Can I Sue a Car Dealership for Selling Me a Lemon?

Buying a car that constantly breaks down is frustrating and expensive. If you’re stuck with a vehicle that has persistent defects the dealer can’t fix, you may have purchased a “lemon.” State lemon laws and federal consumer protection laws give you options to get your money back, a replacement vehicle, or compensation for your losses.

This article is for informational purposes only and does not constitute legal advice. Laws vary significantly by state.

Quick Answer

You may be able to sue a car dealership for selling you a lemon if your vehicle has substantial defects that the dealer can’t fix after a reasonable number of repair attempts. All 50 states have lemon laws protecting new car buyers, and many states extend some protection to used cars. Remedies typically include a refund, replacement vehicle, or cash settlement.

What Makes a Car a “Lemon”?

A lemon is a vehicle with significant defects that affect its use, value, or safety, and that cannot be fixed after a reasonable number of repair attempts. The exact definition varies by state, but generally a vehicle qualifies if:

The Defect Is Substantial

The problem must significantly impair the vehicle’s:

  • Use – You can’t reliably drive it
  • Value – Its resale value is substantially reduced
  • Safety – It poses a danger to occupants or others

Minor issues like squeaky brakes or cosmetic defects typically don’t qualify.

The Defect Occurred Under Warranty

Most lemon laws apply only to problems that arise during the manufacturer’s warranty period or within a specified time/mileage after purchase.

The Dealer Had Reasonable Repair Attempts

You must give the dealer or manufacturer a reasonable opportunity to fix the problem. What’s “reasonable” varies by state but typically means:

  • 3-4 repair attempts for the same problem, OR
  • 1-2 attempts for serious safety defects, OR
  • The vehicle has been out of service for 30+ days for repairs

New Cars vs. Used Cars

New Car Lemon Laws

Every state has a lemon law covering new vehicles. These laws typically:

  • Apply to cars purchased or leased new
  • Cover defects appearing within the warranty period
  • Require the manufacturer to provide a refund or replacement
  • Allow recovery of attorney fees

Used Car Protections

Protection for used cars is more limited and varies significantly by state:

Protection Level States (Examples)
Strong used car lemon laws California, Connecticut, Massachusetts, Minnesota, New Jersey, New York
Implied warranty protections Most states (via UCC)
As-is sales allowed Many states permit dealers to sell used cars “as is”

Federal Protections

Magnuson-Moss Warranty Act

This federal law applies when a manufacturer or dealer provides a written warranty. It allows you to:

  • Sue for breach of warranty in federal court
  • Recover attorney fees if you win
  • Bring class actions for widespread defects

FTC Used Car Rule

Dealers must post a Buyers Guide on every used car, stating:

  • Whether the car is sold “as is” or with a warranty
  • What percentage of repair costs the dealer will pay under any warranty
  • Major problems that may occur with used cars

What You Can Recover

Refund (Buyback)

The manufacturer or dealer repurchases your vehicle. You typically receive:

  • Full purchase price (including taxes, fees, and financing costs)
  • Minus a “usage deduction” for miles you drove before the problems started

Replacement Vehicle

A new vehicle of comparable value.

Cash Settlement

A negotiated payment to compensate you for the vehicle’s diminished value and your troubles, while you keep the car.

Incidental Damages

Reimbursement for:

  • Rental car costs
  • Towing charges
  • Lost wages for time spent dealing with repairs
  • Other out-of-pocket expenses

Attorney Fees

Most state lemon laws require the manufacturer to pay your attorney fees if you prevail—making it affordable to hire a lawyer.

State-by-State Differences

Lemon laws vary significantly across states:

Factor Variation
Coverage period 12-24 months or 12,000-24,000 miles
Repair attempts required 2-4 attempts for same defect
Days out of service 20-30 days
Used car coverage None to comprehensive
Leased vehicles Covered in most but not all states
Arbitration required Some states require arbitration before suing

Steps to Take

1. Document Everything

Keep detailed records of every problem and repair:

  • Dates you noticed each issue
  • All repair orders and invoices
  • Written communications with the dealer
  • Days your car was in the shop

2. Get Repairs at Authorized Dealers

Have all repairs done at the manufacturer’s authorized dealerships. Repairs elsewhere may not count toward lemon law requirements.

3. Request Repair Orders

Always get a written repair order that documents the date, problem description, and what the dealer did.

4. Keep the Car

Don’t trade in, sell, or junk the vehicle until your claim is resolved. You may need it for inspection.

5. Send Written Notice

Many states require you to notify the manufacturer in writing before filing suit. Send a letter via certified mail describing the vehicle, defects, and your repair history.

6. Consult a Lemon Law Attorney

Lemon law cases can be complex. Most lemon law attorneys work on contingency, with fees paid by the manufacturer if you win.

Dealer Fraud and Misrepresentation

Beyond lemon laws, you may have claims if the dealer:

  • Sold a vehicle with undisclosed damage – Hidden accident, flood, or other damage
  • Rolled back the odometer – Federal crime with treble damages
  • Lied about vehicle history – Misrepresenting previous owners or salvage title
  • Sold a recalled vehicle without fixing it – May constitute fraud

Frequently Asked Questions

How many repair attempts before I have a lemon law claim?

Most states require 3-4 repair attempts for the same defect, or 1-2 attempts for serious safety issues. Alternatively, if your car has been out of service for 30+ cumulative days for repairs, you may qualify.

Does the lemon law cover used cars?

Some states have specific used car lemon laws (California, New York, Connecticut, Massachusetts, Minnesota, New Jersey, Rhode Island). Others provide protection through implied warranties unless the car was sold “as is.”

Can I sue the dealer or only the manufacturer?

For new cars, lemon law claims typically go against the manufacturer. For fraud, misrepresentation, or breach of dealer warranties, you can sue the dealer directly.

Do I need a lawyer for a lemon law case?

While not required, a lemon law attorney significantly improves your chances. Since most state lemon laws require the manufacturer to pay your attorney fees if you win, there’s little financial risk to hiring one.

When to Contact a Lawyer

Consider consulting a lemon law attorney if:

  • Your new car has been in the shop multiple times for the same problem
  • The dealer can’t fix a defect affecting safety, use, or value
  • Your car has been out of service for weeks
  • The manufacturer denied your warranty claim
  • You suspect the dealer hid damage or defects

Last updated: January 2025

This article provides general information about lemon laws in the United States. Laws vary by state and individual circumstances. Consult with a qualified attorney in your state for advice specific to your situation.

Brant Van Dyke

Brant Van Dyke

Brant is a legal writer covering consumer protection and property law. He helps readers understand their rights when dealing with defective products, contractor disputes, and property issues.