Lemon Law Basics: Iowa Lemon Laws
Understanding Iowa Lemon Law
Who is covered under Iowa lemon law?
Iowa lemon law covers consumers who buy or lease vehicles in Iowa, or
who buy vehicles in other states but reside in Iowa. The consumer can
be an individual or a company. Used vehicles are also covered by Iowa
lemon law, but motorcycles, motor homes, and vehicles with a gross vehicle
weight of 10,000 pounds or more are excluded.
What is covered under Iowa lemon law?
Iowa lemon law states that a manufacturer must repair defects that prevent
the vehicle from conforming to its warranty. The nonconformity must be
reported during the lemon rights period, which ends when the vehicle's
express written warranty expires, 24 months after the consumer has taken
possession of the vehicle, or after 24,000 miles, whichever comes first.
If the nonconformity is serious and cannot be repaired, the manufacturer
must replace or repurchase the vehicle. Nonconformities do not fall under
Iowa lemon law if caused by neglect, abuse, or modification by anyone
other than the manufacturer or service agent.
When does Iowa lemon law go into effect?
Before a claim can be filed under Iowa lemon law, the manufacturer must
have a reasonable chance to repair the nonconformity. This is considered
to be three unsuccessful attempts at repair, or one unsuccessful attempt
to repair a life-threatening nonconformity, or twenty cumulative days
during which the car was out of commission. After this, the consumer must
give the manufacturer notice in writing of intent to invoke the Iowa lemon
law. The manufacturer then has a final attempt to repair the nonconformity,
which must be scheduled within ten days of receipt of notice and completed
within ten days after the vehicle was delivered.
How do I go about filing a claim under Iowa lemon law?
If a manufacturer has an informal settlement board in place to deal with
lemon law complaints, the consumer must use that board before filing a
claim in court. This applies only if the attorney general has certified
the board and the manufacturer supplied the customer with written material
about Iowa lemon law at the time of purchase. The claim must be filed
within one year of the end of the lemon rights period.
After attempting settlement, the consumer can file a claim in court if
the board takes an unduly long time to return a decision, if the manufacturer
does not comply with the decision in a timely manner, or if the consumer
is dissatisfied with the findings.
What settlement can I expect under Iowa lemon law?
According to Iowa lemon law, the manufacturer must either repurchase or
replace your vehicle if a serious defect cannot be repaired. In the case
of repurchase of an owned vehicle, the manufacturer must pay a sum equal
to the full contract price of the vehicle including any trade-in. Collateral
costs including all taxes and title charges, installed options, and finance
charges, and incidental costs including any expenses that occurred because
of the defect, such as towing charges or alternative transportation are
also included. This sum is offset by an amount covering the consumer's
use of the vehicle. The offset is calculated by dividing the number of
miles on the vehicle at the end of the manufacturer's attempts to repair
by 120,000, and multiplying the result by the vehicle's purchase price.
If a leased vehicle is repurchased, the manufacturer must pay the lessor
105% of the vehicle's purchase price minus payments and deposits received
by the lessee, plus taxes, finance charges, and installed options. Any
fees paid in relation to the lease, such as insurance premiums and use
taxes, should also be included.
The lessee will receive a sum that includes all deposits and lease payments
made to the lessor, taxes and title charges, and incidental costs. No
early termination fee can be charged for ending the lease. The lessee
must subtract an offset for reasonable usage from this sum, as calculated
above.
If a replacement vehicle is offered, it must be similar to the original
vehicle. The manufacturer must deliver the new vehicle within 40 days
of receiving payment for the consumer's usage of the vehicle, as outlined
above. The manufacturer must also pay all additional charges incurred
by the new vehicle and incidental costs that were caused by the nonconformity
in the original vehicle.
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