Lemon Law Basics: Texas Lemon Laws
Summary of Texas Lemon Law
What vehicles are covered under Texas lemon law?
Texas lemon law covers self-propelled vehicles with at least two wheels
that are intended for off-road transportation or for use on public roads.
Engines, rear axles, and transmissions of vehicles with a gross vehicle
weight of 16,000 pounds or more are also covered by Texas lemon law. Leased
vehicles and vehicle converters are included, as are used vehicles if
the manufacturer's warranty still applies.
What protections do I have under Texas lemon law?
Texas lemon law says that if a consumer reports a serious defect which
prevents the vehicle from conforming to its warranty to the manufacturer
within the warranty period, the manufacturer must repair the nonconformity
even if the repairs extend outside of the warranty period. A serious nonconformity
negatively affects the vehicle's use or value, or presents a significant
safety hazard which could threaten the consumer's life or cause a fire
hazard while operating the vehicle. The manufacturer is not liable under
Texas lemon law if the nonconformity is the result of neglect or modification
by the consumer.
If the manufacturer is unable to repair the nonconformity within a reasonable
number of attempts, the vehicle must be repurchased or replaced.
What steps must occur before seeking settlement under the Texas lemon
law?
Texas lemon law presumes that the manufacturer has had a reasonable chance
to repair the nonconformity after four or more unsuccessful attempts to
repair the same nonconformity (two of which must be performed within the
first year or 12,000 miles), or after the second unsuccessful attempt
to repair a nonconformity which causes a significant safety hazard (one
of which must be performed within the first year or 12,000 miles), or
after the vehicle has been out of commission for repairs for at least
30 calendar days in the first two years or 24,000 miles.
This presumption does not apply unless the manufacturer has received
notice in writing of the defect and has had at least one attempt to repair
the nonconformity.
Filing a claim under Texas lemon law
Before making a Texas lemon law claim in the judiciary system, the consumer
must first attempt to resolve the problem using a state arbitration board.
All claims must be filed within 6 months of the expiration of the warranty
period or 6 months following the first two years or 24,000 miles of vehicle
possession, whichever comes first.
What are the settlement details under Texas lemon law?
If an owned vehicle is repurchased under Texas lemon law, the manufacturer
must pay a sum which includes the full purchase price, sales tax, and
title and registration fees, as well as costs directly related to the
nonconformity. An offset for vehicle usage is subtracted from this sum.
The offset is calculated by dividing the number of miles on the vehicle
before the first report of the nonconformity by 120,000 and multiplying
the result by the purchase price, then adding half of the result of dividing
the number of miles on the vehicle after the report of nonconformity divided
by 120,000 and multiplied by the purchase price.
If a leased vehicle is repurchased under Texas lemon law, the manufacturer
must pay the lessee a sum which includes all payments and deposits made
on the lease, sales tax, tags, and registration costs, and any costs incurred
as a direct result of the nonconformity. An offset for use may be subtracted
from this sum, as calculated above.
According to Texas lemon law, the manufacturer must pay the lessor a
sum which includes 105% of the full purchase price, tax, tags, and fees,
and any amounts paid in connection with the lease. The payments and deposits
received from the lessee are subtracted from this amount.
If a vehicle is replaced under Texas lemon law, the new vehicle must
be comparable to the original. Incidental costs directly related to the
nonconformity must also be paid to the consumer, and an offset for vehicle
usage applies.
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