Many consumers in America choose to lease their vehicles instead of buy. Leasing a vehicle typically comes with lower monthly payments, and at the end of the lease you can get a new vehicle without going through the process of selling or trading it. Leasing a brand new car means you drive it during its most trouble-free years, returning the car at the end of the lease long before most problems begin developing as a factor of time or miles driven. However, that’s not always the case.
Some vehicles leave the factory containing repeating, unfixable defects. These “lemon” cars come from both domestic and foreign automakers, from Ford and GM to Honda and Volkswagen. These defects arise from problems occurring during manufacturing, substandard materials, design flaws, or even a mistake during transport. No matter the cause, these defects throw the vehicle out of conformity with the manufacturer’s written warranty, meaning the manufacturer must make things right with the consumer. Normally when a consumer buys a defective vehicle, they can rely on lemon laws to give them and their lemon law attorneys the tools they need to seek compensation. However, it’s not always that simple for those who lease their vehicles.
Some US states protect lessees in their lemon laws, while others do not. Arizona, for example, does not protect lessees under its lemon law. An Arizona Supreme Court decision in 2006 stated the leasing company technically owns the vehicle, effectively renting the vehicle to the end consumer. Therefore, under Arizona state law, the leasing company is protected by the lemon law and not the lessee. Other states, including Texas and New York, do indeed cover leased vehicles with their lemon laws.
The federal Magnuson Moss Warranty Act of 1975 adds an additional layer of protection when state laws fail. The Act protects all American consumers no matter what state in which they reside. The Act requires all companies use easily understood language when writing their warranties and empowers the Federal Trade Commission to enforce said warranties.
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The Magnuson-Moss Warranty Act protects consumers who lease their vehicles just as they protect those who buy or finance them. Andrew Ross, lemon law attorney with Allen Stewart P.C., said consumers who lease their vehicles can likely pursue a claim under Magnuson-Moss even if their state law fails them. The most important thing to do, in any case, is to reach out to a qualified and experienced lemon law attorney to see if they can help you with your case.
Per Jim Gorzelany of Forbes, fewer Americans than ever are leasing their vehicles. He reports while leases counted for a third of all automotive transactions as of January 2020, they account for roughly 17 percent of transactions now. Gorzelany said rising vehicle prices and rising interest rates are causing the drop in leasing rates. Many consumers, he said, are opting for longer-term loans to keep monthly payments lower.
Supply chain issues might also play a role into the fall of vehicle leases. As fewer new vehicles make their way to dealerships, consumers may be growing wary of locking themselves into a limited time lease if there’s no guarantee there will be a new vehicle for them at the end of the lease.
Every state in America has some form of lemon law, though what it’s called and what protections are offered can differ from state to state. What each state has in common, however, is they all protect consumers whose vehicles contain repetitive, unfixable problems that cause the vehicle to no longer conform to its written warranty.
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For example, a vehicle in Texas must undergo repairs four times without success. Two of those attempts must occur within a year of the vehicle’s initial delivery or 12,000 miles driven, and the next two must occur within a year or 12,000 miles of the first repair attempt. However, if the problem in question is considered a “serious safety problem,” the number of required attempts falls to two. These requirements change from state to state, so be sure to check with a qualified lemon law attorney before making any major decisions.
Contacting a trustworthy, experienced lemon law attorney should be your first step after learning your vehicle may be a lemon. Lemon law lawyers, such as the attorney at Allen Stewart P.C., specialize in helping clients work through state and federal laws to take their vehicle’s manufacturer to court and just compensation.
Allen Stewart, attorney and owner of Allen Stewart P.C., said a consumer who works with a lemon law attorney when pursuing a claim has an advocate on their side, someone working for their best interests and rights throughout the claims process.
“A consumer with a lawyer has someone who knows when they’re being bamboozled,” Stewart said. “Someone who knows when what that company just said isn’t the law, or the truth, or equitable. The consumer with the lawyer has an advocate that has seen many other people in like circumstances and knows what the appropriate standard of care and compensation should be.”
Lemon laws are confusing. Read our guide to the lemon law complaint process.
Stewart said simply speaking with a lemon law attorney is the single best way to start the lemon law claims process, leading to far better outcomes than simply trying to press the claim alone.
“I have never seen the circumstance of a self-represented plaintiff show up in front of the judge and at the end of the proceeding the judge not tell them ‘sir or ma’am, the best thing for your case is you getting a lawyer,’” he said. “Even the simplest things in the law can be complicated because if you miss the timeline, you could lose it all,” Stewart said. “If you file the wrong paperwork, it could set you back time and money, and you might lose the case.”
The lemon law attorneys are ready to be the advocates you need for your lemon law claim. They have successfully represented hundreds of clients against automotive manufacturers and gotten them the justice they deserve. The sooner you reach out, the better your chances of a successful lemon law claim. Don’t wait; contact Allen Stewart P.C. today and get back behind the wheel.