Texas Lemon Laws: What Drivers Need to Know

If you bought or leased a new vehicle and it came with a serious issue that seems impossible to fix, Texas Lemon Law might come in handy. Lemon laws attempt to protect consumers when the vehicle they purchased has a manufacturing defect.

In Texas, a “lemon” is a vehicle that is under the original manufacturer’s warranty and has a serious problem that the manufacturer or dealer can’t fix. While most of the time “lemons” are new vehicles, in Texas a “lemon” may be a used car, as long as it’s still under the original warranty.

Car insurance won’t cover manufacturing defects. However, if you get into a car accident while driving your lemon, having car insurance coverage may help you cover the damage you cause third parties, damage done to your car in a crash, and events such as theft or weather disasters.

Agencia de Seguros de Accesso, LLC (A Abana) can help you find a car insurance option in Texas if you’re driving a lemon, want wider coverage than just the state minimum, or just want more peace of mind.

What is a lemon car?

Let’s see in more detail what a lemon car is in Texas. According to the Texas Department of Motor Vehicles, your car has to meet all of the following criteria to be considered a lemon:

• Makes it unsafe to drive
• Hurts its market value considerably
• Makes it hard for you to control or operate

What is the lemon law in Texas for used cars?

Texas Lemon Law mostly applies to new, purchased, or leased vehicles. However, your used car may be protected under the state's Lemon Law if it’s still under the manufacturer’s original warranty.
Additionally, your used car may qualify for repair assistance if you report the defect to the manufacturer or dealer before the warranty expires, and the defect continues to exist. In this case, only repairs would be covered, not refunds or replacements.
Just like a new vehicle, a used car may be a lemon if the manufacturing defect greatly affects its safety, use, or market value, according to the Texas “Rights of Vehicle Owners.”

Alternative protections for used car buyers

The Magnuson-Moss Warranty Act is a federal law. Together with the Texas Lemon Laws, they are designed to protect Texas vehicle buyers. Ways in which this act may help Texas car buyers include:
1. If the manufacturer’s warranty is still active, but you’ve missed the Lemon Law deadline, which is six months after whichever of these comes first:

• Two years after you purchased the vehicle
• The car reaches 24,000 miles

2. If you win a case under this act, the manufacturer is required to pay the attorney's fees.
Besides these protection laws, check if any dealer warranties or service contracts apply to your vehicle issues.
If you buy a used car from a dealer, it should come with a Buyer's Guide sticker, which is a yellow label required by the Federal Trade Commission (FTC). It lists information such as:

• Any major mechanical problems
• If the vehicle has a warranty, and who provides it
• If any major systems (like the engine or transmission) are covered by a warranty

If you believe a dealer sold you a car with false claims, hidden issues, false advertising, or has breached a warranty, you may also be protected by the Texas Deceptive Trade Practices Act (DTPA).
 

What to do if you think you bought a lemon in Texas

If you believe you purchased a lemon, here are the steps you can take:
1. Notify the dealer or manufacturer as soon as you can. Send a written notice by certified mail as well, since this will help you later if you need to take legal recourse.
2. Document all issues and repairs. Keep a documented record of any repair attempts made by the dealer or manufacturer, invoices, and service records. Remember that when it comes to lemons, the manufacturer or dealer (not your private mechanic) has to attempt to repair defects.
3. If the issue continues after several repair attempts, you may file a complaint with the Texas DMV.
4. If you believe your car is a lemon, based on the criteria listed above, and the issue persists, you may consult with an attorney specializing in Texas Lemon Laws. An attorney may help you find out whether your car is a lemon and whether a lawsuit is the right path for you.
 

Tips to avoid buying a lemon

Drivers should consider these precautions before buying a vehicle:

• Get a pre-purchase inspection from a trusted mechanic. A professional may be able to spot defects that you may miss.
• Ask for a history report. A report can show any previous owners, potential issues, service records, mileage records, etc.
• Buy or lease a car from a reputable dealer. Check what their return policies are and read customer reviews.
• Familiarize yourself with any warranties the car comes with and any return or claim deadlines.

Having proper auto insurance

As you can see, Texas Lemon Laws are there to help consumers when they purchase a defective car. While car insurance won’t cover this problem, it can help with other common issues drivers face. A full coverage policy may help with the high costs of accident repairs, damages, theft, or other covered events such as floods or fires.
A Abana has been helping drivers find affordable car insurance options for almost 30 years. To get a free quote, visit one of our 17 Texas locations to speak with our Spanish-bilingual agents, call us at 214-764-8868, or get a free auto insurance quote online.

Disclaimer: ​
This material is for general informational purposes only. The products, services, and discounts referenced herein are not available in all states or from all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all cases, the actual language of the policy contract prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions, and exclusions may apply.