Texas Lemon Laws

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What vehicles are covered under Texas lemon law?
Texas lemon law covers self-propelled vehicles with at least two wheels that are intended for off-road transportation or for use on public roads. Engines, rear axles, and transmissions of vehicles with a gross vehicle weight of 16,000 pounds or more are also covered by Texas lemon law. Leased vehicles and vehicle converters are included, as are used vehicles if the manufacturer's warranty still applies.

What protections do I have under Texas lemon law?
Texas lemon law says that if a consumer reports a serious defect which prevents the vehicle from conforming to its warranty to the manufacturer within the warranty period, the manufacturer must repair the nonconformity even if the repairs extend outside of the warranty period. A serious nonconformity negatively affects the vehicle's use or value, or presents a significant safety hazard which could threaten the consumer's life or cause a fire hazard while operating the vehicle. The manufacturer is not liable under Texas lemon law if the nonconformity is the result of neglect or modification by the consumer.

If the manufacturer is unable to repair the nonconformity within a reasonable number of attempts, the vehicle must be repurchased or replaced.

What steps must occur before seeking settlement under the Texas lemon law?
Texas lemon law presumes that the manufacturer has had a reasonable chance to repair the nonconformity after four or more unsuccessful attempts to repair the same nonconformity (two of which must be performed within the first year or 12,000 miles), or after the second unsuccessful attempt to repair a nonconformity which causes a significant safety hazard (one of which must be performed within the first year or 12,000 miles), or after the vehicle has been out of commission for repairs for at least 30 calendar days in the first two years or 24,000 miles.

This presumption does not apply unless the manufacturer has received notice in writing of the defect and has had at least one attempt to repair the nonconformity.

Filing a claim under Texas lemon law
Before making a Texas lemon law claim in the judiciary system, the consumer must first attempt to resolve the problem using a state arbitration board. All claims must be filed within 6 months of the expiration of the warranty period or 6 months following the first two years or 24,000 miles of vehicle possession, whichever comes first.

What are the settlement details under Texas lemon law?
If an owned vehicle is repurchased under Texas lemon law, the manufacturer must pay a sum which includes the full purchase price, sales tax, and title and registration fees, as well as costs directly related to the nonconformity. An offset for vehicle usage is subtracted from this sum. The offset is calculated by dividing the number of miles on the vehicle before the first report of the nonconformity by 120,000 and multiplying the result by the purchase price, then adding half of the result of dividing the number of miles on the vehicle after the report of nonconformity divided by 120,000 and multiplied by the purchase price.

If a leased vehicle is repurchased under Texas lemon law, the manufacturer must pay the lessee a sum which includes all payments and deposits made on the lease, sales tax, tags, and registration costs, and any costs incurred as a direct result of the nonconformity. An offset for use may be subtracted from this sum, as calculated above.

According to Texas lemon law, the manufacturer must pay the lessor a sum which includes 105% of the full purchase price, tax, tags, and fees, and any amounts paid in connection with the lease. The payments and deposits received from the lessee are subtracted from this amount.

If a vehicle is replaced under Texas lemon law, the new vehicle must be comparable to the original. Incidental costs directly related to the nonconformity must also be paid to the consumer, and an offset for vehicle usage applies.