If you bought or leased a new vehicle in Texas and it keeps returning to the dealership for the same serious problem, the Texas Lemon Law may provide a remedy.
The Texas Lemon Law is administered by the Texas Department of Motor Vehicles, or TxDMV. It is designed to help consumers with qualifying new vehicles that manufacturers or authorized dealers cannot properly repair under the manufacturer’s original warranty.
Depending on the facts, TxDMV can order the manufacturer to repurchase, replace, or repair a qualifying vehicle.
What Vehicles Does the Texas Lemon Law Cover?
Texas covers qualifying new:
- Cars
- Trucks
- Vans
- Motorcycles
- All-terrain vehicles
- Motor homes
- Towable recreational vehicles
- Neighborhood electric vehicles
Untitled demonstrator vehicles can also qualify as new vehicles.
TxDMV says the law does not cover repossessed vehicles, boats, non-travel trailers, or farm equipment.
What Makes a Vehicle a Lemon in Texas?
TxDMV lists six basic conditions. Generally, the vehicle must:
- Have a substantial manufacturing defect.
- Have a defect covered by the manufacturer’s written warranty.
- Have the defect reported during the warranty term.
- Receive a reasonable number of repair attempts.
- Have the manufacturer receive written notice and at least one opportunity to cure the defect.
- Continue to have a defect that substantially impairs use or market value or creates a serious safety hazard.
A minor rattle or occasional radio static generally will not qualify merely because it is annoying.
More substantial problems may involve the engine, transmission, steering, brakes, electrical system, EV battery, charging equipment, stalling, loss of acceleration, or other major vehicle systems.
How Many Repair Attempts Are Required?
Texas uses three important tests.
Four-Times Test
The vehicle is taken to the dealership four times for the same defect within the first 24 months or 24,000 miles, whichever occurs first, and the defect remains unrepaired.
Serious Safety-Hazard Test
A qualifying serious safety hazard receives two repair attempts during the first 24 months or 24,000 miles, whichever occurs first, and remains unrepaired.
TxDMV describes a serious safety hazard as a life-threatening malfunction that substantially interferes with normal vehicle control or operation or creates a substantial risk of fire or explosion.
30-Day Test
The vehicle is out of service for warranty repairs for 30 total days or more during the first 24 months or 24,000 miles and a substantial defect still exists.
Importantly, periods when the consumer was provided a comparable loaner vehicle do not count toward Texas’s 30-day test.
Do You Have to Notify the Manufacturer?
Yes.
Texas specifically requires the consumer to give the manufacturer written notice of the defect and at least one opportunity to cure it.
TxDMV recommends certified mail.
Keep a copy of the letter and proof of delivery.
How Long Do You Have to File?
Texas has an unusually specific filing deadline.
A Lemon Law complaint must be filed within six months following the earliest of:
- Expiration of the express warranty;
- 24 months after purchase; or
- 24,000 miles after delivery, except for certain TRVs.
This is why consumers should not simply continue scheduling repair after repair without checking the deadline.
What Can You Receive?
TxDMV can order:
Repurchase
The manufacturer buys back the qualifying new vehicle for the purchase price, including taxes, title, and license fees, minus the legally calculated vehicle-use amount. Interest paid on the vehicle is not included in TxDMV’s stated refund calculation.
Replacement
The manufacturer provides a comparable vehicle acceptable to the consumer, subject to the applicable mileage adjustment. The consumer pays for upgrades.
Repair
The manufacturer may be ordered to correct the defect. Certain out-of-pocket expenses for repairs that should have been covered under warranty may also be reimbursed.
How Do You File?
TxDMV currently requires a $35 filing fee when seeking replacement or repurchase.
TxDMV reviews the complaint, attempts mediation, and, if necessary, refers the matter to an administrative hearing. Consumers are not required to have attorneys at these hearings.
Keep Your Repair Records
Save every:
- Repair order
- Purchase or lease contract
- Warranty document
- Manufacturer communication
- Loaner agreement
- Towing record
- Photo or video of the problem
A strong repair timeline can make a Texas Lemon Law claim much easier to evaluate.
If your vehicle repeatedly experiences substantial warranty problems, consider having the records reviewed by a Texas Lemon Law lawyer before additional mileage or time affects your options.
This article provides general information and is not legal advice.
