According to Arizona used car lemon laws, private sale vehicles do not qualify for protection under this automobile consumer law, as it was created to protect buyers from qualifying dealers. Despite not being able to make any claims under the lemon car laws, a buyer of a vehicle through a private sale has options regarding claims involving false information, fraud, problems with titles, and any valid warranty from a manufacturer.
Generally, Arizona’s lemon law does not protect consumers in normal purchases of used vehicles from individuals. The lemon law in the state only covers used vehicles bought from eligible used car dealers and not private parties. The Arizona Attorney General has made it clear that sales between private parties do not fall under the jurisdiction of the Arizona Used Car Lemon Law.
Why Private Sales Are Usually Excluded
The used car lemon law section of Arizona statute grants people who purchase a car from a dealer an express warranty of merchantability of limited duration. Namely, for the first 15 days after the vehicle is delivered or the first 500 miles, whichever comes first, the car must function appropriately and, as far as possible, be free from defects that significantly affect its normal use for transportation on roads. The customer must give the dealer an opportunity to make repairs to the car, and they must allow the dealer to fix the vehicle. The customer is responsible for a contribution of up to $25 toward the cost of the first two qualifying repairs.
The requirements apply specifically to a used motor vehicle dealer, which is defined in Arizona as an individual or establishment that has sold or offered for sale four or more used vehicles during the 12 months preceding the given sale, with some statutory exemptions. Thus, a private person who sells a vehicle does not fall under that definition and therefore is not required to provide the customer with the 15 day or 500 mile warranty.
A private seller typically has no obligation under the Lemon Law to fix an automobile, accept its return, or refund the purchase price simply because a defect appears shortly after a vehicle is sold. In addition, Arizona law does not provide a three day cooling off period for car sales.
An Important Exception: Remaining Manufacturer Warranty
Even after a private sale, it is possible to retain some amount of lemon law protection under Arizona law. The term “consumer” under the new automobile law is quite broad and includes someone who receives the automobile as a transfer from the seller during the period when the relevant warranty is effective. Thus, a person who purchases a relatively new auto from the seller may still have rights against the manufacturer, provided that the factory warranty transfers to him or her and the requirements are fulfilled.
For those protections to be beneficial, the defect must breach an appropriate express warranty and be reported within the shorter of the warranty coverage period, 2 years, or 24,000 miles following delivery of the vehicle. If a defect significantly affects the utility and value of the vehicle and is not resolved by a single corrective repair, a manufacturer, but not a private seller, may be responsible for replacing or buying back the vehicle.
Other Claims Against a Private Seller
The lemon law does not always have to apply for the buyer to have remedies available. A written contract, express representation about the vehicle condition, intentional deception, odometer fraud, title fraud, or materially false statements may qualify a claim under contract law, fraud, or consumer protection law. Although an as-is sale limits arguments related to implied warranties, it does not always protect the seller when he or she intentionally misrepresents or conceals material facts.
The buyer needs to keep the advertisement, text messages, bill of sale, inspection reports, repair estimates, vehicle history records, and evidence of every claim by the seller. Since private sale disputes are usually determined by the circumstances of each case, and a buyer may suffer considerable losses, the buyer should contact a consumer lawyer in Arizona as soon as possible.
