What is a lemon car?
A "lemon" is a term for a car with a significant defect or malfunction that makes it unsafe to drive, although the exact definition can vary from state to state. Examples of defects include non-working or faulty brakes, and problems with the overall engine, transmission, or lights.
Explore Progressive Answers' auto editorial guidelines to find out why you can trust the car insurance information you find here.
How can you tell if your car is a lemon?
If you bought your car from a dealership and they can't repair it after a reasonable number of attempts, your car may be deemed a lemon under many state lemon laws. A lemon car, whether it's new or used, often has one or more defects such as a completely dead engine, damaged transmission, defective steering, and faulty brakes.
How to avoid buying a lemon car
Research before purchasing a used car
Read reviews to ensure the model vehicle you're interested in is reliable. The Federal Trade Commission requires that dealers provide a Buyer's Guide for each vehicle they sell, including used cars. This guide includes the dealer's contact information, whether the car has a warranty or is being sold "as is," and access to a vehicle history report. Read the history report, which should list collision, flood, fire, or other significant damage to the car.
Pay for an independent mechanical inspection
The Buyer's Guide and history report won't necessarily show all the problems, so an inspection by a certified mechanic can uncover any problems. You can also check manufacturer recalls and technical service bulletins for the vehicle model, and make sure any recall service was completed.
Check the vehicle yourself
Inspect the exterior for damage, mismatched parts, and significant repair indications. Ensure the hood, doors, trunk or hatch, and windows close and the seals are working. Check the interior for missing or broken parts, warning lights, frayed or stretched seatbelts, and car water damage signs like a mildew smell and stained upholstery.
When the engine is cool, look under the hood for corrosion, wet areas, and signs that there was overheating in the past. Check the fluids to make sure they're the correct colors, consistencies, and levels. Anything out of the norm could be an indication that something is amiss.
Learn more about what to look for when buying a used car.
Know your state's lemon laws
Existing state lemon laws vary and typically complement federal law, requiring that the dealer refund you or replace the vehicle if repeated repairs during the warranty period don't correct the problem. Few states offer legal protection for buying a lemon car once the warranty expires.
At the federal level, the Magnuson Moss Warranty Federal Trade Commission Improvements Act set standards for new and used car warranty practices. The law states that if multiple attempts to repair a vehicle under warranty fail, the consumer must be compensated.
Is there a 30-day warranty on used cars?
Used car warranty periods can differ by the dealership, manufacturer, and state where the dealer operates. Some dealerships may allow an exchange within a certain number of days, while others don't.
What can you do if you bought a lemon car?
Contact the dealer
If the vehicle breaks down right away, contact the dealer—even if the car has no warranty or service agreement. If the dealership refuses to repair it, you have several options. For a vehicle from a franchised dealer, you can request mediation through the Automotive Consumer Action Program, which the National Automobile Dealers Association coordinates. You could also ask a dispute resolution organization for help.
Some dealerships allow for a cooling-off period that they include as part of a contract. However, canceling a contract and returning a recently purchased car can be difficult.
Send a certified letter to the manufacturer
Explain the problem, and include any documentation and communication you've had with the dealer. This could help speed up the repair process. Another option is to report the dealership to the department of motor vehicles for selling a car that needed repair right away.
Contact an attorney
Filing a suit in a small claims court may resolve the problem. As a last resort, you can find an attorney specializing in lemon law through the National Association of Consumer Advocates. You may also request assistance from your state's Consumer Protection Office.
Get the right coverage for your car with Progressive
Current Progressive customers
You can log in or call 1-866-749-7436 to check on your coverages.
New Progressive customers
Quote auto insurance online or call 1-866-749-7436 to insure your car.
Quote car insurance online or give us a call
Learn more about car insurance policies.
