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Michigan (MI)

Michigan Lemon Law

Michigan New Motor Vehicle Warranties Act (Lemon Law) (Mich. Comp. Laws §§ 257.1401–257.1410). If your new or used vehicle has a substantial defect the dealer can't fix, you may be entitled to a refund, replacement, or cash settlement. The manufacturer pays the legal fees — you pay nothing out of pocket.

What's distinctive

How Michigan's lemon law is different

Michigan is the headquarters state of the 'Big Three' automakers (GM in Detroit, Ford in Dearborn, Stellantis/FCA in Auburn Hills), so most lemon law disputes here involve domestic OEMs with U.S.-based legal teams. Michigan uses an unusual 100,000-mile usage formula (price × miles ÷ 100,000) plus an additional offset for miles over 25,000, and the act itself contains no explicit statute of limitations — courts apply Michigan's UCC 4-year warranty SOL (MCL 440.2725). Pre-suit certified-mail notice and a final repair opportunity to the manufacturer are required after the third repair attempt or 25 days out of service.

Used vehicles

Used vehicles are not covered by the Michigan Lemon Law unless they are still within the original manufacturer's express warranty and were first reported defective within 1 year of original delivery to the first consumer. A separate disclosure rule under MCL 257.1403 requires manufacturer-repurchased lemons to be retitled and disclosed when resold.

Leased vehicles

Leased new vehicles are covered. MCL 257.1401 defines 'lessee' as a person who under a lease acquires the right to possession and use of a new motor vehicle, and the act defines 'lease price' for refund calculations. Lessees receive the same repair, replacement, and refund remedies as purchasers.

Mileage offset on a refund

Refund = purchase or lease price minus a use allowance computed as price multiplied by (mileage attributable to consumer use prior to first defect report / 100,000 miles), plus mileage beyond 25,000 miles, plus any non-defect-related appraised damage. Towing and rental costs are reimbursed separately. (MCL 257.1403)

Arbitration requirement

Mandatory if the manufacturer has an FTC-compliant informal dispute settlement procedure (16 C.F.R. Part 703). Under MCL 257.1405, a consumer must first use that program before suing; the manufacturer is bound by an accepted decision but the consumer may reject and proceed to court.

Areas served in Michigan

  • Detroit
  • Grand Rapids
  • Warren
  • Ann Arbor
  • Lansing

State consumer-protection resource

Michigan Department of Attorney General — Consumer Protection Division

https://www.michigan.gov/ag/consumer-protection →

Common questions

Michigan lemon law, in plain English

Does Michigan's lemon law cover me?

Michigan's Lemon Law (MCL 257.1401–257.1410) covers new motor vehicles purchased or leased in Michigan, or purchased or leased anywhere by a Michigan resident, that are still under the manufacturer's express written warranty at the time of purchase. The defect must substantially impair the use or value of the vehicle and must have been first reported during the warranty term or within 1 year of delivery, whichever is earlier. Personal-use vehicles and businesses that buy fewer than 10 vehicles per year qualify as 'consumers.' Modifications you made yourself, accident damage, abuse, and neglect are excluded under MCL 257.1406.

How many repair attempts before I can file in Michigan?

Under MCL 257.1403, the manufacturer is presumed to have had a reasonable number of attempts after the same substantially-impairing defect has been subject to repair 4 or more times within 2 years of the first repair attempt and continues to exist, or after the vehicle has been out of service for repairs for a cumulative 30 or more days during the warranty term or first year. After the third unsuccessful repair attempt, or after 25 days out of service, you must send written notice by certified mail to the manufacturer giving it a final opportunity to repair before filing a lemon-law claim.

Are used cars covered under Michigan lemon law?

Generally no — Michigan's Lemon Law applies to new motor vehicles, defined as vehicles covered by a manufacturer's express warranty at the time of purchase or lease (MCL 257.1401). A used vehicle may still qualify if it remains within the original manufacturer's express warranty period and the defect was first reported within 1 year of original delivery to the first consumer. For older or out-of-warranty used cars, Michigan buyers usually rely on the federal Magnuson-Moss Warranty Act, the Michigan UCC implied warranty of merchantability, or the Michigan Consumer Protection Act.

Are leased vehicles covered in Michigan?

Yes. MCL 257.1401 expressly defines 'lessee' as a person who under a lease acquires the right to possession and use of a new motor vehicle, and the statute provides a separate definition of 'lease price' (capitalized cost plus cash payments, taxes, registration, and government charges, minus rebates) used to compute the refund. Lessees of qualifying new vehicles get the same repair-attempt presumption, replacement, and refund rights as purchasers. The refund is paid to the lessee and the lessor in proportion to their interests.

How long do I have to file a Michigan lemon law claim?

The Michigan Lemon Law itself does not contain an explicit statute of limitations, so Michigan courts generally apply the UCC 4-year statute of limitations for breach of warranty claims under MCL 440.2725, measured from the date the vehicle was tendered to the original buyer. You should still report the defect during the warranty term or within 1 year of delivery as required by MCL 257.1402, send the required certified-mail notice, and complete any required manufacturer arbitration before suing. Federal Magnuson-Moss claims also typically borrow this 4-year UCC period.

Do I have to go through arbitration before suing in Michigan?

Yes, if the manufacturer has set up a qualifying informal dispute settlement program. MCL 257.1405 says the lemon-law remedies do not apply to a consumer who has not first used the manufacturer's program if that program complies with the Magnuson-Moss Act and 16 C.F.R. Part 703. If you accept the arbitrator's decision, the manufacturer is bound; if you reject it, you can sue in court. Programs run by BBB AUTO LINE and the National Center for Dispute Settlement are commonly used by Michigan-headquartered OEMs.

What's the difference between Michigan's lemon law and federal Magnuson-Moss?

The Michigan Lemon Law (MCL 257.1401–257.1410) is a presumption-based remedy: 4 repairs or 30 days out of service triggers a refund or replacement obligation for new vehicles within 1 year. The federal Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.) applies more broadly — to used vehicles still under any written or implied warranty, to commercial purchasers, and beyond the Michigan 1-year reporting window — and lets you recover attorney's fees if you prevail on a written-warranty claim. Many Michigan consumers plead both: the state law for the presumption and refund formula, Magnuson-Moss for fee-shifting and to reach used or out-of-period vehicles.

Stuck with a lemon in Michigan?

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