The Lemon Law in Texas

Under the Texas lemon law, a manufacturer, converter or distributor must make repairs needed to conform a new motor vehicle to its express warranty, including after the warranty expires if the problem was reported during the warranty. If it cannot fix a defect that creates a serious safety hazard or substantially impairs the vehicle's use or market value after a reasonable number of attempts, it must reimburse reasonable incidental costs and either replace the vehicle with a comparable one or take it back and refund the full purchase price minus a reasonable allowance for use. A reasonable number of attempts is presumed, before the earlier of the warranty's expiration or 24 months/24,000 miles from delivery, if: the same defect was repaired four or more times and continues; a serious safety hazard was repaired two or more times and continues; or the vehicle was out of service for repair a cumulative 30 or more days (not counting days with a comparable loaner). The manufacturer must receive written notice and a chance to cure, and a proceeding must be started within six months after the earlier of the warranty's expiration or 24 months/24,000 miles from delivery.

1) Written notice and final repair chance: the owner (or someone on the owner's behalf, or the Texas Department of Motor Vehicles) must give the manufacturer written notice of the defect, and the manufacturer must get an opportunity to fix it, before a refund or replacement can be ordered. TxDMV recommends sending the notice by certified mail. 2) State complaint process (required): a refund or replacement under the lemon law is available only after the owner uses the state's administrative process. The owner files a Lemon Law complaint with TxDMV with a $35 filing fee and gives the manufacturer notice of the complaint with a last opportunity to repair. TxDMV staff review the complaint and try mediation; if that fails, a TxDMV hearings examiner holds a hearing and issues a final written decision within 60 days after the hearing closes. Either side may ask TxDMV for rehearing and then appeal to state district court in Travis County. If no final order is issued within 150 days after the complaint is filed, TxDMV must notify the parties that the owner may file a civil lawsuit. 3) Deadline: the complaint must be filed no later than six months after the earliest of the express warranty's expiration or the date 24 months or 24,000 miles have passed since original delivery.

The Attorney General explains that federal law requires used car dealers to tell buyers whether a used car is sold with or without a warranty, using a Buyer's Guide displayed on a side window. "AS IS" means the vehicle has no warranty and the seller has no obligation for repairs; "WARRANTY" means the guide must list exactly which parts and services are covered and for how long. The Buyer's Guide becomes part of the sales contract and overrides contrary contract terms, and must be in Spanish if the sale is in Spanish. Any warranty the seller offers must be in writing to be valid.