Texas Lemon Laws in 2026: Everything You Need To Know About Your Rights
Most people have no idea this protection even exists. Seriously. Your car is broken. It’s constantly in the shop. You’re frustrated. But here’s the good news: Texas has a law designed specifically to help you.
That law is called the Texas Lemon Law. It’s been protecting Texans since 1983. If you bought or leased a defective new vehicle, this law might be your ticket to getting a refund, replacement, or repair. Let’s break down exactly what you need to know.
What Is the Texas Lemon Law?
Think of the Texas Lemon Law as your safety net when you buy a bad car. It’s a state law that protects consumers who purchase new vehicles with serious defects.
Here’s the basic idea: the manufacturer promises your car will work properly. They give you a warranty. But sometimes, things go wrong. The car breaks down repeatedly. You take it to the dealer again and again. Nothing seems to stick.
That’s where this law kicks in. If the manufacturer has had reasonable chances to fix the problem and fails, you’re entitled to relief. You might get your money back. You might get a replacement vehicle. Or the manufacturer might finally fix it for free. Pretty straightforward, right?
The Texas Department of Motor Vehicles handles these complaints. They review your case, try to mediate between you and the manufacturer, and hold hearings if needed.
What Vehicles Are Covered?
Wondering if your vehicle qualifies? The good news is that the law covers more than just cars.
Covered vehicles include:
Your typical passenger cars, trucks, and SUVs are definitely covered. But it extends way beyond that. The law also protects you if you bought motorcycles, motorhomes, RVs, all-terrain vehicles (ATVs), or towable recreational vehicles like trailers and fifth wheels. Even demonstrator vehicles (the ones used for test drives at dealerships) are covered.
The key requirement is simple: the vehicle must be new and purchased from a Texas dealer.
Not covered:
Commercial vehicles with super heavy weights (over 18,000 pounds) are excluded. Used cars are generally not covered. However—and this is important—a used car might qualify if it’s still under the manufacturer’s original warranty. Make sense?
Vehicles purchased “as-is” with no warranty? Those don’t qualify. The vehicle must have warranty protection.
The Three Tests: How Many Repair Attempts Are Enough?
Here’s where it gets important. The law doesn’t say the manufacturer has unlimited chances to fix your car. Texas uses three different tests to determine when a car officially becomes a “lemon.”
The Four-Times Test
This is the most common scenario. Your car has a defect. You take it back for repair. Then again. Then again. And one more time—that’s four times total.
Here’s the specific rule: if the same defect is repaired four times within the first 24 months or 24,000 miles (whichever comes first), and the problem still exists, your car qualifies as a lemon. The clock is ticking on that 24 months and 24,000 miles. That’s your window.
The Serious Safety-Hazard Test
Some problems are more dangerous than others. If your car has a defect that creates a serious safety hazard, the manufacturer gets fewer chances to fix it.
How many chances? Just two. If you’ve taken your car for repairs twice for the same safety issue within the first 24 months or 24,000 miles, and it’s still broken, you’re done. Your vehicle qualifies.
What counts as a serious safety hazard? Things like brake failures, steering problems, or engine fires. Basically, anything that could get someone hurt.
The 30-Day Test
This test is about time spent in the shop, not the number of repair visits. It works like this: if your car is out of service for repair for 30 days or more (not necessarily all at once) within the first 24 months or 24,000 miles, and the defect still isn’t fixed, you’ve got a lemon.
But wait—there’s one exception. If the dealer gave you a comparable loaner car while yours was being repaired, those days don’t count. The law is fair that way.
What Qualifies as a “Substantial Defect”?
Not every problem with your car makes it a lemon. Your car has to have something seriously wrong with it.
Texas defines a substantial defect as something that:
Impairs the car’s safe operation. You can’t control or operate the vehicle normally. Your brakes aren’t working right. The steering is off. It’s creating a real risk.
Substantially reduces the vehicle’s market value. The car is worth significantly less than it was when you bought it because of this defect.
Substantially impairs normal use. You can’t use the car for what it’s designed to do. It’s supposed to get you from point A to point B, but it keeps breaking down.
Minor cosmetic issues don’t count. A scratch in the paint? A small dent? Those aren’t getting you anywhere under this law. The defect has to be real and significant.
Filing a Complaint with the Texas Department of Motor Vehicles
Okay, you’re convinced your car is a lemon. Now what? Here’s your action plan.
Step 1: Document Everything
Start keeping detailed records right now. Write down:
- The date you noticed the problem
- What the problem actually is
- When you took it to the dealer
- What they said they fixed
- When the problem came back
Include specifics. Don’t just write “car broken.” Write “check engine light came on at 50 mph on Highway 290.” Details matter.
Step 2: Give the Manufacturer a Last Chance
Before you file a formal complaint, you must notify the manufacturer in writing. This gives them one final opportunity to repair the defect.
Send a letter (email works too, but certified mail is better) to the manufacturer. Be clear about the problem. Set a deadline for them to fix it. Give them at least one more chance. This step is required by law.
Step 3: File the Complaint
Once the manufacturer has had that final chance (or refused), you can file with the Texas Department of Motor Vehicles. Here’s what you need to know:
The filing fee is $35. Pay this when you submit your complaint. You’ll need to include copies of all your repair records. Include photos of the defect if possible. Explain how the defect affects your vehicle’s use, value, or safety. Reference which test your car meets (the four-times test, safety hazard test, or 30-day test).
You can file online through the Motor Vehicle Dealer Online Complaint System. That’s actually the fastest way. Or you can mail your complaint to the TxDMV.
Step 4: The Timeline Matters
Here’s something crucial: you have a deadline. You must file your complaint within six months of whichever comes first:
The end of your manufacturer’s warranty. OR when the vehicle first exhibits the defect.
To be safe, file as soon as you realize the dealer can’t fix the problem. Don’t wait.
Stay with me here—this next part is important.
The Process After You File
You’ve filed your complaint. What happens next?
The Texas Department of Motor Vehicles will review your complaint for completeness. They’ll check that you’ve met all the requirements. They’ll verify that you’ve given the manufacturer a reasonable number of repair attempts.
Next, they’ll try to mediate. They’ll contact the manufacturer. They’ll try to work out a settlement between you and them. Sometimes this works. Sometimes it doesn’t.
If mediation fails, your case goes to a hearing. Both you and the manufacturer can present your evidence. A hearing examiner listens to both sides. They’ll review all the repair records, your testimony, the manufacturer’s defense, everything.
After the hearing, the examiner makes a decision. If you win, the manufacturer has to comply with the order.
What Happens If You Win? Your Options for Relief
If you prove your car is a lemon, you get to choose your remedy. The manufacturer doesn’t get to decide for you.
Option 1: Vehicle Repurchase (Refund)
The manufacturer buys the car back. You get paid the full purchase price. This includes the actual purchase price, taxes, title, and license fees.
But—and this is important—they deduct an amount for mileage and use. The more miles you’ve driven, the more they deduct. The Texas Department of Motor Vehicles uses a specific formula to calculate this deduction. It’s all very precise.
Example: You paid $25,000 for your car. You’ve driven it 15,000 miles. They deduct about $3,750 (roughly 25 cents per mile). You get approximately $21,250 back.
Option 2: Vehicle Replacement
The manufacturer gives you a comparable new vehicle. This car should be basically equivalent to your original vehicle. You don’t get to pick a fancy upgrade. It’s comparable in value and features.
If the replacement vehicle costs more than your original, you pay the difference. If it costs less, they cover it.
Option 3: Repair at No Cost
The manufacturer finally fixes the problem properly. This is usually the least common outcome, but it does happen. When it does, repairs are completely free.
The Filing Fee and Cost Concerns
Good news: the filing fee is only $35. That’s incredibly reasonable for pursuing potentially thousands of dollars in relief.
But here’s what matters even more: you don’t need to hire a lawyer to file. You can do this yourself. The Texas Department of Motor Vehicles makes the process simple and accessible. They provide forms. They walk you through it. It’s designed for regular people, not lawyers.
Can you hire a lawyer if you want? Absolutely. Many consumer protection attorneys will handle lemon law cases. Some work on contingency, meaning you don’t pay unless you win.
But honestly, the process is accessible enough that you might not need one. That’s by design. Texas wanted regular consumers to be able to use this law without breaking the bank.
Time Limits: Your Window for Action
This is critical information, so pay attention.
Your complaint must be filed within six months of one of these events, whichever comes first:
The end of the manufacturer’s warranty period. OR when the vehicle first has the defect.
Here’s the thing: once those six months pass, you’ve lost your right to file. The window closes. No exceptions.
But here’s another important timeline: the actual test (four-times, safety hazard, or 30-day) must all happen within the first 24 months or 24,000 miles of ownership. Whichever comes first.
So if you bought your car, and within the first year you’ve taken it in four times for the same problem, you qualify. But if the first problem doesn’t appear until month 25? That’s outside the window. The law has a six-month filing deadline after the problem starts.
This is why timing matters so much. As soon as you realize the dealer can’t fix the problem, start the clock. Don’t wait. Don’t think “maybe it’ll go away.” File that complaint.
Special Circumstances and Exceptions
Leased vehicles. Not owned? The law covers lease situations too. If your leased vehicle qualifies as a lemon, the lease can be terminated without penalty. You walk away clean. That’s actually a really good protection for lessees.
Used vehicles. As mentioned earlier, used cars can qualify—but only if they’re still under the manufacturer’s original warranty. The warranty must have been in effect when you purchased the vehicle, and the defect must appear while you own it.
Demonstrator vehicles. If you bought a car that was used as a demonstration vehicle at a dealership, it might still qualify. It depends on whether the vehicle had been titled to anyone else before you bought it.
Military members. If you’re stationed in Texas as part of the U.S. military, you’re covered by the law even if you’re not a resident.
What the Law Does NOT Cover
This matters because some situations genuinely aren’t covered.
Defects that appear after your warranty expires are not covered. The defect must be a warranty issue. Once the warranty ends, you’re no longer protected by the lemon law.
Cosmetic defects are not covered. Scratched paint, dented bumpers, interior stains—these don’t qualify. The defect has to substantially affect use, value, or safety.
Normal wear and tear is not covered. Your tires wearing down. Your brake pads thinning. That’s expected maintenance, not a defect.
Damage from accidents or negligence is not covered. If you crashed the car or didn’t maintain it properly, that’s on you.
How to Get Help and Resources
Honestly, this confuses a lot of people. So here’s where you can actually talk to someone.
Texas Department of Motor Vehicles Lemon Law Section
Call: (888) 368-4689
They can answer questions about whether your vehicle qualifies. They can help you file. They can explain the process. It’s free. They’re paid to help you.
Website: txdmv.gov
Online Filing System
The Motor Vehicle Dealer Online Complaint System lets you file completely online. This is the fastest way to get your complaint processed.
Consider a Lawyer
If your case seems complicated, or if the manufacturer disputes your claim, having a lawyer can help. Many specialize in consumer protection and lemon law cases. Some offer free consultations. You could also contact the State Bar of Texas for referrals to attorneys in your area.
Frequently Asked Questions
What exactly counts as a “serious defect”?
Any problem that substantially impairs the car’s use, safety, or market value. This includes brake failures, steering problems, electrical fires, engine defects, transmission failures, and similar serious issues. Minor cosmetic problems don’t qualify.
Can I use the lemon law on a used car?
Yes, but only if it’s still under the manufacturer’s original warranty. The warranty must have been in effect when you bought the used car. Once the warranty expires, the lemon law no longer applies.
How long does the whole process take?
It varies. Mediation might take a few weeks. If your case goes to a hearing, it could take several months. Most cases are resolved within three to six months from filing.
Do I have to go to a hearing?
Only if mediation doesn’t work. Many cases settle during the mediation phase without needing a formal hearing. But yes, if the manufacturer disputes your claim, you’ll likely go to a hearing.
What if the manufacturer refuses to comply with the TxDMV’s decision?
That’s rare, but the law allows you to pursue legal action in court if they refuse. You’d have documentation of the TxDMV’s decision supporting your case, which makes court action much easier.
Can I file this complaint myself, or do I need a lawyer?
You can absolutely file this yourself. The process is designed for regular consumers. A lawyer isn’t required. That said, if your case is complicated or the manufacturer fights hard, having a lawyer helps.
What if my car is still under warranty but outside the 24-month window?
The 24-month and 24,000-mile limits are key. If your problem starts after month 24 or after 24,000 miles, you don’t qualify under the lemon law, even if the warranty is still good. The defects must appear within that window.
How much do I have to deduct for mileage on a buyback?
The Texas Department of Motor Vehicles uses a specific formula. Generally, it’s around 25 cents per mile, but it varies based on the vehicle’s original price and other factors. They calculate this for your specific case.
The Bottom Line
Your car is supposed to work. When it doesn’t, and the manufacturer can’t fix it, you have rights. Texas takes those rights seriously.
Since 1983, this law has returned over $121 million to Texas consumers. Thousands of people have gotten refunds, replacements, or repairs when manufacturers failed them. You could be next.
Here’s what you need to do:
Keep detailed records of all problems and repair attempts. Notify the manufacturer in writing of the defect and give them one final chance to fix it. File your complaint with the Texas Department of Motor Vehicles within six months of the problem appearing. Be prepared to participate in mediation or a hearing if needed.
The process is straightforward. The law is on your side. You’ve got this.
For questions or to file your complaint, contact the Texas Department of Motor Vehicles at (888) 368-4689 or visit txdmv.gov. They’re there to help.
References
- Texas Department of Motor Vehicles – Lemon Law Information and Filing: https://www.txdmv.gov/motorists/consumer-protection/lemon-law
- Texas State Law Library – Texas Lemon Law FAQ: https://www.sll.texas.gov/faqs/texas-lemon-law/
- BBB National Programs – Texas Lemon Law Guide: https://bbbprograms.org/programs/dr/lemon-law/texas
- Texas Lemon Law Guide 2025 – TeamJustice: https://teamjustice.com/texas-lemon-law-car-warranty-rights-guide-2025/
- FindLaw – Texas Lemon Laws: https://www.findlaw.com/state/texas-law/texas-lemon-laws.html