Buying a used car has more potential risks than buying a new car. Across the US, there is a law that protects new car buyers from ending up buying a lemon. This law is known as Lemon Law. But, does the Lemon law apply to used cars? Does your state have a Lemon law for used cars? What if the used car you buy is a lemon?
Worry not, we’ll be answering all your questions in this blog where we take a look at the lemon laws for used cars in different states of the USA. We’ll also be pondering on the question, what if your state doesn’t have any lemon law for used cars? Let’s find out.
What is lemon law? Does lemon law apply to used cars?
First of all, a car or a vehicle is termed a lemon when it has recurring and severe defects that significantly impact its safety, value, or usability, despite multiple repair attempts by the manufacturer. These defects are typically covered under the vehicle’s warranty.
But, when it comes to used cars, there are only a few states that cover used cars under Lemon law. States like New Jersey, New York, Connecticut, Massachusetts, and Texas offer lemon law for used cars.
Here’s how Lemon Law for used cars works in different states.
New York’s Lemon Law for Used Cars
New York’s lemon law for used cars is the most comprehensive in the US. Here’s a detailed breakdown:
Key features:
- Applies to: Used cars purchased or leased from a licensed dealer in New York.
- Covers: Defects that substantially impair the value of the car and are covered under the manufacturer’s warranty.
- Mileage and price limits:
- Vehicles with 18,001 to 36,000 miles: Must be within 90 days or 4,000 miles of purchase.
- Vehicles with 36,001 to 79,999 miles: Must be within 60 days or 3,000 miles of purchase.
- Vehicles with 80,000 to 100,000 miles: Must be within 30 days or 1,000 miles of purchase.
- Minimum purchase price of $1,500.
- Repair attempts: The manufacturer must have had a reasonable number of attempts to repair the defect, but failed each time. “Reasonable” typically means:
- Four or more repair attempts for the same defect.
- The car has been out of service for a cumulative total of 30 or more days for repairs (regardless of the specific defect).
- Remedies: If the conditions are met, you can choose either:
- Full refund: Less reasonable allowance for mileage driven since purchase.
- Replacement vehicle: Of comparable value and features.
New Jersey’s Lemon Law for Used Car
New Jersey’s used car lemon law, while not as comprehensive as New York’s, does offer some protection for consumers who purchase used cars from licensed dealers. Here’s a breakdown of its key features:
Applicability:
- Covers used cars purchased or leased from a licensed dealer in New Jersey.
- This only applies to vehicles that meet ALL of the following criteria:
- Passenger car, minivan, pickup truck, or SUV. Motorcycles and motorhomes are excluded.
- Seven years old or less from the model year at the time of purchase.
- Purchase price of at least $3,000 before taxes and fees.
- Mileage of 100,000 miles or less at the time of purchase.
Warranty requirement:
- You should always ask your dealer to provide a written warranty while purchasing the car. The warranty must be provided based on the mileage of the car:
- 24,000 miles or less: 90 days or 3,000 miles, whichever comes first.
- Less than 60,000 miles: 60 days or 2,000 miles, whichever comes first.
- 60,000 to 100,000 miles: 30 days or 1,000 miles, whichever comes first.
Defect requirements:
- Must be a “material defect” that significantly impacts the car’s safety, use, or value.
- Must be a defect that is covered under the warranty provided by the dealer.
Repair attempts:
- The dealer must have had a reasonable number of attempts to repair the defect, but failed each time. “Reasonable” typically means:
- Three or more repair attempts for the same defect.
- The car has been out of service for a cumulative total of 20 or more calendar days for a single problem or a series of problems.
Remedies:
- If the conditions are met, you can choose either:
- Full refund: Less a reasonable allowance for mileage driven since purchase and a deduction for personal use.
- Replacement vehicle: Of comparable value and features.
Important things to note about Lemon Law for Used Cars in New Jersey
- The law only covers repairs within the initial warranty period provided by the dealer.
- The “material defect” requirement is interpreted more strictly than in other states.
- Consulting with a lawyer specializing in New Jersey lemon law is recommended for navigating the process and maximizing your chances of success.
But, how to make sure that you don’t end up buying a lemon?
Even though your state might be offering limited coverage on used cars under Lemon Law, the process of claiming through the law is time-consuming. You will have to hire a lawyer to process your claim properly. And even after all this, you may end up getting rejected. Rather than solely depending on regulations, it’s wise to verify that the car you fancy isn’t a lemon. So, how can you prevent yourself from getting a lemon?
Starting off, half of your concerns dissipate when you opt for an authorized dealer over a random one or a private seller. Keep in mind that the Lemon law across the US, extends its coverage exclusively to used cars purchased through certified dealers that provide warranty on the vehicle.
For an added layer of security, opting for a Certified Pre-Owned (CPO) vehicle makes a lot of sense.CPO vehicles are exclusively available at franchised dealerships like Schumacher Used.
CPO Program Benefits:
- 172-Point Certified Pre-Owned Inspection & Reconditioning Process
- CARFAX® Vehicle History Report
- Bumper-to-Bumper Warranty Coverage (12-Months / 12,000 Miles)
- Powertrain Limited Warranty (6-Year / 100,000 Miles)
- 2 Years / 24,000 Miles of Complimentary Scheduled Maintenance
- Roadside Assistance & Courtesy Transportation
- Vehicle Exchange Program
- OnStar® Limited Trial
- SiriusXM All Access Trial Subscription
Yes, A CPO certification does require you to pay a slight premium, but with such a comprehensive inspection and vehicle history report, you can ensure that the car you’re buying is in a good condition. Moreover, the warranty offered ensures that even if there’s some issue that comes up within the period, it will be rectified and repaired by the dealer. That’s how you can protect yourself from buying a lemon.
