Lemon Law for Leased Vehicles: Are You Protected?

Introduction Leased vehicles can develop repeated defects just like purchased cars. If your leased car has a defect that substantially impairs use, value, or safety and the manufacturer cannot fix it after a reasonable number of attempts, many state lemon laws give you a remedy. That remedy for a leased vehicle typically involves terminating the lease and returning monthly payments and other lease charges, rather than the purchase-price buyback used for owned cars. This article explains how lemon law applies to leased vehicles, what a lease refund usually looks like, how leasing companies and manufacturers divide responsibility, and what steps you should take. Key Takeaways - Most states extend lemon law protection to lessees, but the legal test, remedies, and deadlines differ by state. - For leases, the typical remedy is lease termination with reimbursement of monthly payments and sometimes incidental costs; you generally do not get a straight refund of a purchase price because the leasing company holds title. - The manufacturer is usually obligated to repair or repurchase/reject the defective vehicle, while the leasing company may be a necessary party because it owns the vehicle. - Keep detailed service records, repair orders, and communications; follow state notice requirements and the manufacturer’s repair procedures. - Consult a lemon law attorney early. Use resources like the NHTSA, FTC, CFPB and your state attorney general, and visit the attorney directory at /attorneys/ to find help. How State Lemon Laws Treat Leased Vehicles Generally speaking, most state lemon laws include lessees within their coverage. The operative idea is that the consumer who relies on the manufacturer’s express or implied warranty should have the same protection whether they bought the car or are leasing it. The federal Magnuson‑Moss Warranty Act 15 U.S.C. § 2301 et seq. also provides consumer remedies for warranty breaches and can be used alongside state law remedies. Key legal references - California: Song‑Beverly Consumer Warranty Act California Civil Code § 1790 et seq. explicitly protects consumers and applies to leased vehicles in many cases. See Cal. Civ. Code § 1790 et seq. - Federal: Magnuson‑Moss Warranty Act, 15 U.S.C. § 2301 et seq., provides federal remedies for warranty breaches and allows consumers to recover costs and attorney fees in certain cases. - State law variation: Many states include specific definitions or clauses that clarify whether a "consumer" includes a lessee and how remedies are calculated. Because statutory text and judicial interpretations differ, always check your state statute and your state attorney general’s consumer pages. Trusted sources for statutes and consumer guidance include the Federal Trade Commission FTC warranty guide https://www.ftc.gov/tips-advice/business-center/guidance/businesspersons-guide-federal-warranty-law, the National Highway Traffic Safety Administration https://www.nhtsa.gov/, and your state at