What Is the Indiana Lemon Law? Everything Consumers Need to Know

When you purchase a new vehicle, you expect it to perform as promised. If your vehicle develops a serious defect that cannot be repaired despite multiple attempts, Indiana's Motor Vehicle Protection Act—commonly known as the Indiana Lemon Law—may provide important protections.

The law helps ensure consumers are not left with a vehicle that repeatedly fails to meet reasonable expectations for safety, reliability, and performance.
 

What Vehicles Are Covered?

Indiana's Lemon Law generally applies to:
  • New passenger vehicles
  • New pickup trucks
  • New SUVs
  • New vans
  • Certain leased vehicles

The vehicle must be purchased, leased, or registered in Indiana and covered by the manufacturer's original warranty.

The law generally does not apply to:
  • Motorcycles
  • Motor homes
  • Certain commercial vehicles
 

What Qualifies as a Lemon?

A vehicle may qualify if it has a defect that:
  • Is covered under the manufacturer's warranty
  • Substantially impairs the vehicle's use, value, or safety
  • Cannot be repaired after a reasonable number of attempts

Examples include:
  • Transmission failures
  • Engine defects
  • Electrical system malfunctions
  • Brake or steering problems
  • Persistent drivability issues
 

Repair Attempt Requirements

Indiana generally considers a reasonable number of attempts to have occurred when:
  • The manufacturer has made four or more attempts to repair the same defect without success, or
  • The vehicle has been out of service for at least 30 cumulative business days because of warranty repairs

The defect must generally arise within the first 18 months after delivery or before the vehicle reaches 18,000 miles, whichever occurs first.
 

Manufacturer Responsibilities

If the vehicle qualifies, the manufacturer may be required to:
  • Replace the vehicle with a comparable model, or
  • Repurchase the vehicle

A refund may include:
  • Purchase price
  • Sales tax
  • Registration fees
  • Finance charges
  • Other applicable costs

Manufacturers may deduct a reasonable allowance for use.
 

Why Repair Records Matter

Consumers should keep:
  • Repair orders
  • Service records
  • Warranty information
  • Communications with the manufacturer
  • Documentation of time out of service

These records can play a critical role in proving eligibility under the law.
 

How BBB AUTO LINE Can Help

If you believe your vehicle may qualify under the Lemon Law, BBB AUTO LINE offers a no-cost, independent dispute resolution program that can help you avoid the hassle of going to court. 

We can help you: 
  • File a claim against the manufacturer 
  • Resolve eligible complaints efficiently through mediation and arbitration

Connect with a knowledgeable Dispute Resolution Specialist who will explain the process, answer questions, help determine whether a claim may be eligible, and guide consumers through each step.
 

Need Assistance? 

BBB AUTO LINE may be able to help. If your manufacturer participates in the program, you can file a claim today.  

Start a BBB AUTO LINE claim at bbbprograms.org/complaints

Or call 1-800-955-5100