So, you bought a new car, and it’s a lemon. What now? Luckily, most states have “lemon laws” to protect consumers from defective vehicles. These laws make sure manufacturers honor their warranties and provide remedies when a vehicle has significant defects that can’t be fixed after a reasonable number of attempts.
This article will walk you through the ins and outs of the state of Michigan lemon law. We’ll cover what kinds of vehicles are protected (passenger vehicles, SUVs, pickup trucks, and vans are all included) and the general steps to take if you think you have a lemon on your hands.
What is the Michigan Lemon Law?
The Michigan Lemon Law is designed to protect people who buy or lease a new car, truck, SUV, or van that has significant defects. (The law can also apply to used vehicles that are still under the original manufacturer’s warranty.)
If your vehicle has a defect that’s covered under the manufacturer’s express warranty, the manufacturer is required to repair it. If they can’t fix it after a reasonable number of tries, you may be entitled to a replacement vehicle or a refund of the purchase price.
Key terms and definitions
- Defect: A defect is a problem or condition that significantly reduces the vehicle’s use, value, or safety.
- Reasonable number of repair attempts: Usually, that means the dealer has tried to fix the same defect at least four times. It can also mean the vehicle has been out of service for a total of 30 days or more.
- Manufacturer’s express warranty: This is the written warranty the manufacturer provides, which guarantees the vehicle is free from defects in materials or workmanship.
Vehicle Eligibility and Coverage
Not every vehicle qualifies for protection under Michigan’s Lemon Law. Here’s a breakdown of the types of vehicles that are typically covered.
Types of Vehicles Covered
The Michigan Lemon Law is designed to help owners of privately owned passenger vehicles, including cars, pickup trucks, vans, and SUVs. To be eligible, the vehicle must have been either purchased or leased in Michigan or by someone who lives in the state.
Motorcycles, motorhomes, and other non-passenger vehicles are not covered by Michigan’s Lemon Law.
New vs. Used Vehicles
The Michigan Lemon Law generally covers new vehicles that have defects that occur while the vehicle is still covered by the manufacturer’s express warranty.
Used vehicles are only covered by the Michigan Lemon Law if the original manufacturer’s warranty is still in effect when the vehicle is purchased. However, used vehicles may be protected by the federal Magnuson-Moss Warranty Act.
Vehicle Usage
Michigan’s Lemon Law is intended to protect consumers who buy or lease vehicles for personal, family, or household use, but it doesn’t generally cover vehicles purchased for resale or lease.
Is your car a lemon? Understanding repair attempts and timeframes
It can be hard to know whether your car qualifies as a lemon under Michigan law. Here are some guidelines to help you decide whether your vehicle meets the criteria.
Reasonable repair attempts
If your car hasn’t been fixed after a “reasonable” number of attempts, it may be considered a lemon. Typically, that means four or more repair attempts for the same defect within the first two years after the first repair attempt.
It can also mean that the vehicle has been out of service for repairs for a total of 30 days or more during the warranty period or within the first year you owned it.
The final repair attempt
Before you can sue the manufacturer, you have to give them one last shot at fixing the problem. That means sending a written notice, often called a “last chance letter,” that details the defect and what you’ve already done to try to fix it.
Once they get the letter, the manufacturer has five business days to make the repairs.
Important timeframes
To take action under the Michigan Lemon Law, you have to report the defect to the manufacturer or an authorized dealer within the warranty period or within one year of the date you first received the car, whichever comes first.
It’s important to keep detailed records of all repair orders, correspondence, and mileage because you’ll need them to make your case.
Consumer rights and remedies
When a vehicle has a defect that can’t be repaired after a reasonable number of attempts, the Michigan Lemon Law spells out the remedies available to consumers.
Available remedies
If the manufacturer can’t fix the problem, you’re entitled to either a replacement vehicle or a refund of the purchase price. The choice of remedy is usually yours.
Refund calculation
If you choose a refund, it will include the full purchase price, including options and modifications that were made by or for the manufacturer. The refund also covers incidental expenses like sales tax, registration fees, and towing.
However, the manufacturer is allowed to deduct a “reasonable allowance for use” to account for the time you were able to use the vehicle before the defect was discovered.
Replacement vehicle
If you choose a replacement vehicle, it must be “comparable” to the one you purchased. The manufacturer is also responsible for transferring the warranty to the new vehicle and covering any associated costs.
Dispute Resolution and Legal Action
So, you think you’ve got a lemon, huh? Before you can take legal action under the Michigan Lemon Law, you’ll probably have to jump through a hoop called “manufacturer’s arbitration.”
Manufacturer’s Arbitration
If the manufacturer has an arbitration program, you’ll likely be required to participate in it. The program has to meet certain federal requirements to be considered legit.
Here’s the good news: The arbitration decision isn’t binding. If you don’t like the outcome, you can still sue.
Legal Action and Attorney Fees
If arbitration doesn’t work out or isn’t required, you can file a lawsuit against the manufacturer to enforce your rights under the Lemon Law.
Even better news: If you win in court, the manufacturer may have to pay your attorney fees and court costs. Nice, right?
Just so you know, any contract clauses that try to get you to waive your Lemon Law rights are generally considered invalid and won’t hold up in court.
Alternative Dispute Resolution
Beyond arbitration and lawsuits, you can explore other ways to resolve the dispute, like mediation or the Better Business Bureau (BBB) Auto Line program.
The BBB Auto Line is an informal program that’s helped a lot of people settle warranty disputes. It’s worth checking out.
To Conclude
The Michigan Lemon Law is a powerful tool for protecting consumers from defective vehicles. It creates a structure for resolving disputes between consumers and manufacturers and makes sure manufacturers stand behind their warranties.
To protect your rights under the Lemon Law, it’s important to report any problems with your new vehicle promptly. Keep detailed records of every repair attempt and conversation with the dealership. And if the problems persist, be sure to send a final repair attempt letter via certified mail.
Navigating the Lemon Law can be complex, so don’t hesitate to seek legal assistance. Consulting with an attorney who specializes in Lemon Law cases can significantly improve your chances of a successful outcome. Many attorneys offer free consultations, so you can learn about your options without any upfront cost.
Ultimately, understanding your rights as a vehicle buyer or lessee in Michigan is crucial. By being informed and proactive, you can ensure that you’re protected against the financial burden and inconvenience of a lemon.