Joanna Szabo  |  November 26, 2020

Category: Auto News

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Car that's a lemon breaks again

Many people buy a new car, truck or SUV because they don’t want to deal with the hassles that can come with owning an older model vehicle – check engine lights, strange noises, overheating, breakdowns. Sometimes though, new models have significant problems, too. Those are usually referred to as lemons.

Wisconsin, like every other state in the nation, has a lemon law that offers consumers some protection and remedy in the event they are unlucky enough to end up with a lemon.

Lemon laws vary from state to state. These laws protect consumers from new vehicles that continue to have the same problems even after multiple repair attempts, called “lemons.” Under these laws, vehicle manufacturers are required to repurchase a new vehicle if it is found to be seriously defective and the manufacturer cannot repair it within a given period of time.

Lemon laws have a few purposes. First and foremost, they help consumers by encouraging auto manufacturers to fix defects. Secondly, lemon laws create a system that helps alert manufacturers to potential widespread defects or quality issues in their vehicles. While lemon laws are determined at the state level, the common factors to determine a lemon include the number of miles driver, major defects, reasonable repair attempts, and number of days spent in the shop.

What is the Lemon Law in Wisconsin?

Generally speaking, the lemon law in Wisconsin says consumers who buy or lease a “lemon” are entitled to a refund or replacement from the manufacturer.

According to the Wisconsin Department of Transportation, if the vehicle was purchased, the lemon law guarantees the owner “a comparable replacement vehicle plus all collateral costs” or a refund. That said, the vehicle manufacturer has the right to choose to issue a refund even if the owner requests a replacement vehicle.

A refund, under the terms of the lemon law in Wisconsin, is “the full purchase price of the vehicle plus any sales tax, finance charge, amount paid by you at the point of sale and collateral costs, less a reasonable amount for mileage/use.”

For those who have leased what turns out to be a lemon, the law provides that they receive a refund of “all amounts paid under the written lease plus any sales tax and collateral costs, less a reasonable allowance for mileage/use.”

Lemon symbolizing a defectiv vehicleHow is a Vehicle Classified as a Lemon?

To be considered a lemon in Wisconsin, a vehicle – be it a car, truck, motorcycle, or motor home – must be no more than one year old, still under warranty, and have a defect that significantly affects its use, value or safety. The defect must either be one that the manufacturer or dealer did not or could not repair after four attempts, or the vehicle must have one or more defects that put it out of service for 30 or more days. The 30 days do not have to be consecutive for the vehicle to be deemed a lemon.

Lemon law in Wisconsin deems a vehicle out of service if its owner is prevented from driving it because it is in the possession of the manufacturer, lessor or authorized dealer for repairs or because the defect “substantially affects the use or safety of the vehicle and the manufacturer or dealer has attempted to repair on at least two occasions.”

A guide to the lemon law in Wisconsin published by the state Department of Transportation says that to be considered a lemon law defect, the flaw in question must “seriously affect the use, value or safety of your vehicle and must be covered by the warranty.” Problems with the vehicle that arise due to “abuse, neglect or unauthorized modification or alteration of the motor vehicle by a consumer” are not considered defects under the terms of the Wisconsin lemon law.

“An irritating rattle may not be ‘serious’ enough to make your car eligible for a Lemon Law claim,” the lemon law guide says. “Your vehicle stalling or not running might be.”

Which Vehicles Does the Lemon Law in Wisconsin Apply to?

The lemon law in Wisconsin applies to cars, trucks, motorcycles and motor homes that are purchased, leased or transferred to a consumer in Wisconsin, according to a summary of the law.

Heavy-duty vehicles with a gross weight of more than 10,000 pounds, such as trucks and busses, are also covered, but are “treated differently under the law,” Wisconsin’s  Department of Transportation says. “ The benefits of the lemon law can be forfeited for such vehicles if the owner enters into a negotiated written settlement with the manufacturer,” according to the lemon law guide notes.

Vehicles purchased in other states or delivered outside Wisconsin are not covered by the law. Neither are mopeds, semitrailers or trailers.

How Does the Lemon Law in Wisconsin Work?

Consumers who want to file a lemon law claim will do so directly with the vehicle manufacturer but must begin by filling out the Wisconsin Department of Transportation’s Motor Vehicle Lemon Law Notice and Nonconformity Report form. “This Lemon Law Notice includes important language required under the lemon law,” the department’s website says.

A copy of the form is available for downloading on the Wisconsin Department of Transportation website.

In addition to the form, owners of suspected lemons must send the manufacturer a letter detailing their experience with the vehicle and copies of all repair orders and documents from the authorized dealership that examined and attempted to fix it. Relevant records can include things like service records, communications with your dealer or manufacturer, phone records, and anything else that might help establish that your vehicle qualifies as a lemon under Wisconsin law.

The transportation department recommends those items be sent via certified mail. Information about where and how to address the package should be listed in the vehicle’s owner’s manual.

What is the Wisconsin Buyback Process?

If a consumer making a lemon law claim requests a refund, and the company agrees, the manufacturer has 30 days to give it, according to Consumer Affairs.

If the consumer requests a replacement vehicle, the manufacturer has 30 days to agree in writing or, if a comparable new vehicle cannot be located or delivered in time, provide a refund instead within 45 days.

In the case of heavy-duty vehicles, the manufacturer has 120 days to deliver a replacement or refund.

After the refund is issued, or the replacement vehicle delivered, the lemon must be returned.

What are Your Options if Your Car is Not Covered?

Manufacturers can deny lemon law claims. When this happens, consumers can try arbitration to settle their cases. Many automakers have established arbitration programs, and some are certified by Wisconsin’s Department of Transportation. A list is available online. If a certified program exists, consumers must use it first before taking their claim to court.

“If your manufacturer’s program is not certified, you do not have to use it. However, if you do use it, you might get a decision you like. You can reject any decision you don’t like,” the department’s lemon law guide says.

Consumers who have attempted arbitration in lemon law claims and were unsatisfied with the results can take their case to court.

Where Can You Seek Legal Help?

If you live in Wisconsin and your vehicle qualifies as a lemon under state law, you may be able to turn to litigation. Other states have lemon laws as well, so if you are in a similar position in a different state, you may also be able to pursue legal recourse under your state’s laws.

A qualified, professional attorney can offer advice and help protect a consumer’s rights as they navigate the lemon law in Wisconsin.

Filing a lawsuit can be a daunting prospect, so Top Class Actions can help to put consumers in touch with lawyers who specialize in lemon law litigation. Consulting an attorney can help you determine if you have a claim, navigate the complexities of litigation, and maximize your potential compensation.

Join a Free Lemon Law Defective Vehicle Investigation

You may qualify for this Lemon Law investigation under the following circumstances:

  • You purchased your vehicle new;
  • Your purchased your vehicle in 2018-2020;
  • Your vehicle is still under warranty;
  • You have taken your vehicle in for repair several times; and
  • It is still having the same problem.

(Note: Residents of North Carolina do not qualify for this investigation.)

See if you qualify by filling out the form on this page for a case evaluation by experienced Lemon Law lawyers or call (877) 289-0615.

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If you qualify, an attorney will contact you to discuss the details of your potential case at no charge to you.

PLEASE NOTE: If you want to participate in this investigation, it is imperative that you reply to the law firm if they call or email you. Failing to do so may result in you not getting signed up as a client or getting you dropped as a client.

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