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Thursday, November 13, 2008

Auto Lemon Law

Auto Lemon Law



What is Auto Lemon Law?

A "lemon" is a vehicle that continues to have a defect or defects that substantially impair its use, value, or safety. In general, if the vehicle has had a "reasonable" number of repair attempts for the same defect within the warranty period, and the defect has not been repaired, the vehicle qualifies as a "lemon." The term "reasonable number of repair attempts" varies depending on the defect, and also varies by state. Safety-related defects, typically, require fewer repair attempts than non-safety defects to be considered a "reasonable number of repair attempts." Keep in mind, though, if it is not covered by a warranty, it is not covered by Lemon Law.

OK, I think I may have a case; what's next?
The first thing to do is to make absolutely sure that when you bring the vehicle in for service, the service advisor writes up your concern on the repair order, exactly as you describe it. Before you sign the repair order, check the date, time in, and odometer reading to verify they are correct.
If you do find discrepancies, have them changed before you sign the repair order. When you pick the vehicle up, review the correction done for each concern, date, time, and mileage out.
If the concern continues, make sure that you describe the concern exactly the same way on each repair visit or you may forfeit your rights under the "reasonable attempts to repair for the same defect" clause.
In most states you have Lemon Law coverage if the vehicle has been in the repair shop for an accumulative number of days, so keep records of this information as well.
If you have a failure that leaves you stranded, record the date, time, mileage, if you rented a vehicle and the amount of time you had to wait for assistance. The emotional trauma you experience in dealing with a defective vehicle does have bearing on your case should you proceed to arbitration or court.
Do I need legal counsel?

After your state's requirement for number of repair attempts, or days out of service, has been met, some states require that you send a letter to the manufacturer (use certified mail) to give them one last chance to repair the vehicle. Be sure to keep copies of any letters, and originals of any documents requested, for your records. Again, check your state's laws to see what applies in your area. In some states, with proper documentation, you simply file a complaint. In others, you should hire an attorney.
Keep in mind that you can use arbitration before proceeding to court. Consumers do not need to hire an attorney to go through the arbitration process, although you are allowed to use one, and in some states you can be awarded attorney's fees if you win. Some states have arbitration that is manufacturer-run and in others it is a state-run program, which is preferable to one run by the manufacturer.
Arbitration is legally binding on the manufacturer only, in most states. You can always proceed to court if you do not get the results you were expecting.

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