Texas
What is the Texas DMV arbitration process for lemon law claims?
Prior to filing with the DMV, we recommend you seek an attorney to try to resolve your case through a direct case with a manufacturer first. We have heard horror stories about DMV processes taking 6 months or even a year. We try to get results in far less time than that. If we are unsuccessful, then it may be time to go to the DMV. That process includes filing a complaint, negotiating with a manufacturer, and ultimately a hearing with a DMV Hearing Examiner who can order a refund, a replacement, or that the vehicle be repaired. When necessary, we will go through these processes; but our strong preference is to work directly with the manufacturer to get a more expeditious result. (However, in some circumstances such as when the vehicle is approximately 2 years old or has 24,000 miles on it, Statutes of Limitations may come into play necessitating that you should file a case with the DMV more quickly to protect your Lemon Law rights).
Does the Texas lemon law cover used vehicles?
The Texas Lemon Law does not cover used vehicles. However, there are several other breach of contract and breach of warranty theories that can be used to bring a claim, including the Federal Magnuson-Moss Act (which is commonly referred to as the “Federal Lemon Law”), or a violation under a Consumer Sales Practices Act or Deceptive Trade Practices Act. Just because a vehicle is used does not mean you have no rights. The cases tend to be less valuable as the strongest law available, the State Lemon Law, does not apply. But we have gotten compensation on used vehicles as well many times before.
What is the “30-day test” under Texas lemon law?
To prevail in a Lemon Law case, we must prove that the vehicle has warrantable defects and that the defects “substantially” impair the vehicle’s use or value, and that the vehicle was out of service for an “unreasonable” time period. If the proven defects substantially impair the use or value, having the vehicle out of service for 30 days gives a legal presumption that it was out of service for an unreasonable time period. This can be a very potent argument in court, and can certainly increase the value of a case. We regularly have people who misunderstand the law and think that 30 days out of service or four visits for the same problem automatically qualify them for a buyback. Although that is not true, these facts are certainly helpful to increase the chances of a repurchase.