Written By: Jessica Anvar Stotz
Legally Reviewed By: Jessica Anvar Stotz
Like every other state, Texas has enacted its own set of lemon laws to help Texas consumers of defective vehicles seek recourse against the manufacturer that produced them.
The lemon law in Texas begins the same way it does in other states, with the consumer identifying a defect in their warrantied vehicle and taking that defect to an authorized manufacturer dealership for repairs.
Once the defect has failed to be repaired after a reasonable number of times, the vehicle is likely to be considered a lemon under the Texas lemon law.
If the vehicle is a lemon, the consumer may receive a refund or cash compensation. Continue reading to learn more about the Texas lemon law!
Legal Definition of a “Lemon” in Texas
For a vehicle to be considered a lemon under Texas lemon law, it must meet a set of conditions. These include:
- The vehicle has a substantial manufacturing defect;
- The defect is covered by a manufacturer’s written warranty;
- The owner reports the defect to the dealer or manufacturer within the warranty period;
- The owner gives the dealer a reasonable number of attempts to repair the defect;
- The owner gives the manufacturer written notice (preferably by certified mail) of the defect and at least one opportunity to cure the defect; and
- The defect persists and substantially impairs the vehicle’s use or market value or creates a serious safety hazard.
The Texas Lemon Law has established a presumption that a reasonable number of repair attempts have been undertaken. The presumption applies if the number of repairs take place within a given time period.
Under the Texas lemon law presumption, a vehicle is presumably a lemon if one of the following fact patterns takes place:
- Four repair attempts for the same or similar issue, with two of them taking place within the first 12 months or 12,000 miles (whichever occurs first) from the date of original delivery to a consumer and the subsequent two repair attempts taking place within 12 months or 12,000 miles (whichever occurs first) immediately following the date of the second repair attempt; or
- The same or similar issue creates a serious safety hazard and has been presented for repairs two or more times. Here, at least one repair attempts must take place within 12 months or 12,000 miles (whichever occurs first) after the original delivery date to a consumer and at least one more repeat repair attempt taking place within 12 months or 12,000 miles (whichever occurs first) after the first repair attempt; or
- An issue is present that substantially impairs the vehicle’s use or market value persists and the vehicle is out of service for 30 or more days as a result within the first 24 months or 24,000 miles (whichever occurs first) following the original delivery date to a consumer. Here, at least two repair attempts must be made within 12 months or 12,000 miles following the original delivery date to a consumer.
If your vehicle meets all the above conditions and you have taken the steps described above, your vehicle might be considered a lemon under Texas law, and you may be entitled to compensation from the manufacturer.
Please note that satisfying the Texas lemon law presumption is not a requirement for bringing a lemon law claim. If the presumption criteria are not met, a consumer may still have a lemon vehicle and may be entitled to compensation.
Each case is different and specific to its unique facts. Speaking with a Texas lemon law attorney is recommended.
What Are My Rights if I Purchase or Lease a Lemon?
Consumers who purchase or lease a lemon vehicle are entitled to receive either a refund, replacement or cash compensation for the defective vehicle.
In the case of a refund, the manufacturer will repurchase the lemon vehicle for money equal to the purchase price (with taxes, title, and license fee), minus a fee called the usage fee for when the vehicle was driven issue-free.
In the case of a replacement, the manufacturer will replace the defective vehicle with a functional one of similar make and model.
This is commonly a current-year model car but will not always be one. A usage fee is taken in replacement situations as well.
The Texas lemon law includes fee shifting provisions that will likely cover a consumer’s attorney’s fees if the consumer prevails with the lemon law claim.
This means that in most situations, the lemon law claim comes at no personal expense to the consumer bringing it if they are successful in asserting the claim.
What Types of Vehicles Are Covered by the Texas Lemon Law?
The Texas lemon law covers vehicles, including cars, trucks, vans, motorcycles, all-terrain vehicles, motor homes, towable recreational vehicles (TRVs), and neighborhood electric vehicles that develop a defect(s) covered by a manufacturer’s written warranty. (Texas DMV).
What Types of Vehicles Are Not Covered by the Texas Lemon Law?
Vehicles with defects that do not substantially impair the use or market value of the vehicle are not covered by the Texas lemon law.
Things like simple rattling noises or radio static are considered minor defects and usually do not count.
How to Move Forward with a Lemon Law Claim in Texas
Filing a claim under the Texas lemon law is a straightforward process for consumers. The first step is to gather certain documentation in support of the claim such as the purchase contract or lease agreement, repair orders, and current registration. Picture and videos of the issues experienced with the vehicle should be gathered as well.
Contacting a Texas lemon law attorney is recommended who can assist the consumer with navigating the legal process.
Criteria That Must Be Met for Your Vehicle to Be Considered a Lemon
As mentioned, for a vehicle to be considered a lemon under Texas lemon law, it must meet a number of criteria.
Specifically, the vehicle must undergo a reasonable number of repair attempts with an authorized manufacturer dealer and the repairs must be performed under the warranty.
The first vital factor, the reasonable number of repairs, can be satisfied in three different ways. The first is called the “four-times test” under Texas law.
Under this test, a vehicle which undergoes four warranty repairs for the same or similar defect may be considered a lemon.
The first two repairs of the four must take place within 12 months or 12,000 miles of the vehicle being delivered to the consumer and the last two must take place within 12 months or 12,000 miles of the second repair attempt.
The second test is called the “serious safety-hazard test” and requires only two repeat warranty repairs if the defect is a serious safety hazard. Like the previous test, the first of these two repairs must take place within 12 months of 12,000 miles of delivery.
This is defined as a “life-threatening malfunction that substantially impedes your ability to control or operate the vehicle normally or that creates a substantial risk of fire/explosion.” (Texas DMV). At least one other repair attempt must be made within 12 months or 12,000 miles after the first repair attempt.
The last method is called the “30-day test”, which requires that the vehicle was out of use for 30 days due to warranty repairs.
These 30 days do not need to be consecutive, meaning that two 15-day periods, four separate weeks plus a few extra days, or three 10-day periods would all satisfy this test.
This period must also take place within the first 24 months or 24,000 miles, and at least two repair attempts must have taken place within the first 12 months or 12,000 miles of delivery.
Manufacturer Obligations in Texas
In Texas, manufacturers have an obligation to pay for repair costs while the vehicle is under warranty, to replace the vehicle if it is found to be a lemon, or to provide a refund for the vehicle if it is found to be defective.
Manufacturers get to choose which remedy they provide to the consumer, but the consumer can reject replacement vehicles if they do not satisfy them.
Before the vehicle is determined to be a lemon, the manufacturer must reimburse the consumer for repairs made while the vehicle is still under warranty, if any.
Legal Actions You Can Take
Consumers have two routes they can take regarding their lemon law claim. The first and often more effective route is to seek legal counsel with an experienced lemon law attorney.
These attorneys can help you organize your documentation and advise you on the best steps to take. The other option is to file the claim yourself. This process can be overwhelming for the average consumer, as navigating any legal situation can be.
If you are seeking out more information about the Texas lemon law process or are otherwise unsure of how to proceed, your best choice is likely to contact a skilled lemon law attorney. They have handled lemon law claims before and can advise you on which steps to take.
Frequently Asked Questions
What 3 options does the Texas Lemon law allow for with a vehicle?
The Texas lemon law provides three options under which a vehicle can be considered a lemon. These three options have already been discussed and include the four times test, the serious safety-hazard test, and the 30-day test.
Each of these tests allow a vehicle to be considered a lemon if they satisfy the requisite conditions.
Does Texas Lemon Law apply to used cars with extended warranty?
No, under the Texas lemon law, extended warranties do not satisfy the warranty condition for vehicles to be considered lemons.
How long do you have to return a lemon car in Texas?
A lemon law claim in Texas must be filed within six months following the earlier of (1) expiration of the express warranty term, or (2) within two years after purchase, or 24,000 miles after the date of original delivery to a consumer, whichever is the earliest.
Generally, to be safe, consumers should pursue a claim as soon as they suspect it might be a lemon.
Can I sue a dealership for selling me a lemon in Texas?
Consumers in Texas can initiate a claim against a car dealership for selling a lemon, but that claim is likely more fruitful if directed at the manufacturer since dealers are effectively middlemen in the exchange of a vehicle between a consumer and manufacturer.
A car dealer who knowingly sells a consumer a defective vehicle could be sued for that practice, but that would escape the realm of lemon law and enter other related legal fields.
Contact an Attorney
Understanding the lemon law in Texas can be complicated, but the good news is that excellent legal teams like the Lemon Law Experts are here to assist you in understanding your rights and options as a consumer.
We have been helping consumers receive compensation for their defective vehicles since 2009 and have extensive experience in navigating both simple and complex lemon law claims.
If you are suffering from owning a defective vehicle, don’t hesitate to contact us today for a free case evaluation. Do so today by calling (877) 885-5366 or by filling out our simple online form!
