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Minnesota Lemon Law - Used Car Warranty Law

If you bought or leased used a car in Minnesota and suspect it's a lemon, you'll be happy to know that Minnesota has one of the nation's strongest used car warranty laws.

Minnesota has one of the strongest Used Car Warranty Laws in the country. The Minnesota Used Car Warranty Law requires that used car dealers must provide basic warranty coverage for most used cars and small trucks sold to Minnesota buyers. The Used Car Warranty Law does not apply if you buy a used car from a relative, friend, from a private party or "as is."

"As Is" versus "Warranty"

Purchasing a used car from a dealer is no guarantee that it will be under warranty. Some used vehicles are not covered by the Used Car Warranty Law and may be sold "as is." Check the Buyer's Guide window sticker to determine if the vehicle is covered by a warranty.

What's Covered by the Used Car Warranty Law?

The Used Car Warranty Law covers used cars purchased primarily for personal, family or household purposes. The terms and length of the warranty will depend upon how many miles the car has been operated at the time of purchase. For cars with fewer than 36,000 miles, the warranty applies for 60 days or 2,500 miles, whichever comes first. The parts covered under the warranty for cars in this mileage range are: For cars with between 36,000 and 75,000 miles, the warranty applies for 30 days or 1,000 miles, whichever comes first. For cars in this mileage range, the warranty covers the parts listed above, except for the following parts which are NOT covered: Only the parts list above are covered by the Used Car Warranty Law.

Who Must Provide a Used Car Warranty?

Only used car dealers are required to provide warranties for used cars. Purchases from relatives, friends or neighbors don't apply. Nor does the law apply if you buy your car from: One problem the Used Car Warranty Law addresses is the problem of "unlicensed dealers." State law says that any person who is in the business of selling used cars and who sells more than five used cars in a year is a "dealer," and must obtain a dealer's license. An unlicensed dealer is a person who sells more than five used cars in a year but fails to get a dealer's license. Typically, an unlicensed dealer sells cars one at a time from the unlicensed dealer's home or business. If you buy a qualifying car from an unlicensed dealer, then your car is covered by the Used Car Warranty Law. You should realize that in such cases you are legally entitled to warranty coverage even if the unlicensed dealer fails to give you any written warranty documents.

Exclusions

Remember that purchasing a used car does not guarantee it's covered by the Used Car Warranty Law. Vehicles meeting the following criteria are excluded from the law and are generally sold "as is." The "Buyer's Guide"

Federal rule require dealers to post notices called "Buyer's Guides" in the side window of all used cars. If a car is covered by the state's Used Car Warranty Law or another warranty, then the dealer must check the "warranty" box on the Buyer's Guide. The dealer's also required to describe the terms and length of the warranty on the Buyer's Guide. Used cars not covered by the Used Car Warranty Law and offered for sale without a warranty must have their Buyer's Guide "as is" box checked.

Even if the car you buy is covered under the Used Car Warranty Law, you may waive warranty coverage for a particular part. In order for warranty coverage to be waived, the dealer must disclose on the Buyer's Guide that the part is not working properly, and you must sign and circle this statement.

The Dealer's Duty Under the Warranty

If a malfunction, defect or failure in a covered part occurs during the warranty period, then the dealer must repair or replace the part at no charge to the car buyer. However, to protect your rights under the warranty, you must promptly notify the dealer of the problem within the warranty period, and you must arrange to have the vehicle taken to the dealer for inspection and repair.

If the dealer does not have a repair facility, the dealer will tell you where to take the vehicle for inspection and repair under the warranty. If it is impossible or unreasonable to return the vehicle to the dealer, you may have the repairs done somewhere else after you get the dealer's consent. If a part is repaired or replaced under the car's warranty, the warranty for that part is extended from the date of repair for an additional warranty period.

For example, if your car's transmission is repaired under its used car warranty, then the transmission remains under warranty for an additional 30 days or 1,000 miles (or 60 days or 2,500 miles) from the date of the repair.

The dealer is not responsible for any malfunctions, defects, or failures which occur after the warranty period expires. Nor is the dealer responsible to repair parts not covered by the warranty.

Refunds

A dealer may decide to refund the purchase price of your car, rather than repair or replace a warranty part. If the dealer gives you a refund, you must return the vehicle to the dealer. The refund must include all the charges you paid, including towing expenses, minus a reasonable deduction for your use of the vehicle.

Remember that the dealer has the choice of correcting the warranty problem or giving you a refund; the law does not give the car buyer the right to demand a refund of the purchase price.

Ordinary Maintenance

A warranty given under the Used Car Warranty Law does not cover ordinary maintenance of your car. Thus, repair or replacement of maintenance items (such as spark plugs, ignition points, filters, fluids, lubricants and oil, and brake and clutch linings) is your responsibility. The warranty does not cover normal wear and tear.

Limits on the Warranty

The warranty does not cover any repair problems caused by collisions, abuse, negligence, or lack of adequate maintenance after you buy the car. Nor is the dealer required to repair any parts still covered by the original factory warranty, or parts that the manufacturer agrees to repair at no charge.

Bringing a Lawsuit

If a used car dealer fails to comply with the warranty law, you may bring a lawsuit against the dealer. Any lawsuit under the Used Car Warranty Law must be brought within one year after the warranty expires.

Often, you will be able to bring your case in conciliation court, where the procedures are relatively informal and where you will not be required to hire an attorney. (For more information about Conciliation Court, ask for the Attorney General's free brochure.)

Much of the expense of owning a car comes after you buy it. After three or four years of driving, the muffler may roar, the brakes may grind, the windshield wiper fluid may leak, or the radio may go out. Slowly but surely, your vehicle will begin to show signs of age. And Murphy's Law says the really big repairs will be needed just after the warranty has run out!

Know the Difference Between Service Contracts and the Used Car Warranty Law

If you are offered an "extended warranty" at an additional cost, this is probably not a warranty but a service contract. Service contracts provide limited coverage for the car, so you should read the service contract carefully before deciding whether you want to buy this coverage. Furthermore, the service contract may require you to prove that you have done regular maintenance (oil changes, etc.) on the vehicle. You should also be aware that a service contract is frequently a profit item for the dealer; like any other add-on, the cost may be negotiated.


Minnesota Used Car Warranty Law Statutes


325F.662 Sale of used motor vehicles.

Subdivision 1. Definitions. For the purposes of this section, the following terms have the meanings given to them.

(a) "Consumer" means the purchaser, other than for purposes of resale, of a used motor vehicle used primarily for personal, family, or household purposes.

(b) "Dealer" means a motor vehicle dealer or lessor, as defined in section 168.27, subdivisions 2, 3, and 4, whether licensed or unlicensed, or the dealer's or lessor's agent, who is engaged in the business of selling or arranging the sale of used motor vehicles in this state; except that, the term does not include a bank or financial institution, a business selling a used motor vehicle to an employee of that business, a lessor selling, either directly or indirectly, a leased used motor vehicle to that vehicle's lessee or a family member or employee of the lessee, or a licensed auctioneer selling motor vehicles at an auction if, in the ordinary course of the auctioneer's business, the sale of motor vehicles is incidental to the sale of other real or personal property.

(c) "Motor vehicle" means a passenger automobile, as defined in section 168.011, subdivision 7, including pickup trucks and vans.

(d) "Used motor vehicle" means any motor vehicle which has been driven more than the limited use necessary in moving or road testing a new motor vehicle prior to delivery to a consumer. The term does not include a new motor vehicle sold by a dealer franchised to sell the vehicle if the vehicle was driven for demonstration purposes using dealer plates and if, when the vehicle was sold, it carried a manufacturer's express warranty which provides coverage at least as broad with respect to covered components and duration as that required by this section.

(e) "Express warranty" means a dealer's written statement, as defined in section 325G.17, subdivision 5, provided to a consumer in connection with the sale of a used motor vehicle.

(f) "Buyer's Guide" means the window form required by the Federal Trade Commission's "Used Motor Vehicle Trade Regulation Rule," Code of Federal Regulations, title 16, section 455.2.

Subd. 2. Written warranty required.
(a) Every used motor vehicle sold by a dealer is covered by an express warranty which the dealer shall provide to the consumer. At a minimum, the express warranty applies for the following terms:
(1) if the used motor vehicle has less than 36,000 miles, the warranty must remain in effect for at least 60 days or 2,500 miles, whichever comes first;

(2) if the used motor vehicle has 36,000 miles or more, but less than 75,000 miles, the warranty must remain in effect for at least 30 days or 1,000 miles, whichever comes first.
(b) The express warranty must require the dealer, in the event of a malfunction, defect, or failure in a covered part, to repair or replace the covered part, or at the dealer's election, to accept return of the used motor vehicle from the consumer and provide a refund to the consumer.

(c) For used motor vehicles with less than 36,000 miles, the dealer's express warranty shall cover, at minimum, the following parts:
(1) with respect to the engine, all lubricated parts, intake manifolds, engine block, cylinder head, rotary engine housings, and ring gear;

(2) with respect to the transmission, the automatic transmission case, internal parts, and the torque converter; or, the manual transmission case, and the internal parts;

(3) with respect to the drive axle, the axle housings and internal parts, axle shafts, drive shafts and output shafts, and universal joints; but excluding the secondary drive axle on vehicles, other than passenger vans, mounted on a truck chassis;

(4) with respect to the brakes, the master cylinder, vacuum assist booster, wheel cylinders, hydraulic lines and fittings, and disc brakes calipers;

(5) with respect to the steering, the steering gear housing and all internal parts, power steering pump, valve body, piston, and rack;

(6) the water pump;

(7) the externally-mounted mechanical fuel pump;

(8) the radiator;

(9) the alternator, generator, and starter.
(d) For used motor vehicles with 36,000 miles or more, but less than 75,000 miles, the dealer's express warranty shall cover, at minimum, the following parts:
(1) with respect to the engine, all lubricated parts, intake manifolds, engine block, cylinder head, rotary engine housings, and ring gear;

(2) with respect to the transmission, the automatic transmission case, internal parts, and the torque converter; or, the manual transmission case, and internal parts;

(3) with respect to the drive axle, the axle housings and internal parts, axle shafts, drive shafts and output shafts, and universal joints; but excluding the secondary drive axle on vehicles, other than passenger vans, mounted on a truck chassis;

(4) with respect to the brakes, the master cylinder, vacuum assist booster, wheel cylinders, hydraulic lines and fittings, and disc brake calipers;

(5) with respect to the steering, the steering gear housing and all internal parts, power steering pump, valve body, and piston;

(6) the water pump;

(7) the externally-mounted mechanical fuel pump.
(e)
(1) A dealer's obligations under the express warranty remain in effect notwithstanding the fact that the warranty period has expired, if the consumer promptly notified the dealer of the malfunction, defect, or failure in the covered part within the specified warranty period and, within a reasonable time after notification, brings the vehicle or arranges with the dealer to have the vehicle brought to the dealer for inspection and repair.

(2) If a dealer does not have a repair facility, the dealer shall designate where the vehicle must be taken for inspection and repair.

(3) In the event the malfunction, defect, or failure in the covered part occurs at a location which makes it impossible or unreasonable to return the vehicle to the selling dealer, the consumer may have the repairs completed elsewhere with the consent of the selling dealer, which consent may not be unreasonably withheld.

(4) Notwithstanding the provisions of this paragraph, a consumer may have nonwarranty maintenance and nonwarranty repairs performed other than by the selling dealer and without the selling dealer's consent.
(f) Nothing in this section diminishes the obligations of a manufacturer under an express warranty issued by the manufacturer. The express warranties created by this section do not require a dealer to repair or replace a covered part if the repair or replacement is covered by a manufacturer's new car warranty, or the manufacturer otherwise agrees to repair or replace the part.

(g) The express warranties created by this section do not cover defects or repair problems which result from collision, abuse, negligence, or lack of adequate maintenance following sale to the consumer.

(h) The terms of the express warranty, including the duration of the warranty and the parts covered, must be fully, accurately, and conspicuously disclosed by the dealer on the front of the Buyers Guide.
Subd. 3. Exclusions. Notwithstanding the provisions of subdivision 2, a dealer is not required to provide an express warranty for a used motor vehicle:
(1) sold for a total cash sale price of less than $3,000, including the trade-in value of any vehicle traded in by the consumer, but excluding tax, license fees, registration fees, and finance charges;

(2) with an engine designed to use diesel fuel;

(3) with a gross weight, as defined in section 168.011, subdivision 16, in excess of 9,000 pounds;

(4) that has been custom-built or modified for show or for racing;

(5) that is eight years of age or older, as calculated from the first day in January of the designated model year of the vehicle;

(6) that has been produced by a manufacturer which has never manufactured more than 10,000 motor vehicles in any one year;

(7) that has 75,000 miles or more at time of sale;

(8) that has not been manufactured in compliance with applicable federal emission standards in force at the time of manufacture as provided by the Clean Air Act, United States Code, title 42, sections 7401 through 7642, and regulations adopted pursuant thereto, and safety standards as provided by the National Traffic and Motor Safety Act, United States Code, title 15, sections 1381 through 1431, and regulations adopted pursuant thereto; or

(9) that has been issued a salvage certificate of title under section 168A.151.
Subd. 4. Waiver. When purchasing a used motor vehicle, a consumer may waive the express warranty for a covered part if:
(1) the dealer discloses in a clear and conspicuous typed or printed statement on the front of the Buyers Guide that the waived part contains a malfunction, defect, or repair problem; and

(2) the consumer circles this typed or printed statement and signs the Buyers Guide next to the circled statement.
Subd. 5. Warranty automatic. If a dealer fails to give the express warranty required by this section, the dealer nevertheless is considered to have given the express warranty as a matter of law.

Subd. 6. Buyers guide requirements. In selling or offering to sell any used motor vehicle, and in providing the express warranty required by this section, a dealer shall comply in all respects with the Federal Trade Commission's "Used Motor Vehicle Trade Regulation Rule," Code of Federal Regulations, title 16, part 455.

Subd. 7. Honoring of express warranties.
(a) In accordance with section 325G.19, subdivision 2, every express warranty in connection with the sale of a used motor vehicle must be honored by the dealer according to the terms of the express warranty.

(b) Following repair or replacement of a covered part, the dealer remains responsible under the express warranty for that covered part for one additional warranty period.

(c) By honoring the terms of the express warranty by repairing or replacing a covered part, the dealer does not create an additional implied warranty on any portion of the used motor vehicle.

(d) A dealer may limit the duration of implied warranties to the duration of the express warranty.
Subd. 8. Refunds.
(a) A refund, as provided under subdivision 2, must consist of the full purchase price of the used motor vehicle and all other charges, including but not limited to excise tax, registration tax, license fees, and reimbursement for towing expenses incurred by the consumer as a result of the vehicle being out of service for warranty repair, less a reasonable allowance for the consumer's use of the vehicle not exceeding ten cents per mile driven or ten percent of the purchase price, whichever is less. Refunds must include the amount stated by the dealer as the trade-in value of any vehicle traded in and applied to the purchase price of the used motor vehicle. Refunds must be made to the consumer and lienholder, if any, as their interests appear on the records of the registrar of motor vehicles.

(b) The amount of the excise tax to be paid by the dealer to the consumer under paragraph (a) is the tax paid by the consumer when the vehicle was purchased less an amount equal to the tax paid multiplied by a fraction, the denominator of which is the purchase price of the vehicle and the numerator of which is the allowance deducted from the refund for the consumer's use of the vehicle.

(c) A dealer must give the consumer an itemized statement listing each of the amounts refunded under this subdivision. If the amount of excise tax refunded is not separately stated, or if the dealer does not apply for a refund of the tax within one year of the return of the motor vehicle, the department of public safety may refund the excise tax, as determined under paragraph (b), directly to the consumer and lienholder, if any, as their interests appear on the records of the registrar of motor vehicles.
Subd. 9. Civil remedies. Any dealer who is found to have violated this section is subject to the penalties and remedies, including a private right of action, as provided in section 8.31. In addition, a violation of subdivision 7 is also a violation of section 325F.69.

Subd. 10. Limitation on actions. A private civil action brought by a consumer under this section must be commenced within one year of the expiration of the express warranty.

Subd. 11. Remedy nonexclusive. Nothing in this section limits the rights or remedies which are otherwise available to a consumer under any other law.

Additional Lemon Law Resources

Minnesota's New Car Lemon Law
Lemon Law Tips
Keep a Vehicle Repair Log
Federal Lemon Law - Magnuson-Moss Warranty Act