Every state has its own version of lemon laws. The names of these laws differ from state to state. Some states do not have any used car laws in force. However, there are other laws which protect the interests of consumers. The lemon law was created in the year 1996 and was meant for those cars which repeatedly fail to achieve the prescribed quality standards. Cars which fall under this category are called as a Lemon. This law is also applicable to motorcycles, computers, RVs and other such consumer based products.
So, what is this Lemon Law Buyback? Well, this style of buyback is a set of special rules for motor vehicles. Under this law, a manufacturer buys back from an individual his lemon car or vehicle and fixes the problem before selling it as used cars. These lemon cars are registered in the manufacturer’s name until they are sold in used car market.
There are many instances where the vehicle buyback can be applied in order to benefit the customer. For example, a person has purchased a car and he discovers that the car is not performing according to the desired quality standards in spite of repeated efforts to rectify the problem. In such instances, a person can take recourse in the buyback rules and claim compensation. However, if a person has warranties for mileage, performance for a minimum period of one year or for an extended period of five years from the manufacturer and the vehicle is not meeting any of the warranty requirements, in such an instance you can make a claim for breach of warranty under the lemon laws and seek compensation.
Once a manufacturer buys back the vehicle from the consumer under the state buyback rules, he has to get a Title Certificate and Registration Certificate, clearly marked as ‘Lemon Law Buyback’. Once this is done, the manufacturer will register the vehicle in his name and put it up for sale at any Auto fairs or auction as a used car.
Lastly, buyback rules have been framed to protect the consumer’s interests from unscrupulous manufacturers so that they do not get cheated.