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Texas Lemon Law Summary

Texas

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Texas Occupations Code Title 14, §§ 2301.601 through 2301.613 and Texas Admin. Code Title 43 §§ 215.201 through 215.210

Motor vehicle covered under the Texas Lemon Law
The Texas Lemon Law covers every vehicle that

  • Is fully self propelled, has two or more wheels, and has as its primary purpose the transport of persons or property on a public highway
  • Is a fully self-propelled, titled vehicle that has two or more wheels and has as its primary purpose of off-road transportation of persons or property
  • Has an engine, transmission, or rear axle whether or not attached to a vehicle chassis that is manufactured for installation in a vehicle having as its primary purpose the transport of persons or property on a public highway and has a gross vehicle weight rating of more than 16,000 pounds; or
  • A towable recreational vehicle

Consumer covered under the Texas Lemon Law
The Texas Lemon Law covers

  • A person who purchases a motor vehicle at retail from a Texas dealer
  • A person who is entitled to enforce the terms of the manufacturer’s warranty
  • The lessor or lessee but not a sub-lessee who purchased or leased a motor vehicle from a Texas dealer or lessor
  • The transferee or assignee of a retail purchaser, lessor or lessee as described above, as long as the transferee or assignee is a resident of Texas and is entitled to enforce the terms of the manufacturer’s warranty

The Texas Lemon Law- Nonconformity defined

According to the Texas Lemon Law nonconformity is a defect or condition that

  • Substantially impairs the use or market value of the motor vehicle.
  • Creates a serious safety hazard. “Serious safety hazard” is defined as a life-threatening malfunction/nonconformity that
    • Substantially impedes a person’s ability to control or operate a motor vehicle for ordinary use or intended purposes
    • Creates a substantial risk of fire or explosion.
  • “Impairment of market value” is defined as a substantial loss in market value caused by a defect specific to the motor vehicle.

The Texas Lemon Law - Manufacturer’s obligation to repair
According to the Texas Lemon Law if a new motor vehicle does not conform to the express warranty of the manufacturer, converter, or distributor:

  • Must make the necessary repairs to conform the vehicle to the express warranty
  • If the consumer or the consumer’s agent reports the nonconformity to the manufacturer, converter, or distributor, or any of their agents or franchised dealers during the term of the express warranty the necessary repairs must be made regardless of whether the applicable warranty period has expired

The Texas Lemon Law - Manufacturer’s obligation to Repurchase or Replace
According to the Texas Lemon if the manufacturer, converter, or distributor is unable to conform to the applicable express warranty by repairing or correcting nonconformity after a reasonable number of attempts, the manufacturer, converter, or distributor must either replace or repurchase the motor vehicle.

The Texas Lemon Law - Criteria for reasonable number of Repair Attempts
The Texas Lemon Law presumes the criteria for reasonable number of repair attempts if:

The Texas Lemon Law - Manufacturer’s obligation to Repurchase or Replace
According to the Texas Lemon Law the manufacturer, converter, or distributor will be required to replace or repurchase a vehicle if:

The Texas Lemon Law - Refund for Purchased vehicle
According to the Texas Lemon Law refund consists of:

The Texas Lemon Law – Refund for Leased vehicle

According to the Texas Lemon Law refund to the lessee for the leased vehicle consists of:

The Texas Lemon Law - Replacement for Purchased vehicle
According to the Texas Lemon replacement is a comparable motor vehicle.

The Texas Lemon Law - Refund of sales tax for Purchased vehicle

According to the Texas Lemon Law the manufacturer refunds sales tax to the consumer. There is no provision in the Texas Lemon for the manufacturer to obtain a refund of sales tax from the state.

The Texas Lemon Law - Statute of limitations
According to the Texas Lemon Law a proceeding must be commenced within six months after the earlier of:

  • The same nonconformity continues to exist after being subject to repair four or more times by the manufacturer, converter, or distributor, or any of their agents or franchised dealers and:
    • 2 repair attempt were made within the first 12 months or 12,000 miles, whichever comes first, of vehicle ownership; and
    • 2 other repair attempts were made within the 12 months or 12,000 miles, whichever comes first, following the second repair attempt.
  • The same nonconformity creates a serious safety hazard and continues to exist after being subject to repair two or more times by the manufacturer, converter, or distributor, or any of their agents or franchised dealers and:
    • At least one repair attempt was made within the first 12 months or 12,000 miles, whichever comes first, of vehicle ownership; and
    • At least one more repair attempt was made within the 12 months or 12,000 miles, whichever comes first, immediately following the first repair attempt.
  • A nonconformity that substantially impairs the vehicle’s use or market value still exists; and
    • The vehicle is out of service for repair for a cumulative total of 30 or more days within the 24 months or 24,000 miles; and
    • At least 2 repair attempts were made within the first 12 months or 12,000 miles
    • The consumer or a person on behalf of the consumer mailed written notice of the alleged nonconformity or defect to the manufacturer, converter or distributor; and
    • The manufacturer, converter, or distributor has been given an opportunity to cure the alleged defect or nonconformity; and
    • The nonconformity continues to exist
    • The total purchase price of the vehicle
    • Sales taxes and title, registration and documentary fees, but not including the amount of any interest or finance charge or insurance premiums
    • Reasonable incidental costs resulting from loss of use of the motor vehicle because of the nonconformity or defect
    • Less a reasonable allowance for the consumer’s use of the vehicle (some manufacturers may use the formula provided by Title 16 Texas Administrative Code Section 107.8 to calculate the reasonable allowance, see http://autopedia.com/html/LemonLaw/Texas-TX-lemonlaw3.html ).
    • All lease payments previously paid by the lessee to the lessor under the terms of the lease
    • All sums previously paid to the lessor in connection with entering into the lease, including but not limited to any capitalized cost reduction, down payment, trade-in, or similar cost
    • Sales tax, license and registration fees, and other documentary fees, if applicable
    • Reasonable incidental costs resulting from loss of use of the motor vehicle because of the nonconformity or defect
    • Reasonable incidental costs resulting from loss of use of the motor vehicle because of the nonconformity or defect
    • Less a reasonable allowance for the consumer’s use of the vehicle (some manufacturers may use the formula provided by Title 16 Texas Administrative Code Section 107.8 to calculate the reasonable allowance, see http://autopedia.com/html/LemonLaw/Texas-TX-lemonlaw3.html ).
    • The expiration of the express warranty term
    • 24 months or 24,000 miles following the date of the vehicle’s original delivery to a consumer.