When does the law regarding lemon law apply?

Most state lemon laws apply when:You bought or leased a new vehicle. A handful of states (California, Connecticut, Massachusetts, Minnesota, New Jersey, New York, Rhode Island) also have a separate used-car lemon law.The vehicle has a substantial defect — covered by the warranty and impairing use, value, or safety. Cosmetic squeaks don't count; brakes that fail or a transmission that won't shift do.The defect appeared inside the state's window — typically 1–2 years or 12,000–24,000 miles, whichever comes first.The dealer or manufacturer has had a reasonable number of repair attempts and still hasn't fixed it.What "reasonable number" actually means:Most states: 3–4 repair attempts for the same problem, or 30+ cumulative days out of service.Safety defects — brakes, steering, airbags — often qualify after just 1–2 attempts.You have to give the manufacturer the chance to fix it. One bad service visit and a demand for a refund will get you laughed out of arbitration.A few myths:"Lemon laws only cover cars." Most states cover all motor vehicles. Some include motorcycles, RVs, and boats. A few have broader consumer-product lemon laws."My used car is covered." Usually no. Federal law (Magnuson-Moss) might still help if there was a written warranty, but state lemon-law refund machinery typically doesn't reach used vehicles outside those seven states."I just don't like it." Buyer's remorse isn't a defect. The problem has to be real, substantial, and not caused by you.

Indiana Lemon Law (2026) - 18-Month Window, 4-Repair Rule

Q: What should I do if my new car keeps breaking down and the dealer can't fix it?

Step 1: Document every visit. Repair orders, receipts, written complaints, and email threads. Date, mileage, what you reported, what they did, what they didn't. The case turns on the paper trail.Step 2: Send written notice. A formal demand letter to the manufacturer (not just the dealer) by certified mail, return receipt. Most states require this before you can file. The letter triggers a final repair opportunity, usually 10–30 days.Step 3: Check whether arbitration is required. Many manufacturers — and some state laws — make you go through a manufacturer-sponsored arbitration program (BBB Auto Line is the biggest) before suing. It's usually free and resolves in 40–60 days.Step 4: Sue if arbitration fails. Under both state lemon laws and the federal Magnuson-Moss Act, the manufacturer pays your attorney's fees if you win — which is why most lemon lawyers work on contingency. You bring zero money to the table.Step 5: Pick your remedy. Replacement vehicle of comparable value, or a full refund minus a reasonable usage allowance (typically calculated as miles driven before the first defect, divided by 120,000, times the purchase price).

Q: What are the common mistakes to avoid regarding lemon law?

Don't stop taking it in. You need a documented pattern. Skipping appointments out of frustration kills the case.Don't get warranty repairs done at an independent mechanic. Only authorized dealer or manufacturer service counts toward your lemon-law clock.Don't sign a quick settlement without checking the math. Manufacturers regularly offer 50–60% of what a court or arbitrator would award. Get the figure pressure-tested by a lemon-law attorney before you sign anything that includes a release.Don't trade in or sell the car before filing. Once you no longer own it, your lemon-law rights generally die with the title transfer. File first, then dispose.

Researched by Ahmed R. J. Alsaedi, Founder & Head Researcher

Primary sources cited; not legal advice.

Source: Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301–2312 (federal warranty law). Each state has its own lemon law statute. Examples: Cal. Civ. Code § 1793.2 (Song-Beverly Consumer Warranty Act), N.Y. Gen. Bus. Law Art. 11-A, Tex. Occ. Code § 2301.601 et seq. Enforced by the FTC (federal) and state attorneys general (state).

About this article

Sourced from primary statutes (U.S. Code, CFR, state compiled statutes) and official government agency guidance. Written in plain language for general understanding — this is educational content, not legal advice. Our editorial standards

Indiana Lemon Law Eligibility Checker

Estimate only. This is a screening tool for Indiana's Motor Vehicle Protection Act (IC 24-5-13). It does not cover Magnuson-Moss federal claims, dealer-fraud, or used-car warranties. Verify against the Indiana Code and consider consulting a lawyer before sending notice.

1. Did you purchase the vehicle new (not used)?YesNo

2. Did the defect first appear within 18 months OR 18,000 miles of delivery?YesNo

3. Has the manufacturer or dealer attempted to repair the same defect 4 or more times without success?YesNo

4. Has the vehicle been out of service for 30 or more cumulative business days for warranty repairs?YesNo

My new car keeps breaking down in Indiana?See the focused guide →

Indiana Law

How Indiana differs from federal law

Indiana's Motor Vehicle Protection Act (IC § 24-5-13) requires automakers to refund or replace a new vehicle with a qualifying defect. Because Indiana counts business days (not calendar days) for the 30-day out-of-service threshold, weekends and holidays do not count toward the total. You must complete a mandatory pre-suit written notice before filing a claim.

Coverage: ONLY new motor vehicles bought or leased in Indiana for personal use. Over 10,000 lb GVWR, RVs (except chassis), and motorcycles are EXCLUDED. IC § 24-5-13-5.
Eligibility window: The first 18 months or 18,000 miles. The defect must first appear during this period.
Qualifying thresholds (IC § 24-5-13-15): (a) 4 failed repair attempts for the same defect; or (b) the vehicle is out of service for a cumulative 30+ business days during the window.
Pre-suit written notice (IC § 24-5-13-17): Send a demand by certified mail to the manufacturer's address in your manual. The manufacturer has 14 days to make a final repair.
State arbitration (IC § 24-5-13-18): The AG's Consumer Protection Division operates a Lemon LawState laws that let you return a defective new vehicle (or get it replaced/refunded) if the manufacturer can't fix a substantial problem after a reasonable number of attempts. All 50 states have one, but what counts as a 'lemon' varies. arbitration programme. If you reject the outcome, you may pursue the matter in court.
Remedies (IC § 24-5-13-16): A full refund of the purchase price, taxes, registration, and finance charges (minus a reasonable use allowance), or a comparable replacement vehicle.
Limitation period (IC § 24-5-13-23(a)): You have 2 years from your first report of the defect to file suit.
Attorney fees (IC § 24-5-13-21): If you prevail, the automaker is required to pay your attorney fees and costs.
Used vehicles: The Lemon LawState laws that let you return a defective new vehicle (or get it replaced/refunded) if the manufacturer can't fix a substantial problem after a reasonable number of attempts. All 50 states have one, but what counts as a 'lemon' varies. does not apply. Options include the UCC implied warranty (IC § 26-1-2-314), the Magnuson-Moss Warranty Act, or the Deceptive Consumer Sales Act (IC § 24-5-0.5) for fraudulent misrepresentation claims.

Use the Indiana Lemon Checker below — answer four questions to assess your eligibility.

Additional Steps in Indiana

Step 1 — Preserve all records: repair orders, dated correspondence, tow receipts, and rental bills. Step 2 — Once you reach 4 failed attempts or 30 business days out of service within the 18-month or 18,000-mile window, send the written notice by certified mail under IC § 24-5-13-17. Step 3 — File an AG arbitration complaint if the manufacturer does not respond satisfactorily. Step 4 — If arbitration does not resolve the matter, you may file in Indiana Circuit or Superior Court within 2 years of your first report. Contact the Indiana AG Consumer Protection Division at (317) 232-6330 or the Indiana State Bar Lawyer Referral at (317) 639-5465.

Generate a formal legal letter to support your rights using our Legal Letter Generator.

Relevant Law: Indiana Motor Vehicle Protection Act, IC § 24-5-13-1 et seq.

Federal baseline: Lemon Law nationwide

What is this right?

Lemon laws exist because, before the late 1970s, buying a new car with a defect that nobody could fix meant you were just stuck with it. California passed the first modern lemon lawState laws that let you return a defective new vehicle (or get it replaced/refunded) if the manufacturer can't fix a substantial problem after a reasonable number of attempts. All 50 states have one, but what counts as a 'lemon' varies. — the Song-Beverly Consumer Warranty Act — in 1970 and tightened it with the Tanner Consumer Protection Act in 1982. Every other state followed by the early 1990s. The basic deal: if a new vehicle has a substantial defect that the manufacturer can't fix after a reasonable number of attempts, they have to replace it or refund you.

Every state has its own version, with different cutoffs for what qualifies, how many repair attempts you need, and which vehicles are covered. The federal Magnuson-Moss Warranty Act (1975) sits behind all of them as a backup — if a manufacturer doesn't honor a written warranty, you can sue under federal law and recover attorney's fees if you win, which is why most lemon-law lawyers will take your case on contingency.

When does it apply?

Most state lemon laws apply when:

You bought or leased a new vehicle. A handful of states (California, Connecticut, Massachusetts, Minnesota, New Jersey, New York, Rhode Island) also have a separate used-car lemon lawState laws that let you return a defective new vehicle (or get it replaced/refunded) if the manufacturer can't fix a substantial problem after a reasonable number of attempts. All 50 states have one, but what counts as a 'lemon' varies..
The vehicle has a substantial defect — covered by the warranty and impairing use, value, or safety. Cosmetic squeaks don't count; brakes that fail or a transmission that won't shift do.
The defect appeared inside the state's window — typically 1–2 years or 12,000–24,000 miles, whichever comes first.
The dealer or manufacturer has had a reasonable number of repair attempts and still hasn't fixed it.

What "reasonable number" actually means:

Most states: 3–4 repair attempts for the same problem, or 30+ cumulative days out of service.
Safety defects — brakes, steering, airbags — often qualify after just 1–2 attempts.
You have to give the manufacturer the chance to fix it. One bad service visit and a demand for a refund will get you laughed out of arbitration.

A few myths:

"Lemon laws only cover cars." Most states cover all motor vehicles. Some include motorcycles, RVs, and boats. A few have broader consumer-product lemon laws.
"My used car is covered." Usually no. Federal law (Magnuson-Moss) might still help if there was a written warranty, but state lemon-law refund machinery typically doesn't reach used vehicles outside those seven states.
"I just don't like it." Buyer's remorse isn't a defect. The problem has to be real, substantial, and not caused by you.

What to Do If You Bought a Lemon

Step 1: Document every visit. Repair orders, receipts, written complaints, and email threads. Date, mileage, what you reported, what they did, what they didn't. The case turns on the paper trail.

Step 2: Send written notice. A formal demand letterA written request that someone do something — pay a debt, stop a behavior, return property — before you file a lawsuit. Many courts and statutes effectively require one as a first step, and sending one often resolves the dispute without litigation. to the manufacturer (not just the dealer) by certified mail, return receipt. Most states require this before you can file. The letter triggers a final repair opportunity, usually 10–30 days.

Step 3: Check whether arbitration is required. Many manufacturers — and some state laws — make you go through a manufacturer-sponsored arbitration program (BBB Auto Line is the biggest) before suing. It's usually free and resolves in 40–60 days.

Step 4: Sue if arbitration fails. Under both state lemon laws and the federal Magnuson-Moss Act, the manufacturer pays your attorney's fees if you win — which is why most lemon lawyers work on contingency. You bring zero money to the table.

Step 5: Pick your remedy. Replacement vehicle of comparable value, or a full refund minus a reasonable usage allowance (typically calculated as miles driven before the first defect, divided by 120,000, times the purchase price).

What should you NOT do?

Don't stop taking it in. You need a documented pattern. Skipping appointments out of frustration kills the case.

Don't get warranty repairs done at an independent mechanic. Only authorized dealer or manufacturer service counts toward your lemon-law clock.

Don't sign a quick settlementA written agreement that ends a legal dispute before (or sometimes during) trial, usually in exchange for money or a specific action. Roughly 95% of US civil cases end in settlement rather than a verdict. without checking the math. Manufacturers regularly offer 50–60% of what a court or arbitrator would award. Get the figure pressure-tested by a lemon-law attorney before you sign anything that includes a release.

Don't trade in or sell the car before filing. Once you no longer own it, your lemon-law rights generally die with the title transfer. File first, then dispose.

You shouldn't have to hire a lawyer to assert your rights.

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Common Questions

What qualifies as a 'lemon'?

Generally a new vehicle with a substantial defect, covered by the warranty, that the manufacturer or dealer can't fix after a reasonable number of attempts. Minor issues usually don't count — the defect must significantly impair the vehicle's use, value, or safety. Definitions vary by state.

How many repair attempts before my car is a lemon?

It varies by state, but many set the bar at around three to four attempts to fix the same defect, or roughly 30 cumulative days out of service. Some use a lower count for serious safety defects. Check your state's section above for its exact threshold.

What do I get if my car is a lemon?

Most state lemon laws entitle you to either a refund (often the purchase price minus a usage offset) or a comparable replacement vehicle, and you usually choose. The manufacturer, not the dealer, is typically responsible. Your state's section above lists the remedy.

Are used cars covered by lemon laws?

Often less so — many state lemon laws focus on new vehicles, though some cover certified used or leased vehicles, and used-car sales may have separate protections. The federal Magnuson-Moss Warranty Act can still apply to written warranties. See your state's section above.

Do I need a lawyer for a lemon-law claim?

Not always, but it helps. A key advantage: the federal Magnuson-Moss Warranty Act and many state lemon laws let a winning consumer recover attorney's fees from the manufacturer, so many lemon-law attorneys take cases at little upfront cost.

Lemon Law in other states

Same topic, different jurisdiction. Pick the one that applies to you.

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Every reference below links to its primary source — the statute book, regulator, or court — and carries a verification date. See our citation methodology for how this works.

Indiana

Federal

StatuteMagnuson-Moss Warranty Act, 15 U.S.C. §§ 2301-2312
Federal warranty act granting attorney-fee recovery on prevailing breach-of-warranty claims; backstop for every state lemon law.
StatuteSong-Beverly Consumer Warranty Act, Cal. Civ. Code § 1793.2
California's foundational lemon law — 18-month / 18,000-mile presumption and buyback remedy.
StatuteNew York New Car Lemon Law, N.Y. Gen. Bus. Law § 198-a
NY's lemon-law statute with free state-run arbitration via the Attorney General.
StatuteTexas Lemon Law, Tex. Occ. Code §§ 2301.601-613
TX administered by TxDMV (not the courts) — 6-month filing deadline + SOAH hearing process.
Agency guidanceFTC — Magnuson-Moss Warranty Act Guidance
FTC's authoritative warranty-law summary, including written warranty distinctions and disclosure rules.