By Buying a new car should feel exciting and stress-free. But what happens if your shiny new vehicle spends more time in the repair shop than on the road? That’s where the Texas Lemon Law comes in.
This law is designed to protect Texas consumers who unknowingly purchase vehicles with persistent defects, commonly called “lemons.”
Irrespective of whether you bought or leased a car, motorcycle, truck, or RV in Texas, it becomes very important for everyone to understand how this law works, as it could save you from ongoing frustration, financial losses, and safety risks.
In this article, I will explain:
- What is Lemon Law Texas?
- When does this law apply?
- How can the lemon law help you in Texas?
Additionally, I will also provide you with a step-by-step guide on how to apply or file a claim under this law. So, if these are some of the things that you want to know, keep on reading this blog till the end…
What Is Lemon Law Texas?
The Texas Lemon Law, found under Texas Occupations Code, Chapter 2301, Subchapter M, protects consumers who purchase or lease new vehicles that develop significant defects.
A car is considered a “lemon” if:
- It has a serious defect that affects its use, market value, or safety.
- The defect continues despite reasonable repair attempts.
The Texas Department of Motor Vehicles (TxDMV) states that the “Texas Lemon Law is a state law administered by the Texas Department of Motor Vehicles that helps consumers who buy or lease new motor vehicles and have repeated problems getting their vehicles properly repaired under the manufacturer’s original warranty.”
The types of vehicles that are covered under the Lemon Law Texas include:
- New cars, trucks, motorcycles, motor homes, and ATVs.
- Certain leased vehicles.
However, this law does not usually cover used cars unless they’re still under the original manufacturer’s warranty.
When Does The Texas Lemon Law Apply?
The law sets specific criteria for when a vehicle qualifies as a lemon. Consumers must meet one of the following “tests” within the first 24 months or 24,000 miles (whichever comes first):
- Four Times Test: The manufacturer/dealer attempted to repair the defect 4 or more times without success.
- 30-Day Test: The vehicle was out of service for 30 or more days due to repairs.
- Serious Safety Hazard Test: A defect that could cause death or serious injury has been subject to 2 failed repair attempts.
Important: You must file a complaint within 6 months after the warranty expires OR within 24 months/24,000 miles.
How Does The Texas Lemon Law Help You?
If your vehicle qualifies as a lemon, you may be entitled to:
- Vehicle Replacement: A comparable new vehicle at no additional cost.
- Repurchase/Refund: The manufacturer must refund the purchase price (minus a reasonable allowance for your use of the vehicle).
- Repairs at Manufacturer’s Expense: Defect correction without cost to you.
These remedies prevent consumers from being stuck with an unsafe, unreliable car that drains their finances.
Texas Lemon Law vs. Federal Lemon Law (Magnuson-Moss Warranty Act)
Consumers often confuse the Texas Lemon Law with the federal Magnuson-Moss Warranty Act. Knowing both laws can help consumers maximize recovery.
Here’s a quick comparison that you should take a look at:
| Feature | Texas Lemon Law | Federal Lemon Law (Magnuson-Moss Act) |
| Coverage | New vehicles (some leased/under warranty) | Vehicles with written warranties (new or used) |
| Filing Process | Must go through TxDMV | Lawsuit in state/federal court |
| Remedies | Repurchase, replacement, repairs | Damages, attorney’s fees, repairs |
| Time Limits | 24 months/24,000 miles + 6 months | Varies under federal warranty terms |
Lemon Law Texas: What Is The Filing Process?
The relief under the Lemon Law is a form of support provided to consumers who qualify for it. The procedure is straightforward and manageable, and has steps such as:
1. File A Complaint
Firstly, a consumer can file a complaint under the Lemon Law along with a $35 fee with the Texas Department of Motor Vehicles and give a notice of the complaint to the manufacturer, with the last opportunity to fix the defect.
Additionally, if you want the quickest handling of your complaint, you should utilize the Motor Vehicle Dealer Online Complaint System.
2. Review And Mediation
The complaint is checked by the administrative staff of the Lemon Law Section and the assigned TxDMV staff case advisor for completeness of the complaint and eligibility for statutory relief.
Additionally, there will also be an attempt to resolve the complaint through mediation between the parties. When the issue is not solved by mediation, the matter will be referred to a hearing with an assigned hearing examiner, where both sides will be able to present their case.
3. Hearing
Thirdly, in the process of filing for lemon law in Texas comes a hearing. Within 60 days from the end of the hearing, the hearing examiner will send a final written decision on the issue to the parties; and
4. Decision And Appeal
At any time, any party may ask for another decision by submitting a motion for reconsideration to the TxDMV.
In case the motion fails to satisfy the complaining party, he or she can still take the matter to the court of law by filing an appeal in the district court of Travis County, Texas.
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