Oregon Lemon Law: Your Complete Legal Guide

What Is the Oregon Lemon Law?

Oregon's Lemon Law is found in ORS 646A.400 through 646A.418. It protects consumers who purchase or lease new motor vehicles that turn out to have substantial defects the manufacturer cannot fix.

The law gives consumers the right to demand a refund or replacement vehicle when a new car, truck, SUV, van, or motorhome has a warranty defect that substantially reduces its use, market value, or safety. Oregon's Department of Justice oversees consumer complaints related to the statute.

Unlike some states, Oregon's lemon law does not require the consumer to go through arbitration before filing a lawsuit, unless the manufacturer has set up a qualifying informal dispute settlement procedure and properly notified the consumer about it.

What Vehicles Are Covered

Oregon's Lemon Law applies to new motor vehicles purchased or leased in the state for personal, family, or household purposes.

Under ORS 646A.400, a "consumer" is the purchaser or lessee of a new motor vehicle (not for resale purposes), as well as any person to whom the vehicle is transferred during the warranty period for the same personal-use purposes.

Covered Vehicle Types

• New passenger cars, including sedans, coupes, and hatchbacks
• Pickup trucks and light-duty trucks
• Vans, including minivans and passenger vans
• Sport utility vehicles (SUVs)
• Motorhomes (with extended out-of-service thresholds)
• New vehicles acquired through a lease for personal use

Vehicles Not Covered

• Used vehicles (separate protections may apply)
• Motorcycles
• Commercial vehicles used primarily for business purposes
• Off-road vehicles not designed for highway use
• Vehicles purchased outside Oregon

Oregon's Lemon Law Presumption

Under ORS 646A.402, a vehicle is presumed to be a lemon when certain conditions are met within the coverage period. The coverage period runs for two years or 24,000 miles from the date of original delivery, whichever comes first.

Qualifying Conditions

Condition	Requirement	Details
Repair Attempts (Same Defect)	3 or more attempts	The same nonconformity that substantially reduces use, value, or safety
Safety Defect Repair	1 or more attempts	For defects likely to cause death or serious bodily injury, if the problem persists
Days Out of Service (Standard Vehicles)	30+ cumulative calendar days	Vehicle unavailable due to repair of covered defects
Days Out of Service (Motorhomes)	60+ cumulative calendar days	Extended threshold for motorhome repairs
Coverage Period	2 years or 24,000 miles	Whichever comes first from date of original delivery

Oregon requires only 3 repair attempts, compared to 4 in many other states. For safety defects likely to cause death or serious bodily injury, only 1 repair attempt is needed. These lower thresholds make it easier for Oregon consumers to qualify for protection.

Extension of Time Periods

The two-year period, 24,000-mile limit, and 30-day out-of-service period are all extended by any time during which repair services are unavailable to the consumer because of war, invasion, strike, fire, flood, or other natural disaster.

What Qualifies as a Substantial Nonconformity?

A nonconformity must substantially impair the vehicle's use, market value, or safety. The problem must be covered by the manufacturer's express warranty and must be significant enough to affect your ability to use the vehicle as intended. Common examples include:

• Engine or transmission failures
• Brake system defects
• Steering malfunctions
• Electrical system failures
• Safety system malfunctions (airbags, stability control)
• Persistent stalling, hesitation, or surging
• Significant fluid leaks
• Heating or cooling system failures

Minor cosmetic issues or problems that do not affect the vehicle's operation, safety, or value typically do not qualify.

Written Notice Requirement

Before a consumer can obtain a remedy under Oregon's Lemon Law, ORS 646A.402 requires two important steps.

First, the consumer must report each nonconformity to the manufacturer, the manufacturer's agent, or an authorized dealer during the coverage period. This gives the manufacturer the opportunity to attempt repairs.

Second, the manufacturer must receive direct written notification from the consumer (or someone acting on the consumer's behalf). This written notice does not need to come before filing a lawsuit, but it must be sent before a court can determine that the remedy is available.

Keeping detailed records of all communications with the dealer and manufacturer is essential. Save copies of repair orders, written complaints, emails, and certified mail receipts.

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under ORS 646A.404, the consumer may choose between two remedies.

Option 1: Full Refund

The manufacturer must accept return of the vehicle and refund the following amounts:

• Full purchase or lease price, including taxes
• Collateral charges, defined as fees or costs related to the sale or lease of the vehicle (license fees, registration fees, and similar charges)
• Finance charges, excluding interest in some calculations
• Incidental damages, including reasonable expenses caused by the defect (towing, rental cars)

Reasonable Use Allowance: The manufacturer may deduct a reasonable allowance for the consumer's use of the vehicle. For standard vehicles, this is typically based on the mileage driven before the first repair attempt. For motorhomes, the formula is calculated by multiplying the vehicle mileage by the combined cash price (or lease price) plus collateral charges, then dividing by 90,000.

The mileage calculation excludes miles the vehicle traveled during any period when the consumer did not have use of the vehicle because the manufacturer or dealer was repairing it.

Aftermarket Items: For aftermarket items purchased within 20 days of delivery, the manufacturer may either refund the cost or remove the item without damage and return it to the consumer.

Option 2: Replacement Vehicle

The consumer may request a comparable new replacement vehicle. The replacement must be:

• Of similar value and specifications
• Acceptable to the consumer
• Covered by the manufacturer's full warranty

Lemon Law Buyback Title Branding

When a manufacturer repurchases a vehicle under Oregon's Lemon Law, the vehicle receives a permanent title brand. Under ORS 646A.405, the manufacturer must notify the Oregon DMV that the vehicle must be branded "Lemon Law Buyback."

Manufacturers and dealers acting as the manufacturer's agent must note "Lemon Law Buyback" in the remarks section of the title application. Anyone who later sells a lemon law buyback vehicle must provide the buyer with written notice that the vehicle was repurchased by the manufacturer because of a defect. Failing to disclose this information is an unlawful trade practice under Oregon law.

This branding requirement protects future buyers from unknowingly purchasing a vehicle with a history of substantial defects.

How to File a Lemon Law Claim in Oregon

Filing a lemon law claim requires proper documentation and following the correct procedures.

Step 1: Document Everything

• Keep copies of all repair orders, invoices, and service records
• Record the dates the vehicle was dropped off and picked up for each repair
• Document the specific problems reported at each visit
• Track the cumulative calendar days the vehicle was out of service
• Save all correspondence with the dealer and manufacturer

Step 2: Report Each Problem During the Coverage Period

Each nonconformity must be reported to the manufacturer, manufacturer's agent, or authorized dealer. Without proper reporting during the coverage period, you may not meet the statutory requirements.

Step 3: Allow Required Repair Attempts

Give the manufacturer or dealer the opportunity to repair the vehicle:

• At least 3 failed repair attempts for the same nonconformity, OR
• At least 1 failed attempt for a safety defect likely to cause death or serious injury, OR
• 30 or more cumulative calendar days out of service (60 or more for motorhomes)

Step 4: Send Written Notice to the Manufacturer

Send direct written notification to the manufacturer describing the defect and stating that you are seeking a remedy under Oregon's Lemon Law. Use certified mail with return receipt requested so you have proof of delivery.

Step 5: Consult an Attorney

The Oregon Department of Justice recommends contacting a private attorney if you believe you have been sold a lemon. The Oregon State Bar lawyer referral service can help you find legal representation at 503-684-3763 or toll-free in Oregon at 1-800-452-7636.

You can also contact the Oregon DOJ Consumer Protection division at (503) 378-4320 from Salem, (503) 299-5576 from Portland, or (877) 877-9392 elsewhere in Oregon (toll free).

Step 6: Consider Arbitration or Litigation

Depending on the manufacturer, you may need to go through an informal dispute settlement procedure before filing a lawsuit.

Informal Dispute Settlement Procedures

Under ORS 646A.408, if a manufacturer has established or participates in an informal dispute settlement procedure that substantially complies with the federal requirements in 16 C.F.R. Part 703, and the manufacturer has properly notified the consumer about the procedure, the consumer must first use that procedure before seeking remedies in court.

A key consumer protection: arbitration decisions are binding on the manufacturer but not on the consumer. If you are unsatisfied with the arbitration outcome, you retain the right to reject the decision and file a lawsuit.

The BBB AUTO LINE program is one of the largest dispute resolution programs for vehicle warranty complaints in the United States. It provides mediation and, if necessary, arbitration hearings as a free option for consumers.

Under ORS 646A.410, manufacturers that participate in informal dispute settlement procedures must keep records of all cases submitted. The Oregon Department of Justice may review these records to verify that arbitrators are complying with the law.

Manufacturer Defenses

Manufacturers may raise several defenses to avoid lemon law liability.

Common Manufacturer Defenses

Defense	Manufacturer's Argument	Consumer's Counter
Consumer abuse or neglect	Defect caused by owner misuse	Provide maintenance records showing proper care
Unauthorized modifications	Aftermarket parts caused the problem	Show defect existed before modifications
Nonconformity not substantial	Problem does not substantially impair use, value, or safety	Document specific impacts on daily vehicle use
Insufficient repair attempts	Consumer did not allow required number of attempts	Show repair history meets statutory thresholds
Outside coverage period	Defect reported after 2 years or 24,000 miles	Show first report was within coverage period
No written notice	Manufacturer did not receive direct written notification	Provide certified mail receipts and correspondence records

Court Actions and Penalties

Under ORS 646A.412, consumers who prevail in court may recover several categories of damages.

Attorney Fees and Costs

The court may award reasonable attorney fees, expert witness fees, and costs to a prevailing consumer. This provision makes it more practical for consumers to pursue lemon law claims, since attorney fees do not come out of the consumer's recovery.

Treble Damages for Bad Faith

If a court finds that the manufacturer did not act in good faith, the consumer may be awarded up to three times the amount of damages. This penalty is capped at $50,000 over and above the amount already owed to the consumer under ORS 646A.404.

For the purpose of calculating treble damages, "damages" includes the refunded purchase price of the vehicle. This provision discourages manufacturers from stonewalling legitimate claims.

Manufacturer's Right to Attorney Fees

If a court finds that a consumer brought a lemon law action in bad faith or solely for harassment purposes, the court may award the prevailing manufacturer reasonable attorney fees.

Used Vehicle Protections

Oregon's Lemon Law applies only to new vehicles. However, used vehicle buyers have other legal protections available.

Alternative Protections for Used Vehicle Buyers

• Remaining manufacturer warranty: If the original warranty has not expired, the new owner may have coverage
• Oregon Unlawful Trade Practices Act (ORS 646.605-646.656): Prohibits deceptive and unfair business practices in vehicle sales
• Dealer warranties: Written warranties provided by the selling dealer
• Federal Magnuson-Moss Warranty Act (15 U.S.C. 2301-2312): Federal warranty protections that may apply to used vehicles with remaining warranties

Oregon Used Vehicle Disclosure Requirements

Oregon law requires dealers to disclose certain information about used vehicles:

• Known material defects affecting the vehicle's safety or operability
• Salvage or rebuilt title status
• Flood damage history
• Odometer discrepancies
• Lemon Law Buyback title branding

Failure to make required disclosures may constitute an unlawful trade practice, giving the buyer grounds for a separate legal claim.

Key Deadlines and Statute of Limitations

Understanding the timing requirements for Oregon lemon law claims is essential.

Deadline	Timeframe	Details
Coverage Period	2 years or 24,000 miles	From date of original delivery, whichever comes first
Defect Reporting	During coverage period	Each nonconformity must be reported within the coverage window
Written Notice	Before court determination	Must be sent before a court can grant the remedy
Lawsuit Filing	Within applicable statute of limitations	Generally governed by Oregon's contract statute of limitations

Oregon does not have a 3-day right to cancel vehicle purchases. You cannot return a vehicle simply because you changed your mind, unless that right is specifically written into your sales contract.

More Oregon Laws

• Oregon Recording Laws
• Oregon Dog Bite Laws
• Oregon Statute of Limitations
• Oregon Hit and Run Laws
• Oregon Whistleblower Laws
• Oregon Car Seat Laws
• Oregon Sexting Laws
• Oregon Child Support Laws