When you hear the word ‘warranty,’ what comes to mind? Protection, usually. In other words, if you have a warranty, you’ll likely feel good about any issues that may crop up with your vehicle for the first few years. So, where things could get murky is what if your car exhibits a substantial defect and it can’t be repaired? Your potential lemon law claim will be based on when the defect began, how many repair attempts the manufacturer made, and the outcome of those. The key point will be when the substantial defect first occurred and then how the extended warranty (if you have one) might fit into your claim situation.
The first point to clarify is to define, as regards lemon law, what a substantial defect is. Then, we’ll review the differences in coverage typical original manufacturer’s warranties and extended warranties provide. To illustrate how claims can play out, we’ll show how a lemon law attorney approaches different scenarios, expertly selecting the most effective path forward so you have the best opportunity to win just compensation from the manufacturer.
What is a Substantial Defect as Defined Under Lemon Law?
State lemon laws differ, but they are based on one core premise: the definition of a substantial defect. This type of defect must severely impact a vehicle’s use, value, or safety. It is unrepairable after the state’s allotted number of repair attempts to the manufacturer. Each state adds its own criteria to their lemon laws, such as reporting timelines, mileage, or other requirements. A lemon law attorney will know how your state classifies vehicles as lemons. If your vehicle qualifies, your attorney will notify the manufacturer. In some cases, the manufacturer gets one last opportunity to repair the vehicle. If it can’t or won’t, then the claim can proceed.
What’s the Difference Between an Original Manufacturer’s Warranty and an Extended Warranty?
When you buy a new car, you often get a 3-year, 36,000-mile bumper-to-bumper warranty. Sometimes you get a 5-year, 60,000 (or more) powertrain warranty. It’s up to you if you buy an extended warranty. These can be purchased at the time you buy the car, or later, and they vary in coverage types and timeframes. Sometimes they are bought from dealers or from third parties, usually not from manufacturers. Extended warranties aren’t actual ‘extensions’ of the original warranty, so repairs conducted solely under them (without the defect starting during the original warranty) don’t count as lemon law repair attempts.
For more information on arbitration and other frequently asked Breach of Warranty questions, click here.
But if a defect is “pre-existing” (started during the original warranty), a repair attempt made during the extended warranty period can often be counted toward the “reasonable number of attempts” required for a lemon law claim against the manufacturer.
What we’ll review next is how the original warranty and extended warranty may factor in to lemon law claims. Note in the examples when the problems first occur and then how the attorney pursues compensation for the consumer.
Examples of How Warranties May Work in Lemon Law Claims
These examples highlight lemon law-worthy issues that began during the original manufacturer’s warranty. They also depict variables that could occur when an extended warranty comes into play later.
Note: If your car is bought back, you’ll typically be reimbursed for your costs, though manufacturers usually deduct a standard ‘usage fee’ based on the mileage driven before the first repair attempt.
Example 1: Engine Knocking That Continued Despite Repairs
A man reported a persistent knocking sound in his truck’s engine while it was still covered by the factory warranty. The dealer performed a repair, but the knocking returned. After the original warranty expired, his third-party extended warranty covered two additional repair attempts, but the defect wasn’t fixed.
Feeling he had no good options left, the man contacted a lemon law attorney. The attorney used the full repair history to prove the defect originated under the manufacturer’s original warranty. When the manufacturer tried blaming the owner for abusing the vehicle, the man’s detailed records proved otherwise. The attorney successfully secured a replacement truck for the client since the manufacturer had already received its ‘reasonable number of repair attempts’ allowed under state lemon law.
So, while the truck wasn’t repaired under the extended warranty (which might appear to be a ‘fail’), those repair attempts counted towards the number the state allowed.
Are you dealing with a defective vehicle? Not sure if it’s a lemon? Contact Allen Stewart, P.C. now (866-440-2460) for a free consultation.
Example 2: Repeated Transmission Shifting Problems
A woman’s new car began having dangerous shifting issues during the original manufacturer’s warranty period. The dealer attempted repairs twice, but the problem returned. After the factory warranty ended, her third-party extended service contract paid for one more repair attempt. However, the transmission continued to slip badly.
The woman reached out to a lemon law attorney, who pursued a claim against the manufacturer. Because the serious defect had started under the original warranty and multiple repair attempts (including those under the extended plan) had not resolved it, the attorney negotiated a full buyback of the vehicle. The settlement also covered her out-of-pocket expenses, including rental cars and towing fees, plus the manufacturer paid all her legal fees.
It might look like a ‘fail’ that the car wasn’t repaired under the extended warranty, but again, those repairs helped meet the state’s requirement for repair attempts.
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What Other Types of ‘Fails’ Might Consumers Encounter?
Another example worth examining is this one below. The events leave the vehicle owner unsure what to do next until he hires a lemon law attorney.
Example 3: Deflecting Responsibility for a Transmission Shudder
A man bought a new SUV with a 3-year factory warranty and a separate 5-year extended service contract from a third party. In year two, the transmission began shuddering. The dealer attempted repairs twice under the original manufacturer’s warranty, but the problem returned each time.
By year four, now covered under the extended service contract, a third repair attempt also failed. The third-party provider (a company unrelated to the manufacturer) eventually refused to authorize a fourth repair, claiming the issue was “pre-existing” and capping their coverage (a seeming ‘fail’).
The vehicle owner felt confused and trapped, unsure where to turn next. He scheduled a free consultation with a lemon law attorney.
The attorney reviewed the full repair history and pursued a claim against the manufacturer under the state’s lemon law. By demonstrating that the serious defect had originated during the original factory warranty and that the vehicle had undergone multiple unsuccessful repair attempts, the attorney secured a full buyback of the defective SUV. The settlement also included compensation for the man’s out-of-pocket costs (towing, rental cars, and taxes) plus full payment of his legal fees.
How a Lemon Law Attorney Can Help You Gain Compensation?
It is not uncommon for problems to start under the original manufacturer’s warranty, potentially spill over to the extended warranty period, and then not be resolved or time out under state lemon law. With all the variables in play and how state laws can differ, you need the skill and expertise of an experienced lemon law attorney to protect your rights.
Lemon laws are confusing. Read our guide to the lemon law complaint process.
The attorney will know your state’s lemon law requirements regarding reporting timing and will review your documentation regarding the defect. The lawyer will bring in additional evidence to support the claim, including expert witnesses, evidence gathered from dealer-manufacturer internal communications (TSBs), National Highway Traffic Safety Administration (NHTSA) data, and more.
It’s key to preserve all your evidence along the way and take advantage of a lemon law attorney’s free consultation (866-440-2460). Let the attorney dig into your warranty situation and explain avenues open to you for pursuing compensation (which may also include the federal Magnuson-Moss Warranty Act).
Additional Benefit Provided By Your Lemon Law Attorney
Your lemon law attorney also will anticipate challenges by the manufacturer, which can take several forms, including the manufacturer blaming you for the defect. All your records proving you maintained the vehicle will create a paper trail that will help fight against the manufacturer’s potential claims of negligence on your part.
Allen Stewart, P.C. Provides Comprehensive Lemon Law Representation
Allen Stewart, P.C. provides expert representation for all types of lemon law claims. Our attorneys are well-known across the nation, having won hundreds of cases. As recognized lemon law lawyers in California, Texas, New York, and throughout the country, we aggressively fight for clients’ rights. We are not intimidated by manufacturers who may try to dismiss, reduce, evade, or otherwise minimize your claim.
You may wonder if you need an attorney. Please know that the manufacturer will defend its interests with its legal team. It is vital that you are represented by our experienced lemon law attorneys. Our initial consultation is free, and you don’t have to pay us to represent you. Because of ‘fee-shifting’ laws, the manufacturer is legally required to pay your attorney fees when you win your case.
Take advantage of our free consultation. Present your evidence to our attorneys, and should your claim be valid, we can represent you against the manufacturer. Call Allen Stewart, P.C. now (866-440-2460) or schedule your free case review online.
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