Does the Lemon Law Cover Used Cars?

A used car can be covered by a lemon law, but usually not by the same rules that cover a new one. Most state lemon laws are written for new vehicles. Used-car buyers still have real options, though. The original factory warranty may still be running. A handful of states have their own used-car laws. And federal warranty law, plus the FTC's Buyers Guide rule, sets ground rules every dealer has to follow.

This page walks through each of those in order. It's general information, not legal advice about your car.

Does the lemon law cover used cars?

Sometimes, and the answer turns on what warranty was in force when the problem started. Most state lemon laws are built around new vehicles and the manufacturer's new-vehicle warranty. Many of them still reach a used car if the defect appears during the protection period that started when the car was first sold new.

That means three questions decide most used-car cases:

1. Is the manufacturer's original warranty still in effect, and was the defect reported while it was?
2. Does your state have a separate used-car lemon law?
3. Did the seller give a written warranty, an implied warranty or a service contract?

If the answer to all three is no, the lemon law probably isn't your tool. Other laws, like fraud and deceptive-practices statutes, may still apply if the seller lied about the car.

When a used car is still under the manufacturer's warranty

A used car still under the factory warranty is the strongest used-car case. Federal law defines a "consumer" as the original buyer plus "any person to whom such product is transferred during the duration of an implied or written warranty" (15 U.S.C. §2301(3)). So a second owner can usually enforce the factory warranty that came with the car.

State lemon laws often follow the same pattern. Florida's definition of consumer includes anyone the vehicle is transferred to during its lemon law rights period, which runs 24 months from the original delivery (Fla. Stat. §681.102). Massachusetts uses similar language for new vehicles (G.L. c. 90, §7N½).

Watch the clock. Lemon law periods usually start on the day the car was first delivered to its first owner. If you bought a two-year-old car, much of that window may already be gone. Our deadlines page explains how these periods are usually counted, and your state page lists the period where you live.

States with separate used-car lemon laws

A few states make dealers give a written warranty on many used cars, with a refund if repairs fail. Here are three we checked in the statute text. Other states may have similar rules, so this isn't a complete list.

These laws go beyond repairs. In Massachusetts, if the dealer fails to fix the same defect in three attempts, or the car is out of service more than 10 business days for repair, the dealer must take the car back and refund the repurchase price, less 15 cents a mile for use (G.L. c. 90, §7N¼(3)). New York presumes the dealer had a fair chance to fix the car after three or more repairs of the same defect or 15 or more days out of service during the warranty (Gen. Bus. Law §198-b(c)). Minnesota treats a dealer that skips the required warranty as having given it anyway (Minn. Stat. §325F.662, subd. 5).

Implied warranties on used cars

An implied warranty is a promise the law reads into a sale, even if nobody wrote it down. The FTC describes the warranty of merchantability this way: the dealer promises the car "will do what it's supposed to do: it will run." A second type, fitness for a particular purpose, applies when you buy a car based on the dealer's advice that it suits a specific use, like towing.

Implied warranties come from state law, so their reach varies. Two federal points apply everywhere:

• They apply to merchants. The FTC notes that implied warranties on used goods apply "only when the seller is a merchant who deals in such goods." A private seller usually doesn't give one.
• Federal law limits disclaimers. That's covered under Magnuson-Moss below.

"As is" sales and the FTC Buyers Guide

Every dealer has to post an FTC Buyers Guide on each used car it offers for sale, and the Guide tells you whether the car comes "as is" or with a warranty (16 CFR §455.2). The rule applies to anyone who sold five or more used vehicles in the previous 12 months (16 CFR §455.1(d)(3)). It doesn't cover motorcycles (16 CFR §455.1(d)(1)).

The Guide shows one of three things:

• As Is, No Dealer Warranty. The FTC says this "means the dealer won't pay for any problems or needed repairs."
• Implied Warranties Only. The dealer makes no extra promises, but state implied warranties still apply.
• Dealer Warranty, Full or Limited. The Guide must list the covered systems, how long coverage lasts and what share of repair costs the dealer pays.

The Guide can also flag that the manufacturer's warranty still applies or that a manufacturer's used-vehicle warranty applies (16 CFR §455.2(b)(2)(v)).

Two rules give the Guide teeth. First, the final version of the Guide is part of your sales contract, and it "overrides any contrary provisions in the contract of sale" (16 CFR §455.3(b)). Second, dealers may not make oral or written statements that contradict it (16 CFR §455.4). Some states limit or ban "as is" sales, and where they do, the FTC rule doesn't give the dealer a right to sell "as is" (16 CFR §455.2(b)(1)(ii)).

Keep your copy of the Guide. If a salesperson promised a repair, the FTC advises getting it written on the Guide.

Magnuson-Moss and §2308: when a dealer can't say "as is"

The federal Magnuson-Moss Warranty Act blocks "as is" disclaimers in two situations. Under 15 U.S.C. §2308(a), no supplier may disclaim or modify an implied warranty if:

1. it gives you a written warranty on the car, or
2. at the time of sale, or within 90 days after, it sells you a service contract on the car.

A disclaimer made in violation of that rule is "ineffective for purposes of this chapter and State law" (§2308(c)). The FTC's Buyers Guide repeats the point in its service contract box: if you buy a service contract within 90 days, "implied warranties under your state's laws may give you additional rights."

There is one wrinkle. A dealer with a limited warranty may shorten implied warranties to the length of its written warranty, if the limit is reasonable, clearly worded and shown prominently (§2308(b)). It can't wipe them out.

Magnuson-Moss also lets a consumer sue for breach of a written warranty, implied warranty or service contract (15 U.S.C. §2310(d)). Our Magnuson-Moss page covers that in detail.

Questions about your vehicle's repair history?

Tell us what has happened with your vehicle. A member of our team will look at your dates and repair orders with you. Reaching out does not create an attorney-client relationship.

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Certified pre-owned warranties

A certified pre-owned (CPO) warranty is only as good as the company behind it. Some CPO programs are backed by the manufacturer. Others are a dealer's own label, and some are service contracts sold by a third party.

Here's how to sort them out:

• Look at the Buyers Guide. The "Manufacturer's Used Vehicle Warranty Applies" box points to a manufacturer program. "Other Used Vehicle Warranty Applies" points somewhere else (16 CFR §455.2(b)(2)(v)).
• Read the CPO document. Who is the warrantor? What does it cover, and for how long?
• Check whether you paid extra. A promise you paid separately for is usually a service contract, not a warranty.

A written CPO warranty from the manufacturer or dealer fits the federal definition of a written warranty (15 U.S.C. §2301(6)), so Magnuson-Moss applies to it. Whether your state lemon law reaches a CPO warranty depends on how that state defines the warranty it protects.

Service contracts ("extended warranties")

An extended warranty is usually a service contract, and the FTC says it "is not a warranty as defined by federal law," because you buy it separately. Service contracts are sold by manufacturers, dealers and independent companies, and many dealer-sold contracts are run by outside administrators.

A service contract still gives you rights:

• It keeps implied warranties alive if the dealer sold it to you at the sale or within 90 days (15 U.S.C. §2308(a)).
• You can sue a service contractor that fails to meet its obligations (15 U.S.C. §2310(d)(1)).
• It doesn't replace the factory warranty. A repair the factory warranty covers is still the manufacturer's job.

On its own, though, a service contract generally doesn't turn a used car into a lemon law case.

What to keep if your used car has problems

Good records decide most warranty disputes. Start a folder now with:

• the Buyers Guide, buyer's order and financing contract
• any written warranty, CPO document or service contract
• the manufacturer's warranty booklet, if the factory warranty is still running
• every repair order, with dates, mileage and the problem as you described it
• texts, emails and letters with the dealer or manufacturer
• the online listing and any vehicle history report you were shown

Our guide on how to document repair visits explains what to ask for at the service desk. To see whether your situation fits a lemon law claim, start with does my vehicle qualify.