Indiana Lemon Law: Complete Guide for 2026

Last verified: February 2026

Key Points

Primary Law: Motor Vehicle Protection Act (Indiana Code § 24-5-13)
Coverage: New vehicles under 10,000 pounds gross weight used on public highways
Presumption: 4+ repair attempts OR 30+ business days out of service within 18 months/18,000 miles
Remedies: Full refund or comparable replacement vehicle at buyer’s choice
Arbitration: Must use certified informal dispute settlement procedure if available
Attorney Fees: Reasonable attorney fees and costs available to prevailing consumers
No Dealer Liability: Manufacturer cannot expose franchised dealers to liability

Quick Penalties Overview

Violation Type	Consumer Remedy	Additional Damages
Failure to repair after reasonable attempts	Refund or replacement within 30 days	Towing and rental reimbursement
Refusal to diagnose or repair	Civil action available	Attorney fees and costs
Methamphetamine vehicle non-disclosure	Decontamination or reimbursement	Up to $10,000 liquidated damages
Violation of consumer rights	Actual damages	Court costs and attorney fees

📑 Table of Contents (click to expand)

Indiana Motor Vehicle Protection Act Overview
What Vehicles Are Covered
Indiana’s Lemon Law Presumption
Consumer Remedies: Refund vs. Replacement
How to File a Lemon Law Claim
Arbitration Requirements
Manufacturer Defenses
Used Vehicle Protections
Leased Vehicle Rights
Statute of Limitations
Frequently Asked Questions
Resources and Legal Help

Indiana Motor Vehicle Protection Act Overview

Indiana’s lemon law, officially known as the Motor Vehicle Protection Act (Indiana Code §§ 24-5-13-1 through 24-5-13-24), provides important consumer protections for buyers and lessees of new motor vehicles in the state. This comprehensive law requires manufacturers to repair, replace, or refund vehicles that cannot be brought into conformity with warranty after a reasonable number of attempts.

A distinctive feature of Indiana’s lemon law is its clear timeline for manufacturer response: once a vehicle qualifies for relief, the manufacturer must provide a refund or replacement within 30 days. This provision helps ensure consumers receive timely remedies rather than enduring prolonged disputes.

Indiana law also includes unique protections regarding “methamphetamine vehicles,” requiring disclosure when a vehicle was previously used to manufacture methamphetamine. This provision reflects Indiana’s comprehensive approach to consumer protection in vehicle sales.

What Vehicles Are Covered

Under Indiana Code § 24-5-13-5, the lemon law applies to specific types of motor vehicles. Understanding which vehicles qualify is essential before pursuing a claim.

Covered Vehicle Types

Passenger cars: Sedans, coupes, hatchbacks sold or registered in Indiana
Trucks: Pickup trucks and light trucks under 10,000 pounds GVWR
SUVs and crossovers: Sport utility vehicles under weight limit
Vans and minivans: Personal passenger vehicles
Leased vehicles: Consumer leases exceeding four months
Nonresident purchases: Vehicles sold to Indiana buyers who are nonresidents

Vehicles Not Covered

Conversion vans: Vehicles modified by secondary manufacturers
Motor homes: Recreational vehicles
Farm tractors: Agricultural equipment
Motorcycles and mopeds: Two-wheeled vehicles
Snowmobiles: Winter recreational vehicles
Off-road vehicles: Vehicles designed primarily for off-highway use
Vehicles over 10,000 pounds: Heavy trucks and commercial vehicles

Consumer Definition

A “buyer” under Indiana law is any person who enters into an agreement or contract within Indiana for the transfer, lease, or purchase of a motor vehicle for purposes other than resale or sublease. The definition focuses on the transaction location and purpose rather than the buyer’s residence.

Indiana’s Lemon Law Presumption

Under Indiana Code § 24-5-13-15, the law creates a presumption that a reasonable number of repair attempts have been made if certain conditions are met within the “term of protection.”

Term of Protection

The term of protection begins on the date of original delivery and ends at the earlier of:

18 months after delivery, or
18,000 miles after delivery

The Lemon Law Presumption Applies When:

Condition	Requirement	Time/Mileage Limit
Repair Attempts (Same Problem)	4 or more attempts	Within 18 months or 18,000 miles
Days Out of Service	30 or more business days	Within 18 months or 18,000 miles
Nonconformity Type	Substantially impairs use, value, or safety	Must be reported within term of protection

What Qualifies as a Nonconformity?

Under Indiana Code § 24-5-13-6, a “nonconformity” means any specific or generic defect or condition, or concurrent combination of defects or conditions, that:

Substantially impairs the use, market value, or safety of the motor vehicle, or
Renders the motor vehicle nonconforming to the terms of the manufacturer’s warranty

Examples of Covered Defects

Engine or transmission failures
Brake system malfunctions
Steering problems affecting control
Electrical system failures
Persistent warning lights indicating major issues
Air conditioning or heating failures
Fuel system problems
Safety equipment defects (airbags, seatbelts)

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under Indiana law, the buyer has the right to choose between a refund or replacement. Under Indiana Code § 24-5-13-10, the manufacturer must provide the chosen remedy within 30 days.

Option 1: Vehicle Refund (Buyback)

Under Indiana Code § 24-5-13-11, if the buyer chooses a refund, the manufacturer must pay:

Full contract price: Including all credits and allowances for trade-in vehicles
Sales tax: All tax paid on the purchase
Registration fees: Unexpended portion of prepaid registration and excise tax
Finance charges: All finance charges actually expended
Dealer-added options: Cost of options installed by the authorized dealer

Usage Deduction: The manufacturer may deduct a reasonable allowance for use, calculated as:

Usage Deduction = (Total Contract Price × Miles Before Return) ÷ 100,000

Option 2: Replacement Vehicle

Under Indiana Code § 24-5-13-12, if the buyer chooses a replacement:

The replacement must be a comparable vehicle
The manufacturer must reimburse transfer of registration fees
The manufacturer must reimburse any sales tax incurred
If the original was financed by the manufacturer or its agent, refinancing terms cannot be less favorable

Additional Reimbursement

Under Indiana Code § 24-5-13-13, the manufacturer must also reimburse necessary towing and rental costs actually incurred as a direct result of the nonconformity.

Consumer’s Option to Retain Vehicle

Under Indiana Code § 24-5-13-14, the buyer has the option to retain use of the returned vehicle until the manufacturer tenders a full refund or replacement. Any use during this retention period will be reflected in the usage allowance.

How to File a Lemon Law Claim in Indiana

Successfully pursuing a lemon law claim in Indiana requires careful documentation and following proper procedures.

Step 1: Document Everything

Keep all repair orders (required to be provided by dealer)
Record dates your vehicle was in the shop
Document symptoms you experienced
Save all correspondence with dealer and manufacturer
Take photos or videos of defects
Maintain records of towing and rental expenses

Step 2: Report the Nonconformity

Under Indiana Code § 24-5-13-8, you must report the nonconformity to the manufacturer, its agent, or authorized dealer within the term of protection. Once reported, they must make necessary repairs even if the term of protection has expired.

Step 3: Notify the Manufacturer

Under Indiana Code § 24-5-13-9, you must notify the manufacturer of your claim if:

The manufacturer has clearly and conspicuously disclosed in the warranty or owner’s manual that written notification is required
The manufacturer has provided the name and address for sending notification

If the manufacturer has not made the required disclosure, you are not required to notify the manufacturer before proceeding.

Step 4: Use Informal Dispute Settlement (If Required)

Under Indiana Code § 24-5-13-19, if the manufacturer has established an informal procedure certified by the Indiana Attorney General, you may be required to use it before proceeding with other remedies.

Step 5: File Legal Action if Necessary

Under Indiana Code § 24-5-13-21, you may bring a civil action for violations of the lemon law. Prevailing consumers may recover reasonable attorney fees and costs.

Arbitration Requirements

Indiana law addresses informal dispute settlement procedures in Indiana Code § 24-5-13-19.

Certification Requirements

The lemon law does not apply to any buyer who has not first resorted to an informal procedure established by or participated in by a manufacturer if:

The procedure is certified by the Indiana Attorney General
The procedure complies with 16 CFR 703 (federal arbitration regulations)
The procedure complies with any additional rules adopted by the Attorney General

Consumer Rights in Arbitration

Right to present evidence
Right to have an attorney present
Right to receive written decision
Right to reject unfavorable decision and pursue litigation

Manufacturer Defenses

Manufacturers may raise affirmative defenses under Indiana Code § 24-5-13-18.

Common Manufacturer Defenses

Defense	Manufacturer’s Argument	Consumer’s Counter
No substantial impairment	Defect does not substantially impair use, value, or safety	Document how defect affects daily use and safety
Consumer abuse or neglect	Defect caused by owner abuse or neglect	Provide maintenance records showing proper care
Unauthorized modifications	Problem resulted from unauthorized modifications	Show defect existed before modifications or is unrelated
Unauthorized alterations	Vehicle was altered by someone other than manufacturer/dealer	Demonstrate that alterations did not cause the nonconformity

Prohibited Conduct

Under Indiana Code § 24-5-13-16, a manufacturer, its agent, or authorized dealer may not refuse to diagnose or repair any vehicle for the purpose of avoiding liability under the lemon law.

Used Vehicle Protections

Indiana’s Motor Vehicle Protection Act is primarily designed for new vehicles. However, several protections exist for used vehicle buyers.

Remaining Manufacturer Warranty

The definition of “buyer” includes any person to whom a motor vehicle is transferred during the term of protection. If you purchase a used vehicle that is still within the original 18 months/18,000 miles protection period, you may have lemon law rights.

Methamphetamine Vehicle Disclosure

Under Indiana Code §§ 24-5-13-16.1 and 24-5-13-16.2, Indiana law requires disclosure when selling any motor vehicle that was used to manufacture methamphetamine within the previous two years. Failure to disclose can result in:

Decontamination at seller’s expense
Reimbursement for buyer’s remediation costs
Liquidated damages up to $10,000

Federal Magnuson-Moss Warranty Act

The federal Magnuson-Moss Warranty Act provides additional protections for used vehicle buyers with active warranty coverage.

Leased Vehicle Rights

Indiana’s lemon law includes specific provisions for leased vehicles under Indiana Code § 24-5-13-11.5.

Leased Vehicle Refund

If a leased motor vehicle qualifies as a lemon, the refund is distributed as follows:

Lessee Receives:

All deposit and lease payments paid to the lessor
Credits and allowances for any trade-in vehicles
Less a reasonable allowance for use

Lessor Receives:

Purchase cost including freight and accessories
Fees paid to obtain the lease
Insurance premiums or costs expended for lessee’s benefit
Sales tax paid by lessor
5% of the lessor’s purchase cost
Less total payments received from lessee

Usage Deduction for Leases

The usage deduction for leased vehicles is calculated as:

Usage Deduction = (Total Lease Obligation × Miles Before Return) ÷ 100,000

Statute of Limitations

Understanding the deadlines for filing a lemon law claim is critical under Indiana Code § 24-5-13-23.

Filing Deadlines

Term of protection: Nonconformity must be reported within 18 months or 18,000 miles of delivery
Repair obligation: Manufacturer must repair even after term expires if reported during term
Civil action: Must be filed within applicable statute of limitations

Tolling Provisions

The 30 business day out-of-service period is extended during:

War
Invasion
Civil unrest
Fire
Natural disaster
Terrorist attack
Act of God
Act of war

During these events, the manufacturer must provide or make provision for free use of a vehicle to the affected consumer.

Frequently Asked Questions

How many repair attempts does Indiana require before a vehicle is considered a lemon?

Under Indiana law, a vehicle may qualify as a lemon after four or more repair attempts for the same nonconformity that substantially impairs the use, value, or safety of the vehicle. Alternatively, if the vehicle is out of service for 30 or more business days due to repairs for any nonconformities, it may also qualify. These conditions must occur within 18 months or 18,000 miles from delivery.

Do I need a lawyer to file an Indiana lemon law claim?

You can pursue a claim without an attorney, but legal representation often improves outcomes. Under Indiana Code § 24-5-13-22, prevailing consumers may recover reasonable attorney fees and costs, so many lemon law attorneys offer representation on a contingency basis.

Does Indiana’s lemon law cover used cars?

The Motor Vehicle Protection Act primarily covers new vehicles. However, if a used vehicle is still within the original term of protection (18 months/18,000 miles from first delivery), the subsequent buyer may have lemon law rights. Used car buyers also have protection under the methamphetamine vehicle disclosure requirements.

What is the usage deduction in an Indiana lemon law refund?

The usage deduction is calculated by multiplying the total contract price by the number of miles driven before return, then dividing by 100,000. For example, if your vehicle cost $35,000 and you drove 9,000 miles, the deduction would be $3,150.

Can the dealer be held liable under Indiana’s lemon law?

No. Indiana Code § 24-5-13-24 specifically provides that nothing in the chapter imposes liability on a dealer or creates a cause of action against a dealer. Additionally, manufacturers may not directly or indirectly expose franchised dealers to liability under the lemon law.

What if the manufacturer has no arbitration program?

If the manufacturer has not established a certified informal dispute settlement procedure, you are not required to go through arbitration before pursuing other remedies. You can proceed directly with your claim or file a civil lawsuit.

Are motorcycles covered under Indiana’s lemon law?

No, motorcycles and mopeds are explicitly excluded from coverage under Indiana Code § 24-5-13-5. Motorcycle buyers may have other remedies under warranty law or consumer protection statutes.