Lemon Laws in Texas

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).

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Written in plain language for general understanding. This is educational content, not legal advice. Content is researched from federal statutes, state codes, and official government sources. Each article is reviewed for accuracy before publication. Our editorial process

Federal Law

What is this right?

Lemon laws protect you when you buy a new vehicle that turns out to have a serious defect that cannot be fixed after a reasonable number of repair attempts. If the manufacturer cannot fix the problem, they must either replace the vehicle or give you a refund.

Every state has its own lemon law with different rules about what qualifies, how many repair attempts are required, and what vehicles are covered. At the federal level, the Magnuson-Moss Warranty Act provides a backup right to sue manufacturers who fail to honor written warranties — including vehicle warranties.

When does it apply?

This right generally applies when:

  • You purchased or leased a new vehicle (most state lemon laws cover new vehicles; some states also cover used vehicles)
  • The vehicle has a substantial defect covered by the manufacturer's warranty that impairs its use, value, or safety
  • The defect occurred within a specific time or mileage limit (typically 1-2 years or 12,000-24,000 miles, varies by state)
  • The manufacturer or dealer has had a reasonable number of repair attempts and failed to fix the problem

What counts as a "reasonable number" of repair attempts:

  • Most states: 3-4 repair attempts for the same defect, OR the vehicle has been out of service for 30+ cumulative days
  • Safety defects (brakes, steering, airbags): some states require only 1-2 repair attempts
  • You must give the manufacturer notice and opportunity to repair — you cannot simply demand a refund after one visit

Common misconceptions:

  • "Lemon laws only cover cars" — Most states cover all motor vehicles. Some states also cover motorcycles, RVs, and boats. A few states have broader consumer protection lemon laws covering other products.
  • "My used car is covered" — Most state lemon laws only cover new vehicles. However, some states (California, Connecticut, Massachusetts, Minnesota, New Jersey, New York, Rhode Island) have used car lemon laws.
  • "I can return a car just because I don't like it" — Lemon laws cover manufacturing defects, not buyer's remorse. The defect must be substantial and not caused by you.

What to Do If You Bought a Lemon

Step 1: Document every repair visit. Keep copies of all repair orders, receipts, and correspondence with the dealer. Note the dates, mileage, and a description of the problem each time.

Step 2: Give the manufacturer written notice that you believe the vehicle is a lemon. Many states require a formal written demand before you can file a claim. Send it by certified mail.

Step 3: Check whether your state requires manufacturer arbitration before you can sue. Many manufacturers (and some states) require you to go through an arbitration process first. This is typically free and faster than court.

Step 4: If arbitration fails or is not required, file a lemon law claim in court. Under most state lemon laws and the federal Magnuson-Moss Act, you can recover attorney's fees if you win — meaning many lemon law attorneys take cases on contingency.

Step 5: Choose your remedy: a replacement vehicle of comparable value or a full refund minus a reasonable allowance for your use of the vehicle (calculated by mileage).

What should you NOT do?

Don't stop taking the vehicle in for repairs. You need to establish a record of repair attempts. If you stop going to the dealer, you may not meet your state's threshold for a lemon law claim.

Don't go to an independent mechanic for warranty repairs. Repairs must be performed by an authorized dealer or the manufacturer to count toward your lemon law claim.

Don't accept a settlement without understanding your rights. Manufacturers sometimes offer lowball settlements. Know the full value of your claim — including incidental costs like towing, rental cars, and missed work.

Don't trade in the vehicle before filing your claim. Once you trade it in or sell it, you may lose your lemon law rights. File your claim while you still own the vehicle.

Texas Law
TX

How Texas differs from federal law

The Texas Lemon Law provides remedies for buyers of defective new vehicles:

  • Tex. Occ. Code § 2301.601 et seq. (Texas Lemon Law): Covers new motor vehicles (cars, trucks, vans, motorcycles) purchased or leased in Texas. The law is administered by the Texas Department of Motor Vehicles (TxDMV), not the courts.
  • Qualifying defects: A vehicle qualifies if it has a defect that substantially impairs its use, value, or safety, and the manufacturer or dealer has had 4 or more repair attempts for the same defect, or 2 or more attempts for a serious safety defect, or the vehicle has been out of service for 30 or more cumulative days.
  • Time/mileage limits: The defect must occur within the first 24 months or 24,000 miles of ownership, whichever comes first. You must report the defect to the manufacturer before the warranty expires.
  • SOAH hearing required: Lemon Law complaints are heard by the State Office of Administrative Hearings (SOAH). If the hearing officer finds the vehicle qualifies, the manufacturer must either replace the vehicle or refund the purchase price (minus a reasonable allowance for use).
  • No used car lemon law: Texas does not have a lemon law for used vehicles. Used car buyers rely on the Texas DTPA and "as-is" disclosure rules under Tex. Occ. Code § 2301.602.

Additional Steps in Texas

File a Lemon Law complaint with the Texas Department of Motor Vehicles (TxDMV) at txdmv.gov or call (888) 368-4689. You must file within 42 months of the vehicle's original delivery date. Keep all repair orders and documentation.

Relevant Law: Tex. Occ. Code § 2301.601-2301.613 (Texas Lemon Law), Tex. Occ. Code § 2301.204 (warranty obligations), 43 Tex. Admin. Code § 215 (Lemon Law rules)

Common Questions

When does lemon laws apply?

This right generally applies when:You purchased or leased a new vehicle (most state lemon laws cover new vehicles; some states also cover used vehicles)The vehicle has a substantial defect covered by the manufacturer's warranty that impairs its use, value, or safetyThe defect occurred within a specific time or mileage limit (typically 1-2 years or 12,000-24,000 miles, varies by state)The manufacturer or dealer has had a reasonable number of repair attempts and failed to fix the problemWhat counts as a "reasonable number" of repair attempts:Most states: 3-4 repair attempts for the same defect,...

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

Step 1: Document every repair visit. Keep copies of all repair orders, receipts, and correspondence with the dealer. Note the dates, mileage, and a description of the problem each time.Step 2: Give the manufacturer written notice that you believe the vehicle is a lemon. Many states require a formal written demand before you can file a claim. Send it by certified mail.Step 3: Check whether your state requires manufacturer arbitration before you can sue. Many manufacturers (and some states) require you to go through an arbitration process first. This is typically free and faster than court.Step...

What mistakes should I avoid with lemon laws?

Don't stop taking the vehicle in for repairs. You need to establish a record of repair attempts. If you stop going to the dealer, you may not meet your state's threshold for a lemon law claim.Don't go to an independent mechanic for warranty repairs. Repairs must be performed by an authorized dealer or the manufacturer to count toward your lemon law claim.Don't accept a settlement without understanding your rights. Manufacturers sometimes offer lowball settlements. Know the full value of your claim — including incidental costs like towing, rental cars, and missed work.Don't trade in the vehicle...

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