What is Texas Lemon Law For New and Used Cars?

Quick Points

• Texas Lemon Law protects buyers and lessees when a new vehicle has serious defects that won’t go away after multiple repair attempts.

• It’s handled by the Texas DMV and can lead to a repair, replacement, or refund if your car qualifies as a lemon.

• Coverage mainly applies to new vehicles with major issues affecting safety, use, or value within the first 24 months or 24,000 miles.

• If your car keeps having the same problem despite reasonable repair attempts, you can file a complaint and start the process.

When you buy or lease a new car, you have certain expectations, namely that it will function well and be generally problem-free. However, if your car has significant issues that haven’t been fixed after several attempts, you need to know about Texas Lemon Law. This law is meant to protect consumers and hold manufacturers accountable. 

What exactly is Lemon Law in Texas? Read on to find out all about it, including how it works, what it covers, and how to know if your car is a lemon. If you’re looking to buy a new or used car in Texas because yours is a lemon, we can help. We’re in Brownsville and we serve the entire state, including Weslaco, McAllen, Harlingen, Dallas, and Austin! 

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What Is Lemon Law in Texas?

To understand what Texas Lemon Law is, it’s important to understand what a lemon is. A lemon car is a vehicle with major manufacturing defects that affect both its drivability and even safety. 

The Texas Lemon Law is a consumer protection statute that helps Texans resolve issues with lemon cars–new vehicles with substantial, recurring defects. The law makes it easy to get the lemon repaired or replaced without taking the manufacturer to court. 

How Does It Work?

Texas Lemon Law is handled by the Texas Department of Motor Vehicles. When a consumer has a lemon, or vehicle that has a major defect, the TxDMV helps them work with the manufacturer or dealer to resolve the defect. Depending on the circumstance, the consumer may receive a refund, repair, or replacement vehicle. 

If you think you have a lemon, you can file a complaint with the TxDMV. Make sure you have all your documentation ready–you’ll need to prove that you’ve made several attempts to get the defect repaired. The process can take a while as the TxDMV will need to investigate, but it’s worth it to get your car working or replaced. 

What Does It Cover?

The Texas Lemon Law primarily covers new vehicles, purchased or leased, with substantial, recurring defects that impact their use, safety, or resale value. The types of vehicles covered include: 

• Passenger vehicles, such as cars, trucks, and SUVs
• Motorcycles and mopeds
• Motor homes, or RVs
• All-Terrain Vehicles, or ATVs
• Towable-Recreation Vehicles, or TRVs, such as trailers and fifth-wheels

In order to qualify, the vehicle must have a substantial, recurrent defect that has shown up within the first 24 months or 24,000 miles (whichever comes first). The defect must still exist after a “reasonable number” of repair attempts. 

Texas Lemon Law does not cover

• Used vehicles, except those that are still under the manufacturer’s original warranty
• Non-defect issues, like normal wear and tear or minor cosmetic issues
• Issues caused by misuse, neglect, or unauthorized repairs
• Commercial vehicles

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How to Know If Your Car Is a Lemon

Just because your vehicle has needed a lot of repairs doesn’t mean it’s a lemon. Under Texas Lemon Law, your vehicle may be considered a lemon if:

• It has major manufacturer defects that impair its use, safety, or resale value.
• The defect occurred within the first 24 months or 24,000 miles.
• You report the defect while it’s still under the manufacturer’s original warranty.
• The manufacturer has made a reasonable number of attempts to fix it. 
• You give the manufacturer written notice of the defect so they have a final chance to repair it. 
• The defect still persists. 

If all of that applies to your car, you likely have a lemon and should file a complaint through the TxDMV. 

How Many Chances Does the Dealer Get to Fix the Problem?

The Texas Lemon Law gives manufacturers a “reasonable number” of attempts to fix the problem. But what does this actually mean? There are three tests the TxDMV offers to determine whether or not the dealer has made a reasonable number of attempts: 

• 30-Day Test: This test looks at how many days your vehicle has been in the repair shop because of the defect. If your vehicle has been out of service for 30 days or more (not necessarily consecutively) during the first 24 months or 24,000 miles and still isn’t fixed, your car passes the 30-day Test. 
• Four-Times Test: This test looks at the number of attempts the dealer has made to fix your vehicle. If the dealer has made four attempts to fix the defect within the first 24 months or 24,000 miles and it still isn’t fixed, your car will pass the Four-Times Test. 
• Serious Safety Hazard Test: The final test is the Serious Safety Hazard Test. Your vehicle passes this test if the dealer has made two attempts to fix a defect that is a serious safety hazard that affects your ability to control the vehicle or may cause a fire/explosion and the defect still isn’t fixed. 

Texas Lemon Law for Used Cars

Texas Lemon Law mostly applies to new cars with manufacturer defects. In most cases, you won’t be able to file a lemon complaint on a used car. However, your used vehicle could be covered in certain circumstances. 

If your used vehicle is still under the manufacturer’s original warranty, or, if the defect occurred and was reported during the first 24 months/24,000 miles of use, you might still be able to get help repairing your car under the law. 

Texas Lemon Law for New Cars

Texas Lemon Law protects both buyers and leasers of new vehicles that have recurring, significant defects impacting their use, safety, or market value. If a new car has a defect covered under the manufacturer’s warranty and continues to have issues after a reasonable number of repair attempts, it may qualify as a lemon. The law allows the vehicle owner to file a claim with the TxDMV and, if successful, can lead to the car being refunded, replaced, or repaired. 

How to File a Lemon Law Complaint

Once you’ve determined that your car is a lemon, you’ll need to file a complaint with the TxDMV within six months of the following: 

• The original warranty term expiring
• 24 months after the car was purchased, or
• 24,000 miles of driving

To file a complaint, you’ll have to pay a $35 fee and notify the dealer in writing. The fastest way to do this is through the Motor Vehicle Dealer Online Complaint System. Once your complaint is filed, it will be reviewed. The DMV may try to resolve the complaint through mediation first. If that doesn’t work, the next step is a hearing where both you and the dealer can make your case. The hearing examiner will give their final decision within 60 days of the hearing.   

What Happens If You Win?

Every lemon law case is different, but in general, there are three possible outcomes if you win:

• Repair: The manufacturer may be ordered to repair the defect and cover all the costs. 
• Replace: The manufacturer may be ordered to offer a replacement vehicle that’s as close to the original as possible. Usually, it’s the same make, model, and year. 
• Refund: In some cases, the manufacturer may be ordered to buy back the vehicle, essentially offering a refund. 

How to Get a Refund

To get a refund for your lemon car, you’ll first have to go through the whole complaint process. If you win your case and the hearing examiner orders a refund, the manufacturer will buy back the vehicle. The refund usually includes the purchase price, taxes, and title and license fees, minus a certain amount charged for vehicle use. The TxDMV uses a specific formula that takes into account vehicle mileage and other factors to determine how much will be deducted for vehicle use. 

Your Next Car Is Waiting at Boggus Tipton Chrysler Dodge Jeep Ram

If you need a new car, Boggus Tipton Chrysler Dodge Jeep Ram is the Brownsville dealership you can trust. With our large inventory of new and used trucks, cars, and SUVs, you’re sure to find the right vehicle waiting for you here. 

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