Does the Lemon Law Apply to Leased Vehicles?

If you bought a car recently, you might be wondering: Does the lemon law apply7 to leased cars?

In many cases, the answer is yes. However, in order to qualify under Washington state's lemon law, your car must fulfill a few criteria, regardless of whether it was leased.

• Are leased in Washington

• Are primarily for personal, family, or household use

• Have a manufacturer’s warranty

You do not need to own the vehicle outright. As long as you're listed on the lease and meet the conditions, you're protected. In order for the car to be a lemon, it must 

 What Kinds of Problems Qualify a Leased Vehicle as a Lemon?

Washington’s lemon law covers a wide variety of defects, including problems with the engine, brakes, electrical, exhaust, or transmission. If any of these issues are recurring, you could qualify for co

mpensation under the lemon law. Under Washington law, your leased car might be a lemon if it:

• Has a serious safety defect that hasn’t been fixed after 1 or 2 repair attempts

• Has been in the shop for 30+ cumulative days for any warranty-covered issues

• Has had 4+ repair attempts for the same problem

Learn more about what cars qualify under the Washington lemon law.

Example Case: Leased Lemon in Tacoma

Samantha, who lives in Tacoma, leased a 2023 Kia Sportage. Within a few months, she noticed a persistent transmission problem that made driving unsafe and uncomfortable. She took the car back to the dealership, and after three separate repair attempts, the issue remained unresolved. In total, her vehicle spent more than 30 days in the shop for repairs.

Concerned about her safety and frustration growing, Samantha contacted a Washington Lemon Law attorney. After reviewing her lease and repair history, the attorney confirmed that her vehicle qualified under Washington’s Lemon Law protections. Samantha submitted a claim through the state arbitration program, and because her lease met the legal requirements, the manufacturer agreed to a full buyback.

Thanks to the Lemon Law and legal help, Samantha was compensated fairly, returned the defective vehicle, and avoided further costs or risks associated with the ongoing problem.

How to File a Lemon Law Claim for a Leased Car in Washington

Step 1: Gather Your Records

The first and most important step in pursuing a Lemon Law claim is to collect and organize all the relevant documents related to your vehicle. Having a complete record will help you build a strong case and make the arbitration process smoother. Here’s what you should keep handy:

• Your lease or purchase agreement: This proves your ownership or lease of the vehicle and outlines the terms of the sale or lease. It’s critical for establishing the timeline of your purchase and warranty coverage.

• Repair invoices and service reports: Keep every receipt, invoice, or service report that shows repairs or maintenance performed on your vehicle. These documents provide evidence of the defects and the attempts made to fix them. Make sure they include dates, details of the issues addressed, and the outcomes of each repair.

• Communication with the dealership or manufacturer: Save copies of emails, letters, text messages, or notes from phone calls with the dealership or manufacturer. This includes any complaints you made, responses you received, and offers for repair or replacement. This communication trail shows your effort to resolve the problem before filing a claim.

Step 2: Submit to the State Arbitration Program

Washington State provides a valuable resource for consumers dealing with defective vehicles: a free Lemon Law arbitration program administered through the Attorney General’s office. This program is designed to provide a faster, less formal, and cost-free alternative to going through the courts.

• How it works: After gathering your documents, you submit your claim to the arbitration program. An independent arbitrator will review your case, including your evidence and the manufacturer’s response, and then make a binding decision.

• Why use arbitration: This program is typically quicker and less expensive than filing a lawsuit. Plus, it’s specifically tailored to Lemon Law disputes, so the arbitrators are familiar with the legal standards involved.

You can start your claim online or by contacting the Washington State Attorney General’s Lemon Law Arbitration Program directly. This step is crucial because it often acts as a prerequisite before pursuing further legal action.

Step 3: Consider Hiring an Attorney

While the arbitration program is free and designed to be accessible, consulting with a Lemon Law attorney can significantly improve your chances of success. Here’s why:

• Expertise: An experienced attorney understands the complexities of Lemon Law cases and can help ensure that all your paperwork is properly prepared, your deadlines are met, and your rights are fully protected.

• Negotiation: Attorneys can handle communication with the manufacturer on your behalf, negotiate settlements, and advise you on whether to accept offers or proceed further.

• Contingency fees: Most Lemon Law lawyers work on a contingency basis, which means you pay nothing upfront and only owe legal fees if your case is successful. This lowers the financial risk of hiring legal help.

Even if you decide to start with arbitration on your own, having an expert lemon law attorney ready can provide peace of mind and additional support if the case becomes more complicated or contentious.

Damages and Compensation You Might Receive After a Lemon Law Claim

If your Lemon Law claim is successful, you may be entitled to several types of compensation designed to make you whole after purchasing or leasing a defective vehicle. The exact damages available can vary by state, but generally include:

• Vehicle Repurchase or Replacement: The most common remedy is a full refund or “buyback” of your vehicle. This means the manufacturer will either refund the purchase price (minus a reasonable allowance for use) or replace the defective vehicle with a comparable new one.

• Refund of Repair Costs: If you paid out-of-pocket for repairs related to the defect, you may be reimbursed for those expenses.

• Incidental and Consequential Damages: Some states allow you to recover additional costs caused by the defect, such as towing fees, rental car expenses, or even lost wages if the vehicle’s problems caused you to miss work.

• Attorney’s Fees and Court Costs: If you hired an attorney to assist with your claim, many Lemon Laws require the manufacturer to pay your legal fees and court costs if you win.

• Other Damages: In rare cases involving bad faith by the manufacturer, additional punitive damages may be awarded to deter wrongful conduct.

Understanding what compensation you can expect helps you know your rights and what to ask for during negotiations or arbitration. Consulting with a Lemon Law attorney can also help clarify what damages apply in your situation and maximize your recovery.

Leased Car Lemon Law- FAQ

Can I return my leased car if it's a lemon? Yes, if your leased vehicle meets the criteria under Washington’s Lemon Law, the manufacturer is required to either repurchase the car or provide a replacement. This protection applies whether you bought or leased the vehicle. The law is designed to protect consumers from being stuck with unsafe or defective vehicles that can’t be properly repaired within a reasonable time. It’s important to document your repair attempts to support your claim.

Can I file without a lawyer? Yes, you can file a Lemon Law claim on your own by using Washington’s free arbitration program offered through the Attorney General’s office. This program is designed to be accessible for consumers without legal representation and can resolve disputes without going to court. However, many people choose to hire a Lemon Law attorney because experienced lawyers often negotiate better settlements and can speed up the process. Attorneys also help ensure your paperwork is complete and deadlines are met.

What if I leased the car in another state? Washington’s Lemon Law protections generally only apply if you leased or purchased the vehicle within the state of Washington. If you leased your car in another state, you will need to look into the Lemon Law or consumer protection laws specific to that state. Each state has its own rules, timelines, and processes, so it’s important to know which laws apply. Consulting an attorney familiar with your leasing state’s laws can help clarify your options.

Can a used leased car qualify? Yes, a used leased vehicle can qualify for Lemon Law protection, but only if it is still covered by the original manufacturer’s warranty at the time the defects occur. The warranty period is key because Lemon Laws typically require that the defect appear during the warranty coverage. If your used leased car is out of warranty, Lemon Law protections may not apply, but other consumer protections might still help. Always check your warranty status and repair history when considering a claim.