May 30 2008
State to State Different Lemon Laws
Long ago consumers with defective vehicles had to beg manufacturers or dealers to help them with their problems. Those days are gone, as every state now has a lemon law on the books that protects consumers from the hassles of defective new vehicles. Consumers with problem cars or trucks can receive either a replacement vehicle or a refund of the purchase price.
When the first lemon laws were passed, virtually all new vehicles were sold to the end consumer. That is not necessarily the case any more.
There are many reasons to lease a vehicle instead of buying one: low down payments and low monthly payments, as well as knowing that you can simply be rid of the vehicle once it reaches a point where it might need regular maintenance. People want to drive a new vehicle all the time, and leasing allows that with a minimum of hassle. When the lease is up, you can just drive back to the dealership and give them the keys. That’s an oversimplification, of course, but that is pretty much how it works. When consumers realize that they cannot buy the vehicle for the low price advertised, they often decide to lease, as auto manufacturers often advertise low prices on television for leases.
Not all states cover leased vehicles under their lemon laws. One state that does not, as of this writing, is Arizona. Those who lease vehicles are also not covered under the Magnuson-Moss Warranty Act, a Federal law that offers consumer protection. Again, the court ruled that those who lease are not “owners”, and both the state law and the Federal law explicitly refer to owners.
Most states’ lemon laws do cover leased vehicles. If a person wants to lease a car, truck, or minivan would be wise to first check with their state’s Attorney General’s office to see if the vehicle they plan to lease is covered under that state’s defective vehicle statute. If not, you may be taking a significant risk when you sign a lease.