How Does Compensation Work When I Have A Lemon Vehicle, And What Is Legally Covered And Excluded?

Key Takeaways:

• It is usually possible to argue for out-of-pocket repair cost reimbursement for a Lemon vehicle, so long as those charged for repairs were made at a shop authorized by the manufacturer and should have been under warranty.
• The time limit for a consumer to bring an Arizona Lemon Law claim is six months after you hit 2 years or 24,000 miles from the date you acquired the vehicle—whichever comes first.
• There is no official time limit for manufacturers to either replace or refund your vehicle. However, experienced Lemon Law attorneys can write a deadline into your settlement with your vehicle’s manufacturer as a contractual obligation.

It is possible to argue for reimbursement for some out-of-pocket repairs to a Lemon vehicle, depending on the circumstances.

There is a section of the Arizona Lemon Law, A.R.S. § 44-1262(A), that requires that repairs be performed under warranty, and warranty repairs are supposed to be free of charge. Therefore, if you have been charged for repairs that should have been under warranty, that section of the Lemon Law statute can be used to request reimbursement for any out-of-pocket costs you paid for those repairs.

Notably, this only applies in cases where the out-of-pocket charges were got repairs made by an authorized repairing dealer of the manufacturer improperly charging the consumer. The vast majority of warranties require that all repairs be made at dealership repair shops authorized by the manufacturer.

If there was an out-of-pocket repair done at an independent third-party repair shop (i.e., a repair shop not authorized by the vehicle’s manufacturer), that type of out-of-pocket repair generally would not be recoverable unless the repair should have been covered under warranty, but the repair was inappropriately refused by the manufacturer’s authorized dealership repair agent.

How Long Does A Manufacturer Have To Repair Or Replace My Lemon Vehicle In Arizona?

Unfortunately, there’s not a specific time limit for a manufacturer to give you a repair or replacement specified by the Arizona Lemon Law.

However, there is a time limit for making a claim. In Arizona, once you hit two years or 24,000 miles from the date of purchase/leasing of the vehicle—whichever comes first—a clock starts. From that point on, you have six months to bring an action in Court for your Lemon Law claim.

Sometimes, people who pursue Lemon Law claims find that they are near the expiration of this time limit. One of the benefits of hiring a Lemon Law lawyer is that they can request an extension of time from the manufacturer to file a claim pending completion of out-of-court settlement negotiation.

If the manufacturer agrees to the time extension, then you can wait and negotiate rather than filing suit right away in Court. However, if the manufacturer does not agree to the extension and you’re still negotiating, then it is advisable to file a claim in Court to prevent it from being timed out.

If you do get a settlement from a vehicle manufacturer, oftentimes there will be a time limit for the manufacturer to either replace or refund your vehicle that is written into the settlement. This time limit is not actually mentioned in the Lemon Law, but is a contractual obligation written into the settlement agreement itself.

If you have a lemon law attorney or firm, like our firm, representing you, we will hold the manufacturer to this contractually obligated time limit. While we may, with your permission, give them chances or extensions, if they continue not to abide by the settlement, then we file a lawsuit for breach of contract.

For more information on Types Of Available Compensation, Legal Coverages, And Exclusions, a Free Lemon Law Evaluation is your next best step. Get the evaluation you are seeking by calling (480) 237-2744 today.