Did You Buy a Lemon Instead of a New Car?

You expect a new car to run sweetly, but you can sometimes get a sour deal. Fortunately, laws in every state protect consumers who purchase cars with serious defects that can't be fixed or that reoccur. These "lemon laws" vary from state to state, but generally they give a new-car buyer the possibility of obtaining a refund or a replacement vehicle if...

The car has been in the shop for the same repair four or more times in a specified period (12 months in some states, 18 in others).

The car has been out of service for 30 days or more during a specified period (again, it's usually for 12 or 18 months).To take advantage of lemon laws, however, you must give the manufacturer reasonable opportunity to fix the car. And typically you will have to take several other steps before you can see legal protection.

Steps to Fix a Lemon

Once you realize that your car has a recurring problem or when the repair time begins to mount up, you will then be ready to take action:

Write to the service department manager at the dealership where you had your car repaired. Clearly explain the problem you've experienced (the engine continues to overheat despite your repair attempts, for example). Include copies of all warranty service orders you've received from the dealership.

Get a new work order every time you take your car in for service, and keep your copies. Don't let the service manager convince you that the problem is on a previous order so you don't need a new one.

Save all receipts for any outside work don if your car breaks down while you're away from home and you have it repaired by someone other than your dealer.

Contact the manufacturer's area representative if the dealership can't fix the problem. You can get the representative's address and telephone number from the dealer, or it may be in your owner's manual. After you talk to the representative, be sure to follow up with a letter and include copies of your correspondence, work orders, and a log of your conversations with service department personnel.

Contact the manufacturer's home office if the area representative can't get the problem solved. The procedure for this is described in your owner's manual. The manufacturer may want you to submit to arbitration, but be aware that some automobile-makers arbitration programs restrict your right to appeal a decision that goes against you. Carefully check the terms of your warranty and the arbitration agreement to be sure you aren't limiting your right to proceed with an appeal.Invoking the Lemon Law

While the exact procedures for using lemon laws vary from state to state, generally you must follow these steps:

Send the manufacturer another letter (by certified mail, return receipt requested) telling the company that you are invoking the state's lemon laws and requesting a refund or a replacement vehicle.

Give the manufacturer one last chance to fix the car you bought.

Submit your claim to a free, state-run arbitration program if such a program is available or

File a lawsuit in state court.If you win your suit, you can expect to receive a refund of the price you paid for the car (minus a deduction for your use of the vehicle) as well as a refund of taxes, finance charges you paid to obtain your car loan, and the license and registration fees for the car. You may also be able to choose between a refund or a new vehicle from the manufacturer.