Michigan Lemon Laws

Michigan lemon laws are stated in Michigan Complied Law Services, Chapter 257 (Warranties on New Motor Vehicles Act).  According to Section 257.1402 nonconformity to manufacturer’s express warranties that substantially affects use or market value of the vehicle will make the manufacturer liable to the buyer.  The period within which the buyer should notify the nonconformity and the manufacturer should repair the vehicle is either the term specified in the warranty or one year of vehicle’s operation from the date of delivery, whichever happens earlier.

If the manufacturer is not able to repair the motor vehicle after reasonable attempts, the manufacturer will have to replace the vehicle with a new comparable vehicle acceptable to the buyer or repurchase and refund the price of the vehicle.  When refunding, the manufacturer should pay the full purchase price which includes any modification cost on the vehicle, after reducing an amount attributable to any damages on the vehicle which is not relating to ordinary use of vehicle, and an amount towards the ordinary use of vehicle by the buyer before discovering the nonconformity.

MCLS § 257.1402 reads:

 “§ 257.1402.    New motor vehicle; defect impairing use or value; duty to repair; conditions.
   Sec. 2. If a new motor vehicle has any defect or condition that impairs the use or value of the new motor vehicle to the consumer or which prevents the new motor vehicle from conforming to the manufacturer’s express warranty, the manufacturer or a new motor vehicle dealer of that type of motor vehicle shall repair the defect or condition as required under section 3 if the consumer initially reported the defect or condition to the manufacturer or the new motor vehicle dealer within 1 of the following time periods, whichever is earlier:
   (a) During the term the manufacturer’s express warranty is in effect.
   (b) Not later than 1 year from the date of delivery of the new motor vehicle to the original consumer.”

MCLS § 257.1403 reads in part:

 “§ 257.1403.    Continued existence of defect or condition; replacement of motor vehicle or refund; allowance for use; reimbursement for towing costs and costs for rental vehicle; determination of ordinary and personal use; consent to replacement of security interest; presumption; performing repairs after expiration of warranty; extension of time for repair services.
   Sec. 3. (1) If a defect or condition that was reported to the manufacturer or new motor vehicle dealer pursuant to section 2 continues to exist and the new motor vehicle has been subjected to a reasonable number of repairs as determined under subsection (5), the manufacturer shall within 30 days, do either of the following as applicable:
   (a) If the new motor vehicle was purchased, either replace the new motor vehicle with a comparable replacement motor vehicle currently in production and acceptable to the consumer or accept return of the vehicle and refund to the consumer the purchase price. A consumer shall have the right to demand a refund.
   (b) If the new motor vehicle was leased, the consumer has the right to a refund of the lease price paid by the consumer. The consumer may agree to accept a comparable replacement vehicle in lieu of a refund for the lease price paid. If the consumer agrees to accept a replacement vehicle, the lease agreement shall not be altered except with respect to the identification of the vehicle.
   (2) The purchase price or lease price includes the cost of any options or other modifications installed or made by or for the manufacturer, and the amount of all other charges made by or for the manufacturer, less a reasonable allowance for the consumer’s use of the vehicle, and less an amount equal to any appraised damage that is not attributable to normal use or to the defect or condition. A reasonable allowance for use is the purchase or lease price of the new motor vehicle multiplied by a fraction having as the denominator 100,000 miles and having as the numerator the miles directly attributable to use by the consumer and any previous consumer prior to his or her first report of a defect or condition that impairs the use or value of the new motor vehicle plus all mileage directly attributable to use by a consumer beyond 25,000 miles. If a vehicle is replaced or refunded under the provisions of this section, if towing services and rental vehicles were not made available without cost to the consumer, the manufacturer shall also reimburse the consumer for those towing costs and reasonable costs for a comparable rental vehicle that were incurred as a direct result of the defect or condition.”

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Inside Michigan Lemon Laws