Dealing With a Lemon Vehicle in Michigan
My new car keeps breaking down — here's what Michigan law says and what to do next.
Statute: Mich. Comp. Laws §§ 257.1401-257.1410 (Michigan New Motor Vehicle Warranty Act), § 257.1403 (manufacturer duty to repair; § 257.1403(5)(a) written-notice-by-return-receipt requirement), § 257.1403(1) (4 repair attempts or 30 days out of service within first year / warranty period) and § 257.1401(h) (presumption conditions), § 257.1405 (mandatory exhaustion of BBB/manufacturer informal dispute settlement that complies with 16 C.F.R. Part 703), § 257.1407 (attorney fees and court costs awardable to prevailing consumer); two-year limitation running from the first repair attempt is standard for lemon-law claims under the Act
Deadline: 30 days
Penalty: Under Mich. Comp. Laws § 257.1407, a prevailing consumer is entitled to reasonable attorney fees and court costs in addition to the refund or replacement. Michigan does not authorize enhanced or punitive damages under its lemon law — fee-shifting rests at § 257.1407, not § 257.1405. The statutory limitation is two (2) years from the date of the first repair attempt; claims that straddle this cutoff should also be pleaded under Magnuson-Moss (15 U.S.C. § 2310(d)) and the Michigan Consumer Protection Act (Mich. Comp. Laws § 445.911) for longer UCC-based windows
What is dealing with a lemon vehicle?
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 law — 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.
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 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).
How Michigan differs from federal law
Michigan has a strong Lemon Law covering new vehicles with a relatively long coverage period:
- The Michigan Lemon Law (MCL § 257.1401-1410) covers new motor vehicles that develop substantial defects
- A vehicle qualifies as a lemon if the manufacturer or dealer has made 4 or more repair attempts for the same defect, or the vehicle has been out of service for 30 or more business days
- Coverage applies during the first 48 months from the date of original delivery — longer than most states
- You must provide written notice to the manufacturer before pursuing a claim
- Remedies include a replacement vehicle or full refund, minus a reasonable use allowance
- Michigan does not have a state-run lemon law arbitration program — disputes are resolved through manufacturer programs or the courts
Additional steps in Michigan
Send written notice to the manufacturer by certified mail describing the defect and repair history. File complaints with the Michigan Attorney General at (877) 765-8388 or the Michigan Secretary of State. Keep all repair orders, receipts, and correspondence. Consult a Michigan lemon law attorney — many work on contingency.
What you should 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 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.
You shouldn't have to hire a lawyer to assert your rights.
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Generate your lemon law →This page is general legal information for Michigan, not legal advice for your specific situation. Laws change, and how a statute applies depends on facts we don't know. For advice on your matter, consult a licensed attorney in Michigan.