Approximately 1% of the new cars sold in the United States have warranty problems that are so severe, that even after repeated attempts they cannot be repaired. For these types of problems, the lemon laws in each of the states may offer some relief. This article will discuss the Texas Lemon Law.
The Texas Lemon Law (“TLL”) applies to new vehicles that are still under the original manufacturer’s warranty, are less than 24 months old and have less than 24,000 miles on them, whichever occurs sooner. This law covers cars, trucks, vans, motorcycles all-terrain vehicles, motor homes, and towable campers. The Texas Lemon Law does not cover used vehicles. The law is administered by the Texas Department of Motor Vehicles.
The TLL covers only defects that substantially impairs the use, market value or safety of the vehicle AND is an item that is covered by the manufacturers warranty. Not all defects meet this requirement.
You must report the defect to the manufacturer or dealer (it is strongly recommended that this be by written notice). You must give the dealer or manufacturer several attempts to remedy the defect. Generally, this will mean a minimum of 4 attempts within 24 months or 24,000 miles, whichever comes first (“24/24,000”) for the same defect. If the defect is a life-threatening malfunction, such as brake failure, steering malfunction, electrical short circuits, then failure to remedy the problem after 2 attempts in 24 /24,000 will meet the standard. Additionally, if the car is out of service for 30 or more days in 24/24,000 this will trigger the remedies set forth in the TLL.
If after giving notice of a defect and allowing the manufacturer or dealer the opportunity to correct the defect as outlined in the above paragraph, the defect still exists, then and only then can you file a lemon law complaint with the Texas Department of Motor Vehicles (DMV). The time limit to file such a complaint is 24 months from when you took possession of the vehicle or 24,000 miles, whichever occurs sooner. The filing fee is $35.00. The DMV will then schedule an administrative hearing to evaluate the claim. If they find the complaint is valid, they can order a remedy, that may include:
- Order the manufacturer to pay you a refund, being the purchase price minus a fee for the amount that you used the car, based on a formula the DMV has formulated.
- Order the manufacturer to replace your vehicle with an equivalent model, minus the mileage used.
- Order the manufacturer to fix the vehicle defects.
While occasionally a lemon law complaint may be resolved in 30 days, it is more likely to take 3 to 6 months. If the consumer is unsatisfied with the DMV’s findings, or remedies offered, only then may one be allowed to file a civil lawsuit against the manufacturer. In order to file a lawsuit concerning a vehicle defect that is covered under the new car warranty, you must first go through the entire DMV lemon law procedure.
The above is only a brief overview of the Texas Lemon Law. The law itself is complex, filled with many regulations, requirements, as well as loopholes. If you have unresolved defect complaints with a new car under the manufacturers warranty, contact the Law Office of Elliott Klein, PLLC for an evaluation.