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Blog Post  Trouble with a Recently Purchased or Leased Car? Try Lemon Law Arbitration.

6/11/2026
  • Office of Consumer Affairs and Business Regulation
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Massachusetts established the original Lemon Law for newly purchased cars in 1983 and has since expanded it to cover leased and used cars as well as customized wheelchairs. Under the law, if a purchased vehicle has a major defect that impairs its use, safety, or value and cannot be repaired after a reasonable number of attempts, you are entitled to a full refund or a replacement vehicle. 

The Office of Consumer Affairs and Business Regulation (OCABR) oversees the law and offers a Lemon Law Arbitration program to assist consumers who are not finding a resolution to a major auto defect on their own. 

“We want more people to understand how the Lemon Law works and serves the public,” said Lemon Law Arbitration Program Coordinator Andrew Perrino. “Our arbitration program helps resolve disputes more quickly than going through the court system, but first, you need to qualify by meeting specific eligibility for new or used cars.” 

Consumer Protection Rights Under the Lemon Law

 The Massachusetts Lemon Law provides consumers important protections when a vehicle is eligible. Depending on the circumstances, consumers may be entitled to a refund if the defect cannot be corrected within a reasonable number of repair attempts. 

The law also places responsibilities on dealers and manufacturers that must honor applicable warranty obligations and make reasonable efforts to diagnose, and repair covered defects at no cost. When a qualifying vehicle cannot be repaired as required under law, consumers may apply for the Lemon Law Arbitration Program. 

If you are unable to resolve the issue directly with the dealer or manufacturer, Lemon Law arbitration may provide a faster alternative to court if your vehicle meets eligibility.

Arbitration Vehicle Eligibility

If your vehicle meets Lemon Law eligibility and the dealer will not refund your money or replace the car, you may apply for arbitration. The Arbitration Program applies to cars purchased from dealers only. Private party sales do not qualify. Eligible vehicles are:

  • New cars, motorcycles, vans, or trucks purchased or leased in Massachusetts from a dealer for personal or family purposes
    • Within the “term of protection” — one year or 15,000 miles of use from the date of original delivery, whichever is first
  • Used cars, vans, or trucks purchased from a Massachusetts dealer for personal or family purposes
    • Cost $700 or more  
    • Sold with less than 125,000 miles on the odometer at the time of sale 
    • Includes signed and dated Limited Used Vehicle Warranty disclosure describing your rights under the Lemon Law. 
    • Used motorcycles and commercial vehicles are not eligible. 

Be sure to visit mass.gov/LemonLaw to review all requirements before applying for arbitration.

Arbitration Process 

In arbitration, you and the car dealer present evidence about the condition of the vehicle to an impartial arbitrator who is assigned to resolve the dispute.   

The arbitrator will hear both sides of the case and will generally issue a formal decision within 45 days of acceptance of a request for arbitration. If the arbitrator determines that your vehicle meets the Lemon Law standards:

  • You will be awarded the full purchase price of the vehicle (minus the use allowance and the amount of any previous settlement from the manufacturer).
  • The car’s manufacturer must repurchase the vehicle, or file an appeal to the arbitrator’s decision, within 21 days of the decision.

The arbitrator cannot:

  • order the manufacturer to make a partial refund  
  • attempt additional repairs  
  • extend the terms of the express warranty

Late payment of awards or frivolous appeals can result in a judge awarding you double damages. 

If the arbitrator decides that your vehicle is not a "lemon," there will be no award, although you may have rights to different remedies under other laws. If you are interested in learning more about OCABR’s Lemon Law Arbitration Program, information and applications are available online.

  • Office of Consumer Affairs and Business Regulation

    The Office of Consumer Affairs and Business Regulation protects and empowers consumers through advocacy and education, and ensures a fair playing field for the Massachusetts businesses its agencies regulate.
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