Michigan Lemon Laws in 2026: Your Rights When a Car Goes Wrong
You just bought a new car. You’re excited. You’re driving home. Then something feels off. Within weeks, problems start piling up.
Here’s the thing: you’re not alone, and Michigan has your back. The state’s lemon law is designed to protect you when a new vehicle turns out to be defective. We’re going to walk you through exactly what you need to know.
What Is a Lemon, Really?
A lemon isn’t just a car that needs one fix. It’s a vehicle with serious problems that a mechanic can’t seem to solve. Think of it as a car that repeatedly breaks down in important ways. The problem must actually hurt how you use the car or its value.
This could be an engine that keeps failing. Brakes that don’t work right. A transmission that gives out. Those definitely count. But here’s something interesting: even smaller issues matter too. A persistent water leak, a weird smell, or a paint problem that keeps coming back could qualify. The key is that the defect has to substantially impair your use of the vehicle.
Sound confusing? It’s actually pretty straightforward. Ask yourself: does this problem make my car unsafe or unreliable? If yes, keep reading.
Who Does Michigan’s Lemon Law Actually Cover?
Here’s the first thing to know: not every car is protected. The law covers specific types of vehicles and specific types of buyers.
What Cars Qualify
The law protects passenger cars, SUVs, pickup trucks, and vans. Pretty much what most people drive. Sorry, it doesn’t cover motor homes, big buses, or motorcycles. Those are a different story.
Your car also needs to have a manufacturer’s express warranty. That’s the warranty you get when you buy a new vehicle. If you bought your car in Michigan, you’re covered. If you’re a Michigan resident and bought elsewhere, you’re still covered. The vehicle just had to have been purchased or leased by a Michigan resident.
Used vehicles? Okay, this gets interesting. A used car is covered only if it’s still under the manufacturer’s express warranty. That means you bought it with warranty protection still active.
Who Counts as a Consumer
You need to have purchased or leased the vehicle for personal, family, or household use. Not for business. Not to resell it. You also need to keep it for yourself, not pass it along to someone else immediately.
You can’t be a dealer buying and selling cars. But you can be someone who buys up to 10 cars a year for personal use. Basically, if you’re buying a car for yourself and your family, you’re protected.
The Timeline You Need to Know
Okay, this part is important. Pay close attention to the dates.
Report Your Problem Quickly
You have to report the defect or problem in writing to the manufacturer or authorized dealer. When? Within the manufacturer’s warranty period or within one year of when you got the car—whichever comes first. Don’t wait beyond that. If you wait too long, you lose your right to a lemon law claim.
That one-year clock starts ticking the day the vehicle is delivered to you. So keep track. Write that date down.
What Counts as “Not Fixed”?
Here’s where Michigan gets specific. Your car has to go through a reasonable number of repair attempts before you can claim it’s a lemon.
The “Reasonable Number” Rule
Basically, the manufacturer gets a fair shot at fixing your car. That means one of two things must happen:
First option: The vehicle goes in for repairs four or more times for the same problem. Four times. And each time, the problem isn’t fixed. That’s the key—the problem has to still exist or come back.
Second option: Your car is in the shop for 30 or more days. That sounds like a lot, but think about it. You’re without your car for a month. That definitely suggests something serious is wrong.
But wait, there’s more. You need to give the manufacturer one final chance before you can walk away. This is called the “last chance letter.” After the third repair fails (or after 25 days in the shop), send a certified letter to the manufacturer. Tell them this is your final opportunity to fix it. If they still can’t fix it, you can move forward.
The Timeline for Multiple Repairs
Here’s the tricky part about timing. The first repair attempt has to happen within the first year you own the car. Then, the remaining three repairs have to happen within two years from when you first brought it in for service. So the clock extends beyond that first year, but only if you already started the repair process.
Alternatively, if your car is in the shop for 30 days or more total, that happens during your manufacturer’s warranty period or within one year of delivery—whichever is earlier.
This is why keeping good records matters. Write down every repair visit. Keep those work orders. Note the date, the mileage, and what was supposedly fixed.
What Happens If You Have a Lemon?
Okay, so your car meets the criteria. You’ve had multiple repairs. The problems keep happening. What now?
Your Rights
Here’s what you’re entitled to: either a refund of your purchase price or a replacement vehicle. You get to choose. The replacement vehicle has to be comparable and currently in production.
Think about that for a second. You could get your money back. That’s pretty significant. Or you could drive off in a new, working vehicle instead.
What the Refund Includes
If you get your money back, the manufacturer reimburses you for the purchase price. That includes your trade-in allowance, any cash you put down, sales tax, license fees, registration fees, and the cost of any add-ons installed at the factory.
But here’s the catch: the manufacturer deducts a “reasonable allowance for use.” Basically, they’re saying, “You drove this car. We need to account for that.”
How much do they deduct? Here’s Michigan’s specific formula: ten cents per mile you drove the car before reporting the defect. But—and this is important—if you drove less than 25,000 miles before reporting the problem, the deduction is capped at the mileage you had when you first reported it. So if you reported the problem at 5,000 miles, they can only deduct for 5,000 miles, not all 25,000.
Also, if your car has damage that’s not normal wear and tear, they’ll deduct for that. Door dings, scratches, glass damage. Repair those before the buyback if you can. It might be worth it.
Replacement Vehicle Terms
If you choose a replacement instead of money back, here’s what you get. A vehicle of equal value that’s currently in production. The lease agreement (if you leased) stays the same—they just update it with the new vehicle’s information.
The good news: if you leased and accept a replacement, your lease terms don’t change. If you don’t like the replacement they offer, you can demand a refund instead.
The Arbitration Process: A Necessary Step
Hold on, this part is important. Before you can go to court or demand a refund, most manufacturers require you to go through arbitration first.
What Is Arbitration?
It’s basically a formal discussion between you and the manufacturer. A neutral third party hears both sides and makes a decision. It’s faster than court and usually costs you nothing.
Michigan law says the arbitration process has to follow federal rules (the Magnuson-Moss Warranty Act). It also has to actually bind the manufacturer if you agree to their decision. And you have to have the right to walk away and pursue a lemon law claim if you don’t like the result.
The Timeline
The manufacturer has 30 days from when an agreement is reached to start fixing the vehicle or paying you back. They have five business days to repair the defect once you take the car to their designated repair facility.
Should You Use It?
Some arbitration programs are legit and helpful. Others aren’t. If the manufacturer’s arbitration process meets federal standards, you usually have to try it first. But if it doesn’t meet those standards, you can skip it and go straight to your legal options.
This is where talking to a lawyer helps. If you’re not sure, ask.
Penalties and Consequences
Okay, so what happens if the manufacturer ignores your rights? What if they refuse to fix the car or deny your claim?
Your Legal Remedies
You can sue the manufacturer. If you win or settle, you could get your money back or a replacement vehicle. You might also get money for damages. And—this is really important—the manufacturer has to pay your attorney fees. You don’t pay out of pocket for legal help.
That’s huge. It means you can afford to hire a lawyer even if the case seems expensive.
What You Might Recover
Beyond the refund or replacement, you might recover:
Incidental and consequential damages. That’s fancy language for money you spent because of the defective car. Maybe rental car costs while yours was in the shop. Towing fees. These add up fast, and you can get reimbursed.
Keep all your receipts. Document everything. This paperwork becomes evidence.
What You Can’t Do
Don’t try to sell the car or trade it in while your lemon law case is pending. It’s evidence. If the car disappears, your case could get dismissed. That’s a real risk. You need the vehicle to prove the defect exists.
Keep making payments if you financed the car. Even though the manufacturer might owe you money, falling behind on payments could sink your case. It’s unfair, but it’s the reality.
Special Circumstances and Exceptions
Business Use
If you bought the car primarily for business, the lemon law probably doesn’t apply. It’s designed for personal, family, and household use. Someone buying a fleet of vehicles for a business won’t have the same protection.
Damage to Your Vehicle
The manufacturer can deduct money for damage that’s not normal wear and tear. Think of it like returning a rental car. If you scratched the bumper, damaged the interior, or broke something, they’ll charge you.
But here’s the thing: pre-existing damage doesn’t count against you. Only damage you caused or damage from your use beyond normal driving counts. Take photos of your car when you buy it. Document its condition.
Leasing vs. Buying
If you leased your car, the lemon law still applies. You have the same rights as someone who bought the vehicle. You can demand a replacement or get out of the lease. But the manufacturer might give you a replacement vehicle and adjust your lease agreement. If you leased and they offer a replacement, you don’t have to accept it—you can demand a refund instead.
How to Protect Your Rights
Here’s the practical stuff. This is what you actually need to do if something goes wrong.
Step One: Document Everything
Keep copies of everything. Your purchase agreement. The warranty paperwork. Work orders from every repair. Receipts for repairs or rentals. Emails or letters to the manufacturer. Copies of any correspondence with the dealer. Seriously, keep it all.
When you bring your car in for repairs, ask for a work order that shows the date and your mileage. Keep that paper. When you write to the manufacturer, send it certified mail, return receipt requested. You need proof they got it.
Step Two: Report the Problem in Writing
Don’t just call the dealer. Send a written report to the manufacturer. Include the vehicle identification number (VIN), the mileage, and a clear description of the problem. Send it to the manufacturer’s regional office. You’ll find the address in your owner’s manual.
This creates a paper trail. It’s proof you reported it within the legal timeframe. Verbal reports don’t count.
Step Three: Keep Getting Repairs
Bring your car in for repairs when the manufacturer asks. Let them try to fix it. Keep records of every attempt. This is important because you need to show they had reasonable opportunities to fix the problem.
Step Four: Send the Last Chance Letter
After the third repair fails or after 25 days in the shop, send a certified letter. Tell the manufacturer you’re giving them one final opportunity to fix the vehicle. If they can’t fix it or if the problem recurs, you’re moving forward with your lemon law claim.
Step Five: Consider Arbitration
If the manufacturer requires it, go through their arbitration process. It might actually resolve things quickly.
Step Six: Consult a Lemon Law Attorney
This is the part you really shouldn’t skip. Contact a lemon law lawyer. Many offer free consultations. They don’t get paid unless you win or settle. Your legal fees come from the manufacturer if you win, so it costs you nothing.
A lawyer will review your paperwork. They’ll tell you if you have a strong case. They’ll handle communication with the manufacturer. They’ll represent you if it goes to court.
Frequently Asked Questions
What if my car is slightly used but still under warranty?
If the used car still has the manufacturer’s express warranty at the time of purchase, the lemon law applies. It doesn’t matter that someone owned it before. The warranty has to be active.
Can I keep my car and sue for damages?
No. To get relief under the lemon law, you have to return the vehicle or accept a replacement. You can’t keep a defective car and collect money damages. Well, technically you might recover some incidental damages, but the main remedy is return or replacement.
How long does a lemon law case take?
Anywhere from 30 days to two years. Strong cases usually settle in about 60 days. It depends on how cooperative the manufacturer is, whether arbitration is required, and whether the case is clear-cut.
Do I have to make car payments during the case?
Yes. If you financed the vehicle, keep making payments. Don’t fall behind. It could hurt your case. When you win or settle, you’ll get reimbursed, but until then, you’re responsible for the payments.
What if the manufacturer ignores my last chance letter?
If they don’t respond or don’t actually try to repair the car, you’ve met the legal requirements. You can proceed with your lemon law claim. You have the right to demand a refund or replacement.
Can I demand a specific replacement vehicle?
No. The replacement has to be comparable in value and currently in production. You don’t get to pick the exact model or color. If you don’t like what they offer, you can reject it and demand a refund instead.
What about attorney fees?
Michigan law and federal law (the Magnuson-Moss Warranty Act) allow the manufacturer to pay your legal fees if you win. You don’t pay your lawyer out of pocket. This is huge because it means you’re not taking on financial risk to pursue your rights.
Final Thoughts
You’re not helpless if you buy a lemon. Michigan has a real law designed to protect you. It requires manufacturers to back up their warranties. It gives you a path to get your money back or a replacement car.
The most important thing: keep records and report problems in writing quickly. Once you hit that one-year mark from delivery, your window closes. Don’t wait.
If you think you have a lemon, consult a lemon law attorney. It’s free, and they’ll tell you honestly whether you have a case. Most cases settle without going to court. The manufacturer usually doesn’t want the hassle.
You made a huge investment in your car. Michigan’s lemon law makes sure that investment is protected. Use it.