Texas
lemon laws protect vehicle owners from being sold faulty or defective vehicles. The state laws cover new motor vehicles under manufacturer warranty that were bought and registered in Texas. Used cars that are still under warranty are covered for repair only—not refund or replacement.Texas lemon laws were designed to offer a faster and easier way to deal with lemon issues, as opposed to filing a lawsuit over a damaged vehicle. Still, the laws can be complicated, so it’s a good idea to consult a lawyer before pursuing a claim.
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Lemon laws
work to protect consumers from losing money (or worse) due to repeated attempts to repair a defect or flaw with their car.Under Texas lemon laws, the manufacturer or your dealer is entitled to a reasonable number of attempts to fix your car’s nagging problem. How ‘reasonable’ is defined in Texas will be detailed below.
If, after multiple attempts, the problem isn’t resolved—and depending on whether your car is new or used—you may be in a position to pursue compensation, a replacement vehicle from the manufacturer, or repairs in the case of a used car still under warranty
. What qualifies as a lemon car?
In Texas, a car’s safety, value, and use must be significantly impacted by a manufacturer's malfunction to be considered a lemon. The conditions are as follows:
Vehicle has a significant manufacturer’s defect or malfunction
Said defect is covered under your warranty
Within the warranty term, the defect must be reported to the manufacturer and/or dealer
The manufacturer or dealer must be allotted reasonable repair attempts to fix the problem
Car owner must give the manufacturer written notice of the issue (via certified mail) and at least one opportunity to fix it
The problem persists and impedes the car’s use or market value
, or it’s a safety hazard
You can use the following tests to determine whether the manufacturer has been given reasonable attempts to fix the problem:
Your car has been brought in four times for the same issue within the first 24 months of ownership or the first 24,000 miles driven, whichever comes first.
Serious safety-hazard test
This is a serious safety issue that impedes the safe operation of the vehicle and threatens injury or death, or there is a risk of fire or explosion if not repaired. You "pass" this test if you’ve brought the vehicle in twice over the first 24 months of ownership or the first 24,000 miles driven and the issue persists.
Your car has been out of service for 30 days (they don’t have to be consecutive) due to the persistent problem during the first 24 months of ownership or the first 24,000 miles driven, whichever comes first. Do note—if you’re using a comparable loaner car at any point during those 30 days, those days do not count.
Is there a Texas lemon law?
Yes, Texas does have a lemon law. It was enacted in 1983, but due to a court challenge, enforcement didn’t begin until 1985.
New cars bought and registered in Texas, with a written warranty, are covered under Texas lemon laws.
The laws apply to the following new vehicle categories:
Towable recreational vehicles (TRVs)
In addition to individual state laws, there is also a federal lemon law. According to the Magnuson-Moss Warranty Act, consumers who purchase a good with a cost of $25 or more are protected, provided the item is not beyond the expiration of the express warranty term.
State lemon laws usually constitute the best option for consumers with a defective vehicle if they qualify for relief under the statute. However, the Magnuson-Moss law offers consumers an alternative if they do not qualify for reimbursement of the purchase price, a replacement vehicle, or a settlement under the state lemon law.
Does the lemon law apply to used cars?
If your used vehicle is under warranty, you’re entitled to repairs under Texas lemon laws. You are not entitled to a refund or replacement like you would if you bought a new car
using your own personal funds, or a car loan
. Repossessed vehicles, non-travel trailers, boats, and farm equipment are not covered.
MORE: How to avoid buying a lemon car
How to file a lemon law claim
So long as you qualify, here’s how it goes if you want to pursue relief under Texas lemon laws:
File a lemon law complaint: Pay a $35 filing fee and file the complaint
through the Texas Department of Motor Vehicles, along with a notice of the complaint and a final opportunity for the manufacturer to repair the defect. Complaint review and mediation: After a Texas state employee reviews and approves the complaint, mediation will begin between both parties in an attempt to obtain a settlement.
A hearing, if necessary: If mediation fails to resolve the issue, your case goes to a hearing, where both sides will present their case.
Decision: The examiner will issue a ruling within 60 days from the end of the hearing.
Challenge, if necessary: If either party is unsatisfied with the examiner’s decision, a motion can be filed for a rehearing with the Texas DMV. If a party is still unsatisfied after a rehearing, an appeal can be filed with the state district court in Travis County, TX.
Keep in mind that lemon laws can be incredibly confusing to navigate, and your dealership will likely have an experienced lemon law attorney on retainer.
It may serve you well to contact an appropriate law firm to assist you with your lemon law case. You’ll be responsible for attorney fees, but a qualified Texas lemon law attorney will increase your chances of an examiner ruling in your favor.
How to find cheap car insurance
Your car’s warranty, combined with Texas’ lemon laws, will protect you against significant vehicle defects. However, you’ll still need to shop for a quality car insurance policy
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