State lemon laws help consumers who buy or lease new motor vehicles and have repeated problems getting their vehicles properly repaired under the manufacturer’s original warranty.
Lemon laws can help a consumer get the vehicle repurchased, replaced, or repaired through a process that is less complicated and expensive than filing a lawsuit and going to court.
A car is a “lemon” when it is determined that the vehicle is defective beyond repair. Most states have some form of a lemon law to protect car buyers. These laws generally only apply to new cars purchased or leased by consumers and small businesses.
But a used car may also be covered if it is still covered by the manufacturer’s original warranty (not an extended service contract), or if the defect started and was reported to the dealer while under the manufacturer’s original warranty, and the defect continues to exist.
Lemon laws often do not cover repossessed vehicles, non-travel trailers, boats, or farm equipment.
Lemon laws only cover defects that substantially impair the use or market value of the vehicle—which does not include issues like minor rattles, noises, and car audio imperfections.
Each state has its own requirements, but common factors to qualify as a lemon 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 term
• The owner gives the dealer a reasonable number of attempts to repair the defect or condition
• The owner gives the manufacturer written notice (preferably by certified mail) of the defect and at least one opportunity to fix the defect
• The defect persists and substantially impairs the vehicle’s use or market value or creates a serious safety hazard
Lemon laws are usually located in a state’s statutes and are often administered by the state’s department of motor vehicles or a specified consumer protection agency.
In Oregon, the lemon law covers new passenger motor vehicles, including cars, SUVs, and light trucks, that are purchased or leased in Oregon or purchased or leased by Oregon residents. It applies when a vehicle has a substantial defect that is covered by the manufacturer's warranty and that persists after a reasonable number of repair attempts. To qualify under Oregon's lemon law, the defect must occur within the first two years or 24,000 miles, whichever comes first. The owner must report the defect to the manufacturer or its authorized service agent (usually a dealership) during the warranty period. If the vehicle cannot be repaired after a reasonable number of attempts, the manufacturer must either replace the vehicle or refund the purchase price, at the option of the consumer. Oregon's lemon law does not cover used cars that are no longer under the manufacturer's original warranty, repossessed vehicles, non-travel trailers, boats, or farm equipment. Defects must substantially impair the use, value, or safety of the vehicle to be considered under this law. Minor inconveniences or defects that do not affect the vehicle's performance or safety are typically not covered. The Oregon Department of Justice administers the lemon law and provides resources for consumers seeking relief under this statute.