What to Know About Illinois Lemon Law
The law of a lemon in Illinois is ostensibly simple. Under the act, a lemon is a new vehicle that has defects that are too tough for the manufacturer to get right. So long as you purchased the car from an authorized dealer (so a lease does not count, nor does buying from whoever and whatever internet company is peddling you a car). Once you have a vehicle that qualifies, you must give the manufacturer notice of the problem. They then have 20 days to repair the issues before the car qualifies for a lemon lawsuit. While that seems straightforward, most everyone who has had problems with a car can tell you it is not nearly as easy. Many manufacturers simply have little control over their dealers and at times appear to advocate against their own customers.
The act covers any new passenger car, truck or motorcycle that was purchased in Illinois . It not only includes the initial purchase, but also those that were leased and then purchased during the warranty period. As explained above, the lemon law is meant to protect you from a defective vehicle. While the statute was enacted to assist new car buyers, it is important to know that it does include used car purchasers as well, but only in certain instances. The protections typically available under the Illinois lemon law cover new vehicles only. However, in some instances, it can extend to used cars. In Illinois, the lemon law cannot extend to a used vehicle unless a warranty is included in the sale of the vehicle. If there is a warranty, the Illinois lemon law will apply. It is important to note that is applies to both express warranties and implied warranties. This is especially important in the used car market where many dealers offer a very short period on their used cars.
Does Illinois Lemon Law Apply to Used Cars?
In general, used cars do not necessarily fall under the same protections as new cars under the Illinois Lemon Law. However, the specifics of the sale and the warranty of the vehicle impact whether or not a used vehicle is covered by the law. Of course, the law also applies only to vehicles that are deemed to be out of service for an aggregate total of thirty days or more. If a dealer or seller sells you a used vehicle, warrants it, and that vehicle has significant problems, at some point you may be covered.
For example, if a dealer sells you a used vehicle with a written warranty and the vehicle has significant mechanical issues that require repair, the used vehicle may well be deemed a lemon. The specific timing of when the defects began to happen, however, determines the final answer to this question. If the problems or defects were present at the time of the sale, the warranty coverage aspect of the Illinois Lemon Laws may apply. On the other hand, if the defects arose after you purchased the vehicle, then the law probably will not apply.
If you are thinking you have purchased a used lemon, pay close attention to the warranty you received at the time of the sale and whether it is written and covers repairs for defects at the time of the purchase, or whether it simply covered repairs that arise after you buy the vehicle. If the warranty provides coverage for repairs at the time of sale, you may well have a case for a lemon under the Illinois Lemon Law.
How an Illinois Used Car Qualifies as a Lemon
For a used car to qualify as a lemon under our Illinois lemon law it has to meet all the following criteria:
- You purchase the car for personal, family or household use within the first 18 months of original ownership or 18,000 miles, whichever happens first. This gives the owner time to discover the defect.
- You give the dealer/manufacturer a reasonable opportunity to repair the same defect. This can be satisfied by having either four repair attempts for the same problem or the car is out of service by reason of repair for 30 days from the date of first repair attempt. This requirement is in place to prevent a car being declared a lemon for several smaller issues that were repaired but still added up to significant time out of service.
- The vehicle is not modified after purchase and has to be a vehicle manufactured primarily for use on the road.
- The repairs must be made at an authorized dealer with no out-of-pocket costs to the consumer.
- The vehicle has to be at least $15,000 which is the minimum vehicle value threshold.
If your used car meets all of the above criteria, you may have a lemon and be entitled to compensation.
What You Can Do if Your Used Car is a Lemon
If you’ve done your research and your used vehicle still fails to meet the legal standards of a lemon, there are seven steps you should take, according to Illinois lemon law guidelines. The following steps are even more important if the vehicle was purchased privately, as opposed to through a dealership or manufacturer.
1. Gather documents. Although obsolete, the manufacturer’s warranty is still vital to your case because it clearly establishes the contractual agreement between you—the consumer—and the dealership, dealership network, and/or manufacturer.
It is also important to keep all documentation related to the sale of the vehicle and its defects, including: a statement of the vehicle’s mechanical issues from an independent repair shop, an odometer statement, a vehicle service contract, and complete documentation of all complaints and attempted repairs. Document every step of the process in a notebook, your phone’s notes app, or other organized means. The more thorough you are, the more helpful it is in the claims process and, if necessary, in court.
- Report the problem. The consumer should promptly report the defect to the seller, in writing, as prescribed by state law, including details about the defect, what has gone wrong, and when. Include a copy of the vehicle’s original warranty, a vehicle service contract, and a vehicle service history , if available. Keep a copy of the letter for your records.
- Report the problem: Again. You must provide the same documentation and vehicle history information provided to the seller to the dealer network, manufacturer, distributor or warrantor within one day of the report made to the seller. Keep a copy of the letter for your records.
- Allow a reasonable number of repair attempts. The manufacturer, dealer network, distributor or warrantor is legally allowed two tries to fix the problem. If your vehicle is not repaired within this time frame, you may have a valid lemon law claim and should move to the next steps.
- Get the vehicle repaired. If the attempted repairs fail (ask your mechanic) and the vehicle remains out of compliance, you’ve done what you can. Your only option is to pursue a legal case to obtain a refund or a replacement vehicle.
- What if the problem doesn’t affect the performance, use, value or safety? There’s a chance you may not have a valid lemon law claim if the problem isn’t a significant impact on the use, value or safety of the vehicle. Generally, a significant defect is "substantially" harmful to the car’s operation or the safety of the passenger. Consequently, it must be substantial enough to stop you from using the car or make it so you don’t want to drive the car.
- Seek professional advice. Speak to an attorney experienced in lemon law claims right away to determine if you’re eligible for a refund or replacement.
Legal Actions for Used Car Lemons
Your rights as a consumer under Illinois Lemon Law apply to both new and used vehicles. However, you must have given the manufacturer, dealer, or warrantor a sufficient chance to repair your vehicle in order to take advantage of your remedies.
A recall does not count as an attempt to remedy any particular defect.
Again, you only need to provide the manufacturer, dealer, or warrantor with a sufficient number of attempts at the repairing the defects. One of these attempts may even be as simple as a recall or even a technical service bulletin. For example, Toyota recently issued a TSB for a "strange noise from the rear of some 2018 RAV4 or RAV4 Hybrid vehicles." The fix for this was simply to apply grease to left rear rear brake pad shims. This is a good example of a fairly easy fix that would not trigger your rights under the IL Lemon Law.
Once the chances to fix the defects run out, you are entitled to one of three remedies: a refund, a replacement, or a repair. In most cases, the manufacturer will offer the first two first and try to work out some type of deal with the consumer. It is highly likely that the end result will be a refund. Some people will not settle for anything less than a refund, so a description of the process helps to better understand what options are available.
A refund is the full amount that you paid for the vehicle as a down payment or trade-in value. You may also be owed finance charges (if financed) or storage fees. However, the manufacturer may offset your refund award by "dings and dents" that occur following the recognition of the defect.
The vehicle must also be made available to the manufacturer within reasonable distance of the area in which it is purchased for any additional repairs to occur.
If the manufacturer has no problem issues, they will credit the consumer a full refund. If the manufacturer needs additional time to fix the vehicle, and the consumer waits that reasonable amount of time, then they are entitled to full refund.
A replacement is similar to a refund, but the two differences are: (1) you don’t get your trade-in or down payment back, and (2) you are given another car. The vehicle must be the same make and model as the one you purchased, only new or having less mileage. Again, be sure to take into consideration any dings or dents.
It is important to remember that if a manufacturer replaces your vehicle, then it is presumed to conform to the warranties and is not subject to the defects that the original vehicle had. However, if this is proven wrong, then you are entitled to your original remedy of a refund.
Last, the manufacturer has the right to do one last repair to try to bring the vehicle back to compliance. That is why it is important that you make the vehicle available for this last attempt, although you should not have to pay to have it towed to the manufacturer if necessary.
If the manufacturer fails to honor their obligations to you under the IL Lemon Law, then you can initiate private litigation to seek the compensation you deserve. For the latter, you need to know the exact procedure that must be followed, as well as the forms that must be filled out.
Fortunately, there is help available. To start, read the relevant statutes and follow what they ask of you. It is better to ask for legal help if you risk not being heard.
Buying a Used Car in Illinois
When buying used cars, the buyer should make sure to follow these important tips:
- Before purchasing a vehicle, inspect all the controls and gauges in the vehicle and ensure they function properly. If not, have them replaced before you buy the car.
- Consider only purchasing vehicles with warranties, and definitely vehicles that have passed a pre-purchase inspection by a mechanic.
- Review the market value of similar vehicles to ensure you get a fair price. Look to Kelley Blue Book and Edmunds.com as well as an evaluation of add ons by a local dealer or auto body shop
- If the vehicle is from a car dealership, the dealership can obtain the correct tax and title fees and help you get the best loan rates available .
- Get an estimate of your monthly payment and total payments, including interest.
- Decide ahead of time which options are most important and don’t fall for sales gimmicks and pressure.
- Research trade in values ahead of time and determine the equity in your current car.
- Don’t rush into paying a significant amount for a vehicle you’ve overnight for the first time.
- Sign contracts on the day of the transaction, even if the dealer wants to delay signing until you are on site to take possession.
- Take the time to read the fine print of any warranty, and consider an extended warranty if you plan to keep the vehicle for many years to come.