Lemon Law

What is the Michigan Lemon Law?

The New Motor Vehicle Warranty Act (MCL257.1401), also called the Michigan Lemon Law is an act that gives consumers powerful remedies when buying or leasing a defective vehicle.

The Michigan Lemon Law is a statute in which the purchaser of a NEW VEHICLE can force the manufacturer of the vehicle to replace or repurchase the vehicle if the consumer continues to experience problems with the vehicle after a specific number of repair attempts.

How Do I know if I qualify for the Michigan Lemon Law?

The Act covers all consumers whose NEW vehicle has a defect or condition that impairs the use or value of the vehicle. All new vehicles purchased by consumers in Michigan are subject to the Lemon Law. Under the Lemon Law the manufacturer must repair ANY defect that impairs the value of the vehicle. In order to determine if your vehicle qualifies for the Michigan Lemon Law you must determine the following:

Did you purchase your car new or was it still under warranty when you bought it ?
Was the vehicle purchased for personal use (not used for business)?
Did you make the manufacture aware of the problem within the first year of ownership ?
Has you vehicle been in the manufacturers “Factory Authorized Service Center” three or more times?

Has your Vehicle been in a “Factory Authorized Service Center” and “Out of Service” for 25 or more days within the first year of ownership?
Did you give notify the manufacturer in writing of a final attempt to let them fix your vehicle?

If you answered yes to the five questions above than your vehicle qualifies to the Michigan Lemon Law. If you did not answer yes to all five of these questions it may not be too late and you still may avail yourself of the Michigan Lemon Law.

Was your vehicle New or still under Warranty when you purchased it?
In Michigan the Lemon Law applies only to “NEW” vehicles. The biggest misconception is that the Lemon Law applies to used cars.

In rare situations a used car may qualify for the Michigan Lemon law. If a car is still subject to a manufacturers warranty when purchased, it is a “New Car”. This means that a used vehicle may still qualify for the Michigan Lemon Law. These situations are indeed very rare, but they do occur.
Was your vehicle purchased for personal use
The Michigan Lemon Law falls under what is commonly called “Consumer Protection Law”. In effect this means that vehicles that are bought as part of a company fleet or used in the course of business or that are written off on taxes as part of a business expense do not fall under the Lemon Law. Only those vehicles used for personal use qualify.
Did you make the manufacture aware of the problem within the first year of ownership?
New vehicles are under warranty. When a consumer has a problem with a new vehicle the first step most people take is to contact the dealership where it was bought and bring it in for service. Once you have brought the vehicle in for service you have satisfied the requirement of “Making the manufacturer aware of the problem”. As long as you have done so within the first year of ownership and there is a record of the repair the requirement is met. It is critical to obtain service records each and every time you bring your vehicle in for repairs.
Has your vehicle cal been in the manufactures authorized service center 3 or more times , Or been out of service and in the manufacturers repair facility for 25 or more days ?
One of the main difficulties in these types of cases is establishing that the defect was reported in a timely fashion and allowing the manufacturer a “last chance” to repair the vehicle. Under the Lemon Law statute the vehicle has been subject to a reasonable number of repair attempts when it has been in service four or more times for the same defect or for a total of thirty days during the first year of ownership.
Did you notify the manufacture in writing of a “Last Chance” to fix the vehicle?
When the vehicle has been in the repair shop three times for the same defect or condition or has been out of service for twenty five days and you suspect that you will need to bring it in for repairs again you should send the manufacture a “Final Demand Letter” AS stated above the main difficulty in these types of cases is establishing that the defect or condition was reported in a timely manner, and allowing the manufacturer a last chance to repair the vehicle. Under the statute, the vehicle has been the subject of a “reasonable number of repair attempts” when it has been in service four or more times for the same defect or condition or been out of service for thirty days within the first year of ownership. The consumer or his attorney must notify the manufacture, by certified mail, return receipt requested, of the defect if the vehicle has been in the shop three times for the same repair or been out of service for 25 days. When this is done it constitutes a “last chance” to properly repair the vehicle. The manufacturer then has five days to repair the condition. If they fail to respond to the letter or fail to correct the problem than you can file a civil suit under the Michigan Lemon Law.