Lemon Law In Texas: Remedying A Defective New Vehicle (2025)

Based on how many new cars are sold each year, Texans love new vehicles. However, things can turn quickly when the vehicle develops problems soon after you pick it up. Aside from the money you spent on the vehicle, you face significant economic losses from your inability to use your car or the accidents the defect causes.

Texas gives you two primary options for remedying this situation. First, you can file a lawsuit against the manufacturer for a breach of warranty. This option may take time and money. Second, you can use the lemon law in Texas to enforce your warranty rights. This option may be quicker, but it limits your remedies.

Deciding how to resolve a dispute over your unusable vehicle may require legal advice. ConsumerShield helps people facing legal problems to find a lawyer for advice and representation. Contact us for a free case review and a lawyer referral.

What Is the Lemon Law in Texas?

Most new cars come with a manufacturer’s warranty from the dealer. The manufacturer agrees to repair the vehicle free of charge if it manifests a manufacturing defect within the warranty term.

For example, a manufacturer might warrant against powertrain defects for five years or 60,000 miles, whichever comes first. If the vehicle stalls intermittently during that time, you can take it to an authorized repair shop for diagnosis. The manufacturer will pay for any necessary repairs if the shop determines the problem resulted from a factory defect in the parts or the assembled vehicle.

The warranty process is supposed to operate smoothly. But occasionally, a vehicle has chronic problems that the manufacturer cannot or will not fix. A lemon law creates a process for enforcing your warranty rights to get your problem resolved.

How to File Lemon Law in Texas

Consumers file lemon law complaints with the Texas Department of Motor Vehicles (TxDMV). The complaint is filed online and describes the situation. The TxDMV reviews the complaint to verify the consumer’s eligibility for the lemon law process. Specifically, the consumer and their vehicle must meet the following criteria:

• The manufacturing defect impairs the vehicle’s use, value, or safety
• The defect falls under a manufacturer’s written warranty
• You reported the defect to the dealer or manufacturer during the warranty term
• You gave the dealer a reasonable number of attempts to repair the vehicle
• You sent a notice to the manufacturer to cure the defect
• The defect persisted after the manufacturer’s attempts

Although safety defects are covered by the lemon law, drivers do not need to be in auto accidents before filing a complaint.

The complaint must have been filed within the Texas lemon law time limit. The deadline occurs six months after the earliest of the following occurrences:

• The warranty expiration
• 24 months after purchase
• 24,000 miles after delivery

If the complaint meets the statutory requirements, TxDMV staff will schedule a mediation. In some cases, the prospect of mediation will encourage the dealer to tackle the problem more aggressively. If not, both parties will work with the mediator to attempt to resolve the dispute.

The manufacturer can raise defenses at the mediation, including:

• The defect was discovered too late
• The warranty was voided by the consumer’s modifications or misuse
• The defect was caused by the consumer rather than the manufacturer
• The defect is too minor to affect the vehicle

Mediators do not take sides. Instead, they shuttle between the parties trying to find a middle ground. If mediation fails, the TxDMV will set the matter for a hearing. An administrative law judge (ALJ) will hear both sides and rule in favor of one party.

Texas Lemon Law Remedies

The ALJ can order one of three remedies:

Repair

Even though you must prove the manufacturer had a reasonable number of attempts to fix the car, the ALJ can order you to give it additional chances.

Replace

The ALJ can order the manufacturer to replace the vehicle with a comparable one. If your vehicle had any dealer upgrades, the replacement vehicle does not need to include them. Additionally, the manufacturer can discount the value of the vehicle by the mileage used when identifying a comparable vehicle.

Repurchase

The manufacturer may be required to return the consumer’s money. The manufacturer can subtract a “reasonable allowance for use” (RAFU) representing the number of miles the consumer was able to drive the vehicle before the repurchase (also called a refund).

Alternate Remedies to the Lemon Law

You do not need to use Texas’s lemon law if you believe a manufacturer has failed to live up to its warranty. You can file a lawsuit against the manufacturer or dealer for breach of contract. You can also consult a product liability attorney if the defect caused any injuries.

Used Car Lemon Remedies

The lemon law in Texas does not cover used vehicles. However, you may have contractual rights against the manufacturer or dealer in a few situations.

First, used car dealers often issue a new warranty when they sell a “certified pre-owned” vehicle. This new warranty promises to repair the vehicle for certain problems that develop within a defined period. For example, a one-month warranty effectively creates a 30-day lemon law for used cars in Texas.

Second, all products have an implied warranty of merchantability. This means the vehicle is suited for its intended purpose. Unless the car was specifically sold “as-is,” you may be able to force the used car dealer to fix the vehicle or refund your money.

ConsumerShield Can Help With Your Lemon

Your lemon can cause significant hardship by forcing you to find alternative transportation. ConsumerShield educates consumers about their rights and assists them as they search for attorneys. Contact us for a free case evaluation and lawyer referral.