Yes, a dealer can technically sell a car that meets the legal definition of a "lemon," but there are significant legal restrictions and consequences, especially concerning new vehicles. The term "lemon" legally refers to a new vehicle with a substantial defect covered by the manufacturer's warranty that the manufacturer or its authorized dealers have been unable to repair after a reasonable number of attempts. All 50 states and Washington D.C. have Lemon Laws that protect consumers in these situations, often requiring the manufacturer to buy back or replace the vehicle.
The situation is more nuanced with used cars. While federal laws like the Magnuson-Moss Warranty Act govern implied warranties, there is no single federal "lemon law" for used cars. However, many states have specific used car lemon laws or require dealers to disclose a vehicle's lemon law buyback status. Selling a car without disclosing that it was repurchased under a state's lemon law is illegal.
Key Factors to Consider:
- New vs. Used: Protections are strongest for new cars. Used car safeguards vary dramatically by state.
- Disclosure Requirements: Dealers are legally obligated to disclose if a car is a "lemon law buyback" or has a branded title (e.g., salvage, flood). Failure to do so is fraud.
- "As-Is" Sales: For used cars without a warranty, sold "as-is," the dealer's responsibility is minimized, but they still cannot commit fraud by hiding known, major defects.
If you suspect you've purchased a lemon, document all repair attempts and contact your state's Attorney General office or a consumer protection attorney. The table below outlines sample state disclosure requirements for lemon law buybacks.
| State | Lemon Law Buyback Disclosure Requirement | Typical Warranty Requirement for Used Cars |
|---|
| California | Mandatory, must be in writing on the sales document. | 30-day/1,000-mile implied warranty (unless sold "as-is" by a licensed dealer). |
| Texas | Must provide a written disclosure statement before sale. | 30-day/1,000-mile warranty for cars under 125,000 miles. |
| Florida | Must disclose prior lemon law repurchase status clearly and conspicuously. | No state-mandated warranty for used cars sold "as-is". |
| New York | Branded title required; must disclose the manufacturer's buyback. | 30-day/1,000-mile warranty for cars with over 100,000 miles. |
| Illinois | Dealer must disclose the vehicle's lemon law repurchase status orally and in writing. | 15-day/500-mile powertrain warranty for cars under 150,000 miles. |
