Iowa Lemon Law

Iowa Code Chapter 322G covers new passenger vehicles, motorcycles, trucks, multipurpose passenger vehicles and certain motor home self-propelled portions purchased or leased in Iowa for personal, family, or household use. Coverage runs for 24 months from delivery or the first 24,000 miles, whichever comes first, and the defect must substantially impair the vehicle's use, value, or safety. Vehicles bought primarily for business use, motor home living quarters, mopeds, off-road vehicles, and farm equipment are excluded. If you bought a used car that is still inside the original 24/24 window, you can step into the prior owner's lemon-law rights as a transferee.

Iowa creates a presumption of a reasonable number of repair attempts after three trips for the same nonconformity, one attempt for a defect likely to cause death or serious bodily injury, or 20 cumulative days out of service for any combination of warranty repairs. Once you hit any of those thresholds, you must send the manufacturer written notice by certified or registered mail giving it a final opportunity – 10 cumulative out-of-service days – to fix the problem. Only after that final attempt fails do you become eligible for the statutory refund or replacement remedy.

Iowa Code Chapter 322G is technically a new-vehicle statute, but its protections transfer with the vehicle. If you bought a used vehicle that is still inside the 24-month / 24,000-mile lemon-law rights period (running from the original retail delivery date), you inherit the same right to demand repair, replacement, or refund. Once that window closes, your remedy shifts to the federal Magnuson-Moss Warranty Act on any remaining manufacturer warranty, plus Iowa UCC breach-of-warranty claims and the Iowa Consumer Fraud Act for any deceptive seller conduct.

Yes. Iowa Code 322G expressly includes lease transactions and even spells out the dual refund formulas. The lessor receives 105% of its actual purchase costs minus all deposit and lease payments the lessee made, plus collateral and incidental charges. The lessee recovers all deposits, lease payments, collateral and incidental charges, less a reasonable mileage offset. Either way, the lessee is released from any further obligation under the lease and the manufacturer reimburses the lessor.

An Iowa lemon-law civil action must be filed in district court within one year after the 24-month / 24,000-mile lemon-law rights period (or any extension caused by repairs) expires. That short statute of limitations is one of the quickest in the country, so you should not wait once you hit the repair-attempt or 20-day thresholds. If you participate in a manufacturer's certified arbitration first, the time spent in arbitration extends the deadline. Magnuson-Moss claims under the federal warranty statute carry a separate four-year UCC limitations period.

Only if the manufacturer operates an informal dispute settlement procedure that the Iowa Attorney General has certified as meeting Chapter 322G's standards. If a certified program exists, you must submit your claim there before invoking the statute's refund or replacement remedy. The arbitrator's decision binds the manufacturer but not you – if you reject the outcome, you can still sue in district court. If no certified program exists, you can go straight to litigation.

Iowa lets the consumer choose between a comparable replacement vehicle and a full refund of the purchase or lease price, plus collateral charges (sales tax, registration, license fees) and incidental damages such as towing and rental car costs. The manufacturer deducts a reasonable mileage offset calculated as miles driven up to the third repair attempt, multiplied by the purchase price, divided by 120,000. Successful consumers can also recover reasonable attorney's fees and costs, and the manufacturer must take back the vehicle and brand its title 'lemon law buyback' before resale.