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We handle cases across the United States. Allen Stewart is licensed to practice law in Texas, California, New York, Pennsylvania, Missouri, North Carolina, Ohio and Arizona.

How Lemon Law Works When Your Vehicle Is Leased vs. Purchased

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Lemon law cases usually involve buyers facing significant issues with their cars. The focus is going up against the manufacturer to get a refund of the purchase price, or a replacement vehicle. Typically, these cases are about a consumer seeking compensation for a vehicle that they own.

Some people choose to lease their vehicles. Reasons vary: ease of upgrading every few years, lower payments and upfront costs compared to buying, and manufacturer’s warranty during the lease term.

But if the leased car malfunctions, who’s responsible if it can’t be repaired?

Thankfully, the frustration and guesswork can be taken out of this scenario when you consult a lemon law attorney. The attorney will evaluate your claim, and should it be valid, will know the best way forward to win compensation.

State Lemon Laws: Leased Vehicle Coverage

The first question many people have is which states cover leased vehicles? The good news is practically all states do cover leased cars, but in varying ways. A lemon law attorney will determine how your claim aligns with your state’s laws. Here are a few example states and how they treat leased vehicles:

California: The Song-Beverly Consumer Warranty Act applies to leased vehicles. It provides similar protections to those for purchased cars.

New York: New York’s Lemon Law covers leased vehicles. Lessees can seek refunds or replacements for defective cars under certain conditions.

New Jersey: The New Jersey Lemon Law includes leased vehicles, providing lessees with rights to remedies if the car has substantial defects.

Your lemon law attorney will guide you through the lemon law process for leased vehicles, which is much like the process for a purchased new vehicle.

For more information on arbitration and other frequently asked lemon law questions, click here.

The Lemon Law Process

Let’s say you lease a new car and then begin having problems with it. These issues escalate to the point where you have to take the car into the dealer for repairs several times. The issue is severe, and it can’t be fixed after several attempts. After all this transpires, you don’t know what to do. Upon contacting a lemon law attorney, the lawyer guides you through the lemon law process to help you gain compensation. The attorney will:

  • Review your claim and determine if the vehicle issue is substantial, affecting its use, value or safety.
  • Determine if the claim falls within the state’s lemon law coverage: As we noted above, most states cover leased vehicles, and your attorney will determine the timelines for reporting and then ensure your claim is submitted accordingly.
  • Fight for your rights by pursuing maximum compensation through settlement negotiation, arbitration representation, and if necessary, representation against the manufacturer in court.
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Image Source: Unsplash

What Results Can You Expect If You Win Your Leased Vehicle Lemon Case?

Potential remedies are a refund of lease payments and cancelling of the lease without penalty, or a replacement vehicle. For specifics, check your lease agreement for details. You may also be able to recover related costs, such as towing, and costs for replacement vehicles. Typically, in these cases, the manufacturer is required to pay your attorney fees.

But what happens if your state either doesn’t cover leased vehicles, or the coverage doesn’t align with your circumstances (your defect and its occurrences during a specified timeframe)?

Lemon laws are confusing. Read our guide to the lemon law complaint process.

Coverage Under the Magnuson-Moss Warranty Act

If your state does not have a lemon law that applies to leased cars, or if it falls short against the issues you are facing, you may still have recourse under the federal Magnuson-Moss Warranty Act. This is a federal law that applies across all states. This law covers warranties on consumer products, including leased vehicles, provided the vehicle comes with a written warranty, such as a manufacturer’s warranty.

Here’s how it can help:

Protection for Defects: If your leased car has a defect that substantially impairs its use, value, or safety, and the issue isn’t resolved after a reasonable number of repair attempts, the Magnuson-Moss Warranty Act may entitle you to remedies.

Remedies Available: Unlike some state lemon laws that offer a full refund or replacement vehicle, this federal law typically provides monetary damages based on the diminished value caused by the defect. In some cases, it could lead to a refund or replacement, depending on the warranty terms and the situation.

Attorney’s Fees: If you win a lawsuit under this act, you may recover attorney’s fees, which can make pursuing a claim more practical.

Your attorney can use the Magnuson-Moss Warranty Act to pursue your claim by proving the defect violates the warranty terms and that the manufacturer failed to fix the vehicle adequately. While the federal law is not an automatic substitute for state lemon laws, its application can be used alone or in conjunction with state laws.

Think you have a lemon, click here to fill out a 30 second form.

Ultimately, the skill and experience of your attorney will guide you through the lemon law process; an important part of which will require the attorney’s review of the warranty provided with your lease.

Why You Need a Lemon Law Attorney for Your Lemon Law Lease Case

The best way to pursue compensation in any lemon law case (whether the vehicle is leased or purchased) is to work with a skilled, experienced attorney. There are so many factors involved, such as the number of permitted repair attempts and the precise definitions of what constitutes a substantial defect. Add to these variables, the differing ways states apply their lemon law coverage, and you can see that an attorney can ensure that you don’t miss opportunities. Your claim will, under their guidance, have the best chance to result in maximum compensation.

The ultimate benefit you receive by working with a lemon law attorney is their experience. As we discussed previously, an attorney with experience using the federal Magnuson-Moss Warranty Act to fight for clients can be an invaluable asset to you. Not only do lemon law lawyers know the best way to pursue your case according to the law, they also, every step of the way, anticipate and counter the manufacturer’s dismissive actions or denials of your claim. Having all of these skills and knowledge working for you can lead to the positive outcome you want. They can also potentially lead to a more rapid resolution, as well.

Allen Stewart, P.C. Provides Expert Lemon Law Representation

If you are searching for a lemon law attorney with experience winning cases across the country, including in Texas, California, and New York, contact Allen Stewart, P.C. Our attorneys aggressively fight for your rights in any type of lemon law case. Whether you bought or leased your vehicle, we provide the skill, knowledge and experience that wins maximum compensation for our clients.

Some people wonder if they need a lemon law lawyer. Be assured that the manufacturer will bring its legal team to bear to try and minimize or dismiss your claim. You need Allen Stewart, P.C.’s expert representation to protect your rights. You also don’t have to be concerned about upfront costs. Thanks to federal law, our clients pay nothing out of pocket, so call us now (866-440-2460) for a free consultation, or contact us online.

This information brought to you by Allen Stewart P.C.

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