When you buy a car, you expect it to work. Consumer protection laws exist to ensure that you’re treated fairly and that you’re not stuck with a vehicle that’s unsafe or unreliable.
Michigan’s Lemon Law is a specific set of regulations designed to protect consumers who buy or lease new cars, trucks, or SUVs that turn out to be defective. It’s there to help if you end up with a “lemon” – a vehicle that just can’t seem to be fixed, no matter how many times you take it to the shop.
This article will go over the essentials of the Michigan Lemon Law: what kind of vehicles are covered, what types of defects qualify, what the repair requirements are, and what your legal options are if you’re dealing with a lemon. We’ll also offer practical advice on how to navigate the process.
It’s important to remember that defective vehicles can also lead to accidents. Understanding your rights under the Lemon Law is crucial for both your financial well-being and your safety on the road.
Vehicle eligibility and coverage under Michigan Lemon Law
Not every vehicle is covered by Michigan’s Lemon Law. Here’s a quick rundown of which vehicles are eligible, and which ones aren’t.
Eligible vehicles
- New vehicles: The Lemon Law in Michigan mainly covers new passenger vehicles like cars, SUVs, pickup trucks, and vans that were either purchased or leased in Michigan, or purchased or leased by Michigan residents. The vehicle has to have a manufacturer’s warranty.
- Used vehicles with existing warranties: Used vehicles might be covered if they’re still under the original manufacturer’s warranty when you buy them.
Ineligible vehicles
- Vehicles not for personal use: The Lemon Law only applies to vehicles bought or leased for personal, family, or household use. If the vehicle is resold or leased, it’s not covered.
- Excluded vehicle types: Motor homes and buses typically aren’t covered by the Lemon Law.
- “As-is” sales: If you buy a vehicle “as-is,” your Lemon Law coverage is limited.
Defining a “lemon”: Qualifying defects and conditions
Not every car problem qualifies under Michigan’s Lemon Law. To be considered a lemon, the vehicle must have specific types of defects and conditions.
Covered defects
Here’s what the law says about defects that are covered:
- Impact on use, value, or safety. The Lemon Law covers defects or conditions that substantially impair the use, value, or safety of the vehicle. That means the problem has to be pretty serious. It also has to be a problem that the manufacturer’s warranty should have covered.
- Persistent problems despite repair attempts. The defect has to be one that hasn’t been fixed even after the manufacturer or an authorized dealer has attempted to repair it a “reasonable number” of times. What’s “reasonable?” The law defines it, but it can depend on the issue.
Excluded issues
These defects are not covered under the Lemon Law:
- Damage due to abuse or accidents. If you’ve been off-roading in your sedan, or you’ve been ignoring that funny noise for six months, the Lemon Law won’t cover the damage. It also doesn’t cover unauthorized modifications to the vehicle.
- Post-purchase damage. If you got into an accident after you bought the car, and the accident caused the problem, that’s not covered either.
The “reasonable number” of repair attempts: Triggering Lemon Law protection
So, how many repair attempts are too many? When does a car become a lemon in the eyes of the law?
Defining “reasonable”
Michigan’s Lemon Law doesn’t give a fixed number. Instead, it offers guidelines. Here’s what to keep in mind:
- No magic number: There’s no single definition of “reasonable,” but the law does provide some specifics.
- Multiple attempts for the same defect: If you’ve taken your car in for four or more attempts to fix the same problem within two years of buying it, that often qualifies as “reasonable.”
Vehicle out of service
It’s not just about the number of repair attempts. The amount of time your car spends in the shop also matters.
- Cumulative downtime: If your vehicle is out of service for repairs for a total of 30 days or more within the warranty period or within the first year you own it, that can trigger Lemon Law protection.
The 30 days don’t have to be consecutive. They can be spread out over multiple visits. To calculate downtime, include every day your car is at the repair shop.
Importance of documentation
If you think you might have a lemon, documentation is key. Keep careful records of everything:
- Dates of repair attempts
- Descriptions of the problem
- Copies of work orders
- Notes on every conversation you have with the dealer and manufacturer
- Mileage records
Keep every email, letter, and document related to your car’s problems. These records are crucial for asserting your rights under the Lemon Law.
Navigating the lemon law process: Steps to take and key considerations
If you think you’ve bought a lemon, here’s what to do next.
Initial reporting and repair attempts
Report the defect to the manufacturer or authorized dealer as soon as you find it. Make the report within the warranty period or within one year of the delivery date — whichever comes first. Always get written confirmation that you reported the problem and that you brought the vehicle in for repairs.
The “last chance letter”
Before you start a lawsuit, you must send the manufacturer a certified “last chance letter.” In the letter, describe the defect and the repair attempts, and demand a refund or replacement vehicle. After they receive the letter, the manufacturer has five business days to try one last repair.
Seeking legal counsel
It’s a good idea to talk with an attorney experienced in Michigan lemon law to fully understand your rights and options. An experienced attorney can guide you through the legal process, which can be complex. Having an attorney on your side can make it more likely you’ll get a good outcome.
Manufacturer’s arbitration
Manufacturers sometimes offer arbitration to resolve lemon law disputes. Before you agree to participate in arbitration, make sure you understand the process and your rights.
Remember that arbitration decisions aren’t always binding on the consumer. If you’re not happy with the arbitration outcome, you may be able to take further legal action.
Remedies available under Michigan Lemon Law: Refund or replacement
If your vehicle qualifies as a “lemon” under Michigan law, you may be entitled to either a refund of your money or a replacement vehicle.
Refund options
If you choose a refund, the manufacturer has to give you back the original purchase price, including sales tax, license, registration fees, and any options or modifications that were either installed by the manufacturer or installed at their request. The manufacturer is allowed to deduct a “reasonable allowance for use,” which is based on how many miles you drove the car before you first reported the defect.
Replacement vehicle
If the manufacturer offers to replace your lemon, the replacement vehicle must be “comparable” to the original. That means it has to be the same make and model, with similar features.
Keep in mind that if the manufacturer offers to replace your vehicle, you don’t have to accept that offer. You can demand a refund instead.
Lemon Law and Vehicle Accidents: A Critical Connection
It’s easy to think about lemon laws applying only to minor annoyances, like a radio that doesn’t work or a window that sticks. But defective vehicles can cause serious accidents. Imagine a brake failure or a steering malfunction leading to a collision. These aren’t just inconveniences; they’re life-threatening scenarios.
That’s where product liability comes in. Under Michigan Compiled Laws Section 600.2946a, manufacturers can be held responsible for damages caused by their defective products, including vehicles. If a defect leads to an accident, the victims may be able to seek compensation for their injuries and other damages through a product liability claim.
Michigan’s no-fault insurance system adds another layer of complexity. While no-fault insurance covers your own medical expenses and lost wages regardless of who caused the accident, it doesn’t prevent you from pursuing a product liability claim against the manufacturer if a defect contributed to the crash. It’s important to understand how these two systems interact if you’ve been injured in an accident involving a potentially defective vehicle.
Conclusion
Michigan’s Lemon Law protects consumers who purchase or lease new vehicles that turn out to be lemons. To be eligible, the vehicle must have a defect that substantially impairs its use or value, and the manufacturer must have been given a reasonable number of attempts to repair it. If the manufacturer can’t fix the problem, you may be entitled to a refund or a replacement vehicle.
To protect your rights, inspect any new vehicle carefully before buying or leasing it. Keep detailed records of all repairs and communications with the manufacturer. If you experience a problem, report it to the manufacturer promptly.
Navigating the Lemon Law process can be complex. An experienced Lemon Law attorney can help you understand your rights, gather evidence, and negotiate with the manufacturer. Don’t hesitate to seek legal assistance if you believe your vehicle is a lemon.
Lemon Laws like Michigan’s are essential for ensuring fair treatment for consumers and holding manufacturers accountable for the quality of their products. They provide a powerful tool for consumers to fight back against defective vehicles and seek justice.