Texas Lemon Law

Texas Lemon Laws and the federal Lemon Law (the Magnuson-Moss Warranty Act) provide for compensation to Texas consumers of defective automobiles and trucks  and other vehicles and products including motorcycles, RV's, boats, computers and other consumer appliances and products. To qualify under the Texas Lemon Law or the federal Lemon Law, you must generally have a product that suffered multiple repair attempts under the manufacturer's factory warranty. Lemon Law compensation can include a refund, replacement or cash compensation. The following comments briefly explain the Texas Lemon Law and how it applies to you.

This message is not a substitute for contacting a lawyer who can best advise you of your rights. If you think you qualify for a Lemon Law, Get Rid Of Your Lemon submission form, or call us toll-free at 1-877-LEMON-ATTY (1-877-536-6628). An experienced Lemon Law attorney will personally review your inquiry and records and quickly contact you for a free consultation.

Introduction

The Texas Lemon Law is a state law that helps consumers who buy or lease new motor vehicles and have repeated problems getting their vehicles properly repaired. The Lemon Law can help a consumer get the vehicle repurchased, replaced or repaired. It can be less complicated and less expensive than going to court.

The law was enacted by the Texas Legislature in 1983. A court challenge stalled enforcement of the law, but in 1985, a federal appeals court upheld its validity. In Texas, the Lemon Law is administered by the Texas Department of Transportation's Motor Vehicle Division and its Motor Vehicle Board.

Through mediation and formal hearings allowed under the law, the Motor Vehicle Division has helped resolve many complaints. From 1988 to 1997, the division processed 12,282 complaints. In 1997, the division received 1,291 written complaints and held 182 hearings on complaints that were not resolved informally. In about half the cases heard in 1997, consumers received either replacement, repurchase or repair of their vehicles, or some other appropriate relief.

In 1991, the Legislature changed the Lemon Law to benefit more consumers. The time period for filing a complaint and the definition of a "lemon" were expanded, and consumers may now be reimbursed for certain incidental expenses. Now, a disclosure notice accompanying any vehicle repurchased or replaced under the Lemon Law is also required.

In 1997, the Legislature added towable recreational vehicles (TRVs) to the Lemon Law. Besides being made primarily for temporary human habitation, TRVs must

1. be titled and registered in Texas;
2. be built on a single chassis;
3. contain one or more life support systems, and
4. be towable by another motor vehicle.

The relief available to used motor vehicle buyers is limited to repairs only, if the vehicle is still under the original factory warranty.

What does it cover?

The Lemon Law applies to new vehicles, including cars, trucks, vans, motorcycles, all-terrain vehicles motor homes and towable recreational vehicles (TRVs) that develop problems covered by a written factory warranty. Demonstrator vehicles are also considered new vehicles.

The law does not cover used motor vehicles (including program vehicles), repossessed vehicles, non-travel trailers, boats or farm equipment. Neither does it cover vehicles with:

• problems caused by the owner's abuse, neglect or unauthorized changes to the vehicle,
• parts or components not authorized or installed by the manufacturer, or
• problems that do not substantially affect the use or market value of the vehicle. Minor rattles or stereo problems are usually not considered serious under the Lemon Law.

When the term "manufacturer" is used, it should be understood to include distributor and converter, as well.

How do I know if my vehicle is a lemon?

A motor vehicle may be declared a lemon if it meets all of the following conditions:

1. The vehicle has a serious defect or abnormal condition.
2. The defect or condition is covered by a manufacturer's written warranty.
3. The owner reports the defect or condition to the dealer or manufacturer within the warranty term.
4. The owner gives the dealer or manufacturer a reasonable number of attempts to repair the defect or condition.
5. The owner gives the manufacturer (preferably by certified mail) written notice of the defect and at least one opportunity for repair.
6. The defect or condition persists and substantially impairs the vehicle's use or market value, or creates a serious safety hazard.
7. The owner files a timely Lemon Law complaint and pays the filing fee.

How many chances does the dealer get to fix the vehicle?

Determining how many chances a dealer has to fix a defect is easy. Simply see if you pass either the four-times test, the serious-safety-hazard test or the 30-days test.

The law presumes you have given the manufacturer or authorized dealer a reasonable number of attempts to fix the defect if you pass one of these tests. The mileage requirements generally do not apply to TRVs.

Four-times test

If you have taken the vehicle to a dealership for repairs:

• two times for the same problem or defect within the first 12 months or 12,000 miles, whichever comes first, and
• twice more during the 12 months or 12,000 miles after the second repair attempt, and
• the problem is still not repaired

Then you pass the four-times test.

Serious-safety-hazard test

If you have taken the vehicle for repair of a serious safety hazard:

• once during the first 12 months or 12,000 miles, whichever comes first, and
• once more during the 12 months or 12,000 miles following the first repair attempt, and
• the problem is still not repaired

Then you pass the serious-safety-hazard test.

30-days test

If your vehicle has been out of service for repair because of problems covered by the warranty:

• for a total of 30 days or more, not necessarily all at one time, during the first 24 months or 24,000 miles, and
• there were two repair attempts during the first 12 months or 12,000 miles immediately after delivery, and
• a substantial problem still exists

Then you pass the 30-days test.

If a comparable loaner vehicle was provided while the vehicle was being repaired, that time does not count toward the 30 days.

How long do I have to file a complaint?

A Lemon Law complaint must be filed within six months following the earlier of:

1. expiration of the express warranty term;
2. 24 months; or
3. 24,000 miles following the date of delivery of the vehicle (except TRVs)

In other words, the filing period is determined by which of the above events comes first. To be safe, file your complaint as soon as you realize the dealer is having problems repairing the vehicle.

Even if you have gone past the time limit allowed for a repurchase, the Motor Vehicle Board may still be able to help you get repairs under your vehicle warranty.