Texas Lemon Law: What New-Car Buyers Should Know

The short answer

If a new vehicle you bought or leased in Texas keeps coming back to the shop for the same serious defect, the Texas Lemon Law may get it repurchased, replaced, or repaired by the manufacturer. The Texas Department of Motor Vehicles' Lemon Law page says the defect has to be covered by the manufacturer's written warranty, reported during the warranty, given a reasonable number of repair attempts, and still substantially impair the vehicle's use or value or create a serious safety hazard. You also have to give the manufacturer written notice and a chance to fix it. A complaint must be filed within six months after the earliest of the warranty ending, 24 months after purchase, or 24,000 miles after delivery, and the filing fee is $35.

What TxDMV says (opened for this article)

What's covered. New cars, trucks, vans, motorcycles, ATVs, motor homes, towable RVs, and neighborhood electric vehicles with a defect covered by the manufacturer's written warranty. TxDMV says demonstrators that have never been titled count as new. Repossessed vehicles aren't covered, and neither are minor issues like rattles or radio static.

Used vehicles. TxDMV says a used vehicle may get repair assistance under Texas warranty-performance law if it's still under the manufacturer's original warranty (not an extended service contract), or if the defect started and was reported while that warranty was in effect. Only new vehicles qualify for a refund or replacement.

The repair-attempt tests. TxDMV presumes a reasonable number of attempts if you pass one of these within the first 24 months or 24,000 miles, whichever comes first:

• Four-times test: four repair visits for the same defect, still not fixed.
• Serious safety-hazard test: two repair visits for a life-threatening malfunction, still not fixed.
• 30-day test: out of service for repair a total of 30 days or more (loaner days don't count), with a substantial defect remaining.

If you win. A repurchase covers the purchase price, including taxes, title, and license fees, minus a usage deduction based on mileage. TxDMV says it doesn't include interest paid on the vehicle. A replacement is a comparable vehicle minus mileage used, or the order can be a repair with reimbursement of out-of-pocket warranty repair costs.

The process. File the complaint with the $35 fee, notify the manufacturer, and TxDMV staff will try mediation first. If it isn't resolved, a hearing examiner decides, with a written decision within 60 days after the hearing closes. TxDMV's Lemon Law Section can be reached at (888) 368-4689.

How to protect yourself before you need it

TxDMV's own tips, in plain terms:

1. Read your warranty so you know what the manufacturer covers. If you're weighing extra coverage, our warranties vs service contracts post explains the difference.

2. Get the problem written on every repair order, and confirm it before you leave.

3. Keep a log of a recurring problem with dates, times, and where it happened.

4. Keep every repair order together.

5. Check for recalls and service bulletins. TxDMV points owners to NHTSA for recall checks.

Buying used? A clean title and an independent inspection still matter most (independent inspection before you buy).

How I help

I'm Steven Wilson, Sales and Social Media & Marketing Manager at Kramer Autoplex. I help people in Houston and East Texas get financed with good credit, bad credit, thin credit, or no credit by shopping each application across a wide lender network, including lenders that work with damaged or limited credit. Same-day answers on where you stand are typical, not a guarantee of approval. The first step is name plus phone or email, about 20 seconds, with no credit check yet. The full application, which does involve a credit check, comes after. Live lot inventory is on the site, and free delivery is available anywhere in Texas.

I'm not a lawyer, and this isn't legal advice. If you think you have a lemon, call TxDMV's Lemon Law Section or an attorney promptly, because the deadlines are strict.

Bottom line

The Texas Lemon Law covers new vehicles with warranty defects that repeated repairs haven't fixed, judged by the four-times, safety-hazard, or 30-day tests in the first 24 months or 24,000 miles. Keep your repair orders, send the manufacturer written notice, and file within six months of the earliest deadline.

See what you qualify for: Start here. Name and phone or email first, with no credit check on that step.