Lemon Laws & Extended Warranties

How to Avoid Getting Scammed!

Lemon laws are regulations enforced by various states that protect customers from defective vehicles. Different states have different rules when it comes to lemon laws, but most of them share some common aspects.

For example, lemon laws require that the problem with the vehicle be taken care of by the manufacturer, not the car dealership. There are certain characteristics a vehicle must meet to be qualified as a lemon. If a car is worked on repeatedly for the same issue and the issue keeps reoccurring, then the car will most likely be designated a lemon. If you purchase a lemon, you are often entitled to some sort of compensation that deals with how much you paid for the vehicle and how many miles are on it. As stated before, different states have different lemon laws.

Some states cover used cars under their lemon laws, while some only cover new vehicles. There are many websites where you can find out your state's particular policy regarding lemon vehicles. Simply go to the search engine of your choice and type in your state's name followed by 'lemon law.' You will then be presented with multiple websites that can educate you on your particular state's policies regarding lemon laws.

So...even if your state has a lemon law, do you need an extended warranty? The answer is a definite yes. Cars that are not qualified as lemons can suffer wear, tear, and component failure. If your state does have a lemon law, it's still quite prudent to purchase an extended warranty. Problems with a vehicle do not necessarily qualify it as a lemon, and that's a crucial fact you need to understand when considering purchasing a warranty. If you fail to purchase an extended warranty and end up needing repair, it's unlikely that your state's lemon laws will cover you, unless of course the vehicle has experienced the same problem multiple times with no record of satisfactory repair after numerous attempts.
There are many types of extended auto warranties available. You can purchase one from the dealership where you got your vehicle, or go to the source and deal directly with a company that specializes in extended auto warranties.

What your warranty will cover depends on what kind of policy you choose. Ideally, you will want a policy that covers parts and labor, as well as wear, tear and breakdown. Some plans will require you to pay a deductible, others won't.

Be sure to do your research and choose a warranty provider and plan that suits your needs and your budget. By being educated, you can save yourself a lot of trouble and avoid being duped into getting a policy that you do not want. Before shopping for a policy, be clear on what you need, and don't let slick salespeople convince you otherwise.