Indiana Lemon Laws

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Lemon Law Basics: Indiana Lemon Laws

Understanding Indiana Lemon Law

Who is covered under Indiana lemon law?
Indiana lemon law covers consumers who buy or lease new or used vehicles in the state of Indiana. The vehicle must also be registered in Indiana unless the consumer not an Indiana resident. Vehicles with a gross vehicle weight of 10,000 pounds or less are covered, as long as they are intended for use on public highways and they require registration before they can be used. Motorcycles, snowmobiles, off-road vehicles, farm or road equipment, mopeds, and trailers are excluded.

What is covered under Indiana lemon law?
Indiana lemon law states that the manufacturer must repair any defect which falls under the express warranty and which impairs the vehicle's use, safety, or value. The defect may not be caused by abuse, neglect, or unauthorized modification by the buyer. In order to fall under Indiana lemon law, the defect must be reported within the earlier of 18 months or 18,000 miles after the consumer accepted delivery of the vehicle.

If the defect cannot be repaired, the manufacturer must repurchase or replace the vehicle. According to Indiana lemon law, the manufacturer must be given a reasonable chance to repair the nonconformity before these remedies go into effect. A reasonable chance is considered to be four unsuccessful attempts to repair the same problem or thirty cumulative business days when the car is out of commission for repairs.

What must I do to invoke Indiana lemon law?
The consumer must notify the manufacturer in writing of the intent to use Indiana lemon law, assuming that manufacturer has included information regarding the lemon law in the owner's manual or the warranty information. This information must include the name and address to which notifications should be sent. If the manufacturer has an informal settlement process that conforms to Indiana law, the consumer must attempt to use this process.

What are the specifics of the remedies offered under Indiana lemon law?
According to Indiana lemon law, if an owned vehicle is repurchased, the manufacturer must pay a sum that includes 105% of the full vehicle contract price, the unused portion of the registration fee and excise tax, plus any towing or car rental fees incurred as a result of the nonconformity. A reasonable allowance for use of the vehicle is subtracted from this sum. The allowance is calculated by dividing the number of miles on the vehicle at the time of acceptance by the manufacturer by 100,000 and multiplying the total by the contract price.

If a leased vehicle is repurchased, the lessor receives a payment that includes 105% of the contract price of the vehicle, and the fees paid to obtain the lease, any insurance paid for the lessee, and any sales tax. The deposit and lease payments paid by the lessee are subtracted from this amount. The lessee receives a refund of his deposit and lease payments plus any towing and rental fees incurred as a result of the nonconformity. A reasonable allowance for usage, as calculated above, is subtracted from this amount.

If the vehicle is replaced, the new vehicle must have a comparable value. The manufacturer must also pay the fees for registration transfer and sales tax for the new vehicle, as well as any towing or rental vehicle costs incurred because of the nonconformity. No usage allowance applies to replacement vehicle.