Alabama Lemon Laws for Used Vehicles Explained

Understanding the Lemon Laws

Consumer protection laws dealing with lemon law vehicles have existed for decades. Traditionally, lemon laws were enacted to provide protection to the consumer who became the owner of a car, truck or other motor vehicle that turned out to have significant defects. Such defects rendered the vehicle inoperable or caused it to be unsafe and thus unfit to drive.
Lemon laws brought the consumer protection remedy of giving the consumer a new vehicle in lieu of payment of damages. Since a vehicle is a necessity of daily life for many people , especially here in Alabama, the lemon law provides a required "exchange" of vehicles rather than a simple "buy-back". The law protects the consumer’s right to demand a new vehicle.
An important caveat though is the lemon law implication requires the vehicle defect to be a significant one. Such defect must have rendered the vehicle unfit for the purpose for which it was bought, or unsafe to drive.

Overview of Alabama Lemon Law

Alabama’s laws governing lemon cars are found primarily in Chapter 20 of Title 8 of the Code of Alabama. They are codified at Code of Alabama Section 8-20-1 through Code of Alabama Section 8-20-7.
Although there are a number of Alabama lemon laws, they all have to do with warranty protections and express warranties. The Code of Alabama Section 8-20-5(5) defines "lemon vehicles" as used or new vehicles within the state of Alabama that are sold or leased, which: "Are not in compliance with the express written warranty." "Have a defect or condition that substantially impairs the operability or safety of the vehicle." "Has not been repaired after a reasonable number of attempts." "Are out of service for repair of the defective condition or conditions for a cumulative total of more than 30 days after the expiration of the warranty term or during the first 12 months of ownership or actual or constructive delivery of the vehicle, whichever comes first."
Alabama law requires that consumer goods, including automobiles, be of merchantable quality. In the case of vehicles, this means that a car "should be fit for the ordinary purpose of the goods, adequately packaged and labeled, and free from defects." Unless otherwise allowed through disclaimer, manufacturers and dealers probably warrant that a vehicle is free from defects, of merchantable quality. The Alabama lemon law also requires that dealers adequately package and label vehicles so that the vehicles operate properly and safely. Dealers should be held responsible for the vehicles they sell.

Used Vehicles under the Alabama Lemon Law

An issue that comes up with some regularity is whether or not Alabama’s lemon laws apply to used vehicles. The answer is "sometimes."
In Alabama, there simply is not a category for a "used motor vehicle" lemon law.
The first question that must be asked when dealing with whether or not Alabama’s lemon laws apply to your used vehicle is whether the vehicle you bought was a new vehicle at the time of delivery or a demonstrator. If your used vehicle was bought at a dealership and was a new vehicle when delivered to you, then the protection of Alabama’s lemon law apply to it.
If, however, you bought a used vehicle that was not a new vehicle at the time of delivery to you, then Alabama’s lemon laws do not apply to protect you.
The protection provided by Alabama’s lemon laws are available only for a "new" vehicle, which is defined as an "automobile that was sold by a manufacturer or dealer to a new car dealer who held it for sale to the public only" and applies only in the context of defects creating nonconformities while the vehicle is still under warranty. So, a used vehicle that is not otherwise classified as a "new vehicle" does not enjoy the protection of Alabama’s lemon laws.

Rights of the Used Vehicle Consumer

For used vehicles purchased in Alabama, if a buyer becomes aware of a major defect the buyer should be aware of some protections. First, there are Alabama "lemon law" provisions that apply to used cars, but not in the context that one may think. If the used vehicle is "certified" and meets certain requirements, a claim could be made under the Alabama Lemon Law. For instance, the vehicle must be covered by a written warranty. "In connection with the sale of a motor vehicle, it shall be illegal for any dealer or seller of a certified used motor vehicle to create any false impression that the motor vehicle is covered by a written warranty unless the motor vehicle is covered by a written warranty." (Ala. Code § 8-20-9(a)). Additionally, the warranty must be "a full bumper-to-bumper, little or no deductible policy, or its functional equivalent, for a period not less than 100,000 miles." (Ala. Code § 8-20-9(b)). If so, then the Alabama Lemon Law could apply.
However, if the used vehicle is not a "certified" vehicle or if not "certified" then the "Lemon Law" will not apply. Still under Alabama Code § 8-20A-1, et seq., "…any owner of a motor vehicle purchased in this state may provide a written notice of defect to the manufacturer or warrantor…who is not covered by [the Alabama Lemon Law]." The defect can be a "nonconformity." A nonconformity is "a defect or condition that substantially impairs the use, market value or safety of the motor vehicle." (Ala. Code § 8-20A-2(4)). After giving the notice of defect, there is a presumption that the manufacturer has "knowledge" of the defect if within 12,000-miles or within one year. (Ala. Code § 8-20A-3). Also, "[i]f it is established that within twelve months or 12,000 miles, whichever first occurs,…[t]he transmission of the defective motor vehicle is covered under the express warranty…" then those express warranties are good for the entire time. (Ala. Code § 8-20A-5). There is an exception that would probably not apply with a used vehicle unless there are subsequent owners with a claim.
In practice, these state "lemon laws" tend to apply to new vehicles sold by dealers, but not used cars. The trade-off here is the lapse of an arbitrary date or arbitrary miles which are considered the statute of limitations in Alabama. To preserve claims for future buyers or own future self, better to get reasonable and preventive measures like seller’s warranties, service contracts or some other warranty, whether express or implied, to ensure that you have recourse if the manufacturer fails to repair the nonconformity. For example, a seller warranty, also referred to as a service contract allows a buyer of a used car to receive compensation for repairs covered under its terms.

What to do if you’ve got a Lemon

The first step is to document every problem with the vehicle. Make a log of the problem, and whether you brought it in to have it inspected or repaired. Then, as soon as possible, contact the seller and share those problems with them. You describe it as a lemon. You let them know you want to get a "lemon law buyback." If the dealership tells you that they do not perform buybacks or they say it is hard and complicated, ignore that. They are trying to scare you. They do not want to buy back the vehicle. Go to the Alabama Lemon Law Board’s website and then find out how to process your lemon.
The Lemon Law Board may send you a form to fill out. It will indicate whether there were prior claims under the Lemon Act. If it asks whether some "code reader" was used to read any error codes, then you need to understand what a "code reader" is. Often, there is a "check engine light" or "warning light" that comes on in the dashboard of the car . Then a mechanic can "read the codes." The system records faults and the memory of the vehicle. A "code reader" will read those codes. It does not really "diagnose" the problem, and usually does not run a diagnostic test. But, it often indicates a problem the mechanic otherwise would not have known about. The key is that you need to take the car in for something. Alabama law says if you make a claim for warranty coverage or repair, then the time it goes in to be repaired does not count against the 30 days you have to figured out if you have a qualified product. If the technician finds a problem, that adds to the "30 reasonable repair attempts." You then send in the form to the Lemon Law Board and wait for a request for an inspection. If the seller does not respond, they owe you. If you are not dealt with fairly, then you need to hire a lawyer.

Remedies and Recourse

The first recourse you may have under Alabama lemon law is the right to have the defect repaired one more time under warranty after the manufacturer has been given an opportunity to repair a defect of a used vehicle, even if the automobile has changed owners during the warranty period. If the problem still exists after the repair, you can purchase a replacement vehicle or receive repurchase of the money you paid, including finance charges, tax, title, fees, and accessories not exceeding $500.
The Consumer Affairs Division of the Office of the Attorney General administers the Alabama Lemon Law. The Office of Consumer Affairs provides free assistance in resolving complaints against automobile manufacturers and helping with the purchase or lease of a new automobile.
If you are unable to resolve your complaint about a defective automobile during the warranty period, you may be eligible to request arbitration on your used vehicle. Because most used car lemon law claims are usually filed directly with manufacturers, instead of through state lemon laws, the use of arbitration programs is very important. The manufacturer of your vehicle may offer an aftermarket dispute program with the provisions mandated by the Federal Trade Commission (FTC). If the process fails to resolve your complaint, you can take your case to an independent arbitration board. Often, settlement will be reached during this stage.
If you remain unsuccessful and still wish to file a lemon law claim for your used automobile, you may file in your local state court. The court may order a bond or deposit from you and the manufacturer, should you pursue a hearing. The process can be more costly and time consuming than binding arbitration. Unlike binding arbitration, though, the decision is appealable. It is recommended that you seek the advice of an attorney if you plan to take your case to court.

Lemon Car Buying Tips

A purchase from a dealer with a warranty (express or implied by Alabama law) will be protected under the Lemon Law. So, let’s start there. Not all dealers give warranties; so be sure to get a warranty or express written statement that the vehicle is being sold "as is." (Note, unlike new cars, there is no Lemon Law for used cars.)
I suggest going to the Alabama Attorney General web site. That site has a list of things to check out prior to purchasing a vehicle. (Also check the Alabama Department of Revenue site for information on how to register a vehicle after purchase.)
Here are some of the tips for buying a used vehicle in Alabama from the Alabama Attorney General:

Do your homework before shopping for a used car. Think carefully about your needs, the price range of those needs, and how you can finance the purchase.
Don’t make payments on a vehicle you haven’t seen. Sellers may use photographs to exaggerate the condition of a vehicle. If you make a down payment without seeing the car, you could lose your deposit and see the car delivered at your expense.
Find out the car’s history by asking the seller for a report. Companies like Carfax (www.carfax.com) keep track of many used cars, including information about any accidents, odometer readings, major repairs and past owners. The seller should provide the report or allow you to use the license plate number or the Vehicle Identification Number (VIN) to obtain one.
Check the title of the car. Look for signs of alterations, including white-out, erasures and scratch marks on the paper. Also check the following:

*Check the VIN on the title against the VIN on the car.
*Ask to see service records on the vehicle. Have the seller explain any discrepancies between the title and the service records.
*Beware of vehicles with had "bonded titles" — a process used when the owner lost the title or several owners lost the title and it was determined , after a bond hearing, that the title should be issued anyway. Unfortunately, the process can also be used to disguise the fact that a vehicle is a lemon. In addition, cars with "bonded titles" may have whatever problems were caused by previous owners.
*Search for the VIN behind the driver’s side windshield in the engine compartment on the inside door frame and/or on the firewall.
*Check for signs of flooding. Areas of discoloration in the upholstery and rust around door latches may indicate a car with flood damage.

Find out the "Blue Book" value of the vehicle. If you are getting a good deal, don’t worry if the vehicle doesn’t look perfect. On the other hand, you should adjust the price downward from the "Blue Book" figure if the vehicle is not in excellent condition.
Before you buy, get the vehicle inspected by a mechanic.
Tell the dealer you want to test drive the vehicle alone. This may disarm a "high pressure" salesperson. Otherwise, the salesperson may distract you during the ride. Give the vehicle a serious road test by driving it on the highway as well as on regular roads.
Watch out for promises that the vehicle can be restored to its original condition. Such promises may be a scheme to extort money from you for repairs that you don’t need.
Make sure that the car comes with a warranty.
Read the entire warranty carefully. Ignore the ads that state, "the dealer will fix everything." Find out what the warranty does cover, not what it might cover.
Make sure the dealer completes the warranty.