Understanding Indiana’s Lemon Law

Purchasing a vehicle is a significant investment and the last thing any car owner wants is to end up with a defective vehicle, commonly referred to as a “lemon.” Fortunately, Indiana’s Motor Vehicle Protection Act (the “Lemon Law”), provides crucial protections for consumers in such situations. Here’s a comprehensive guide on what Indiana’s Lemon Law entails and the steps you should take if you find yourself with a lemon.

Understanding Indiana’s Lemon Law

Indiana’s Lemon Law is designed to protect consumers who purchase or lease new vehicles that turn out to be defective. This law applies to cars and light trucks that are bought or leased for personal use from an Indiana dealer. The key criteria include:

• The vehicle must have been purchased or leased within the past 18 months; and
• The vehicle must have fewer than 18,000 miles at the time the defect is reported.

Steps to Take If You Buy a Lemon

If you suspect your vehicle is a lemon, follow these steps to ensure your rights are protected under Indiana’s Lemon Law:

   1. Report the Problem Promptly:

• You must report the defect within 18 months of initial ownership of the vehicle or before the vehicle reaches 18,000 miles, whichever comes first.

   2. Take the Vehicle for Repairs:

• Bring your vehicle to an authorized dealer for repair. Allow the dealer a reasonable number of attempts to fix the issue. A “reasonable number of attempts” is generally defined as at least four repair attempts or the vehicle being out of service for at least 30 business days due to repairs, with the problem persisting.

   3. Keep Detailed Records:

• Request and keep a copy of the written repair order every time you take your vehicle to the dealer for repair or examination. This documentation is crucial for proving your case if the issue is not resolved.

   4. Notify the Manufacturer:

• As specified in your owner’s manual or vehicle warranty, you may need to send written notice of the problem, along with copies of all repair orders, to the manufacturer. Follow the instructions provided in your vehicle’s documentation.

   5. Follow Dispute Procedures:

• If the manufacturer has an informal dispute procedure certified by the Attorney General, you must follow this process before filing a lawsuit under the Lemon Law. If no notice is required and there is no informal dispute procedure, you may proceed with filing a lawsuit.

   6. File a Lawsuit:

• If the manufacturer does not resolve your claim, you must file a lawsuit within two years from the date you first reported the problem to the dealer. If you win, you can recover all costs and attorneys’ fees.

Remedies for Replaced or Repurchased Vehicles

If your vehicle is replaced or repurchased under the Lemon Law, the manufacturer is required to obtain a new title with a brand or stamp indicating “Manufacturer Buyback-Disclosure on File.” This stamp or brand should remain on the vehicle’s title for the life of the vehicle. When a dealer sells a replaced or repurchased lemon for the first time, they must provide the buyer with:

• Written notice at the time of sale that the vehicle was repurchased or replaced under the Lemon Law; and
• A 12-month or 12,000-mile manufacturer’s warranty.

Failure to comply with these requirements can result in enforcement action by the Attorney General’s Office. However, the Lemon Law does not allow the Attorney General to represent consumers in seeking a refund or replacement vehicle. Because of this, it is very important to keep good, detailed records related to your vehicle purchases.

Summary

Indiana’s Lemon Law provides essential protections for consumers who end up with defective vehicles. By understanding your rights and following the proper procedures, you can ensure that you are adequately protected and compensated. Keep detailed records, adhere to the notification requirements, and don’t hesitate to seek legal recourse if necessary. For more information, contact the Indiana Attorney General’s Office, Consumer Protection Division at 800.382.5516 or visit www.IndianaConsumer.com.

This guide should help you to prepare to navigate the complexities of Indiana’s Lemon Law and protect your investment.

If you are having an issue with a new vehicle you have recently purchased or leased, call the attorneys at McNeelyLaw LLP at (317) 825-5110 to schedule a consult today.

This McNeelyLaw LLP publication should not be construed as legal advice or legal opinion of any specific facts or circumstances. The contents are intended for general informational purposes only, and you are urged to consult your own lawyer on any specific legal questions you may have concerning your situation.