Lemon Law

Used Car Warranty Problems? Know Your Rights Under Federal Law

Many consumers believe they have no protection when buying a used vehicle. That is not always true.

If your used car was sold with a written warranty — even a limited one — you may be protected under the Magnuson-Moss Warranty Act, a federal consumer protection law.


When Are Used Vehicles Covered?

Used vehicles may qualify for legal protection when:

  • They are sold with a manufacturer’s remaining factory warranty
  • They include a certified pre-owned (CPO) warranty
  • The dealer provides a written warranty
  • An extended service contract was purchased

If the vehicle was sold “as-is,” protections are more limited — but not always eliminated.


What Is the Magnuson-Moss Warranty Act?

The Magnuson-Moss Warranty Act is a federal law that requires manufacturers and warrantors to:

  • Honor written warranties
  • Repair defects within a reasonable number of attempts
  • Not mislead consumers about warranty coverage

If they fail to fix the vehicle, you may pursue compensation.

Importantly, if you win, the manufacturer must pay your attorney’s fees.


What Types of Defects Qualify?

Common used vehicle claims include:

  • Engine failure
  • Transmission defects
  • Electrical system failures
  • Persistent warning lights
  • Steering or suspension problems
  • Brake system defects

The key question is whether the defect substantially impairs the vehicle and remains after reasonable repair attempts.


What Compensation Is Available?

Depending on the case, you may recover:

  • Refund of repair costs
  • Diminished value compensation
  • Buyback of the vehicle
  • Attorney’s fees

You should not be forced to pay for repeated repairs on a vehicle still under warranty.


Don’t Assume You Have No Rights

Used car buyers often have stronger rights than they realize — especially when a written warranty exists.

If your dealership keeps attempting repairs without fixing the problem, federal law may protect you.

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