Understanding the Indiana Lemon Law

The Motor Vehicle Protection Act refers to the lemon law in Indiana lawmakers have enacted to protect those within the state who buy vehicles that do not meet defined minimum/basic standards. This state law has been designed to provide a viable remedy to those who buy or lease a new vehicle with a problem that cannot be repaired by the dealership.

The Indiana Lemon Law

The lemon law Indiana has passed applies to leased or purchased vehicles in the Hoosier State, whether or not the buyer/lessee is an Indiana resident. The defect in question must impair either the value, use, or safety of the covered vehicle. In addition –

• The noted defect must have been brought for repair within the first 18,000 miles of the initial ownership.
• The noted defect must have been brought for repair within the first 18 months, whichever comes first.

What Happened If the Vehicle is a Lemon?

If the dealership is unable to fix the defect after what is considered a reasonable number of attempts, the vehicle with the defect will now be considered a lemon. It is noted that the lemon law Indiana legislators passed defined a reasonable number of attempts as a) a minimum of four repair attempts or b) thirty days in which the vehicle is out of service.

After each repair attempt, it is wise to ask for a written repair order to use moving forward. The vehicle's owner's manual will determine if there are other dispute procedures to follow before being permitted to file a lemon lawsuit in Indiana.

The purchaser of a defined lemon has two options under this law – for which they must respond within 30 days of accepting the return of your vehicle. The buyer can ask for a replacement or request a refund.

And while the decision is the car buyer's, it is noted that if you choose a refund, the manufacturer can deduct the miles you put on the lemon from a new car's price. However, because cars are capped at 100,000 miles (with regard to this specific law), the potential deduction for reasonable use may begin to add up to significant amounts deducted when reimbursed.

Here is an example to clarify: if the lemon (defective vehicle) had 33,000 miles on its odometer on the day it was returned to the manufacturer for a refund, the reimbursement would be calculated as follows – the actual purchase price of a new similar car minus approximately 1/3 of its price to reflect an adjustment based on the miles driven in the lemon. 

Is Filing a Lemon Lawsuit Time-limited?

It is essential to note that a lemon lawsuit in Indiana must be filed within two years from the date the buyer first notified the dealership about the vehicle's defect. In addition, and as important, Indiana's lemon law also provides for the buyer whose lawsuit prevails (i.e., reaches a settlement or is victorious at trial), the manufacturer is also entitled to pay reasonable attorney fees for the lemon vehicle's purchaser.