Most people are familiar with buying a car privately or at a dealer. They’re usually also acquainted with how you can lease a car not only for the short term but also for a longer term, like two or three years.
So, what is this alternative ownership, or usage, model that involves a subscription?
Manufacturers, car rental companies, and others have found a market niche where people want the flexibility of one monthly payment that bundles many car responsibilities together. It’s an easy concept to understand, with the car payment, insurance, roadside assistance, and general maintenance and repairs in one neat monthly cost. Car Zing reports that the subscription model is gaining traction, although many people aren’t aware of it yet.
It all sounds good. What if your car breaks down? What could the lemon law implications be?
If car subscriptions let you potentially drive multiple cars and avoid a lot of the issues with ownership or traditional leases, why worry? Here, we’ll review how vehicle subscriptions work and the sometimes murky legal territory they inhabit.
Difference between a breakdown and a defect: When your membership vehicle breaks down (such as a flat tire), and it’s a straightforward fix, or you need a jump, that’s one thing. If it repeatedly breaks down due to exhibiting a substantial defect, that’s quite another thing. Many of these cars are former fleet vehicles, and they could have higher mileage and uncertain maintenance histories. (Note that manufacturer-direct vehicles are usually new.) Repeated breakdowns and repairs piling up are signs you may need to consult a lemon law attorney (866-440-2460).
Key points: Even with evolving technology and car ownership models, the crux of lemon laws remains the same: the vehicle must exhibit a substantial, unrepairable defect that severely impacts its use, value, or safety. The focus of the lemon law attorney stays fixed, too: it is to prove the substantial defect and hold the manufacturer accountable to provide compensation for the lemon vehicle.
Defining What a Vehicle Subscription Is
We’ll get into all the fine print and potential for things to go amiss in a moment, but it’s best to gain a solid overview on why vehicle subscriptions exist and what they provide. They exist because people want the flexibility that owning or leasing a car doesn’t provide. First, the flexible timeframes that subscriptions offer can give people the advantage of not having to worry about getting locked into a multi-year lease. For example, you may be subscribed to a smaller sedan but need a bigger vehicle for a trip. You can often arrange to swap vehicles for a short time, with minimal hassle.
For more information on arbitration and other frequently asked lemon law questions, click here.
Compared to owning a car, with a subscription you don’t have to be tied to that same vehicle for years. You won’t have to worry about it depreciating and being responsible for maintenance and trading it in and selling it later.
Note: Watch the contract language in subscription vehicle agreements. Follow these tips to get a better idea of what the agreement covers and doesn’t cover. Pay attention to the insurance discussion, mileage caps, potential early termination fees, and more:
- Ask the provider for the full contract/terms (including the insurance certificate) before Take your time to review and ask questions.
- Read the agreement carefully: insurance details, deductibles, fault scenarios, cancellation policy, mileage rules, and what “beyond normal use” covers.
- Do some digging on the track records of the subscription providers you’re considering. Search online for “[provider name] contract review” or Reddit/forums to see what actual users are reporting.
Image Source: Unsplash
How a Vehicle Qualifies as a Lemon
It’s important to know that each state has its own lemon laws. Lemon laws are based on the core principle we stated above: the vehicle must exhibit a substantial, unrepairable defect that severely impacts its use, value, or safety. Plus, your lemon law attorney will examine your warranty and timeframes for making a lemon law claim. Each state includes its own additional stipulations, such as types of vehicles covered, mileage, and more.
If your car is found to be a lemon and you are a subscriber to that vehicle, your attorney can protect your rights by:
- Verifying both the nature of the defect and the warranty status to determine if a case is viable.
- Reviewing the specific language in your agreement to see how it aligns with your state’s lemon laws. They may also use the federal Magnuson-Moss Warranty Act’s protections to pursue compensation for you.
- Identifying the most effective legal strategy, whether that involves arguing that the contract functions as a lease or applying federal warranty protections.
- Communicating with the manufacturer: A lemon law lawyer talks directly to the manufacturer to fight for your rights and find a solution instead of you arguing about legal definitions with a customer service representative.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
Examples of Vehicle Subscriptions Gone Wrong
Many people have no trouble with vehicle subscriptions and enjoy them. In the event things do go wrong and the vehicle exhibits a substantial defect, note that you can access a free consultation (866-440-2460) with a lemon law attorney to present your evidence and learn about your options under state lemon laws and potentially federal laws.
If you’re wondering about example scenarios to show you how issues can crop up and how they’re managed by lemon law attorneys, we recommend reading our post on subscription-based ownership models. The attorney’s ability to get to the heart of the matter is evident in each of the three scenarios. The lawyer’s experience and negotiation skills allow them to pursue compensation, often with a settlement to the client’s advantage. These potential outcomes are based on the fact that a lemon law attorney provides an advanced understanding of these subscription models and how they are treated under lemon law.
Why You Need a Lemon Law Attorney in Subscription Disputes
The lemon law attorney pursues the case by discerning if the vehicle is still covered under the manufacturer’s warranty. They also determine if there is a substantial defect, along with if the number of repair attempts required by state law has been met. That is the crux of most lemon laws, so the attorney will start there. Then, the specifics of vehicle subscriptions and how they are treated by the states also come into play. Note that some states don’t cover used cars, so that point might disqualify some potential claims.
Lemon law attorneys have one focus: protecting the client’s rights and gaining compensation for the defective vehicle. With all the variables at play with car subscriptions, a good first step when things start going wrong is to take advantage of a lemon law attorney’s free consultation (866-440-2460).
Please note: If a vehicle subscription is made through a manufacturer, the process for arranging for compensation after the case is won can be more straightforward (although not always). If the subscription is made with a subscription service, the lemon law attorney can help coordinate the refunding of monthly fees and termination of the agreement should the lemon law claim succeed.
Also: Since car subscription models are a relatively recent development in the automotive marketplace, the applicable legal framework may not be well-established or settled in some states. Manufacturers may try to take advantage of membership agreements’ language to argue that traditional lemon law protections for buyers and lessees do not apply. It is especially in this scenario where a lemon law attorney can prove invaluable for protecting your rights.
Trust Allen Stewart, P.C. for Comprehensive Lemon Law Representation
Allen Stewart, P.C. offers leading-edge lemon law representation. Our attorneys defend your rights in all types of cases, including those involving new technologies and new modes of vehicle ownership. Our lawyers are well-known in California, Texas, New York, and across the country, having won top compensation for our lemon law clients. We fight aggressively for our clients and stand up to manufacturers who may try to dismiss, minimize, or ignore claims.
Please know that it is vital that you have an experienced attorney representing you, as the manufacturer will certainly defend its interests with its legal team. You will not need to pay us to represent you. The manufacturer is obligated to pay your legal fees when you win your case.
Time is of the essence with lemon law claims. Contact Allen Stewart, P.C. now (866-440-2460) to schedule your free consultation or contact us online.