Tennessee Lemon Law

Tennessee's lemon law (Tenn. Code Ann. §§ 55-24-101 to 55-24-112) covers new motor vehicles sold or leased after January 1, 1987 that have a defect substantially impairing the vehicle's use, value, or safety. The defect must be reported during the term of the express warranty or within one year of original delivery (whichever ends first). Notably, Tennessee's coverage period is purely time-based - there is no mileage cap, unlike most states. Vehicles excluded include those used primarily for commercial purposes, motor home living facilities, and any vehicle weighing over 10,000 pounds. Used vehicles are not covered by the Lemon Law itself.

Tennessee presumes a reasonable number of attempts has been made if the same nonconformity has been subject to repair three or more times by the manufacturer or its authorized dealer within the term of protection (the warranty period or one year from delivery, whichever ends first), OR the vehicle has been out of service for repair for a cumulative 30 or more calendar days during that term. After meeting one of those thresholds, you must give the manufacturer written notice and a final opportunity to cure the defect before pursuing the statutory refund or replacement remedy. Detailed repair orders are critical evidence.

Yes, if the manufacturer has established an informal dispute settlement procedure that substantially complies with 16 C.F.R. Part 703, Tennessee requires you to first submit your dispute to that program before pursuing the lemon law refund or replacement remedy. Common qualifying programs include BBB AUTO LINE. Arbitration decisions are typically not binding on the consumer, so if you reject the result you may file suit in Circuit or Chancery Court. Importantly, the lemon law statute of limitations is tolled while your dispute is pending in the informal settlement procedure, so participating does not eat into your filing window.

Tennessee's lemon law has an unusually short statute of limitations. Under Tenn. Code Ann. § 55-24-107, any action must be commenced within six months following the expiration of the express warranty term, OR within one year after original delivery to the consumer, whichever is later. Time spent in an informal dispute settlement procedure tolls the deadline. This is shorter than most states, so do not delay. A separate Magnuson-Moss federal warranty claim borrows Tennessee's four-year UCC limitations period for sales of goods, which can give parallel federal options if the lemon-law deadline has passed.

Yes. Tenn. Code Ann. § 55-24-104 expressly addresses leased motor vehicles, including refunds and refinancing arrangements. As a lessee of a new motor vehicle, you have the same right to pursue refund or replacement as a purchaser if your vehicle qualifies as a lemon. A refund typically returns capitalized cost reduction, monthly lease payments made, and similar charges, minus the statutory mileage offset (capped at one-half the IRS business mileage rate per pre-defect mile). Coordination with the lessor (often a captive finance company) is part of the buyback process, and the manufacturer is responsible for those negotiations.

If your vehicle qualifies, the manufacturer must either replace it with a comparable motor vehicle or refund the full purchase price (including collateral charges like sales tax, registration, and finance charges), minus a reasonable allowance for use. Tennessee uniquely caps the mileage offset at one-half the IRS standard business mileage rate per mile driven before the first report of the nonconformity (so if the IRS rate is $0.70/mile, the cap is $0.35/mile). Tennessee's Lemon Law does not provide a multiplier penalty, but pairing the claim with the Tennessee Consumer Protection Act allows treble damages and attorney fees for willful violations.