Texas Lemon Law for New Cars vs. Used Cars Explained

Lemon Laws exist to protect consumers who purchase or lease defective vehicles, ensuring that manufacturers are obligated to repair, replace, or refund cars with significant issues affecting their use, value, or safety.

These laws vary by state, so it’s important to understand your specific rights.

In Texas, the Lemon Law offers strong protections for car buyers, but there are important differences in how these laws apply to new versus used vehicles.

For new cars, the law provides extensive coverage, but when it comes to used cars, the rules are more nuanced.

Understanding these distinctions can help you better navigate the process and secure the right solution if you end up with a lemon.

We’ll explore the key differences between the protections for new and used cars in Texas, so you know what steps to take to best protect your investment.

Overview of Texas Lemon Law

The Texas Lemon Law is a consumer protection statute that provides remedies for buyers of vehicles with recurring defects that compromise quality and performance.

Its main objective is to prevent consumers from being burdened with defective vehicles, commonly referred to as “lemons,” by requiring manufacturers to repair, replace, or refund the faulty vehicle.

The Texas Department of Motor Vehicles (TxDMV) enforces the Lemon Law, which is outlined in the Texas Occupations Code, Chapter 2301, Subchapter M.

The Motor Vehicle Division (MVD) within the TxDMV manages complaints and conducts hearings to determine whether a vehicle qualifies as a lemon under the law.

To be eligible for relief under the Texas Lemon Law, the vehicle must meet the following criteria:

• Vehicle: The law primarily applies to vehicles, including cars, trucks, motorcycles, off-road vehicles, and recreational vehicles that have as their primary purpose the transport of persons or property.
• Consumers Covered: A person who purchases or leases a vehicle at retail from a Texas dealer.
• Warranty Coverage: The defect must fall under the manufacturer’s warranty.
• Substantial Defect: The problem must significantly affect the vehicle’s use, value, or safety.
• Repair Attempts: The manufacturer must have made a reasonable number of repair attempts. This generally means:
  • Four or more attempts to fix the same issue without success.
  • Two or more attempts to repair a serious safety defect.
  • The vehicle has been out of service for 30 days or more due to repairs.

Texas Lemon Law for New Cars

The Texas Lemon Law establishes a presumption that a vehicle is a lemon if the following takes place:

• Time and Mileage:
  • The same nonconformity continues to exist after being presented for warranty repairs by an authorized manufacturer dealership four or more times. Two of the repair attempts must be made within 12 months or 12,000 miles, whichever occurs first and the other two repair attempts must take place within the following 12 months or 12,000 miles following the date of the second repair attempt.
  • The same nonconformity creates a serious safety hazard and continues to exist after being presented for warranty repairs by an authorized manufacturer dealership two or more times. One repair attempt must be made within 12 months or 12,000 miles, whichever occurs first and the following repair attempt must take place within the following 12 months or 12,000 miles following the date of the first repair attempt.

• Days Out of Service: If the vehicle has been out of service for 30 days or more within 24 months or 24,000 miles, whichever occurs first due to repairs (these days do not need to be consecutive), it may be considered a lemon.

• Number of Repair Attempts: The manufacturer must have made a reasonable number of attempts to repair the defect, typically meaning:
  • Four or more attempts to fix the same issue without success.
  • Two or more attempts to repair a serious safety defect.

The Texas Lemon Law covers significant defects that impair the vehicle’s use, value, or safety. These defects must be covered by the manufacturer’s warranty and cannot be due to consumer abuse, neglect, or unauthorized modifications.

If the manufacturer is unable to repair the defect after a reasonable number of attempts, they are required to offer one of the following remedies:

• Replacement: The manufacturer may provide a replacement vehicle of comparable value if the vehicle is deemed a lemon.
• Repurchase: The manufacturer may repurchase the defective vehicle, offering a refund of the purchase price minus a reasonable allowance for the vehicle’s use, commonly referred to as a “lemon law buyback.”
• Repair Reimbursement: In some cases, consumers may be eligible for reimbursement of repair costs incurred while attempting to resolve the defect.

Understanding these protections can help ensure that consumers receive the appropriate remedy for their defective vehicle under the Texas Lemon Law.

Texas Lemon Law for Used Cars

The Texas Lemon Law primarily applies to new vehicles, which means its protections for used cars are limited.

However, there are specific conditions under which a used car might still be covered. Remaining manufacturer’s warranty if a used car is still under the original manufacturer’s warranty, it may be eligible for Lemon Law protections. The defect must be reported and addressed within the warranty period.

In some cases, the rights under the Lemon Law can be transferred to a subsequent owner if the vehicle was originally purchased with a warranty that is still in effect.

This means that if the previous owner had Lemon Law rights, they might transfer to you as the new owner.

Many used cars come with their own warranties, either from the dealer or a third party. These warranties can provide some level of protection against defects and issues that arise after purchase.

The Texas Deceptive Trade Practices Act (DTPA) offers protection against fraudulent or deceptive practices by sellers.

If a seller misrepresents the condition of a used car or fails to disclose known defects, you may have legal recourse under the DTPA.

The Magnuson-Moss Warranty Act is a federal law that governs warranties on consumer products, including used cars.

It requires that warranties be clearly stated and provide remedies for consumers if warranty terms are not met.

This act can offer additional protection for used car buyers, especially in cases where the vehicle is still under warranty.

Key Differences: New Cars vs. Used Cars

The Texas Lemon Law provides different levels of protection depending on whether the vehicle is new or used.

For new cars, the law applies if a defect is reported within the first 24 months or 24,000 miles, whichever comes first, and the vehicle must still be covered by the manufacturer’s warranty.

In contrast, used cars have more limited eligibility. Coverage generally depends on whether the vehicle is still under the original manufacturer’s warranty or if Lemon Law rights were transferred from the previous owner.

When it comes to the burden of proof, the requirements differ between new and used cars. For new vehicles, the consumer must prove that the defect significantly impairs the car’s use, value, or safety, and that a reasonable number of attempts to repair the issue have been made. For used cars, demonstrating eligibility can be more difficult.

Buyers must typically prove that the defect existed during the original warranty period or that the seller engaged in deceptive practices, which can add complexity to the claim.

The available remedies also vary between new and used vehicles. New car buyers under the Texas Lemon Law may seek a range of remedies, including vehicle replacement, repurchase, or repair reimbursement.

For used cars, remedies are usually more limited and might include warranty repairs, legal protections under the Deceptive Trade Practices Act, or recourse through federal warranty laws like the Magnuson-Moss Warranty Act.

Timeframes for taking action under the Texas Lemon Law differ as well. For new cars, consumers must act within the vehicle’s warranty period, which is 24 months or 24,000 miles, to qualify for Lemon Law protections.

For used cars, the timeframe depends on the remaining duration of the original manufacturer’s warranty, or the terms of any additional warranties offered at the time of sale.

Additionally, claims under the Deceptive Trade Practices Act must be filed within a specific period after the buyer becomes aware of the issue.

Steps to Take if You Suspect You Have a Lemon

1. Protection Levels

The Texas Lemon Law offers varying levels of protection based on whether the vehicle is new or used. For new cars, the law applies if a defect is reported within the first 24 months or 24,000 miles, whichever comes first.

The vehicle must also be covered by the manufacturer’s warranty during this period. In contrast, used cars have more restricted eligibility, with coverage generally depending on whether the vehicle is still under the original manufacturer’s warranty or if Lemon Law rights have been transferred from the previous owner.

2. Burden of Proof

The burden of proof requirements differ significantly between new and used cars. For new vehicles, the consumer must demonstrate that the defect substantially impairs the vehicle’s use, value, or safety, and that a reasonable number of attempts were made to repair the issue.

For used cars, proving eligibility can be more challenging. Buyers must typically show that the defect was present and covered under the original warranty or that the seller engaged in deceptive practices- which can complicate the claim.

3. Available Remedies

Remedies under the Texas Lemon Law vary for new and used cars. New car buyers may seek a variety of remedies, including vehicle replacement, repurchase (commonly known as a “lemon law buyback”), or repair reimbursement.

For used cars, available remedies are typically more limited and may include warranty repairs, protections under the Texas Deceptive Trade Practices Act, or federal warranty laws like the Magnuson-Moss Warranty Act.

4. Timeframes for Action

The timeframe for taking action also differs between new and used cars. For new cars, consumers must act within the warranty period of 24 months or 24,000 miles to be eligible for Lemon Law protections.

For used cars, the timeframe depends on the remaining period of the original manufacturer’s warranty or the terms of any additional warranties provided at the time of sale.

Additionally, claims under the Deceptive Trade Practices Act must be filed within a specific period after the defect is discovered.

Common Misconceptions about Texas Lemon Law

1. All Car Problems Are Covered

A common misunderstanding is that the Texas Lemon Law covers every type of car issue. In reality, the law only addresses substantial defects—problems that impair a vehicle’s use, value, or safety.

Minor issues or those caused by abuse, neglect, or unauthorized modifications are not included under Lemon Law protections.

2. Lemon Law Only Applies to Cars

Another misconception is that the Texas Lemon Law applies exclusively to cars. In fact, it covers a range of vehicles, including trucks, motorcycles, and motor homes.

However, it does not extend to boats, farm equipment, or vehicles with a gross vehicle weight rating (GVWR) exceeding 18,000 pounds.

3. Used Cars Have the Same Protections as New Cars

Many believe used cars receive the same protections as new cars under the Texas Lemon Law. While there are some protections for used vehicles, they are much more limited.

The Lemon Law primarily covers new cars, and used cars are protected only if they remain under the original manufacturer’s warranty or if Lemon Law rights have been transferred from the previous owner.

Additionally, buyers of used vehicles may have alternative protections through laws like the Deceptive Trade Practices Act or the Magnuson-Moss Warranty Act.

Tips for Protecting Yourself

Before Purchasing a New or Used Vehicle

Take time to investigate the make and model of the vehicle you’re considering. Check for common problems and read reviews from other owners to identify any recurring issues.

For used cars, obtain a vehicle history report to uncover details about past accidents, repairs, and the ownership timeline.

Inspect the Vehicle

Have a trusted mechanic inspect the car before purchasing to identify any hidden or potential issues that could affect its performance.

Review what the manufacturer’s warranty covers and its duration. For used vehicles, check if any warranty is still active or if the dealer provides an additional warranty.

Keep All Documentation

Save purchase documents, warranty information, and any communications with the dealer or manufacturer. These records will be invaluable if issues arise.

Carefully observe how the vehicle performs during the first few months. Take note of any unusual behavior or issues.

Follow the manufacturer’s recommended maintenance schedule to ensure the vehicle stays in good condition and to maintain warranty coverage.

When Problems Arise

Keep detailed records of all problems, including dates, symptoms, and repair attempts. Save all repair orders and receipts to provide evidence if needed.

Report any issues to the dealer or manufacturer immediately. Always follow up in writing and retain copies of all correspondence.

Familiarize yourself with the Texas Lemon Law and other consumer protection laws. If the problem persists, consider filing a complaint with the Texas Department of Motor Vehicles (TxDMV) or seek legal advice.

Take Action Against the Auto Manufacturer

If the manufacturer fails to resolve the issue, explore arbitration or legal action to pursue a remedy and protect your investment.

Consulting a Lemon Law attorney can provide invaluable insight into your situation.  A legal expert in lemon law can help you understand consumer protection laws and determine if your vehicle qualifies as a lemon.

An experienced Lemon Law attorney can manage all interactions on your behalf, ensuring that your rights are upheld, and the legal process is followed correctly.

Many Lemon Law attorneys operate on a contingency fee basis, meaning you won’t incur upfront legal fees.

If your case is successful, the manufacturer is typically responsible for covering your attorney’s fees, allowing you to pursue justice without financial risk.

Recent Changes and Updates to Texas Lemon Law

Recent updates to the Texas Lemon Law have been introduced to enhance consumer protection for those dealing with defective vehicles.

The filing period for a Lemon Law complaint remains unchanged, with consumers required to file within six months following the earlier of (1) the expiration of the express warranty term, or (2) 24 months or 24,000 miles following the date of the vehicle’s original delivery to a consumer.  

The law also retains its definition of a “reasonable number of attempts” to fix a defect. For non-safety defects, a vehicle must undergo four repair attempts, while serious safety hazards require only two repair attempts, both within the first 24 months or 24,000 miles.

Additionally, if a comparable loaner vehicle is provided while the vehicle is being repaired, the days that the loaner is used are not counted toward the 30-day repair period.

This ensures that consumers do not lose valuable time in the repair process due to waiting for their vehicle to be fixed.

Used vehicles are also covered under the Texas Lemon Law, provided they are still under the original manufacturer’s warranty.

These updates offer clearer guidelines and stronger protection for consumers who face ongoing issues with their vehicles.

Connect with an Attorney

If you’re struggling with a defective vehicle in Texas, it’s time to take action. The Lemon Law Experts are here to assist you in obtaining the compensation you rightfully deserve.

Our experienced team is well-versed in Lemon Law matters and is committed to guiding you through every phase of the process.

Why should you choose us? We have a strong history of successfully handling Lemon Law cases, ensuring that you achieve the best possible results.

We recognize the challenges and frustrations that come with owning a lemon and offer customized solutions tailored to your specific situation.

Best of all, you won’t incur any costs unless we win your case, making it a risk-free choice for you.

Don’t wait any longer! Get in touch with the Lemon Law Experts today for a complimentary consultation.

Allow us to help you transform your lemon into something positive! Call us at 877.921.3941 or complete a consultation form on our website to begin.