The Arizona lemon law provides protection to consumers who purchase defective new or used automobiles for which the manufacturer or dealer is not able to fix the problem within the applicable time frame. Depending on the vehicle and facts, the consumer may be entitled to receive repairs, a new automobile, a refund, or reimbursement for certain legal costs.
Arizona lemon law refers to a set of laws that provide protection to consumers regarding defective automobiles.
Different regulations apply to new cars with regard to manufacturer warranties and to used cars bought from used motor vehicle dealers, and not every vehicle defect qualifies for a refund.
A number of different factors, such as the nature of the defect, when it occurs, whether it is repaired, who sells the car, and what type of vehicle is sold, must be taken into account.
New-Vehicle Protection
To qualify for coverage under the new car warranty, a consumer must report that the vehicle does not conform to the manufacturer’s express warranty within the shorter of the warranty period, two years, or 24,000 miles after the vehicle is first delivered. Once the consumer reports the applicable problem in a timely manner, the manufacturer must make the appropriate warranty repairs, whether or not they occur after the warranty period ends.
The most effective remedies apply when the defect diminishes the consumer’s use of the motor vehicle as well as its market value and cannot be repaired after a reasonable number of repair attempts. In such a situation, the manufacturer must either replace the motor vehicle or accept it back and refund the entire purchase price and any charge incurred in the process of acquiring the vehicle, less a reasonable allowance for use.
The manufacturer is entitled to deduct a fair amount for the consumer’s use of the vehicle before the first written defect report is made and during the time when the vehicle is still usable. The refund is distributed between the consumer and the lienholder according to their financial share in the transaction.
Arizona establishes a legal assumption that a reasonable number of repair attempts has occurred when either the same defect has been subject to repair four times or more and continues to exist, or when the vehicle has been at the repair shop for a total of 30 days or more. However, the consumer must send a direct written communication to the manufacturer and give it an opportunity to resolve the problem before relying on this assumption.
The manufacturer may argue that the claim is invalid because the defect does not materially affect the use of the vehicle or its market value or is due to misuse, carelessness, or unauthorized alterations. The customer must also use the manufacturer’s informal dispute resolution procedures, if applicable, before bringing the claim for a replacement or refund.
A lawsuit should usually be instituted within 6 months after the earlier expiration of the warranty or the two-year or 24,000-mile period. The prevailing customer may recover reasonable expenses and attorney fees.
Used-Vehicle Protection
The state of Arizona, in addition to the express warranty, grants a limited implied warranty for used cars bought from used motor vehicle dealers. Generally, the car must function safely and be substantially free of defects that significantly limit its ordinary use for highway transportation for 15 days or 500 miles from delivery, whichever comes first.
A buyer is required to inform the dealer and give it a chance to correct the defect. Typically, the buyer is responsible for half of the repair costs for the first two repairs necessary to bring the vehicle into compliance with the warranty, but not more than $25 each. The protection does not apply to damage caused after the sale due to abuse, neglect, lack of proper maintenance, racing, or any other similar activities. A dealer can deny coverage only for a particular defect that has been specifically disclosed in accordance with the statutory procedure.
The protections that apply to the sale of used vehicles usually pertain only to transactions made by dealers and not between private sellers and purchasers. Moreover, certain vehicles are exempt from protection, which include vehicles weighing over 10,000 pounds declared gross weight as well as those sold at public auction. Those consumers must make sure that they keep proof such as contracts, warranties, repair orders, emails, mileage records, notices, etc.
