Auto lemon law misconceptions and myths

A few things you ought to know about buying a car, and a few things you think you do know...and are wrong about.

More below.

Lemon laws no substitute for good, solid knowledge of facts

Buying an automobile is an expensive, time consuming, complicated process. Most people hate it because, unlike other commodities, the pricing of new cars is a bit suspicious. You can go to Wal-Mart for a television, and the price is right on the shelf. But if you go to a dealership and see a price on the car you’d like, you may or may not have to pay that price. And you may have to haggle with one or more salespeople, and put up with stories about how the sales manager “won’t approve” the price the salesperson just gave you. 

And once you buy it and agree to spend the next five years paying for it, you worry about what might happen if something goes wrong. If you buy that TV from Wal-Mart, you can just take it back for a refund if something goes wrong. With the new car, you’re just stuck. That’s what brought about lemon laws in the 1980’s and all states now have some version of them. Those lemon laws are effective. But knowing you’re protected after you buy the car isn’t good enough, especially if you find, through lack of knowledge, that you ended up unprotected due to your own misinformation.

Here are a few common misconceptions about lemon laws and buying new vehicles in general.

Used cars are covered under auto lemon laws.

Not true. These laws are designed to cover new vehicles only. There are Federal laws that may cover used vehicles if they are still under warranty, particularly for certified used cars, but the lemon laws do not apply.

If you purchase a new car, you may return it within three days for a refund.

Generally not true. While some states have grace periods regarding contracts of certain types, these do not apply to new car purchases. As a rule, once you drive it off the lot, it’s yours. For this reason, you should test drive the very car you intend to buy if purchasing a new one and you should have a mechanic examine any used car you are thinking about buying. It’s better to be safe than sorry.The dealer must inform you if a used car has been in an accident.

If buying a used car, you should certainly inquire if the vehicle has been in an accident. Many states have strict regulation regarding the sale of used vehicles with frame damage, so you should always ask. And any reputable dealer will answer your questions honestly. There is nothing, however, that requires a dealer to voluntarily share that information with you. What you don’t know can hurt you, so be sure to ask.

If you have a warranty of any type, you are protected.

Not true. A warranty without service to back it up is worthless. A warranty is only a promise from someone to stand behind their product. If they fail to do so, refuse to do so, or simply go out of business, you are out of luck.

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