When Whitney Walker purchased her used BMW i3 for thousands of dollars, the last thing she expected was for it to jolt her with an electric shock while charging. The sleek car quickly became a nightmare, losing power, glitching, and spending months in repair shops. After discovering the vehicle had a history of serious defects, she turned to Texas Lemon Law for help.
The Texas Lemon Law is a state law established to compensate unsuspecting consumers of defective vehicles. What you will need to pursue a Lemon law claim successfully is enough evidence to prove your case and a qualified Texas Lemon law Attorney to help you navigate the rigors of the process.
Easy Lemon is one of the most reputable legal firms, highly skilled in all aspects of Texas Lemon Law and dedicated to helping consumers stuck with defective vehicles seek justice. Our team of Lemon law attorneys can help you receive a refund, replacement vehicle, or proper repair of the defects, depending on what you want. Contact us now to book a free case evaluation.
This article covers the basic tests a vehicle must undergo to qualify for a Texas Lemon law claim. It also highlights the process involved in filing a complaint and provides useful tips that car buyers should consider before making a purchase.
What Is the Texas Lemon Law?
The Texas Lemon Law was established in 1983 to afford consumers who may have unknowingly purchased or leased a defective vehicle the right for compensation. The law is enforced by the Texas Department of Motor Vehicles (TxDMV). For a new motor vehicle to be considered a “lemon” in Texas, it must possess a substantial manufacturing defect that impairs its use, diminishes its market value, or compromises safety.
The defect must also have undergone “a reasonable number of attempts” for repair during the first 24 months or 24,000 miles, whichever comes first. Such a defect must remain despite these repair attempts. Essentially, the state considers any motor vehicle that passes any of these three tests as a lemon—four-times repair test, serious safety hazard test, and 30-day out-of-service test.
However, it is important to note that the Texas Lemon Law only protects consumers who purchased or leased new vehicles from licensed dealers or in the state. If a Texas consumer’s Lemon law claim is validated, the manufacturer is mandated to offer relief, which may include the vehicle being purchased, replaced, or repaired.
Criteria for Qualifying as a Lemon in Texas
Under the Texas Lemon Law, a vehicle needs to pass one of the following three tests to qualify as a lemon. These tests include:
- Four-Times Test: For your new motor vehicle to qualify for a Lemon law claim, it must have undergone at least four repairs for the same defects during the first 24 months or 24,000 miles of its purchase, whichever comes first. These four attempts can be broken down as follows: at least two attempts within the first 12 months or 12,000 miles and two more attempts during the next 12 months or 12,000 miles, whichever comes first. If the defect persists after these four repair attempts, you may be entitled to a repurchase or replacement by the manufacturer.
- Serious Safety-Hazard Test: A car can also be considered a lemon if its defect is life-threatening, such that it prevents you from safely operating or handling the vehicle, or significantly increases the chance of a fire or explosion. If the motor vehicle has been taken in for the repair of a serious safety hazard at least twice during the first 24 months or 24,000 miles and the issue continues, then it’s safe to term such a vehicle a “lemon”.
- 30-day Test: A new vehicle passes this test if it has been out of service due to one or more repair issues for a cumulative of 30 working days within the car’s express warranty term. We will explain this rule in detail in the next section.
What Is the 30-Day Rule in the Texas Lemon Law?
The 30-day rule is one of the key tests used to determine if a vehicle qualifies as a lemon under the Texas Lemon Law. This rule states that a vehicle may be termed a lemon if it has been out of service for up to 30 business days due to recurring defects that substantially impair its safety, use, or value.
These days do not have to be consecutive; it could be the total of the different days the motor vehicle had stayed in the dealership service center for the same or different defects. Valid days do not include weekends or public holidays, whether state or federal, but strictly regular working days. The 30 business days start counting from the day the vehicle is first taken in for repair for a defect covered under the manufacturer’s written warranty. They must fall within the first 24 months of the motor vehicle’s purchase date or the first 24,000 miles driven.
If the dealership gives the consumer a comparable loaner vehicle to use during any out-of-service day, such time will not be included in the 30-day test. It is also essential during this period to keep proper documentation of all the repair orders received from the mechanic.
Which Vehicles Qualify Under Texas Lemon Law?
As discussed earlier, Texas Lemon Law covers only vehicles bought and registered in the state. These vehicles include new or leased cars, trucks, motorcycles, motor homes, vans, All-terrain vehicles (ATVs), towable recreational vehicles (TRVs), and neighborhood electric vehicles. Demonstrator vehicles that have not been sold or titled in anyone’s name are considered new and hence also qualify.
Other vehicles, such as non-travel trailers, farm equipment, boats, or repossessed vehicles, are not covered under the Texas Lemon Law. Also, keep in mind that the law doesn’t apply to vehicles without a written manufacturer’s warranty. Likewise, it doesn’t cover defects that do not substantially impair the safety of the car, its use, or market value, such as wearing of paints, minor rattles, wear and tear, and radio static.
Used vehicles do not qualify for a lemon claim except in cases where the vehicle is still under the manufacturer’s original warranty. Alternatively, if the defect occurred and was reported during the original warranty period, the new buyer can seek compensation from the dealership. However, the law does not cover used cars bought from a private seller without any warranty.
Suppose a used vehicle is still covered by a manufacturer’s written warranty but falls outside the time or mileage limits of the Texas Lemon Law. In that case, the owner can file a claim under the Federal Lemon Law, also known as the Magnuson-Moss Warranty Act.
In situations where the used vehicle is no longer covered by the original factory warranty, you may leverage other consumer protection laws, such as the Texas Deceptive Trade Practices Act (DTPA), to seek relief. As the name suggests, this law is reliable enough for seeking redress against all forms of Texas deceptive trade practices from auto dealers.
Steps to Take if You Suspect Your Vehicle Is a Lemon
If an issue recurs after the first repair attempt, you’re probably dealing with a lemon automobile. One of the very first steps to take is to communicate with the dealer and manufacturer. Report the recurring issue and allow them a reasonable number of attempts to get the vehicle properly repaired.
However, if the problem persists, send a written notice of the defect to the manufacturer via certified mail, giving them one final opportunity. The manufacturer’s written notice should contain your vehicle identification number (VIN), means of contact, and every necessary detail about the defects.
From the first time you notice the issue, you should start keeping detailed records of all repair attempts. Request a copy of the repair order and repair invoice each time you take your vehicle in for repairs at the dealer’s service department. You may also take pictures or video recordings of the defects and always note your odometer readings.
The call logs, texts, and emails between you and the authorized dealership or manufacturer can also serve as critical evidence when filing a Lemon law claim. In all these, ensure the repair attempts occur within the coverage window of 24 months or 24,000 miles, whichever comes first. Failure to adhere to these time frames could result in the disqualification of your Lemon law claim.
Filing a Lemon Law Complaint in Texas
It is mandatory to file a Lemon law complaint within six months of the warranty expiration, 24 months, or 24,000 miles after delivery, whichever comes first. To be on the safe side, complaints are advised to be filed as soon as the defect is detected.
To file a Lemon law complaint with the Texas Department of Motor Vehicles, a filing fee of $35, which is reimbursed if you win, is required. You are also to provide a “final opportunity to repair” notice issued to the manufacturer. Once the complaint is submitted, it is then reviewed by a staff member from the Lemon Law Section and a TxDMV case advisor to see if it is complete and eligible for relief under the law.
What Happens After Filing?
After filing a complaint, both the Lemon law administrative team and the TxDMV case advisor will attempt to resolve the issue through mediation between the consumer and the manufacturer. The aim is to attain a mutual agreement without having to go through an administrative hearing.
Mediation is an informal process usually consisting of phone calls, emails, or written negotiations during which the consumer may be required to produce documentation such as repair orders, warranty information, and communication records.
If this process is successful, there will be no need for a hearing. The agreed-upon remedy, such as a refund, replacement, or repair, is usually documented, and once the terms are met, the complaint is closed. This process is always faster and less stressful than a formal hearing.
But if mediation fails, the case proceeds to a hearing conducted by the State Office of Administrative Hearings (SOAH). Both parties will receive a written notice at least 15 days before the scheduled hearing date. They will also be given at least 40 days before the hearing date to subpoena documents necessary for the hearing.
The hearing process is presided over by an Administrative Law Judge (ALJ). During the hearing process, both parties will have the opportunity to present their case with proof before the judge. After hearing both sides, the judge will issue a written decision within 60 days of the hearing ending, which totals 150 days from when the complaint is filed and the filing fee paid.
If you win the case, the manufacturer will be mandated to either buy back the vehicle or replace it with one of equal value, which is usually of the same make and model. The repurchase includes the purchase price, sales tax, title fee, and license fees, minus a specific amount charged for vehicle use.
This deduction is calculated using a formula that factors in the vehicle’s mileage at the time of the hearing, along with other considerations. Interest paid on the vehicle is not included in this calculation. As an alternative to the mentioned remedies, the manufacturer or dealer could also be asked to repair the vehicle’s defect for free.
In such cases, other expenses incurred by the consumer during the period of repair attempts may also be reimbursed. However, if the SOAH judge’s decision didn’t turn out as you expected, you can still get relief by appealing the ruling at any district court in Travis County.
When to Consider Legal Help
It is important to consider legal help the moment you have reasons to believe you are dealing with a lemon. Motor vehicle manufacturers always have a legal team on retainer to handle such cases. So your best bet to winning your lemon case is to have an even better legal representation.
A Lemon law attorney can help you understand your rights, evaluate the case, and strengthen your argument. The attorney will also ensure you comply with the strict Texas Lemon Law filing timelines and documentation procedures.
Choosing a qualified Lemon law attorney can also help in compelling an unwilling or uncooperative manufacturer to follow through on a decision or settlement. In cases where you are dissatisfied with the final verdict, an attorney can help you appeal the decision or explore other legal options.
One good thing about hiring a Texas Lemon law attorney from firms such as Easy Lemon is that they don’t charge upfront legal fees. You only pay when you win the case. In fact, you may not have to pay eventually since the manufacturer may be mandated to do so on your behalf.
Tips for Protecting Yourself as a Car Buyer in Texas
There are several helpful tips a car buyer in Texas may consider when purchasing a car to avoid being a lemon victim. They include:
1. Research the Market Before Buying
It is essential to choose reputable dealers or private sellers with a good track record to purchase your vehicle from. Also, read reviews from former buyers to spot common problems. However, note that Texas Lemon Law covers only purchases or leases from authorized dealers. You may get a good deal from a private seller, but that would be at the expense of filing any Lemon law claim in the future.
2. Check the Vehicle History for Used Cars
Carefully verify the VIN (Vehicle Identification Number) and ensure it’s the same on all documents. Also, check the Vehicle History Report and see if there are any red flags like flood damage, frequent ownership changes, past accidents, etc.
3. Understand Your Warranty Coverage
Request for clear documentation on what the warranty covers and the duration. Get familiar with the difference between manufacturers’ warranties, dealers’ warranties, and extended warranties. Note that most used cars are sold “as-is” except stated otherwise in writing. Hence, insist on getting all promises in writing.
Request that all promises, repairs, and agreements be included in the purchase contract. Do not rely on verbal guarantees. It is also helpful to have a trusted auto mechanic inspect the car before making a purchase, especially if it’s coming from a private seller.
4. Keep All Documents
Remember to properly retain all documentation, including copies of your bill of sale, repair orders, warranty documents, and correspondence with the dealer or manufacturer, as this will be needed when filing future complaints.
Need an Experienced Texas Lemon Law Attorney
Dealing with a defective vehicle can be a frustrating and disappointing experience for anyone, and the road to relief is not exactly straightforward. Since the Texas Lemon Law claim process is rigorous and requires strict timelines and documentation, it’s important to work with a qualified Lemon law attorney.
Easy Lemon is the best provider of Lemon law attorney services in Texas. We can help you seek compensation in the form of a vehicle repurchase or vehicle without having to pay any upfront legal fees. You can get started by reaching out to us today for a free case evaluation.
FAQ
What Can Happen if You Win Your Case When Filing a Texas Lemon Law Complaint?
The manufacturers may be asked to repair the vehicle (if the judge deems it possible), you may be awarded a vehicle repurchase or replacement, or the case may be dismissed for lack of merit.
What Do I Do if a Dealership Sold Me a Bad Used Car in Texas?
If you purchase a used car in Texas that has one or more problems, the first thing to do is to check whether it’s under any manufacturer’s warranty. This will determine whether the Texas Department of Motor Vehicles will consider it a Lemon law case. If you don’t meet the requirements, you may still seek redress through other vehicle owners’ protection laws. Either way, consult an experienced Lemon law attorney to advise you accordingly in line with the peculiarity of your case.
Does Texas Have a 30-Day Lemon Law?
Yes, Texas has a 30-day Lemon Law. The law allows consumers to file Lemon law claims if their vehicles suffer defects that make them out-of-service for at least 30 regular working days.
Does Lemon Law Apply to Private Sales in Texas?
No, Lemon Law protections in Texas are for only vehicles purchased through a licensed dealer or manufacturer.
What Qualifies a Car as a Lemon in Texas?
In Texas, a lemon car is one that passed any of the following tests:
- Four times test: the vehicle must have undergone four unsuccessful repairs for the same defect covered under the express warranty term within the first 24 months or 24,000 miles whichever comes first.
- Two serious safety hazard tests: If it’s a life-threatening malfunction, only two unsuccessful repair attempts are needed to qualify as a lemon vehicle.
- 30-day out-of-service test: alternatively, a vehicle may qualify as a lemon under Texas law if it suffers one or more defects that make it inoperable for 30 business days.
