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Pa. Lemon Law Updated

Pennsylvania Gov. Tom Corbett signed legislation on April 12 that extends the time frame under the Pennsylvania Lemon Law. The law now allows for an additional 30 days if a repair can’t be completed by the manufacturer due to war, terrorism, civil unrest, fire, flood or natural disaster.

This would extend to 90 days if such an event occurred and the manufacturer filed a sworn affidavit with the state’s Office of Attorney General stating that the repair could not be completed because of one of the reasons listed above.

Here are the requirements when dealing with lemon-branded vehicles:

Under the law, the new vehicle owner or lessee is eligible for a replacement vehicle or a refund of the purchase price, less a limited allowance for use, if:

  • the new vehicle is registered in Pennsylvania for personal or family use and is designed to transport no more than 15 persons;
  • the vehicle has a substantial defect that occurs in the first 12 months, 12,000 miles or the term of the manufacturer’s express warranty, whichever comes first; and
  • cannot be fixed within three repair attempts, or if the vehicle is out of service for 30 or more calendar days.

To avoid purchasing a lemon buyback vehicle, ask for and examine the title or registration card. Both documents would reflect a lemon designation. If the customer does not have the title or registration, this may indicate that there has been a problem with the vehicle.

Dealers must disclose, in writing to a buyer or lessee, with the manufacturer-supplied statement, that a vehicle was repurchased as a lemon vehicle. The buyer or lessee must acknowledge with their signature that they received the statement before finalizing the sale.

A lemon branded title must be secured before reselling or leasing lemon vehicles in Pennsylvania.

The law requires that a lemon branded title only be secured before reselling or leasing vehicles decreed as actual lemons under the Lemon Law. Goodwill buybacks are not affected, as they do not require lemon title branding.

Most manufacturers do require goodwill buyback disclosure though it is not required by law.

Under the Attorney General regulations, any title brand is also required to be disclosed in any advertisement, including sales presentations and before the sale is finalized. In each sale after the title is branded a lemon, dealers have an obligation to disclose the title brand similar to a reconstructed vehicle.

While true lemon law buybacks are rare, those who fail to comply with the law could face civil penalties of $1,000 per violation and must offer the buyer or lessee either a refund including all collateral charges, less a reasonable allowance for the purchaser’s use of the vehicle or another vehicle of comparable value at no charge.

Lemon laws are different for each state. This information pertains to Pennsylvania’s Lemon Laws only.

Thanks to the Pennsylvania Automotive Association (PAA) for the article. E. R. Munro and Company is proud to help distribute the information to our family, friends, and customers. If you have any questions, please give E. R. Munro and Company a call at 877-376-8676 or visit our Web site at www.ermunro.com.