Can I Return a Leased Car If It Has Problems?

Leasing a vehicle offers financial flexibility and the opportunity to drive a new car every few years. However, when issues arise, lessees often wonder if they can return their vehicle. The answer depends on the lease terms, state lemon laws, and severity of the defect(s).

Can You Return a Leased Car With Problems?

If your leased vehicle experiences ongoing issues, your local lemon laws may require the manufacturer to refund you or replace it. Typically, warranties only cover repairs. And lessees must allow the manufacturer multiple repair attempts before they can take the next step.

But if your car’s problems persist after two or more repair attempts, it should qualify as a “lemon.” This entitles you to legal remedies such as a refund, replacement vehicle, or financial compensation. The details of the law vary from state to state. So, feel free to reach out to our team to learn whether your lease qualifies for a return.

Understanding Your Lease Terms

Before taking legal action, review your lease agreement carefully. Certain provisions may impact your ability to return the vehicle, including:

The Manufacturer’s Warranty

Most leased vehicles are covered under the manufacturer’s warranty, meaning repair costs should not fall on the lessee.

Repair Requirements

Lease agreements typically require lessees to use authorized service centers for repairs.

Early Termination Clauses

Some leases allow for early termination but often include financial penalties unless the issue qualifies under lemon law protections.

Wear-and-Tear Policies

Lease agreements often include clauses about acceptable wear and tear. Excessive damage or mechanical failures due to negligence might not qualify for legal remedies.

Gap Insurance Coverage

Some leases include gap insurance, which can help cover financial liability if the vehicle must be returned early due to a defect that qualifies under lemon laws.

After reviewing the terms of your lease, you should have a better understanding of what your next steps should be. And if you have a lemon, our team is standing by to help you collect what you’re owed.

Lemon Laws and Leased Vehicles

State lemon laws apply to leased vehicles as well as purchased ones. These laws hold manufacturers accountable for vehicles with substantial defects that persist after a reasonable number of repair attempts.

To qualify for lemon law protections, your leased vehicle generally must:

  • Have a defect that significantly impairs its use, safety, or value
  • Have undergone multiple unsuccessful repair attempts OR be out of service for a specific number of days due to repairs (varies by state)

In addition to state lemon laws, the Magnuson-Moss Warranty Act provides federal warranty protections. Like lemon laws, the act provides consumers with a course of action when manufacturers fail to honor their warranties.

This law provides the same protection to leased vehicles as it does to purchased ones. Thus, even if your local lemon law won’t cover the issues with your lease, the federal law might. For example, the Magnuson-Moss Warranty Act allows you to file claims long after the lemon law coverage period expires in most states.

What To Do If You Think Your Leased Vehicle Is a Lemon

If you believe your leased vehicle qualifies as a lemon, follow these steps:

  1. Document Everything: Maintain detailed records of all repair attempts, service invoices, and communications with the dealership or manufacturer.
  2. Follow Repair Protocols: Make sure all repairs are conducted at an authorized service center, as specified in your lease agreement.
  3. Notify the Manufacturer: Some states require you to notify manufacturers in writing of your intention to file a claim. Our firm can do so on your behalf.
  4. Consult a Lemon Law Attorney: If the manufacturer refuses to resolve the issue, a knowledgeable attorney can explain your legal options and help you take action.

It’s in your best interest to act as soon as you think you have a lemon. So, touch base with us today if you have a leased vehicle with a defect the manufacturer has failed to fix.

How Our Lemon Law Lawyers Can Help

Lemon law claims can be complex, particularly when dealing with leased vehicles. However, the experienced lemon law attorneys at Krohn & Moss make the process easy. We:

  • Assess your lease agreement and state laws to determine eligibility
  • Handle negotiations and communications with the manufacturer
  • Represent you in arbitration or legal proceedings if necessary
  • Help you secure a refund, replacement vehicle, or appropriate financial compensation

If your lease has persistent problems, you may have legal options under the state or federal lemon law. So, you should consult our lemon law attorneys to explore your options.

Contact Krohn & Moss, Ltd. today for a free case review. We’ll let you know whether you have a strong case. And, if you do, we’ll handle everything to get you the compensation you’re owed.

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