How to Handle a Lemon Law Claim for a Vehicle Purchased Out of State

Purchasing an out-of-state car is not as complicated as many people think. There are so many resources that facilitate the process where you don’t have to meet the dealer from the seller’s state. But, they don’t tell you what steps to take if it happens to be a lemon car with an unrepairable defect. You are not only left to solve a warranty dispute but also caught up in a jurisdictional nightmare that leads to the untimely death of your case.

Where the Car Was Purchased Matters More Than Where You Live

Many people tend to think that if their lemon followed them home, so did their lemon law protection. Unfortunately, that’s not true. The vast majority of state statutes require that a vehicle first be purchased or leased within that state’s borders in order to qualify for protection under their lemon laws. It doesn’t matter where the owner resides or where the car is registered. If you bought your vehicle in one state and drove it back to another, your home state’s lemon law may not cover you at all.

The first issue you must determine is where the contract of sale was entered into and where the vehicle was physically delivered pursuant to that contract. These are the two critical factors in deciding which state’s statute will govern your case. If you signed the paperwork at an out-of-state dealership and then had the lemon driven back to your home, it is highly likely that the out-of-state laws of the dealership apply. If the dealership had the car hauled by a flatbed to your home, the analysis gets a little more complicated. However, without an attorney’s help, this ambiguity rarely resolves itself in the buyer’s favor.

State-Specific Laws and Why Florida is a Common Example

Some states are very clear about what they intend with their lemon laws. Take Florida for example, the Florida Lemon Law only applies to vehicles that were purchased or leased in Florida. Bought your car in Florida but you actually live in Oregon? You’re covered by Florida’s statute, so you better follow Florida’s rules regarding repair attempts, written notification to the manufacturer, and arbitration.

Those are the rules your claim will be judged by. Unfortunately, the Florida arbitration process can be challenging to go through from out-of-state since the manufacturers tend to be better prepared and have better representation. If you’re in this situation, you’re better off working directly with a lemon law attorney in Florida who knows how the process works and can represent you.

What Qualifies as a Faulty Vehicle Under the Law

Before considering a legal claim, you need to establish that the defect is substantial and that you’ve given the manufacturer or its representative enough opportunities to make the repair. “Substantial” isn’t precisely defined, but in general, you must show that the defect significantly impairs the vehicle’s use, value, or safety. A transmission that stops working qualifies. A rattle emanating from the passenger door probably doesn’t.

Most states mandate three or four unsuccessful repair attempts, or the vehicle is out of service for 15 to 30 days or more. When you bring your car in for a problem, you don’t pay for the mechanic’s time, and you don’t have to pay restocking fees when you return a faulty part, whereas manufacturers or their warranty service provider do. Your out-of-service days count whether the car was at a dealership in the purchase state or an authorized facility near your home.

When Your Home State Won’t Cover You, Federal Law Might

If your local legislation doesn’t cover out-of-state acquisitions, it doesn’t mean you’ve hit a dead end. The Magnuson-Moss Warranty Act is a federal law that holds nation-wide authority, and it’s applicable to any consumer owning an express warranty over a defective product, which includes vehicles. Through Magnuson-Moss, in case the manufacturer hasn’t fixed a defect after a reasonable number of efforts, you can file a lawsuit in a federal court for damages, including notably attorney fees.

The downside is that the federal guidelines are somewhat vaguer than state laws. Repair attempts aren’t detailed in the text of the federal law the way they are in most state lemon laws. You’re making a warranty breach case, for which the paperwork you kept will be really important. The Uniform Commercial Code also offers some additional protection for buyers in a cross-state-line transaction, but its scope depends on state law and the kind of purchase.

Just to put an approximate number on what’s at stake since you might not live in a lemon law-protected state: According to the National Highway Traffic Safety Administration, nearly 1 percent of all new vehicles sold each year turn out to be lemons. That’s tens of thousands of out-of-luck consumers annually who need to know which path applies to them.

Start the Arbitration Process Early

Many manufacturers make you exhaust an informal dispute resolution or arbitration process before suing. These processes are state-specific, so the consumer rights from your purchase state come into play. They can have short deadlines and specific notice requirements. If you miss them, your underlying claim doesn’t matter. You won’t be able to get relief elsewhere because you failed to follow the rules where it mattered.

If you do prevail, the manufacturer must repurchase the vehicle and refund you the purchase price, taxes, and fees, less a credit for the mileage you were able to use the vehicle when it was working. The title is branded as a lemon buyback.

You want to know the last part, especially if you end up as the lemon used car buyer down the road. Don’t wait to get educated on the fourth or fifth repair before incorporating your jurisdiction into the mix. The lemon laws are sufficiently complex that the earlier you can isolate a state’s statutes for potential relief, the more likely you’ll be able to do so.