Indiana Lemon Law Statute: Ind. Code § 24-5-13 Explained
If your car has been back to the dealer multiple times for the same problem, Indiana law gives you real legal options — and a specific statute spells out exactly what those are. Ind. Code § 24-5-13, the Indiana New Motor Vehicle Quality Assurance Act, is the governing state law for lemon claims in Indiana. Understanding how it works — including the repair thresholds, covered vehicles, and remedies available — is the first step toward knowing whether you have a case.
What Is Ind. Code § 24-5-13? Indiana’s Lemon Law at a Glance
Ind. Code § 24-5-13 is Indiana’s state lemon law statute, formally titled the Indiana New Motor Vehicle Quality Assurance Act. It requires manufacturers to repair vehicles that fail to conform to their written warranties, and it provides consumers with the right to a refund or replacement if those repairs are unsuccessful within defined limits.
The law was enacted to fill a gap that generic warranty contract language often leaves open: it holds manufacturers accountable not just on paper but through enforceable legal thresholds. Once a vehicle exceeds those thresholds, the consumer gains specific rights under Indiana law — rights that exist independently of whatever the manufacturer’s warranty booklet says.
For a broader overview of how Indiana’s lemon law operates in practice, see our Indiana lemon law overview.
Who Is Protected Under the Indiana Statute?
Ind. Code § 24-5-13 protects consumers who purchase or lease a new motor vehicle in Indiana primarily for personal, family, or household use. A “consumer” under the statute is the original purchaser or lessee — or someone to whom the vehicle is transferred during the warranty period who also uses it primarily for personal or family purposes.
Importantly, the statute does not extend to vehicles purchased primarily for business use or commercial fleets. If the vehicle is titled to a company and used mainly for business purposes, the Indiana lemon law statute may not apply, though federal remedies may still be available (more on that below).
Covered Vehicles: New Cars, Leases, and Warranted Used Cars
The Indiana New Motor Vehicle Quality Assurance Act covers new motor vehicles sold or leased in the state. A “new motor vehicle” means a vehicle that was purchased or leased new — not previously titled to a retail consumer — and is covered by a manufacturer’s written warranty at the time of purchase or lease.
Leased vehicles are explicitly included under Indiana law. Lessees who experience defects covered by the manufacturer’s warranty have the same rights under Ind. Code § 24-5-13 as buyers who financed or paid cash.
Used vehicles present a more complicated picture. Indiana’s statute is primarily directed at new vehicles. However, a used vehicle may still qualify if it remains within the original manufacturer’s warranty period and the defect arose during that warranty coverage window. If you bought a certified pre-owned vehicle or a used car that still carries factory warranty coverage, it may be worth evaluating your eligibility under both Indiana law and federal law.
For a deeper look at used vehicle coverage more broadly, our post on whether lemon law covers used cars walks through that question across different state frameworks.
Qualifying Defects: What Counts as a ‘Nonconformity’ Under Indiana Law?
Under Ind. Code § 24-5-13, a nonconformity is a defect or condition that substantially impairs the use, market value, or safety of a motor vehicle and is not the result of abuse, neglect, or unauthorized modification by the consumer.
The word “substantially” matters here. Minor annoyances — a slightly squeaky seat or a cosmetic paint scuff — generally do not rise to the level of a nonconformity under the statute. But defects that affect how the car drives, how safe it is to operate, or what a buyer would pay for it in the open market generally do qualify.
Examples of defects that commonly meet the nonconformity standard in Indiana include:
- Safety-related issues: brake failures, steering problems, airbag malfunctions
- Driveability defects: persistent stalling, transmission slipping, engine misfires
- Electrical failures: repeated dead battery, infotainment system failures affecting safety features
- Structural problems: water leaks causing mold or corrosion that impair use or value
The defect must have arisen during the original warranty period. A defect that first appeared before the warranty expired may still support a claim even if the vehicle is out of warranty by the time litigation begins — what matters is when the problem first arose.
Repair Attempt Thresholds and the Days-Out-of-Service Rule
This is the heart of the Indiana lemon law statute. Ind. Code § 24-5-13 establishes specific numerical thresholds that, when crossed, create a presumption that the vehicle is a lemon.
How Many Repair Attempts Trigger the Presumption?
Under Indiana law, the following thresholds apply:
- Four or more repair attempts for the same defect within the warranty period, or
- Two or more repair attempts for a defect that is likely to cause death or serious bodily injury if the vehicle is driven, within the warranty period
If either of those thresholds is met and the defect still exists, the statute presumes the manufacturer has had a reasonable opportunity to repair the vehicle and has failed to do so.
The Days-Out-of-Service Rule
Indiana law also provides an alternative path: if a vehicle has been out of service by reason of repair for a cumulative total of 30 or more business days within the warranty period, the presumption of nonconformity can also be triggered. These days do not need to be consecutive — they are counted cumulatively across all repair visits.
To understand how these thresholds compare to other states and how courts tend to interpret repair attempt counts, our post on how many repair attempts before lemon law covers that analysis in detail.
What Must You Do Before Filing?
Indiana’s statute requires that the consumer give the manufacturer written notice of the defect and an opportunity to cure (repair) the nonconformity after the thresholds above are met. This notice requirement is important: failing to provide written notification to the manufacturer before filing a claim may affect the claim’s viability. Keep records of every repair visit — dates, descriptions, repair orders, and any written communications with the dealer or manufacturer.
Remedies the Statute Provides: Refund, Replacement, or Settlement
When a vehicle qualifies as a lemon under Ind. Code § 24-5-13, the statute entitles the consumer to one of the following remedies:
Refund (Buyback)
The manufacturer must refund the full contract price of the vehicle, including charges for manufacturer-installed options, taxes, title and registration fees, and any finance charges paid up to the date of the refund. The manufacturer may deduct a mileage offset for the consumer’s use of the vehicle prior to the first repair attempt for the defect at issue. The formula for this offset is generally calculated based on miles driven before the first documented repair visit divided by a statutory expected vehicle life figure.
Replacement Vehicle
As an alternative to a refund, the manufacturer may offer a comparable new vehicle. “Comparable” means a vehicle of the same or reasonably equivalent model, options, and specifications. The consumer generally has the right to accept or reject this option.
Cash Settlement
Consumers and manufacturers may also negotiate a cash-and-keep settlement, meaning the consumer keeps the vehicle and receives a monetary payment. This remedy is not expressly required by the statute but is commonly reached through negotiation or arbitration. On the federal Magnuson-Moss track, cash settlements are the most common resolution.
Important: Statutory buybacks and replacements are state-law remedies and are not guaranteed in any individual case. Recoveries on the federal track are commonly cash settlements, not buybacks.
How the Federal Magnuson-Moss Act Works Alongside Indiana Law
The Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.) is the federal warranty law that gives consumers a parallel avenue to pursue lemon law claims regardless of state law. It applies to any product sold with a written warranty — including vehicles — and allows consumers to sue manufacturers in federal court for breaches of written or implied warranties.
One of the most significant provisions is 15 U.S.C. § 2310(d)(2), which requires the manufacturer to pay the consumer’s reasonable attorney’s fees if the consumer prevails. This fee-shifting provision is the foundation for the no-out-of-pocket-cost model that lemon law attorneys typically use: you pay nothing directly; if you win, the manufacturer covers the legal fees.
The Magnuson-Moss Act and Indiana’s Ind. Code § 24-5-13 can work together or independently. If your claim meets Indiana’s thresholds, state law provides the strongest path to a statutory buyback or replacement. If state law thresholds aren’t clearly met but the manufacturer has still failed to honor its written warranty, a federal Magnuson-Moss claim may still be viable — often resolving as a negotiated cash settlement.
For a complete breakdown of how the federal law works, see our explainer on the Magnuson-Moss Warranty Act.
How to Pursue a Claim Under Ind. Code § 24-5-13
Pursuing a lemon law claim in Indiana involves several practical steps:
Step 1: Document Every Repair Visit
From the first time you bring the vehicle in, keep copies of all repair orders. Each repair order should show the date, the mileage, and the description of the problem — not just the dealership’s diagnosis. If the dealer writes “could not duplicate” or “no defect found,” that still counts as a repair attempt for purposes of the statute.
Step 2: Provide Written Notice to the Manufacturer
Once you have reached or are approaching the repair attempt threshold, send written notice to the manufacturer — not just the dealership — identifying the defect and requesting a final repair opportunity. Keep proof of delivery. Indiana law requires this step before the statutory remedies are available.
Step 3: Know Your Time Limits
Indiana’s lemon law statute of limitations gives consumers two years from the date of original delivery of the vehicle to bring a claim. Do not wait — if you are approaching the two-year mark, consult an attorney promptly. The four-year federal statute of limitations under Magnuson-Moss may provide additional time in some circumstances, but the state window is shorter.
Step 4: Consult a Lemon Law Attorney
Because manufacturers are represented by experienced legal teams, having an attorney evaluate your claim and handle negotiations levels the playing field. Under both Indiana’s statute and the Magnuson-Moss Warranty Act, if you prevail, the manufacturer pays your attorney’s fees — meaning representation is generally available at no out-of-pocket cost to you.
Frequently Asked Questions About Ind. Code § 24-5-13
What is the repair attempt threshold under Indiana’s lemon law? Indiana’s lemon law statute requires four or more repair attempts for the same defect, or two or more repair attempts for a defect likely to cause death or serious bodily injury, within the warranty period. If either threshold is crossed and the defect remains, a legal presumption arises that the manufacturer has failed to repair the vehicle.
Does Indiana’s lemon law cover leased vehicles? Yes. Ind. Code § 24-5-13 explicitly covers leased vehicles as well as purchased vehicles. A lessee who experiences a qualifying defect within the manufacturer’s warranty period has the same rights under the statute as a buyer.
How long do I have to file a lemon law claim in Indiana? Indiana’s lemon law statute of limitations is two years from the date of original delivery of the vehicle. The federal Magnuson-Moss Warranty Act has a four-year statute of limitations, but you should not rely on the longer federal window to delay — act as soon as the repair thresholds are met.
What is the mileage offset in an Indiana lemon law buyback? If a manufacturer provides a refund under Ind. Code § 24-5-13, it may deduct a mileage offset for the consumer’s use of the vehicle before the first repair attempt for the defect. The offset is calculated based on actual miles driven before that first documented repair visit.
Do I need to go through arbitration before suing under Indiana law? Indiana law requires consumers to participate in an informal dispute settlement procedure (arbitration) if the manufacturer has established one that complies with Federal Trade Commission rules. However, if the arbitration result is unsatisfactory, the consumer retains the right to pursue the claim in court.
Conclusion
Ind. Code § 24-5-13 — the Indiana New Motor Vehicle Quality Assurance Act — gives Indiana consumers concrete legal rights when a manufacturer repeatedly fails to fix a defect. The statute establishes clear thresholds (four repair attempts, or 30 cumulative business days out of service), defines the remedies available (refund, replacement, or settlement), and requires manufacturers to cover attorney’s fees when consumers win. The federal Magnuson-Moss Warranty Act provides a parallel layer of protection for claims that may not meet every state-law threshold.
If your vehicle has been in the shop repeatedly for the same problem and you’re not getting answers, the law may be on your side. Get a free case review to have your situation evaluated under Indiana law and federal warranty law — there’s no obligation, and if you have a claim, representation is generally available at no out-of-pocket cost to you.
Attorney Advertising. Stop Lemons is an advertising name of Lion Legal, P.C. This post is general information, not legal advice. Contacting us does not create an attorney-client relationship. Lemon law remedies vary by state and are not guaranteed.