Indiana Lemon Law

Indiana's Motor Vehicle Protection Act (Ind. Code §§ 24-5-13) covers new motor vehicles purchased or leased in Indiana and registered for use on public highways. The defect must substantially impair use, market value, or safety and must be reported to the manufacturer within 18 months from delivery or 18,000 miles, whichever is first. The vehicle must be designed primarily for highway use; excluded are conversion vans, motor homes, farm tractors, vehicles over 10,000 pounds GVWR, and vehicles purchased primarily for business use. Coverage transfers with the vehicle if the original 18-month/18,000-mile window is still open.

A reasonable number of attempts is presumed when the nonconformity has been subject to repair at least four times by the manufacturer or its authorized dealers and the defect continues to exist, or when the vehicle has been out of service for any nonconformity for a cumulative total of at least 30 business days. The 30-business-day period is extended by any time during which repair services are unavailable due to strikes, civil unrest, fires, natural disasters, terrorist attacks, acts of God, or war, which is a unique extension provision. All defects and repair visits must occur within the 18-month/18,000-mile term of protection.

No. Indiana's Motor Vehicle Protection Act applies only to new vehicles. The narrow exception is a used vehicle that was originally delivered to a consumer less than 18 months ago and under 18,000 miles, where the defect was reported during that window: in that case the new owner can step into the original consumer's shoes. For most used purchases, Indiana buyers must rely on the federal Magnuson-Moss Warranty Act for any remaining factory warranty, the Indiana Deceptive Consumer Sales Act for misrepresentations, or any dealer-provided written warranty.

Yes. Indiana's statute extends to consumers who lease a new motor vehicle for personal, family, or household purposes. Lessees have the same rights to demand repurchase or replacement as buyers, with the refund mechanics adjusted to reimburse capitalized cost reduction, monthly payments, and lease payoff. The leasing company is required to cooperate in unwinding the lease once the manufacturer commits to a buyback.

Yes, if the manufacturer offers an informal dispute settlement procedure that meets the standards of 16 C.F.R. Part 703 (federal Magnuson-Moss regulations). Most major manufacturers participate in BBB AUTO LINE or a similar program. If the manufacturer has no qualifying program, you may file directly in court. The two-year statute of limitations is tolled while informal dispute resolution is pending, so invoking arbitration does not jeopardize your right to sue if the outcome is unsatisfactory.

Civil actions under the Indiana lemon law must be commenced within two years from the date of original delivery of the vehicle. The two-year period is tolled while you are participating in an informal dispute settlement procedure. The qualifying defects must have been reported within the 18-month/18,000-mile term of protection, but the actual lemon determination (four failed repairs or 30 business days out of service) can occur later as long as the defect was originally reported within the term. Federal Magnuson-Moss claims have a longer four-year limitations period.

If the manufacturer cannot repair after a reasonable number of attempts, you can demand a comparable replacement vehicle or a refund. The refund covers the total contract price including credits and trade-in allowances, sales tax, unexpended portion of registration fees and excise tax, finance charges actually paid, dealer-installed options, and necessary towing and rental car costs caused by the defect, less a reasonable allowance for use. The use allowance equals the miles driven before the manufacturer's acceptance of the vehicle return, multiplied by the total contract price, divided by 100,000. Prevailing consumers also recover attorney's fees and costs.