Last verified: February 2026
Key Points
- Primary Law: Minnesota Statutes § 325F.665 (New Motor Vehicle Warranties)
- Coverage: New passenger vehicles used at least 40% for personal, family, or household purposes
- Presumption: 4+ repair attempts OR 30+ business days out of service within warranty or 2 years
- Remedies: Full refund or replacement vehicle at consumer’s option
- Unique Feature: Mandatory arbitration program required in Minnesota
- Attorney Fees: Prevailing consumer recovers costs, disbursements, and attorney fees
Quick Penalties Overview
| Violation Type | Consumer Remedy | Additional Damages |
|---|---|---|
| Failure to repair after reasonable attempts | Refund or replacement | Towing and rental vehicle reimbursement |
| Bad faith appeal of arbitration decision | Original award upheld | Treble damages plus attorney fees |
| Resale of lemon without disclosure | Title branded “lemon law vehicle” | Required warranty on resale |
Table of Contents
Table of Contents (click to expand)
Minnesota’s Lemon Law Statute
Minnesota’s lemon law, codified at Minnesota Statutes § 325F.665, provides comprehensive protection for consumers who purchase or lease defective new motor vehicles. 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.
Minnesota’s law is particularly consumer-friendly in several respects. It provides a two-year reporting period (rather than the one-year period found in many states), gives consumers the option to reject a replacement vehicle and demand a refund, and requires manufacturers to operate arbitration programs within the state. The law also includes strong penalties for manufacturers who appeal arbitration decisions in bad faith.
The statute works in conjunction with federal law and the Uniform Commercial Code to provide multiple avenues of relief for consumers with defective vehicles. Consumers may pursue remedies under Minnesota’s lemon law while preserving other legal rights.
What Vehicles Are Covered
Minnesota’s lemon law covers specific types of vehicles used primarily for personal purposes. Understanding the coverage requirements is essential before filing a claim.
Covered Vehicle Types
- Passenger automobiles: Including pickup trucks and vans
- Self-propelled chassis of recreational vehicles: The chassis and van portion
- Ambulances: Licensed under Minnesota Chapter 144E
- Leased vehicles: Under lease agreements exceeding four months
Key Coverage Requirements
- Vehicle must be used for personal, family, or household purposes at least 40% of the time
- Must be purchased or leased from a new motor vehicle dealer
- Must be covered by a manufacturer’s express warranty
- Must be sold or leased in Minnesota
Vehicles Not Covered
- Vehicles purchased for resale or sublease
- Vehicles used primarily for business (more than 60% business use)
- Motorcycles and mopeds
- Off-road vehicles
- Vehicles run only on tracks
Minnesota’s Lemon Law Presumption
Under Minnesota Statutes § 325F.665, Subdivision 3, the law creates a presumption that a reasonable number of repair attempts have been undertaken when certain conditions are met. This presumption significantly helps consumers prove their cases.
The Lemon Law Presumption Applies When:
| Condition | Requirement | Details |
|---|---|---|
| Repair Attempts (Same Problem) | 4 or more attempts | Same nonconformity must substantially impair use or market value |
| Safety Defect (Brakes/Steering) | 1 or more attempts | Complete failure likely to cause death or serious injury |
| Days Out of Service | 30 or more business days | Cumulative total for repairs during coverage period |
| Timeframe | Within warranty or 2 years | Whichever is earlier from date of original delivery |
Written Notice Requirement: The presumption only applies if the manufacturer, agent, or dealer has received prior written notification from the consumer at least once and has had an opportunity to cure the defect. If the notification is received by the dealer, the dealer must forward it to the manufacturer by certified mail with return receipt requested.
Extended Timeframe: Even if the presumption timeframes expire, consumers may still receive a refund or replacement if repair attempts occur within three years of delivery, provided the consumer first reported the nonconformity during the warranty period.
What Qualifies as “Substantially Impairs”?
The nonconformity must substantially impair the “use or market value” of the vehicle. Examples include:
- Engine or transmission failures
- Complete brake or steering system failures (treated more seriously)
- Persistent electrical problems affecting operation
- Chronic stalling or starting issues
- Safety system malfunctions
- Significant water leaks
- Air conditioning or heating failures
Consumer Remedies: Refund vs. Replacement
When a vehicle qualifies under Minnesota’s lemon law, the consumer has meaningful choices regarding remedies.
Option 1: Full Refund
Under Minnesota law, the manufacturer must refund:
- Full purchase price: Including the cost of options and modifications by the manufacturer or dealer within 30 days of delivery
- Trade-in value: The stated dealer value of any trade-in vehicle
- All charges: Sales tax, excise tax, license fees, registration fees
- Finance charges: Interest and fees paid on the loan
- Towing costs: Reimbursement for towing expenses
- Rental vehicle expenses: Costs incurred while vehicle was out of service
Usage Deduction: The manufacturer may deduct a reasonable allowance for use, not exceeding:
- 10 cents per mile driven, OR
- 10% of the purchase price, whichever is less
This deduction applies only to use before the vehicle’s use and market value were substantially impaired by the defect.
Option 2: Replacement Vehicle
The manufacturer may offer a comparable motor vehicle as a replacement. However, Minnesota law explicitly states that “if the manufacturer offers a replacement vehicle under this section, the consumer has the option of rejecting the replacement vehicle and requiring the manufacturer to provide a refund.”
How to File a Lemon Law Claim in Minnesota
Filing a successful lemon law claim in Minnesota requires careful documentation and following specific procedures.
Step 1: Document Everything
- Keep all repair orders and invoices
- Record dates and duration of each repair visit
- Document the symptoms experienced
- Save all correspondence with dealer and manufacturer
- Keep rental car and towing receipts
- Take photos or videos of defects
Step 2: Provide Written Notice
Before invoking lemon law remedies, send written notice to the manufacturer. The notice should include:
- Your contact information
- Vehicle information (VIN, make, model, year)
- Description of the nonconformity
- Repair history
- Request for remedy
Step 3: Review the Lemon Law Disclosure
At the time of purchase, the manufacturer must provide a written statement informing you of your rights. This statement should be on a separate piece of paper in 10-point capital letters and include information about the arbitration program.
Step 4: Use the Arbitration Process
Minnesota requires manufacturers to participate in an informal dispute settlement mechanism located within the state. You must use this process before filing a lawsuit unless the manufacturer allows direct legal action.
Mandatory Arbitration Process
Minnesota’s lemon law includes detailed requirements for informal dispute settlement mechanisms (arbitration) that manufacturers must provide.
Key Arbitration Requirements
- Must be located in the state of Minnesota
- Must comply with federal regulations (16 CFR Part 703)
- Parties must be able to appear and make oral presentations in Minnesota
- Consumer may be charged a filing fee up to the conciliation court filing fee
- Either party may be represented by an attorney
- Decisions must include itemized amounts for all refunds or replacements
After the Arbitration Decision
- The decision is nonbinding unless the parties agree otherwise
- Either party may appeal to district court within 30 days
- If no appeal is filed, the court will confirm the decision upon application
- Written decisions are admissible as evidence in any subsequent legal action
Bad Faith Appeals
Under Subdivision 8, if a court finds that a party removed a decision from arbitration in bad faith (asserting frivolous claims or unfounded positions solely to delay), the court shall award the prevailing party three times the actual damages plus costs, disbursements, and reasonable attorney fees.
Manufacturer Defenses
Manufacturers may assert certain affirmative defenses to lemon law claims in Minnesota.
Recognized Defenses
| Defense | Description | Consumer’s Response |
|---|---|---|
| No substantial impairment | Nonconformity does not substantially impair use or market value | Document how defect affects daily use and value |
| Abuse or neglect | Problem caused by consumer misuse | Provide maintenance records showing proper care |
| Unauthorized modifications | Aftermarket parts or alterations caused defect | Show problem existed before any modifications |
| Insufficient notice | Consumer did not provide required written notice | Keep copies of all written communications |
Used Vehicle Protections
Minnesota’s lemon law primarily protects buyers of new vehicles. However, some protections may extend to used vehicle situations:
Used Vehicles With Coverage
- Transferred warranty rights: If you receive a vehicle during the warranty period, you may enforce warranty obligations
- Remaining manufacturer warranty: Coverage continues for the unexpired portion
Resale of Lemon Vehicles
Under Subdivision 5, vehicles returned under Minnesota’s lemon law or similar laws in other states may not be resold in Minnesota unless:
- The manufacturer provides the same express warranty (minimum 12 months or 12,000 miles)
- The manufacturer provides a written disclosure stating the vehicle was returned because it did not conform to express warranties
Safety Defect Ban: If the vehicle was returned because of a complete failure of the braking or steering system likely to cause death or serious injury, it may NOT be resold in Minnesota.
Title Branding
Under Subdivision 14, the registrar of motor vehicles must record “lemon law vehicle” on the certificate of title and all subsequent titles for vehicles returned under Minnesota’s lemon law. This branding also applies to out-of-state titles bearing similar terms.
Frequently Asked Questions
How many repair attempts does Minnesota require?
Minnesota’s lemon law presumption applies after four or more repair attempts for the same nonconformity, or after the vehicle is out of service for 30 or more business days. For complete brake or steering failures likely to cause death or serious injury, only one repair attempt is required before the presumption applies.
Can I reject a replacement vehicle and demand a refund?
Yes. Minnesota law explicitly gives consumers the option to reject a replacement vehicle and require a refund instead. This gives you control over the remedy you receive.
What is the usage deduction in Minnesota?
The usage deduction cannot exceed 10 cents per mile driven OR 10% of the purchase price, whichever is less. This is one of the most consumer-friendly usage deduction formulas in the country.
Do I have to use arbitration first?
Yes. If the manufacturer has an arbitration program that complies with federal regulations, you must use it before filing a lawsuit. The arbitration must be held within Minnesota and you have the right to appear in person.
What happens if the manufacturer appeals arbitration in bad faith?
If a court finds the appeal was filed in bad faith (frivolous claims or solely to delay), you may receive three times your actual damages plus costs and attorney fees.
How long do I have to file a claim?
Civil actions must be commenced within three years of the original delivery date. If you use arbitration within three years and are not satisfied with the result, you have an additional six months to file a lawsuit.
Resources and Legal Help
Official Resources
- Minnesota Statutes § 325F.665 (Full Text)
- Minnesota Attorney General: Lemon Law Information
- Minnesota Driver and Vehicle Services