Indiana Lemon Laws

Title 24, Article 5, Chapter 13 (Motor Vehicle Protection) of Indiana Statutes applies to all motor vehicles that are sold, leased, transferred, or replaced by a dealer or manufacturer in Indiana.  Pursuant to Section 24-5-13-6 of this Chapter, nonconformity is defined to include any specific or generic defect or condition or any concurrent combination of defects or conditions which significantly impairs the use, market value or safety of motor vehicle or renders the vehicle nonconforming to terms of an applicable manufacturer’s warranty.  According to Section 24-5-13-7, the time period for manufacturer repair ends 18 months after date of delivery to buyer or after 18,000 miles whichever occurs first.

Under Section 24-5-13-12 and 24-5-13-10 a legal remedy is available to the consumer if the manufacturer, its agent, or authorized dealer is unable to correct the nonconformity after a reasonable number of attempts.  The consumer can get replacement with a vehicle of comparable value, including reimbursement of any fees of transferring registration or sales tax incurred as result of replacement.  Another option available to a consumer is a refund of full contract price of vehicle, including all credits and allowances for any trade-in vehicle.  From this amount the manufacturer can deduct a reasonable allowance for use.

Burns Ind. Code Ann. § 24-5-13-6

“Nonconformity” defined.
As used in this chapter, “nonconformity” means any specific or generic defect or condition or any concurrent combination of defects or conditions that:
(1) Substantially impairs the use, market value, or safety of a motor vehicle; or
(2) Renders the motor vehicle nonconforming to the terms of an applicable manufacturer’s warranty.

Burns Ind. Code Ann. § 24-5-13-7

“Term of protection” defined.
As used in this chapter, “term of protection” means a period of time that:
(1) Begins:
(A) On the date of original delivery of a motor vehicle to a buyer; or
(B) In the case of a replacement vehicle provided by a manufacturer to a buyer under this chapter, on the date of delivery of the replacement vehicle to the buyer; and
(2) Ends the earlier of:
(A) Eighteen (18) months after the date identified under subdivision (1); or
(B) The time the motor vehicle has been driven eighteen thousand (18,000) miles after the date identified under subdivision (1).

Burns Ind. Code Ann. § 24-5-13-12

Replacement of vehicle — Reimbursements.
(a) If a vehicle is replaced by a manufacturer under this chapter, the manufacturer shall reimburse the buyer for any fees for the transfer of registration or any sales tax incurred by the buyer as a result of replacement.
(b) If a replaced vehicle was financed by the manufacturer, its subsidiary, or agent, the manufacturer, subsidiary, or agent may not require the buyer to enter into any refinancing agreement concerning a replacement vehicle that would create any financial obligations upon the buyer less favorable than those of the original financing agreement.

Burns Ind. Code Ann. § 24-5-13-10

Return of vehicle for refund or replacement.
If, after a reasonable number of attempts, the manufacturer, its agent, or authorized dealer is unable to correct the nonconformity, the manufacturer shall accept the return of the vehicle from the buyer and, at the buyer’s option, either, within thirty (30) days, refund the amount paid by the buyer or provide a replacement vehicle of comparable value.


Inside Indiana Lemon Laws