The Indiana Lemon Law Statute
This is the actual language of the Indiana Lemon law.
When someone tells you that your vehicle does not qualify for the Lemon
Law, you don’t have to take their word on it. You can check out
the Indiana Lemon Law yourself.
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and other brands, that cost $50,000 or more.
Indiana Lemon Law Statute
Indiana Code, Sections 24-5-13-1 to § 24-5-13.5-14
24-5-13-1
This chapter applies to all motor vehicles that are sold, leased, transferred,
or replaced by a dealer or manufacturer in Indiana.
24-5-13-2
As used in this chapter, "business day" means a day other than
Sunday or a legal holiday (as defined in IC 1-1-9-1).
24-5-13-3
As used in this chapter, "buyer" means any person who, for
purposes other than resale or sublease, enters into an agreement or contract
within Indiana for the transfer, lease, or purchase of a motor vehicle
covered under this chapter.
24-5-13-3.4
As used in this chapter, "lease" means a contract in the form
of a lease or bailment for the use of a motor vehicle by a person for
more than four (4) months, whether or not the lessee has the option to
purchase or otherwise become the owner of the property at the expiration
of the lease.
24-5-13-3.7
As used in this chapter, "lessor" means a person who:
(1)
holds title to a motor vehicle leased to a lessee under a written
lease agreement; or
(2)
holds the lessor's rights under an agreement described in subdivision
(1).
24-5-13-4
As used in this chapter, "manufacturer" means any person who
is engaged in the business of manufacturing motor vehicles, or, in the
case of motor vehicles not manufactured in the United States, any person
who is engaged in the business of importing motor vehicles.
24-5-13-5
As used in this chapter, "motor vehicle" or "vehicle" means
any self-propelled vehicle that:
(1)
has a declared gross vehicle weight of less than ten thousand
(10,000) pounds;
(2)
is sold to:
(A) a buyer in Indiana and registered in Indiana; or
(B) a buyer in Indiana who is not an Indiana resident (as defined
in IC 9-13-2-78);
(3)
is intended primarily for use and operation on public highways;
and
(4)
is required to be registered or licensed before use or operation.
The term does not include conversion vans, motor homes, farm tractors,
and other machines used in the actual production, harvesting, and care
of farm products, road building equipment, truck tractors, road tractors,
motorcycles, mopeds, snowmobiles, or vehicles designed primarily for off
road use.
24-5-13-6
As used in this chapter, "nonconformity" means any specific
or generic defect or condition or any concurrent combination of defects
or conditions that:
(1)
substantially impairs the use, market value, or safety of a motor
vehicle; or
(2)
renders the motor vehicle nonconforming to the terms of an applicable
manufacturer's warranty.
24-5-13-7
As used in this chapter, "term of protection" means a period
of time that:
(1)
begins:
(A) on the date of original delivery of a motor vehicle to a
buyer; or
(B) in the case of a replacement vehicle provided by a manufacturer
to a buyer under this chapter, on the date of delivery of the replacement
vehicle to the buyer; and
(2)
ends the earlier of:
(A) eighteen (18) months after the date identified under subdivision
(1); or
(B) the time the motor vehicle has been driven eighteen thousand
(18,000) miles after the date identified under subdivision (1).
24-5-13-8
If a motor vehicle suffers from a nonconformity and the buyer reports
the nonconformity within the term of protection to the manufacturer of
the vehicle, its agent, or its authorized dealer then the manufacturer
of the motor vehicle or the manufacturer's agent or authorized dealer
shall make the repairs that are necessary to correct the nonconformity,
even if the repairs are made after expiration of the term of protection.
24-5-13-9
(a)
A buyer must first notify the manufacturer of a claim under this
chapter if the manufacturer has made the disclosure required by subsection
(b). However, if the manufacturer has not made the required disclosure,
the buyer is not required to notify the manufacturer of a claim under
this chapter.
(b)
The manufacturer shall clearly and conspicuously disclose to
the buyer, in the warranty or owner's manual, that written notification
of the nonconformity is required before the buyer may be eligible for
a refund or replacement of the vehicle. The manufacturer shall include
with the warranty or owner's manual the name and address to which the
buyer must send notification.
24-5-13-10
If, after a reasonable number of attempts, the manufacturer, its agent,
or authorized dealer is unable to correct the nonconformity, the manufacturer
shall accept the return of the vehicle from the buyer and, at the buyer's
option, either, within thirty (30) days, refund the amount paid by the
buyer or provide a replacement vehicle of comparable value.
24-5-13-11
(a)
If a refund is tendered under this chapter with respect to a
vehicle that is not a leased vehicle, the refund must be the full contract
price of the vehicle, including all credits and allowances for any trade-in
vehicle and less a reasonable allowance for use.
(b)
To determine a reasonable allowance for use under this section,
multiply:
(1) the total contract price of the vehicle; by
(2) a fraction having as its denominator one hundred thousand
(100,000) and having as its numerator the number of miles that the vehicle
traveled before the manufacturer's acceptance of its return.
(c)
The refund must also include reimbursement for the following
incidental costs:
(1) All sales tax.
(2) The unexpended portion of the registration fee and excise
tax that has been prepaid for any calendar year.
(3) All finance charges actually expended.
(4) The cost of all options added by the authorized dealer.
(d)
Refunds made under this section shall be made to the buyer and
lien holder, if any, as their respective interests appear on the records
of ownership.
24-5-13-11.5
(a)
If a refund is tendered under this chapter with respect to a
leased motor vehicle, the refund shall be made as follows:
(1) The lessee shall receive all deposit and lease payments paid
by the lessee to the lessor, including all credits and allowances for
any trade-in vehicles, less a reasonable
allowance for use.
(2) The lessor shall receive:
(A) the lessor's purchase cost, including freight and accessories;
(B) any fee paid to another to obtain the lease;
(C) any insurance premiums or other costs expended by the lessor
for the benefit of the lesse
(D) sales tax paid by the lessor; and
(E) five percent (5%) of the amount described in subdivision
(2)(A); less the total of all deposit and lease payments paid by the lessee
to the lessor, including all credits and allowances for any trade-in vehicle.
(b)
To determine a reasonable allowance for use under this section,
multiply:
(1) the total lease obligation of the lessee at the inception
of the lease; by
(2) a fraction having as its denominator one hundred thousand
(100,000) and as its numerator the number of miles that the vehicle traveled
before the lessor's acceptance of its return.
24-5-13-12
(a)
If a vehicle is replaced by a manufacturer under this chapter,
the manufacturer shall reimburse the buyer for any fees for the transfer
of registration or any sales tax incurred by the buyer as a result of
replacement.
(b)
If a replaced vehicle was financed by the manufacturer, its subsidiary,
or agent, the manufacturer, subsidiary, or agent may not require the
buyer to enter into any refinancing agreement concerning a replacement
vehicle that would create any financial obligations upon the buyer less
favorable than those of the original financing agreement.
24-5-13-13
Whenever a vehicle is replaced or refunded under this chapter, the manufacturer
shall reimburse the buyer for necessary towing and rental costs actually
incurred as a direct result of the nonconformity.
24-5-13-14
A buyer has the option of retaining the use of any vehicle returned under
this chapter until the time that the buyer has been tendered a full refund
or replacement vehicle of comparable value. The use of any vehicle retained
by a buyer after its return to a manufacturer under this chapter must,
in cases in which a refund is tendered, be reflected in the reasonable
allowance for use required by section 11 of this chapter.
24-5-13-15
(a)
A reasonable number of attempts is considered to have been undertaken
to correct a nonconformity if:
(1) the nonconformity has been subject to repair at least four
(4) times by the manufacturer or its agents or authorized dealers, but
the nonconformity continues to exist; or
(2) the vehicle is out of service by reason of repair of any
nonconformity for a cumulative total of at least thirty (30) business
days, and the nonconformity continues to exist.
(b)
The thirty (30) business day period in subsection (a)(2) shall
be extended by any period of time during which repair services are not
available as a direct result of a strike. The manufacturer, its agent,
or authorized dealer shall provide or make provision for the free use
of a vehicle to any buyer whose vehicle is out of service by reason
of repair during a strike.
(c)
The burden is on the manufacturer to show that the reason for
an extension under subsection (b) was the direct cause for the failure
of the manufacturer, its agent, or authorized dealer to cure any nonconformity
during the time of the event.
24-5-13-16
(a)
A manufacturer, its agent, or authorized dealer may not refuse
to diagnose or repair any vehicle for the purpose of avoiding liability
under this chapter.
(b)
A manufacturer, its agent, or authorized dealer shall provide
a buyer with a written repair order each time the buyer's vehicle is
brought in for examination or repair. The repair order must indicate
all work performed on the vehicle including examination of the vehicle,
parts, and labor.
24-5-13-18
It is an affirmative defense to any claim under this chapter that:
(1)
the nonconformity, defect, or condition does not substantially
impair the use, value, or safety of the motor vehicle; or
(2)
the nonconformity, defect, or condition is the result of abuse,
neglect, or unauthorized modification or alteration of the motor vehicle
by the buyer.
24-5-13-19
This chapter does not apply to any buyer who has not first resorted to
an informal procedure established by a manufacturer or in which a manufacturer
participates if:
(1)
the procedure is certified by the attorney general as:
(A) complying in all respects with 16 C.F.R. 703; and
(B) complying with any other rules concerning certification adopted
by the attorney general, including but not limited to the requirement
of oral hearings, pursuant to IC 4-22-2;
and
(2)
the buyer has received adequate written notice from the manufacturer
of the existence of the procedure.
Adequate written notice includes the incorporation of the informal dispute
settlement procedure into the terms of the written warranty to which the
motor vehicle does not conform.
24-5-13-20
This chapter does not limit the rights or remedies that are otherwise
available to a buyer under any other applicable provision of law.
24-5-13-21
A buyer may bring a civil action to enforce this chapter in any circuit
or superior court.
24-5-13-22
A buyer who prevails in any action brought under this chapter is entitled
to recover as part of the judgment a sum equal to the aggregate amount
of cost and expenses, including attorney's fees based on actual time expended
by the attorney, determined by the court to have been reasonably incurred
by the buyer for or in connection with the commencement and prosecution
of the action.
24-5-13-23
(a)
An action brought under this chapter must be commenced within
two (2) years following the date the buyer first reports the nonconformity
to the manufacturer, its agent, or authorized dealer.
(b)
When the buyer has commenced an informal dispute settlement procedure
described in section 19 of this chapter, the two (2) year period specified
in subsection (a) is tolled during the time the informal dispute settlement
procedure is being conducted.
24-5-13-24
Nothing in this chapter imposes any liability on a dealer or creates
a cause of action by a consumer against a dealer, and a manufacturer may
not, directly or indirectly, expose any franchised dealer to liability
under this chapter.
24-5-13.5-1Application of chapter
This chapter applies to all motor vehicles that are sold, leased, transferred,
or replaced by a dealer or manufacturer in Indiana.
24-5-13.5-2
As used in this chapter, "bureau" refers to the bureau of motor
vehicles created by IC 9-14-1-1.
24-5-13.5-3
As used in this chapter, "buyback vehicle" means a motor vehicle
that has been replaced or repurchased by a manufacturer or a nonresident
manufacturer's agent or an authorized dealer, either under this chapter
or IC 24-5-13 by judgment, decree, arbitration award, settlement agreement,
or voluntary agreement in Indiana or another state, but does not include
a motor vehicle that was repurchased pursuant to a guaranteed repurchase
or satisfaction program advertised by the manufacturer and was not alleged
or found to have a nonconformity as defined in IC 24-5-13-6.
24-5-13.5-4
As used in this chapter, "buyer" means a person who, for purposes
other than resale or sublease, enters into an agreement or a contract
within Indiana for the transfer, lease, or purchase of a buyback vehicle.
24-5-13.5-5
As used in this chapter, "dealer" means a person engaged in
the business of buying, selling, leasing, or exchanging motor vehicles.
A person is a "dealer" under this section if the person sells,
leases, or advertises the sale or lease of more than four (4) motor vehicles
within a twelve (12) month period.
24-5-13.5-6
As used in this chapter, "manufacturer" has the meaning set
forth in IC 24-5-13-4.
24-5-13.5-7
As used in this chapter, "motor vehicle" has the meaning set
forth in IC 24-5-13-5.
24-5-13.5-8
As used in this chapter, "nonconformity" has the meaning set
forth in IC 24-5-13-6.
24-5-13.5-9
As used in this chapter, "warranty" means:
(1)
a written warranty issued by the manufacturer; or
(2)
an affirmation of fact or promise made by the manufacturer,
excluding statements made by the dealer; in connection with the
sale or lease of a motor vehicle to a consumer that relates to the nature
of the material or workmanship and affirms or promises that such material
or workmanship is free of defects or will meet a specified level of performance.
24-5-13.5-10
A buyback motor vehicle may not be resold in Indiana unless the following
conditions have been met:
(1)
The manufacturer provides the same express warranty the manufacturer
provided to the original purchaser, except that the term of the warranty
need only last for twelve thousand (12,000) miles or twelve (12) months
after the date of resale.
(2)
The following disclosure language must be conspicuously contained
in a contract for the sale or lease of a buyback vehicle to a consumer
or contained in a form affixed to the contract:
IMPORTANT
This vehicle was previously sold as new. It was subsequently returned
to the manufacturer or authorized dealer in exchange for a replacement
vehicle or a refund because it did not conform to the manufacturer's express
warranty and the nonconformity was not cured within a reasonable time
as provided by Indiana law.
(3)
The manufacturer provides the dealer a separate document with
a written statement identifying the vehicle conditions that formed the
basis for the previous owner's or lessee's dissatisfaction and the steps
taken to deal with that dissatisfaction in 10-point all capital type.
24-5-13.5-11
Before reselling a buyback motor vehicle in Indiana, a dealer must provide
to the buyer the express warranty required by section 10(1) of this chapter
and the written statement of disclosure required by section 10(3) of this
chapter and obtain the buyer's acknowledgment of this disclosure at the
time of sale or lease as evidenced by the buyer's signature on the statement
of disclosure.
24-5-13.5-12
A manufacturer who accepts return of a motor vehicle that is considered
a buyback vehicle under this chapter shall do the following:
(1)
Before transferring ownership of the buyback vehicle, stamp the
words "Manufacturer Buyback A Disclosure on File" on the face
of the original certificate of title.
(2)
Not more than thirty-one (31) days after receipt of the certificate
of title, apply to the bureau for a certificate of title in the name
of the manufacturer and provide to the bureau a copy of the disclosure
document required by section 10(3) of this chapter.
24-5-13.5-13
(a) Sec. 13. (a) A person who fails to comply with section 10, 11, or
12 of this chapter is liable for following:(1) Actual damages or the value
of the consideration, at the election of the buyer.
(2) The costs of an action to recover damages and reasonable
attorney's fees.
(3) Not more than three (3) times the value of the actual damages
or the consideration as exemplary damages.
(4) Other equitable relief, including restitution, as is considered
proper in addition to damages and costs.
(b) Actual damages under this section include the following:(1) The difference
between the actual market value of the vehicle at the time of purchase
and the contract price of the vehicle.
(2) Towing, repair, and storage expenses.
(3) Rental of substitute transportation.
(4) Food and lodging expenses.
(5) Lost wages.
(6) Finance charges.
(7) Sales or use tax or other governmental fees.
(8) Lease charges.
(9) Other incidental and consequential damages.
(c) Lack of privity is not a bar to an action under this section.
(d) This subsection does not apply to consent orders or stipulated judgments
in which there is no admission of liability by the defendant. A permanent
injunction, final judgment, or final order of the court obtained by the
attorney general under section 14 of this chapter is prima facie evidence
in an action brought under this section that the defendant has violated
section 10, 11, or 12 of this chapter.
(e) An action to enforce liability under this section may be brought
within two (2) years from the date of discovery by the buyer.
24-5-13.5-14
Deceptive acts; remedies and penalties
Sec. 14. A manufacturer or dealer who fails to comply with section 10,
11, or 12 of this chapter, as applicable to the manufacturer or dealer,
commits a deceptive act that is actionable by the attorney general under
IC 24-5-0.5-4 and is subject to the remedies and penalties set forth in
IC 24-5-0.5.
