issues and the measures you need to take to fix it.
Some common vehicle issues are in-car technology, electronics, or the engine. You can avoid the risk of having trouble with these by avoiding newer tech models.
What to Do if I Bought a Lemon Car
Report your findings to the vehicle’s dealership and/or the manufacturer you purchased from. If this is a new issue, they can avoid selling those models until the issue is resolved. This action also shows you’ve taken the initiative to alert the proper people to help you fix the issue.
Most states cover new or used vehicles under their lemon car laws. These laws vary by state; some states cover vehicles under a certain mileage, while others cover cars only sold once.
To make the most out of a replacement or refund, keep track of every issue as they arise and of every vehicle repair that takes place. Here are some easy to follow steps if you think your car might be defective:
- Document the issue you’re having before checking your warranty documents. Lemon car laws cover issues covered by a warranty.
- Read up on your state’s laws to ensure your situation is covered. A few resources provided by the Center for Auto Safety and the Better Business Bureau (BBB) Auto Line can be helpful.
- Report your findings and issues to the dealership and manufacturer. Having a record of this communication will help you receive a refund or replacement faster.
- Note down everything from the repairs to inspection, including those done by the dealer and manufacturer.
- Contact the manufacturer to begin the buyback process if repairs fail to fix the problem.
- Get in touch with a lawyer if problems persist or if the buyback process is stalled by the manufacturer or dealer.
How to Avoid Picking a Used Lemon Vehicle
It’s not always possible to avoid purchasing a lemon car, but here are some warning signs to look for. The easiest way is to look up the car’s vehicle identification number (VIN). Using websites like Vingurus’ free VIN decoder, you simply type in the car’s VIN and go through the report provided. Here are some things to pay attention to when reading over the report:
- Vehicle’s History
The vehicle’s history can tell you the car’s mileage, whether it was in any accidents, and how many previous owners there were. The dates that are provided in the report can let you know whether the dealer went through the proper legal process.
- Owner History
This part of the report will provide some information on previous owners, including whether the car was brought back by the automaker – proof that the car was deemed a lemon but resold. You can also see if the car changed hands before it was deemed a lemon, indicating the issue was perhaps not obvious.
- Repairs
Take a look at any reoccurring repairs. The report can help you determine whether the repairs are superficial or more serious and whether they were done at the dealership or through a general shop.
- Pre-purchase Inspection
If the issues reported are superficial and you believe the car was mislabeled a lemon, you may take it to a trusted mechanic for a pre-purchase inspection. A mechanic would know whether the issues are fixable and if there are other areas of concern.
What is a Lemon Car Law?
Lemon laws protect the rights of consumers when they’re buying a faulty car. They’re designed to provide options for buyers who purchased cars or other products that don’t meet performance and quality standards.
There are federal lemon laws which differ from individual state laws in these ways:
Federal Lemon Law
The federal lemon law provides general regulations for consumer products covered by written warranties. The main focus of this law is stated in Section 2304(a)(1): “If the product […] contains a defect or malfunction after a reasonable number of attempts by the warrantor to remedy defects or malfunctions in such product, such warrantor must permit the consumer to select either a refund for or a replacement without charge of, such product or part.”
If the manufacturer cannot rectify the issue within a reasonable amount of time, you have the right to choose between a replacement or a refund.
State Lemon Laws
Each state’s lemon laws are meant to complement the federal ones. They provide more details about which situations are covered, such as replacement timelines and the period of warranty. In some states, including Michigan, you can sue for a refund or replacement if the manufacturer was unable to fix the same issue after four tries. Other states may say your vehicle needs to be unusable due to repairs for at least 30 days before you have a case. The differences between each state’s laws are very specific, so it’s advisable to read the fine print.
Lemon Car Checklist
Here’s a quick checklist to determine whether a vehicle is a lemon car and what to do if it is.
Lemon Car FAQ
What if I bought my car from a private party?
Most states don’t cover private sales under lemon laws, but it’s a good idea to check if your state does. If it does, you may have to prove that you weren’t informed about the defects before purchasing it.
Can a lemon car be fixed?
Yes. If you choose to fix your lemon car, remember to keep all of the vehicle’s service records and correspondence with the manufacturer and/or car dealer. These documents help establish a timeline and are helpful in determining who is responsible for vehicle repair costs. You can usually rectify the situation with the manufacturing company but, if you need to, look into hiring a lawyer.
Will my insurance cover me if I buy a lemon car?
Not likely. Most insurance companies do not cover lemon cars, nor do they compensate for repairs due to manufacturing defects. If your case reaches court, you may be able to reach a settlement that covers your insurance costs during the time your lemon car was unusable.
Can you return a lemon car?
Yes, within a certain timeline. This is another reason to keep all documentation: if the issue cannot be resolved before a certain number of attempts or days, you can request a replacement vehicle or a refund.
Is it safe to buy a lemon car?
In some cases, yes. The kind of issue and the total number of repairs the vehicle will need determines whether it’s worth investing in the car in the first place. If there’s one straightforward, easy-to-fix issue, such as side-view mirror automation, which costs a few dollars, it would be worth paying for the repair. If the brake system, odometer, and the side view mirror automation need replacement, it may be better to look into different cars.
What can I do with a lemon car?
You can choose to repair the issues under your warranty and hope it solves the problem entirely. If it doesn’t, you can request a refund or replacement for your vehicle.