Last verified: February 2026
Key Points
- Primary Law: New Motor Vehicle Warranties Act (Michigan Compiled Laws §§ 257.1401-257.1410)
- Coverage: New passenger vehicles purchased or leased in Michigan with manufacturer warranty
- Presumption: 4+ repair attempts for same defect OR 30+ days out of service within warranty or 1 year
- Remedies: Replacement vehicle or full refund at consumer’s demand
- Usage Deduction: Calculated using 100,000 miles as denominator
- Attorney Fees: Consumer may recover costs, expenses, and attorney fees if they prevail
Quick Penalties Overview
| Violation Type | Consumer Remedy | Additional Damages |
|---|---|---|
| Failure to repair after reasonable attempts | Refund or replacement | Towing costs and rental car reimbursement |
| Failure to comply within 30 days after notice | Consumer may pursue legal action | Court costs, expenses, attorney fees |
| Resale of lemon vehicle without disclosure | Title must include lemon disclosure | Buyer entitled to rescission |
Table of Contents
Table of Contents (click to expand)
The New Motor Vehicle Warranties Act
Michigan’s lemon law, officially known as the New Motor Vehicle Warranties Act (Michigan Compiled Laws §§ 257.1401-257.1410), provides important protections for consumers who purchase or lease defective new motor vehicles. Originally enacted in 1986 and subsequently amended in 1998 to strengthen consumer rights, the law requires manufacturers to repair, replace, or refund vehicles that cannot be brought into conformity with applicable warranties after a reasonable number of repair attempts.
The Act establishes clear standards for when a vehicle qualifies as a “lemon” and provides consumers with meaningful remedies when manufacturers fail to honor their warranty obligations. Michigan’s law is notable for giving consumers the explicit right to demand a refund rather than accepting a replacement vehicle, providing greater flexibility in resolving lemon law claims.
Unlike some states where consumers must prove their case from scratch, Michigan law creates a presumption in favor of consumers once certain thresholds are met. This shifts the burden to manufacturers to demonstrate that the vehicle does not qualify for relief under the statute.
What Vehicles Are Covered
Michigan’s lemon law applies to new motor vehicles that meet specific criteria. Understanding which vehicles qualify is essential before pursuing a claim under the Act.
Covered Vehicle Types
- New passenger cars: Sedans, coupes, and similar vehicles
- Trucks and SUVs: Pickup trucks and sport utility vehicles
- Vans and minivans: Passenger and cargo configurations
- Leased vehicles: New vehicles under lease agreements
- Demonstrators: Demo vehicles with remaining warranty
Vehicles Not Covered
- Used vehicles without manufacturer warranty
- Vehicles used primarily for business purposes
- Off-road vehicles not designed for highway use
- Motorcycles (covered under separate provisions)
- Motor homes (living quarters portion excluded)
- Buses and large commercial vehicles
Under MCL 257.1401, a “new motor vehicle” is defined as a motor vehicle that is purchased or leased in Michigan and is covered by a manufacturer’s express warranty at the time of purchase or lease.
Michigan’s Lemon Law Presumption
Under MCL 257.1403, Michigan law creates a presumption that a reasonable number of repair attempts have been undertaken if certain conditions are met. When this presumption applies, the manufacturer must act within 30 days to provide a remedy.
The Lemon Law Presumption Applies When:
| Condition | Requirement | Details |
|---|---|---|
| Repair Attempts (Same Defect) | 4 or more attempts | Same defect must substantially impair use or value |
| Days Out of Service | 30 or more days | Cumulative total during warranty or first year |
| Written Notice Required | After 3rd attempt or 25 days | Must notify manufacturer via certified mail with return receipt |
| Final Repair Opportunity | 5 business days | Manufacturer gets final chance to repair after notice |
Important Notice Requirement: Before pursuing remedies under Michigan’s lemon law, consumers must provide written notice to the manufacturer by return receipt service. This notice must be sent after the third repair attempt for the same defect, or after the vehicle has been out of service for at least 25 days. The manufacturer then has 5 business days to attempt a final repair at a reasonably accessible facility.
What Qualifies as a “Substantial” Defect?
Not every problem triggers lemon law protection in Michigan. The defect must “substantially impair the use or value” of the vehicle. Examples include:
- Engine or transmission failures affecting drivability
- Persistent stalling or starting problems
- Brake system malfunctions
- Steering defects creating safety hazards
- Electrical system failures affecting critical components
- Air conditioning or heating system failures
- Significant water leaks
- Persistent warning lights indicating serious issues
Minor cosmetic issues, squeaks, rattles, or problems that do not affect the vehicle’s use, safety, or market value typically do not qualify.
Consumer Remedies: Refund vs. Replacement
When a vehicle qualifies as a lemon under Michigan law, the consumer has rights to specific remedies. Notably, Michigan law explicitly gives consumers the right to demand a refund rather than accepting a replacement vehicle.
Option 1: Vehicle Buyback (Refund)
Under MCL 257.1403, when a consumer demands a refund, the manufacturer must provide:
- Full purchase price: The total amount paid for the vehicle
- All other charges: Including sales tax, license fees, registration fees, and title fees
- Towing costs: Reimbursement for towing expenses incurred
- Rental car costs: Reasonable costs for a comparable rental vehicle
- Loan payoff: Payment to lienholder to satisfy the loan balance
Usage Deduction: The manufacturer may deduct a reasonable allowance for the consumer’s use of the vehicle. This is calculated as:
Usage Deduction = (Purchase Price x Miles Before First Repair + Miles Beyond 25,000) / 100,000
Michigan’s formula includes miles driven before the first defect report plus all miles driven beyond 25,000. However, courts may reduce this deduction if the vehicle did not provide reliable transportation for ordinary personal use.
Option 2: Replacement Vehicle
Instead of a refund, the manufacturer may offer to replace the vehicle with:
- A comparable replacement motor vehicle currently in production
- A vehicle acceptable to the consumer
- Full warranty coverage on the replacement vehicle
However, Michigan law clearly states that “a consumer shall have the right to demand a refund,” meaning the final choice rests with the consumer.
How to File a Lemon Law Claim in Michigan
Filing a successful lemon law claim in Michigan requires careful documentation and adherence to specific procedural requirements.
Step 1: Document Everything
- Keep all repair orders and invoices
- Record dates your vehicle was in the shop
- Document the symptoms you experienced
- Save all correspondence with the dealer and manufacturer
- Take photos or videos of defects when possible
- Keep records of rental car expenses and towing costs
Step 2: Allow Reasonable Repair Attempts
Give the manufacturer at least three opportunities to repair the same defect before sending notice. Alternatively, if the vehicle has been out of service for 25 or more days total, you may proceed with notice.
Step 3: Send Written Notice (Required)
After the third repair attempt or 25 days out of service, send written notice to the manufacturer via certified mail with return receipt requested. Include:
- Your name and contact information
- Vehicle information (year, make, model, VIN)
- Description of the defect or condition
- Repair history summary
- Your requested remedy (refund or replacement)
Step 4: Final Repair Opportunity
The manufacturer must notify you of a reasonably accessible repair facility. After you deliver the vehicle, the manufacturer has 5 business days to repair the defect.
Step 5: Consider Dispute Resolution or Litigation
If the manufacturer fails to resolve your claim, you may:
- Use manufacturer arbitration: Under MCL 257.1405, if the manufacturer has established an informal dispute settlement procedure that complies with federal regulations (16 CFR Part 703), you must first use that procedure before filing a lawsuit
- File a lawsuit: You can sue the manufacturer in circuit court and may recover costs, expenses, and attorney fees if you prevail
Manufacturer Defenses
Manufacturers may raise several defenses to avoid lemon law liability in Michigan. Understanding these defenses helps consumers build stronger cases.
Common Manufacturer Defenses
| Defense | Manufacturer’s Argument | Consumer’s Counter |
|---|---|---|
| Owner abuse or neglect | Defect caused by consumer misuse | Provide maintenance records showing proper care |
| Unauthorized modifications | Aftermarket parts caused the problem | Show defect existed before modifications |
| Defect not substantial | Problem does not impair use or value | Document how defect affects daily use |
| Notice not properly given | Consumer failed to follow notice requirements | Keep certified mail receipts and return receipts |
| Insufficient repair attempts | Manufacturer not given enough chances | Document all repair visits thoroughly |
Under MCL 257.1406, the lemon law does not apply to defects or conditions that result from accident, abuse, neglect, or unauthorized modification or alteration of the motor vehicle by anyone other than the manufacturer, its agent, or the dealer.
Used Vehicle Protections
Michigan’s lemon law primarily protects buyers of new vehicles. However, used vehicle buyers may have some protections:
Used Vehicles With Coverage
- Vehicles with remaining manufacturer warranty: If the original warranty is still active, you may have rights under the lemon law
- Transferred warranty rights: If the warranty transferred to you as a subsequent owner
- Certified Pre-Owned vehicles: CPO warranties from the manufacturer may provide protection
Used Vehicles Not Covered
- Vehicles sold “as is” without warranty
- Vehicles with expired manufacturer warranties
- Private party sales without warranty transfers
Title Branding Requirements
Under MCL 257.1408, when a vehicle is returned under Michigan’s lemon law, the manufacturer must ensure that a written statement appears on the title and accompanying documentation stating that the vehicle was returned to the manufacturer under Michigan’s lemon law. This protects future buyers from unknowingly purchasing a problem vehicle.
Statute of Limitations
Understanding the deadlines for filing a Michigan lemon law claim is critical:
Key Timeframes
- Repair period: The presumption applies to repairs made during the warranty period or within the first year after delivery, whichever is earlier
- Out of service calculation: 30 days must occur during the warranty term or within one year of delivery
- Extension: The warranty term and 30-day period are extended if repair services are unavailable due to war, invasion, strike, fire, flood, or other natural disaster
Michigan law also allows repairs to be made after the warranty expires if the defect was first reported during the warranty period and is a continuation of the original repair attempt.
Frequently Asked Questions
How many repair attempts does Michigan require before a vehicle is considered a lemon?
Under Michigan’s lemon law, a vehicle may qualify as a lemon after four or more repair attempts for the same defect that substantially impairs use or value, or after being out of service for 30 or more cumulative days for repairs. These conditions must occur within the warranty period or within one year of delivery, whichever is earlier.
Do I need a lawyer to file a Michigan lemon law claim?
While you can pursue a claim without an attorney, having legal representation significantly improves your chances of success. Under Michigan law, if you prevail in a lemon law case, you may recover your costs, expenses, and attorney fees from the manufacturer, making legal representation more accessible.
Can I choose between a refund and replacement in Michigan?
Yes. Michigan law explicitly states that a consumer has the right to demand a refund. While the manufacturer may offer a replacement vehicle, you are not required to accept it and can insist on a full refund instead.
What is the usage deduction in Michigan?
The usage deduction is calculated by multiplying the purchase price by the miles driven before the first defect report plus miles beyond 25,000, then dividing by 100,000. This amount is subtracted from your refund. Courts may reduce this deduction if the vehicle did not provide reliable transportation.
What notice must I give the manufacturer?
You must send written notice to the manufacturer via certified mail with return receipt requested after the third repair attempt for the same defect or after the vehicle has been out of service for at least 25 days. The manufacturer then has 5 business days to attempt a final repair.
Does Michigan’s lemon law cover leased vehicles?
Yes, Michigan’s lemon law covers leased new motor vehicles. Lessees have the same rights as purchasers to a refund or replacement if their leased vehicle qualifies as a lemon. The lessor will be notified of any refund, and no early termination fee may be assessed.
Resources and Legal Help
Official Resources
- Michigan New Motor Vehicle Warranties Act (Full Text)
- Michigan Attorney General: Lemon Law Information
- Michigan Secretary of State: Vehicle Information