Arizona Lemon Law Coverage For Used Vehicles

In this article, you will discover:

• The limitations of Arizona Lemon Law coverage for used vehicles.
• The downside of keeping a “Lemon” vehicle rather than seeking Arizona Lemon Law help.
• How a long history of defect repairs can negatively affect your vehicle’s value.

Arizona Lemon Law coverage for used vehicles isn’t great. Here’s why…

For basic Arizona Lemon Law coverage pertaining to manufacturer’s vehicle warranties (with the ability to seek a repurchase or new replacement vehicle), your vehicle’s defect or nonconformity repairs must be done under warranty within the first two years or 24,000 miles of ownership.

If your vehicle warranty repairs start after two years or 24,000 miles of ownership, those would not be subject to Arizona Lemon Law coverage although they may be covered under the federal Magnuson-Moss Warranty Act, which pertains to the entire duration of the vehicle’s warranty.

Technically speaking, a used vehicle that has less than 2 years or 24,000 miles of use when it is purchased would still be covered under the Arizona Lemon Law so long as the warranty repair history (too many repairs or too much time out of service for repair) for a substantial defect or condition occurs before the expiration of that time period.

Unfortunately, consumers who purchase a used vehicle with an expired manufacturer’s warranty, have very limited Arizona Lemon Law coverage under A.R.S. § 44-1267. Here’s what that entails:

There is a 15-day, 500-mile implied warranty of merchantability for all used cars in Arizona under A.R.S. § 44-1267. The implied warranty requires any repairs that have to be done within the first 15 days or 500 miles of ownership, be done at no more than a $25 charge to the consumer, otherwise the consumer may have a viable claim. A.R.S. § 44-1267 also has some labeling requirements on vehicles to notify consumers of the 15day/500 mile implied warranty.

If a vehicle is reacquired as a “Lemon,” meaning it is bought back or replaced by the manufacturer under the Lemon Law, there are additional Arizona Lemon Law coverages under A.R.S. § 44-1266 if the vehicle is resold to a consumer. These reacquired Lemon vehicles are generally sold by manufacturers at auction where dealers will buy the vehicles and then resell them to consumers.

Dealerships are allowed to sell reacquired Lemon vehicles under the law, but if they do, the dealers must provide written notification affixed to the vehicle and have the consumer sign a disclosure acknowledging the vehicle was previously reacquired by the manufacturer as a “Lemon.” If those requirements are violated, then the consumer has an Arizona Lemon Law claim that could be brought against the dealership.

If the vehicle’s manufacturer did not affix the reacquired Lemon notification to the vehicle in the first place, then a claim could be made against the manufacturer under A.R.S. § 44-1266.

Often times a consumer doesn’t discover that a previously reacquired Lemon vehicle was purchased until the vehicle is sold or traded out of. Due to that, we highly recommend that you demand to see the entire Carfax on any used vehicle prior to agreeing to purchase it.

That way, you can decline to make the purchase based on the vehicle being a reacquired Lemon. If you still decide to buy the vehicle, you can at least request that the price be lowered to account for the vehicle being labeled a Lemon.

Are There Downsides To My Vehicle Qualifying As A Lemon?

As long as the manufacturer reacquires your vehicle under the Arizona Lemon Law there are no downsides to having it determined to be a “Lemon.”

By reacquiring the defective vehicle, the manufacturer either provides you a Lemon Law Buyback, or replaces your vehicle with a brand-new vehicle that has a similar sticker price with you keeping the same loan terms if there is a loan balance remaining.

Moreover, when the manufacturer reacquires your “Lemon” vehicle, it becomes the company’s responsibility to deal with it including properly attaching written notification to the vehicle of its reacquired “Lemon” status.

On the other hand, if you have a Lemon vehicle and the manufacturer does not reacquire it (or at least provide cash compensation for the vehicle’s unreasonable repair history), the downside for you is the value of your vehicle will likely decrease.

In this day and age, it’s fairly easy to pull up a vehicle warranty repair history on Carfax. If you try to trade your vehicle in, a dealer can ding the vehicle’s trade-in value. Even in a private party sale, a potential buyer who sees the vehicle’s repair history probably won’t give you maximum value for it because the vehicle is potentially unreliable.

Because of that, it is a big financial mistake not to seek compensation for your “Lemon” vehicle.

For more information on the Arizona Lemon Law, a Free Lemon Law Evaluation is your next best step. Find out if your vehicle qualifies for Free Lemon Law Help by calling (480) 237-2744 today.