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Lemon Law Basics: Michigan Lemon Laws
Understanding Michigan Lemon Law
Who is covered under Michigan lemon law?
Michigan lemon law applies to new or used passenger vehicles, pickup trucks,
vans, and SUVs that are purchased or leased in Michigan, or by a Michigan
resident. The vehicles must come with a manufacturer's express warranty.
Other kinds of vehicles, such as motor homes and trucks, are not covered
by Michigan lemon law. If the consumer buys or leases more than ten vehicles
a year, the Michigan lemon law does not apply.
What are the terms of the Michigan lemon law?
Michigan lemon law says that if a consumer notifies the manufacturer that
the vehicle has a serious nonconformity within the warranty period or
within the first year of possession, the manufacturer must repair it.
If the nonconformity cannot be repaired after a reasonable number of attempts,
the manufacturer must repurchase or replace the vehicle. A serious nonconformity
exists when a defect that is covered by warranty hampers the use, value,
or safety of the vehicle. In order to be covered by Michigan lemon law,
the nonconformity cannot be the result of abuse, neglect, or modification
by the consumer.
According to Michigan lemon law, a reasonable number of repair attempts
is considered to be four unsuccessful tries to repair the same problem
within the first two years of possession, or thirty cumulative days when
the vehicle was out of commission for repair during the warranty period
or the first year of possession.
Filing a Michigan lemon law claim
If the consumer wishes to file a claim under Michigan lemon law, he must
give notice to the manufacturer in writing, via mail with return receipt.
This may be done after the third repair attempt or after the 25th day
that the vehicle was out of commission for repairs. The manufacturer then
has five days to complete a final repair attempt.
If the final attempt is unsuccessful, the consumer must try to resolve
the issue through the manufacturer's informal settlement process. If the
consumer is not satisfied by the settlement decision, or the manufacturer
does not implement the settlement in a timely manner, the Michigan lemon
law case may be brought before a judicial court.
What are the possible settlements under Michigan lemon law?
If the manufacturer repurchases a vehicle, the sum paid to the consumer
should include the vehicle's sale or lease price including trade-in, installed
options, and government charges like tax and registration, minus any promotional
discounts or rebates. Towing or vehicle rental costs that were incurred
as a result of the nonconformity should also be refunded. An offset for
usage of the vehicle and any damage to the vehicle by the consumer may
be deducted from this sum. According to Michigan lemon law, the usage
amount is calculated by dividing the number of miles on the vehicle by
100,000, and multiplying the result by the purchase or lease price. The
number of miles on the vehicle only pertains to the time before the nonconformity
was first reported, unless there are more than 25,000 miles on the vehicle.
In that case, all miles over 25,000 must also be included, unless the
nonconformity impaired the usage of the vehicle during this time, in which
case modifications to the mile count may be made.
Michigan lemon law states that if a leased vehicle is repurchased, the
lessor may not charge any early termination fees.
If a vehicle is replaced, the new vehicle must be comparable to the original
and must be acceptable to the consumer. If the original vehicle is secured,
the new vehicle must be accepted as security in its place. If this is
not possible, a repurchase must be made.
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