What Is The Lemon Law In Arkansas?

What Is The Lemon Law In Arkansas
The Arkansas New Motor Vehicle Quality Assurance Act, Act 297 of 1993, provides procedures for a consumer to receive a replacement vehicle, or full refund, for a new motor vehicle which cannot be brought into conformity within the warranty provided.

What qualifies for the Lemon Law in Arkansas?

Arkansas Lemon Law Rights Consumer Guide Lemon vehicles in Arkansas can get the squeeze by either the Arkansas Lemon Law, the Magnuson-Moss Warranty Act (the federal lemon law), or both. Lemon-aid may include a refund, replacement or diminished value and/or incidental and consequential damages.

  1. Attorneys’ fees are also available meaning qualified consumers may receive Arkansas lemon law attorney representation at no cost.
  2. And even if your vehicle is too old or has too many miles to qualify under either of these lemon laws, the and/or other related car buying laws may provide an avenue to recover cash damages that can help you trade out or pay for repairs.

Connect here for a free, no obligation Arkansas Lemon Law, In most instances to qualify under a lemon law your vehicle must only have an unreasonable repair history under the warranty, including (but not limited to) 3-4 repair attempts for the same problem, 6 repairs total on the vehicle, or 30 days out of service by reason of repair.

  • The Arkansas new Motor Vehicle Quality Assurance Act This guide represents the Consumer Protection Division’s interpretation of the Arkansas New Motor Vehicle Quality Assurance Act (Act 297 of 1993, the Arkansas Lemon Law).
  • This guide is just that, a guide.
  • If you have a question or are uncertain about a particular aspect of this law, contact an Arkansas Lemon Law Attorney.

Original booklet prepared by Clifford P. Block. Who is Covered Under the Arkansas Automobile Lemon Law? Any consumer who buys or leases, and registers a new motor vehicle in the State of Arkansas is covered by the Lemon Law. The consumer is protected during the term of the manufacturer’s warranty for up to two (2) years after the original delivery date of the vehicle OR for the first 24,000 miles, whichever occurs last.

If the vehicle is transferred to someone else during this period, that owner or person leasing the vehicle is also covered under the Lemon Law. IMPORTANT: The Arkansas lemon law on new cars does NOT cover the living quarters of mobile homes. The Lemon Law does NOT cover vehicles over 10,000 pounds gross vehicle weight rating.

However, motor homes over 10,000 pounds gross vehicle weight rating are covered. Is Your Vehicle a Lemon Under the Arkansas Car Lemon Law ? The law creates what is known in legal terminology as a presumption; the Lemon Law presumes that you are entitled to a refund or replacement if the manufacturer or its dealer has made a certain number of unsuccessful attempts to repair nonconformities that substantially impair the use, value or safety of your vehicle (four or more repair attempts, or more than 30 days out of service).

However, there is an exception (or in legal terminology, the presumption is rebuttable). If the manufacturer can prove that it has not had a reasonable opportunity to repair your car, you may not be entitled to a refund or replacement vehicle. For example, if the manufacturer can prove that the number of repair attempts was not unreasonable because you did not follow the terms of the warranty, or some event (such as a labor strike) prevented timely repairs, the Lemon Law might not help you.

In addition, if you abused the car or damaged it in an accident, the Lemon Law might nor apply. Dangerously defective vehicles may be returned in an even shorter period of time. If the problem involves a defect that is likely to cause death or serious bodily injury (such as brake failure or a steering wheel that locks) the Lemon Law may apply if the problem is not promptly corrected after the second attempt.

Getting Your Vehicle Repaired It is very important that you report any defect or condition directly to the manufacturer or to the dealer immediately. It is also important that you keep all repair receipts and a complete record of all contacts with the manufacturer and dealer. You have the right to receive a dated, detailed statement each time the vehicle is returned for repair.

This statement should include any charges for parts and labor, a general description of the problem, the odometer reading at the time you brought the vehicle in for repair and also when you pick up the car, as well as a list of all work performed. It should also state the date the vehicle was brought in for repair and the date you picked up the vehicle.

  1. Be sure you are given these statements (it’s the law) and that you keep them on file.
  2. A chart is provided below for your convenience.
  3. Who pays? Most manufacturers’ warranties on purchased vehicles cover repairs for at least the first year following the original delivery date or the first 12,000 miles, whichever comes first.

If repairs are needed after your warranty has ended, you must pay for the repairs. Check your warranty booklet to find out the details of your particular coverage. If you are leasing a vehicle, check your leasing contract to find out who is responsible for repair bills.

  • Repair costs to cure defects that occurred while under the warranty coverage should be covered by your warranty, or if later proven to be a “lemon” under the law may be reimbursed.
  • For this reason, remember to keep your receipts.
  • How long should the repair take? The Lemon Law allows the manufacturer a “reasonable number of attempts” to repair or correct the defect.

A “reasonable number” means three (3) repair attempts for the same defect or a total of 30 cumulative days out of service because of a series of defects or repairs. Also, a “reasonable number of attempts to repair” may consist of five (5) or more attempts, on separate occasions, to repair varying nonconformities that together substantially impair the use and value of your vehicle.

Final repair attempt. Before you can file a claim under the Lemon Law, you must give the manufacturer one final chance to repair the defect. You must send a letter to the manufacturer (not the dealer) by certified mail, return receipt requested, stating that you may have a claim and that you are giving the manufacturer one last chance to repair the defect.

A sample letter is shown at the end of this guide. This letter should be mailed after the third unsuccessful repair attempt. Consult your owner’s manual for address information. Keep a photocopy of the letter for your records and your certified mail receipt as proof that the letter was received by the manufacturer.

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After receiving your letter, the manufacturer has ten (10) calendar days to schedule a final repair attempt. If the manufacturer does not schedule the final repair attempt timely, or if the defect is not repaired within ten (10) days after the scheduled repair attempt, or you have a right to demand a replacement vehicle or a refund.

You must maintain a copy of your letter and the return receipt verification before you can file a claim under the Lemon Law. Getting Your Refund or Replacement Replacement – The manufacturer may offer to replace your original vehicle; however, you do not have to accept the offer.

You may say NO and demand a refund. If you do accept a replacement vehicle, and the original vehicle was financed by the manufacturer, its subsidiary or agent, the manufacturer must make sure that you are not required to enter into any refinancing agreement that would create any financial obligations upon you beyond those of the original financing agreement.

It is still up to you to have the title and registration transferred to your new vehicle. Refund For Purchased Vehicles – If you choose to receive a refund, you will receive the full purchase price of your original motor vehicle, minus a “reasonable allowance for vehicle use”.

  1. credits and allowances for any trade-in vehicle
  2. costs of any options and other modifications added by the manufacturer or its authorized dealer
  3. costs of sales tax, license and registration fees, and finance charges.
  4. charges for renting a similar vehicle while the original vehicle was out of service because of the defect
  5. expert fees and
  6. charges for extended warranty coverage’s provided by the manufacturer, its subsidiary or agent.
  • “The reasonable allowance for vehicle use” equals the purchase price multiplied by the mileage at the time the vehicle was first brought to the dealer or manufacturer for repair of the defect divided by 120,000 miles. For example, the reasonable allowance for a $12,000 vehicle with 10,000 miles would be calculated as:
  • 12,000 X 10,000 = 120,000,000120,000,000 ÷ 120,000 = 1,000
  • In this example, the reasonable allowance for vehicle use is $1,000.
  • You may also be charged for any physical damage the vehicle has sustained.

Refund for Leased Vehicles – If your vehicle is leased, you can receive a full refund for any leasing fees less a reasonable allowance for vehicle use. Under the Lemon Law, your lease agreement ends when you return the vehicle. You cannot be charged any penalties for ending the lease early.

Enforcing Your Rights If the manufacturer does not accept your Lemon Law claim and will not refund your money or replace your vehicle, you must file for a hearing through the manufacturer’s informal dispute settlement program before you can use the Lemon Law in court, if the manufacturer provides notice to you that the program is available and if the program is certified by the Arkansas Attorney General.

You will not have to pay any fee to use the settlement program. Usually, you submit your complaint in writing to the program with copies for your records. Generally, your case must be decided within 40 days after the time your complaint is received. You may accept or reject the program’s decision.

  1. If you accept, the manufacturer must also accept and has 30 days to comply.
  2. There is no appeal process for the manufacturer.
  3. If you do not agree with the program’s decision, you can reject it and go to court to assert your right to a replacement, refund or other relief.
  4. If you go to court, the judge may consider the program’s decision in deciding your case.

You are required to use the informal dispute program only if you want to use the Lemon Law’s standard of “reasonable attempts to repair”. You may have other causes of action or rights outside of the Lemon Law. It is a good idea to consult an attorney regarding these options.

  • refund of vehicle purchase price or leasing costs, including sales tax
  • manufacturer or dealer installed accessories
  • finance charges (if any)
  • reasonable attorney’s fees
  • reasonable costs of a rental vehicle while your vehicle is out of service because of the defect.

Can the Manufacturer Resell or Re-Lease a “Lemon” Vehicle? Yes, but the dealer or leasing company must give the consumer who buys such a vehicle a written notice stating that the vehicle was “returned to the manufacturer because of a nonconformity not cured within a reasonable time.” On occasion, vehicles are repurchased by the manufacturer before there is any action under the Lemon Law.

  • Give your dealer an opportunity to repair your vehicle
  • Keep all repair receipts and a complete record of all contacts with the manufacturer or dealer.
  • If substantial defects continue after three (3) repair attempts:
  • Give the Manufacturer written notice of its last chance to repair the defect.
  • If the substantial defect is not scheduled for repairs within 10 days after the manufacturer receives the written notice, or if repairs are not completed within 10 days after delivery for the final repair attempt:
  • Demand a refund or a new vehicle.
  • If the Manufacturer does not agree that you are entitled to a refund under the Lemon Law:
    1. File for dispute resolution through the manufacturer’s informal dispute resolution system.
    2. If you are still dissatisfied, contact an attorney regarding civil action in court.

Sample Letter to the Manufacturer IMPORTANT: Send this letter by certified mail – return receipt requested

  1. Your NameYour Address
  2. Your Telephone Number
  3. Name of ManufacturerManufacturer’s Address
  4. Dear Sir or Madam:

I believe that my is a “lemon” under the Arkansas New Motor Vehicle Quality Assurance Act (Act 297 of 1993). I am hereby making a written demand for relief under this Act. I a on from in, Since I bought this vehicle, I have had to return it to the dealership a total of times.

  • My vehicle has been out of service for repairs for a total of calendar days.
  • My vehicle has been in on the following dates for repair of the following defects: I am currently having the following problems with my vehicle at this time: Since these defects substantially impair the use, value or safety of my vehicle, I am hereby allowing you one final opportunity to repair my vehicle.

If repairs are not scheduled within ten (10) days of receipt of this letter or completed within ten (10) days from delivery of the vehicle to you for repair, I am entitled to a replacement vehicle acceptable to me or a refund calculated in accordance with the Arkansas New Motor Vehicle Quality Assurance Act.

Is there a Lemon Law in Arkansas on used vehicles?

All motor vehicles (except those excluded from coverage as noted in the ‘IMPORTANT’ section below) titled and registered in Arkansas are covered by the Lemon Law during the vehicle’s Quality Assurance Period.

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What makes a car a lemon in Arkansas?

To qualify as a lemon under the Arkansas Lemon Law, a covered vehicle must have a qualifying defect, referred to in the law as a ‘nonconformity.’ This term refers to a defect or problem with the car which ‘substantially impairs’ the use, safety, or market value of the car.

How long do you have to return a used car in Arkansas?

Is there a ‘cooling off’ period on vehicle purchases in the State of Arkansas? Dealers are not required by law to give car buyers a three-day right to cancel. The right to return the car in a few days for a refund exists only if financing is not approved. However, some dealers may, by contract, offer a right to cancel.

What is needed to assess a vehicle in Arkansas?

Acceptable proof is either a statement from your county tax collector, or certification of ‘FIRST ASSESSMENT’ stamped on your assessment papers. Proof of liability insurance coverage on the vehicle being registered and titled. Registration fees are based on vehicle weight.

Does Arkansas have buyers remorse law?

Ask Andy: 3-day “cooling-off” rule What Is The Lemon Law In Arkansas What Is The Lemon Law In Arkansas (WMC TV) – I just sent another one. It’s another e-mail an unlucky viewer will not want to read – another answer a viewer doesn’t want to hear. You see, this particular viewer is in the middle of a car deal gone bad. He wants to return the car. He wants his money back.

He wants to invoke the federal 3-day cooling off rule. Congress codified the rule in 1972. Its intent was to protect consumers inside their homes from risky door-to-door sales or from companies selling their wares at temporary business locations. I had to break the bad news to the viewer that the rule does not apply to the sale of automobiles.

In fact, there is no state law either – be it Tennessee, Mississippi or Arkansas – that mandates any kind of “buyer’s remorse” right (legally called a right of rescission ) in virtually any kind of purchase. It all comes down to a consumer’s sales contract or to the retailer’s return policy.


If you charged the product or service to your credit card, you shouldn’t have to worry about a cooling-off rule. Just dispute the charge with your credit card issuer, and you should be golden. Copyright 2012, All rights reserved. : Ask Andy: 3-day “cooling-off” rule

What are my rights for returning a car?

If you buy a new or used car from a dealer and have problems with it, you have some statutory rights under the Consumer Rights Act 2015, The Act states the car must be “of a satisfactory quality”, “fit for purpose” and “as described”. (For a used car, “satisfactory quality” takes into account the car’s age and mileage.) You have a right to reject something faulty and you’re entitled to a full refund within 30 days of purchase in most cases.

After 30 days, you lose the short-term right to reject the goods. You’ll also have fewer rights, such as only being able to ask for a repair or replacement, or a partial refund. In fact, you’re legally allowed to return it up to six years after you bought it (in Scotland, it’s five years after you first realised there was a problem).

But it gets more difficult to prove a fault and not normal wear and tear is the cause of any problem. Just because you didn’t buy your car new, doesn’t mean you don’t have rights if something goes wrong. You might still have a legal right to compensation.

when and where you bought it what the exact problem is whether you knew there was a problem when you bought it. This might be a repair, an amount of money to cover the cost of a repair, or a full or partial refund of the money you spent.

Citizens Advice have a tool that tells you what your consumer rights are. All you need is the date you bought your car and whether it was a private sale or bought through a trade seller. The vehicle should be of satisfactory quality, fit for its purpose and as described.

With hire purchase, it’s the finance provider, rather than the dealer, who’s legally responsible if there are problems with the car. If you paid all or part of the cost of your car by credit card, the card company and the trader might be jointly responsible for compensating you under Section 75 of the Consumer Credit Act 1974.

Your purchase won’t be covered by Section 75 of the Consumer Credit Act. But you might be able to claim a refund from your debit card provider through a voluntary scheme known as ‘chargeback’. Visa, MasterCard, Maestro and American Express are among the companies signed up to chargeback.

  • Depending on the card you used, you’ll probably need to make your claim within 120 days of noticing the problem.
  • Chargeback claims can take some time to process because the card company has to get the money refunded before they can pass it on to you.
  • Buying privately is one of the riskiest ways of buying a car.

If something goes wrong with it you don’t have as much legal protection as you would if you’d bought the car from a dealer. The car must match the seller’s description, be roadworthy and the seller must have the legal right to sell it to you. In other words, the car must work, meet the legal requirements for being driven on public roads, and be owned by the seller.

  • But you’re responsible for ensuring the car is “of satisfactory quality” and “fit for purpose” before you buy it.
  • Watch out for any unscrupulous sellers pretending to be private owners so they can offload faulty or stolen cars.
  • With online auctions, your legal rights depend on whether the seller is a private individual or a car dealer.

If the seller is a private individual, the car only needs to be as described – so it’s a case of ‘buyer beware’. Your legal rights are the same as if you were buying from them in person (see ‘Problems with used cars bought privately’ above). If the seller is a dealer, you’ll be protected by the Sale of Goods Act if you find the car isn’t of satisfactory quality, fit for purpose or as described.

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How long can you have a car before you can return it?

Federal Cooling-Off Rule – The Federal Trade Commission’s “cooling-off” rule — established in the 1970s — allows consumers three days to cancel a transaction. This rule often gets tossed around if a consumer wants to return a car they just bought. It applies to purchases of more than $25 and specific sales tactics like the ones made in your home by pushy door-to-door salesmen.

  • It also applies to sales conducted at a place other than the retailers’ usual place of business or permanent retail location.
  • During the COVID-19 pandemic, with more consumers buying cars online with contactless delivery taken at home, you would think these transactions would fall under the FTC’s rule.

But that rule does not apply. There’s no legal protection for consumers with buyer’s remorse at the federal or state level when buying a new car. The same applies to used cars. However, in some states, dealers must give consumers the right to cancel, according to the FTC.

What happens if you buy a new car and it has problems?

What to Do If Your New Car Has Issues Although buying a new car needs to be an enjoyable experience, sometimes it can go wrong. You can buy a new car and find out that it’s a dud that keeps breaking down and spending much more time in your mechanic’s garage than on the road.

Nobody likes going to the mechanic regularly, especially when you have just purchased a new car. Nonetheless, when you reach a point where the repairs have become too much, you need to act. You have the right to reject the defective car and to seek a refund or to demand that the dealership buy back the dud.

Below are the options you have if your new car has problems. Determine If Your Car Is a Lemon Just because your new car keeps breaking down doesn’t mean it’s a dud. To be categorized as one, the vehicle has to fail to meet the standards that the warranty covers.

  • A lemon car is a vehicle with at least one manufacturing defect that significantly affects its functionality or that compromises your safety.
  • Thus, if your mechanic constantly repairs your vehicle without making a lasting repair or without figuring out what’s the root cause of the issue, then you bought a lemon.

Pursue the Defect Under the Warranty You can follow up on the issue under your warranty. A warranty indicates terms and conditions that determine each party’s obligations and outlines the process of filing a warranty claim, which usually involves taking your car to a dealership for diagnostic testing.

  1. After assessing the condition of your vehicle, your dealer gives you a written report describing your car’s problem and then submits it to the manufacturer for a warranty claim.
  2. If the manufacturer determines the fault is a defect, your vehicle will get repairs for free.
  3. If they fail to accept it as a defect, they’ll reject the claim and give you the reasons why.

Exercise Your Consumer Rights While you can exercise your rights, you have to reach out to the dealer who sold you the vehicle. If you determine that your car is of unacceptable quality, not as described, or unfit for purpose within the first month, you can approach your dealer and ask for a replacement, refund, or buyback.

If you do this after 30 days, the seller can either repair or replace your vehicle. If you report a defect within the first six months, the law presumes that this fault existed even before you bought the car. However, if you file the claim after six months, you will have to prove the issue was present at the point of sale.

If the seller replaces or repairs the car but the problem persists or a new inherent fault develops, you can request an initial price reduction, which means you get some partial refund but still keep the car. Alternatively, you can reject the vehicle, which means that you return the vehicle and get your money back.

  1. However, the seller will deduct the usage, which is the mileage you have added to the car.
  2. If you purchased the vehicle on finance, reach out to the finance company and inform it about your troubles.
  3. As a result, the financial institution will negotiate with the dealer.
  4. If the dealer connected you with the finance company, the finance company should give solutions to your problem as required by the Consumer Guarantees Act (CGA).

This is specifically crucial if the dealer refuses to comply or has shut down operations. Seek Legal Support Although you can navigate through this legal process on your own, it’s crucial that you hire an attorney who will help speed up the process. Even though you can go to court or sue the seller without an attorney, having one will simplify the process.

Remember that car dealers have more legal power than you, and their attorneys have received adequate training to handle such cases and have dealt with these issues before. Having an attorney, particularly when the dealer covers the costs, will help you get a fair reward for your troubles. In addition, this professional can tell you whether you have a strong case from the beginning.

If you notice your new car has persistent issues, report the problem as soon as you can. Ensure that you document each defect and repair. If given a chance to settle the problem, don’t rush to reject the car. However, if the dealer refuses to comply or becomes unhelpful, you can file a claim and hire a lawyer to help expedite the process.

What is needed to assess a vehicle in Arkansas?

Acceptable proof is either a statement from your county tax collector, or certification of ‘FIRST ASSESSMENT’ stamped on your assessment papers. Proof of liability insurance coverage on the vehicle being registered and titled. Registration fees are based on vehicle weight.

How long can a dealership hold your car for repair in Texas?

How Long Does the Dealership Have to Repair Your Car? – What Is The Lemon Law In Arkansas Regardless of if your car is new or used, the car dealership has 30 days to repair your car as long as the vehicle is under warranty, This 30-day period does not have to be consecutive days. If multiple trips to the dealership result in the dealership holding your car for more than 30 days, you are likely entitled to compensation.