Guide to New and Leased Car Lemon Law

Under the Massachusetts Lemon Law, the manufacturer has a responsibility to fix any defects that arise during the term of protection. If the manufacturer fails to fix the defect after 3 or more attempts, or the vehicle is out of service for more than 15 business days, you must give the manufacturer one final opportunity to remedy the situation. If after seven days from receiving notice of this final opportunity, the vehicle is still not fixed, you may have a right to return the vehicle to the manufacturer at purchase price. You may receive compensation for your new car, motorcycle, van, or truck if you bought it in Massachusetts from a licensed dealer and it has at least one defect that substantially impairs its use, market value, or safety. The vehicle must meet the eligibility requirements below.

You can pursue compensation under the Lemon Law by dealing directly with the manufacturer. If your attempts to receive compensation aren’t successful, Lemon Law arbitration is available through the Office of Consumer Affairs and Business Regulation (OCABR).

Vehicle Eligibility:

• New cars, motorcycles, vans, or trucks purchased or leased in Massachusetts from a dealer for personal or family purposes
• Vehicles within the “term of protection” — one year or 15,000 miles of use from the date of original delivery, whichever is first

New and leased car Lemon Law Eligibility: 

• If your car is eligible, you must be able to demonstrate specifically how the use, safety, or market value is substantially impaired by the defect
  • To prove the market value impairment, you must show that your vehicle is worth at least 10 percent less than it would be without the defect
  • TIP: One way to do this is by having your car appraised. 

A minimum of three repair attempts

• You must allow the dealer where you purchased the car, or a  service center that the manufacturer authorizes a minimum of three repair attempts for the same defect.
• If your car is out of service for 15 or more business days during repair attempts, the requirement is met, even if three repair attempts were not made.
• If the problem is not fixed after three or more repair attempts or the vehicle has been out of service by reason of repair within one year or 15,000 miles of the original date of delivery of the car — whichever comes first — then you can contact the manufacturer to give them a final opportunity to fix the situation.

Final repair attempt

• If the defect continues after the dealer or manufacturer has made at least three repair attempts or your car is out of service for 15 or more business days during repair attempts, you must give the manufacturer one final chance to fix the defect, not to exceed seven business days.
• The 7-day period begins when the manufacturer knows or should know that the repair requirements have been met or exceeded.  
• Send a letter and email if possible notifying the manufacturer that you have made reasonable repair attempts.
  • You can send the letter after the term of protection has ended.
• TIP: It is recommended that you send your notice by certified mail (return receipt requested), regular mail, and email to the manufacturer’s regional office.
  • Keep copies of all documents.

Repurchase or Replacement for New Cars

Replacement for a purchased vehicle

• The manufacturer may offer you a replacement vehicle.
  • A new “term of protection” starts from the date of delivery of the replacement car.
• The manufacturer must reimburse you for the following costs:
  • Transfer of registration fees
  • Sales tax resulting from the replacement
  • Towing or rental charges resulting from the defect
• If you had financed your car through the manufacturer and you accept a replacement car, you don’t have to enter into any refinancing agreement that would create financial obligations beyond those in the original agreement.
• TIP: The manufacturer cannot force you to accept and pay the difference for a replacement car that is more expensive than the car you are trying to replace.

Refund for a purchased vehicle

• If you're offered a refund for a vehicle you purchased, you will receive the full contract price of the car, including all credits and allowances for any trade-in vehicle.
• A reasonable allowance for the amount you used the car for will be deducted based on the car’s purchase price and the miles you drove the car during the time you owned it.

• The manufacturer must reimburse you for the following costs:
  • Sales tax
  • Registration fees
  • Finance charges
  • Dealer-added options
  • Towing or rental charges resulting from the defect
  • Unused portion of an extended warranty
  • Unused portion of credit insurance

Buyback for Leased Cars

Refund for a leased vehicle

• At the end of the seven business days, if the substantial defect has not been fixed you have the right to request a refund.
• Alternatively, the manufacturer may offer to replace the vehicle instead of refunding your money.
  • TIP: The manufacturer cannot force you to accept a replacement instead of a refund.
• If you're offered a refund for your leased car, you’ll receive the total lease payments you made under the agreement.  
• A reasonable allowance for use will be deducted based on the total payments made divided by 100,000 and then multiplied by the mileage.