Indiana Lemon Law: Your Rights for a Defective Vehicle

Under the Indiana Motor Vehicle Protection Act (Indiana Code 24-5-13), a new vehicle qualifies as a "lemon" if a covered defect that substantially impairs its use, market value, or safety is not fixed after a reasonable number of repair attempts made during the first 18 months after delivery or the first 18,000 miles, whichever comes first. Indiana defines that "reasonable number" precisely: the same defect has been subject to repair at least four times, or the vehicle has been out of service for repairs for a total of 30 or more cumulative business days. If the manufacturer still cannot conform the vehicle to its warranty, it must, at your option, give you a refund or a comparable replacement vehicle within 30 days.

Which Vehicles and Defects Qualify

Indiana's lemon law applies to a new motor vehicle that is sold, leased, or registered in Indiana, has a gross vehicle weight rating of less than 10,000 pounds, and is bought primarily for personal, family, or household use (and certain limited business use). The law protects the original buyer or lessee, and a transferee who takes the vehicle during the protection period.

Not every vehicle is covered. The Act generally excludes conversion vans and motor homes (the living quarters portion), as well as vehicles over the 10,000-pound weight rating. Motorcycles and similar vehicles fall outside the typical new-car protections. If your vehicle is excluded, you may still have rights under the manufacturer's written warranty and the federal Magnuson-Moss Warranty Act (see below).

The defect itself must be a "nonconformity" a problem covered by the manufacturer's express warranty that substantially impairs the vehicle's use, market value, or safety. Minor cosmetic issues, or defects caused by owner abuse, neglect, accident, or unauthorized modifications, do not qualify. Critically, the defect must first appear within the 18-month / 18,000-mile protection period, and you must report it to the manufacturer, its agent, or an authorized dealer during that window.

The Repair-Attempt and Out-of-Service Triggers

Indiana gives the manufacturer a fair chance to fix the problem before it owes you a refund or replacement. You reach the legal threshold when either of these is true during the protection period:

• Four repair attempts. The same nonconformity has been subject to repair at least four times by the manufacturer or its authorized dealer, and the defect still is not fixed.
• 30 cumulative business days out of service. The vehicle has been out of service for repair of one or more covered defects for a total of 30 or more business days. Indiana counts business days, so weekends and holidays do not count, and the days do not have to be consecutive.

Keep meticulous records. Every repair order should show the date you brought the vehicle in, the defect you reported, the work performed, and the date it was returned. These dated documents are what prove your four attempts or your 30 days, so insist on a written repair order each visit even when the dealer says it "could not duplicate" the problem.

The Final Repair Opportunity

Before you can sue, Indiana law requires you to give the manufacturer one last chance. You must send a written notification by certified mail describing the nonconformity, after which the manufacturer is entitled to a final opportunity (a short additional repair period) to correct the defect. Sending this demand by certified mail with return receipt creates proof of the date the manufacturer received notice, which matters if your dispute ends up in court or arbitration.

How a Refund or Replacement Is Calculated

If the manufacturer cannot fix the vehicle after a reasonable number of attempts, it must accept the vehicle's return and, at your choice, either:

• Refund the full purchase price you paid, including collateral charges (such as sales tax, license and registration fees, and finance charges), minus a reasonable allowance for your use; or
• Provide a replacement vehicle of comparable value.

The reasonable allowance for use is generally tied to the mileage you put on the vehicle before you first reported the defect, using a statutory formula rather than a flat depreciation guess. Because the choice between a refund and a replacement is yours, do not let a dealer or manufacturer pressure you into accepting one when you prefer the other. The manufacturer must complete the remedy within 30 days of accepting the vehicle's return.

Arbitration and the Deadline to Act

If the manufacturer has established an informal dispute settlement procedure (an arbitration program) that meets federal requirements, you generally must use it before filing a lawsuit under the Act. Many manufacturers participate in programs such as BBB Auto Line. An arbitration decision in your favor is binding on the manufacturer, but you typically are not bound and may still pursue your rights in court.

Watch the clock. An action under the Indiana lemon law must be commenced within two years after you first report the nonconformity to the manufacturer, its agent, or an authorized dealer. That two-year period is tolled (paused) while a qualifying informal dispute settlement procedure is being conducted, so the time you spend in arbitration does not run against you. Even so, do not wait, gather your records and act well before the deadline.

One more advantage worth knowing: if you prevail, the Act allows you to recover your reasonable attorney's fees and court costs. That fee-shifting provision is why many consumers can find a lemon-law attorney willing to take a strong case at little or no upfront cost.

The Federal Backstop

Indiana's law works alongside the federal Magnuson-Moss Warranty Act, which governs written and implied warranties on consumer products nationwide and also lets prevailing consumers recover attorney's fees. If your vehicle falls outside Indiana's specific new-car protections, for example because the defect first appeared after the 18-month / 18,000-mile window, or the vehicle is a type the Act excludes, Magnuson-Moss and a breach-of-warranty claim may still give you a path to relief.

Where to Verify and Get Help

Lemon-law details and arbitration requirements change, so confirm the current rules before you act. Read the statute itself at Indiana Code 24-5-13, and contact the Office of the Indiana Attorney General, Consumer Protection Division, which provides consumer information and accepts complaints about deceptive and unfair business practices. The Attorney General's office cannot act as your private lawyer, but its guidance, plus your own dated repair records, will help you decide whether to demand a refund, request a replacement, enter arbitration, or consult a lemon-law attorney.

Official Indiana Sources

This page is based on Indiana law. Limits and deadlines change — verify the current details directly with the official Indiana sources below. This is general legal information, not legal advice.

• Indiana Attorney General - Consumer Protection Division — official Indiana agency.
• File a Complaint - Indiana Attorney General Consumer Protection Division

Federal law also applies. Federal laws like the Fair Debt Collection Practices Act and Fair Credit Reporting Act protect you nationwide, on top of Indiana’s own rules.