Using Lemon Laws to Cancel a Car Purchase

If you have ever bought a car that began experiencing difficulties soon after you got it home, you know the sinking sensation that comes with realizing you have been taken for a ride. When you suspect you have been sold a lemon, know your rights and choices.

What you will discover:

What exactly are Lemon Laws?
Is there consumer protection when there is fraud or deception in the sale of a vehicle?
Are there any safeguards in place for customers whose first language is not English?

While there is no legislative three-day cancellation period for automotive purchases or leases, customers may be allowed to retract a car purchase in other ways, such as via the use of federal and state Lemon Laws.

What exactly are Lemon Laws?

The federal “lemon law,” also known as the Magnuson-Moss Warranty Act, offers legal remedies for anybody who has bought an automobile that consistently fails to meet its promised quality and performance criteria (thus the faulty car being referred to as a “lemon,” or a dud). Each state has its own lemon law, with differences in what is covered.

The federal lemon laws, as well as many state lemon laws, encompass any technical faults and oblige the warrantor to pay the owner’s legal expenses if the complaint is successful. Because lemon laws address the manufacturer’s breach of warranty in creating and selling a defective vehicle, not all state lemon laws apply to used or leased automobiles; also, your state’s guarantee duration may differ from the actual car warranty.

In the early 1980s, California and Connecticut were among the first states to enact lemon laws, which protect consumers from significant defects that occur within a specified period after purchase and require a manufacturer to either replace the lemon with a new, comparable car or refund the full purchase price.

Check with your state’s Attorney General to see whether Lemon Laws apply to your transaction.

In most jurisdictions, including New York, a new automobile buyer has the right to cancel a purchase if a serious problem covered under warranty is detected in the vehicle and the issue remains unfixed after a reasonable number of repair attempts by the dealer or manufacturer. Although most state lemon laws apply only to new automobiles, numerous states have created particular lemon legislation to protect used vehicle customers.

Is there consumer protection when there is fraud or deception in the sale of a vehicle?

Even if you do not believe you have a lemon, you may be eligible to return your vehicle if you are the victim of fraud or misrepresentation.

California, for example, has various consumer rights against misrepresentations made during negotiations for the purchase or lease of products or services. Furthermore, there is no need that the salesperson meant to make a deception; just making an inaccurate assertion during the talks is sufficient.

Automobile fraud or misrepresentation examples include:

When the vendor said that the automobile is new, it is really old or reconditioned.
There is a deception about the quality or advantages of products or services (this generally applies to any service contracts or whatever a finance or sales manager explains to you, such as the quality of a used automobile, etc.).
There are substantial non-disclosures, such as when a salesman fails to advise you that the used automobile was previously a lemon-law buy-back, was previously engaged in a car accident, was previously wrecked and repaired, or was even involved in a flood.
When a buyer’s choice is based on fraud or deception, even an as-is transaction is not final.

Are there any safeguards in place for customers whose first language is not English?

Furthermore, California Civil Code 1632 requires that a Spanish translation of the contract be supplied to the consumer prior to signing the English language contract if the purchase or lease of a car is principally discussed in Spanish. This legislation was recently amended to cover Chinese, Vietnamese, Tagalog, and Korean languages. Failure to comply with this legislation entitles the consumer to cancel the automobile transaction.