What Is a Lemon? Understanding Defective Vehicles

You’ve been dreaming about that brand-new car for months—the new car smell, the shiny new upgrades, and of course, finally getting rid of your old vehicle. But shortly after driving off the lot, things start to go wrong. Strange noises, recurring issues, and before you know it, you’re spending more time at the repair shop than on the road. 

If this experience sounds familiar, you may be the not-so-lucky owner of a lemon—a vehicle with defects that impair its safety, use, or value. Although manufacturers have made significant efforts over the years to make cars more reliable, no car is entirely problem-free. Knowing your rights and options is important if you ever find yourself with a lemon. 

In this article, learn more about:

1. What qualifies a vehicle as a lemon 
2. How programs like BBB AUTO LINE can help
3. The steps to take if you need to file a lemon law claim 

What is a lemon vehicle? 

A “lemon” refers to a newly purchased vehicle that has significant, unfixable defects or problems that impair its: 

• Safety - Issues that pose a safety risk are automatic lemon qualifiers. This includes problems with critical components like brakes, steering, engine cooling, electrical systems, or safety restraints and airbags. 
• Use - If the defect prevents you from using or driving the vehicle as intended and expected, it meets the criteria for a lemon. Repeated breakdowns, transmission issues, or electrical faults that render the car inoperable apply. 
• Value - Some defects don’t necessarily impact safety or drivability but can significantly reduce the vehicle’s worth or trade-in value. Excessive paint defects, persistent body leaks, and substandard workmanship fall into this category.

To be considered a lemon, these issues must be covered under the manufacturer’s original warranty and unable to be repaired after a reasonable number of attempts as defined by your state’s lemon law. 

Common signs you may have a lemon include: 

• The “check engine” light remains on constantly 
• Recurring problems with the brakes, transmission, engine, electronics/accessories
• Issues beginning shortly after purchase
• Problems that are never fully diagnosed or repaired after multiple trips to the dealer
• Days or weeks of cumulative downtime due to repairs 

Know Your Consumer Rights 

Thankfully, you don’t just have to accept getting stuck with a defective vehicle. While ending up with a lemon feels like getting the short end of the stick, you do have options. Lemon laws exist at both the federal and state levels to protect consumers against lemons. 

The Magnuson-Moss Warranty Act is a federal law that governs consumer product warranties, including those for vehicles. It requires manufacturers to repair defects or non-conformities after a reasonable number of attempts during the warranty period. 

State lemon laws provide additional protections and establish criteria for what qualifies a car as a lemon based on: 

• The types of defects (safety, use, value) 
• The number of repair attempts by the manufacturer
• The length of time out of service for repairs

If your vehicle meets your state’s lemon thresholds during the warranty period, the manufacturer must provide a solution, typically either: 

• Repairing the defect once and for all 
• Replacing the vehicle with a comparable new one
• Refunding the vehicle’s purchase price

In some states, you can even collect additional compensation like rental care expenses, attorney fees, or a percentage of the repair costs you incurred. 

There are some common lemon law provisions regardless of the state you live in. 

• Time/Mileage Limits - Many lemon laws only apply to defects that crop up within 12-24 months of delivery or 12,000-24,000 miles on the odometer.
• Reasonable Repair Attempts - What constitutes a “reasonable” number of repair visits can vary, but 3-4 attempts is typical for a single defect. Fewer attempts may qualify for serious safety issues.
• Days Out of Service - If your car has spent 20-40+ cumulative days in the shop for any defect repairs, that often meets the lemon threshold.
• Refund and Replacement Terms - With a repurchase, expect to receive a refund of the full purchase price and potentially other fees/costs. Replacements must be a new, identical, or comparable vehicle.
• Notice Requirements - You may need to provide written notice and a final repair attempt opportunity to the manufacturer before pursuing lemon law remedies. 

Remember: Keep detailed records of all repairs, days out of service, notices sent to the manufacturer, and communications with the dealer. This documentation can be very helpful if you need to file a lemon law claim or dispute resolution. 

Resolving Warranty Disputes Without the Hassle 

Dealing with vehicle warranty disputes can quickly become a headache. That’s where BBB AUTO LINE comes in with a fair, fast, and free way to resolve your issues without the need for litigation. 

As one of the largest and longest-running dispute resolution programs in the country, BBB AUTO LINE’s mission is to facilitate open communication between consumers and automakers. 

Here’s how the process works: 

1. Visit the BBB AUTO LINE website to understand your options and submit your complaint online. You can also open your claim with a Dispute Resolution Specialist by calling 1-800-955-5100. 
2. A BBB AUTO LINE Dispute Resolution Specialist will contact you to discuss your case and guide you through the resolution process, if eligible.
3. The Specialist acts as a neutral third party, working to open lines of communication between you and the manufacturer.
4. If a resolution cannot be reached through mediation, BBB AUTO LINE offers a no-cost arbitration option to settle the dispute fairly.

For more about how BBB AUTO LINE works and answers to frequently asked questions, visit bbbautoline.org.