Is My Leased Vehicle Covered Under Lemon Laws?
Juan Herrera, Vice President, Dispute Resolution Programs, BBB National Programs
Leasing a new car often feels like a safe, flexible option—especially if you want the latest features without the long-term commitment. But what happens when that leased vehicle starts showing serious problems? Can a leased car qualify under your state’s lemon law protections? The answer is: yes—in many cases.
At BBB AUTO LINE, we help consumers navigate vehicle defects that are covered under a manufacturer’s warranty in a variety of vehicle types. Here's what you need to know about how lemon laws apply to leased vehicles, and what steps to take if your leased car has a recurring defect.
The federal lemon law, The Magnuson-Moss Warranty Act ("Mag-Moss"), applies to all products (not just vehicles) that come with a written warranty. It says that if a manufacturer can’t fix a defective product after a reasonable number of attempts, they must offer a replacement or a refund.
In addition, each state has its own lemon law, and the details vary. State lemon laws are often stronger and more tailored to cars than the federal lemon law. If you’re having car issues, you should usually start by checking your state’s lemon law and then see how the federal law might also help if your case doesn’t fit exactly into the state rules.
Unlike traditional legal channels, our process is faster and more affordable than the courtroom. Our process is free to consumers of eligible manufacturers, involves no legal fees, and is designed to resolve most claims within just 40 days---that means no prolonged litigation, a clear path toward resolution with your vehicle’s manufacturer and less stress.
Start your claim with BBB AUTO LINE.
BBB AUTO LINE is here to help you drive forward—with peace of mind.
Leasing a new car often feels like a safe, flexible option—especially if you want the latest features without the long-term commitment. But what happens when that leased vehicle starts showing serious problems? Can a leased car qualify under your state’s lemon law protections? The answer is: yes—in many cases.
At BBB AUTO LINE, we help consumers navigate vehicle defects that are covered under a manufacturer’s warranty in a variety of vehicle types. Here's what you need to know about how lemon laws apply to leased vehicles, and what steps to take if your leased car has a recurring defect.
What Is a Lemon Law?
If you've bought or leased a vehicle that just won’t stop having problems, you may be protected by what's commonly known as “lemon laws.” These laws help ensure you’re not stuck with a defective car—often called a “lemon.”The federal lemon law, The Magnuson-Moss Warranty Act ("Mag-Moss"), applies to all products (not just vehicles) that come with a written warranty. It says that if a manufacturer can’t fix a defective product after a reasonable number of attempts, they must offer a replacement or a refund.
In addition, each state has its own lemon law, and the details vary. State lemon laws are often stronger and more tailored to cars than the federal lemon law. If you’re having car issues, you should usually start by checking your state’s lemon law and then see how the federal law might also help if your case doesn’t fit exactly into the state rules.
Are Leased Cars Covered by Lemon Laws?
In most states, yes—lemon laws cover leased vehicles, provided that:- The lease is for personal, family, or household use.
- The car is new or still within the state-defined coverage period.
- The vehicle has a serious defect that affects its safety, use, or value.
- The manufacturer has been given multiple attempts to fix the issue, or the car has been out of service for a certain number of days.
- However, lemon law coverage for leased vehicles can vary by state. That’s why it’s important to review your state’s specific lemon law provisions.
Examples of Leased Vehicle Defects That May Qualify
If you're leasing a car and facing recurring problems, you might qualify for lemon law protection if the issue:- Poses a safety risk, like brake or airbag failure.
- Prevents reliable operation, like stalling or transmission issues.
- Affects the value, such as persistent electrical or infotainment failures.
- Can’t be fixed after multiple repair attempts, or keeps your car in the shop for an extended period.
What to Do If Your Leased Car Has a Defect
Here are the steps you should take if you suspect your leased vehicle might be a lemon:- Document everything: Keep records of all repairs, service visits, and communications with the dealership or manufacturer.
- Review your lease and warranty: Understand what's covered, and how long your warranty lasts.
- Check your state’s lemon law: Make sure your situation meets your state’s requirements for a lemon law case.
- Contact BBB AUTO LINE: Our free dispute resolution program, for consumers of participating manufacturers, can help you resolve your dispute fairly and efficiently—without going to court.
Why Choose BBB AUTO LINE?
BBB AUTO LINE is one of the most experienced and trusted lemon law dispute resolution programs in the country. We’ve helped more than two million consumers resolve their cases with manufacturers, including those involving leased vehicles.Unlike traditional legal channels, our process is faster and more affordable than the courtroom. Our process is free to consumers of eligible manufacturers, involves no legal fees, and is designed to resolve most claims within just 40 days---that means no prolonged litigation, a clear path toward resolution with your vehicle’s manufacturer and less stress.
Leased or Owned—You Have Rights
Just because you’re leasing a vehicle doesn’t mean you have to accept constant defects. If you’re dealing with a car that won’t stay fixed, don’t wait—find out if you qualify for lemon law protection.Start your claim with BBB AUTO LINE.
BBB AUTO LINE is here to help you drive forward—with peace of mind.