Tennessee Lemon Law: Complete Guide for 2026

Last verified: February 2026

Key Points

Primary Law: Tennessee Motor Vehicle Warranty Enforcement Act (T.C.A. § 55-24-101 to 55-24-112)
Coverage: New motor vehicles under 10,000 lbs GVW, excluding motor homes and recreational vehicles
Presumption: 3+ repair attempts for same defect OR 30+ calendar days out of service within warranty or 1 year
Remedies: Replacement with comparable vehicle or full refund less reasonable use allowance
Notice Required: Written notification to manufacturer by certified mail before pursuing relief
Attorney Fees: Prevailing consumer may recover reasonable attorney fees and costs

Quick Penalties Overview

Violation Type	Consumer Remedy	Additional Damages
Failure to repair substantial defect	Replacement or refund	Attorney fees and costs if consumer prevails
Failure to provide repair orders	Right to copies of all repair documentation	Evidence preservation for claim
Violation of warranty obligations	Actual damages plus collateral charges	Potential federal Magnuson-Moss claims

📑 Table of Contents (click to expand)

The Tennessee Motor Vehicle Warranty Enforcement Act
What Vehicles Are Covered
Tennessee’s Lemon Law Presumption
Consumer Remedies: Refund vs. Replacement
How to File a Lemon Law Claim
Manufacturer Defenses
Used Vehicle Protections
Leased Vehicle Coverage
Statute of Limitations
Frequently Asked Questions
Resources and Legal Help

The Tennessee Motor Vehicle Warranty Enforcement Act

Tennessee’s lemon law, officially known as the Motor Vehicle Warranty Enforcement Act (T.C.A. § 55-24-101 to 55-24-112), provides important consumer protections for buyers and lessees of new motor vehicles in the Volunteer State. The law requires manufacturers to either replace a defective vehicle with a comparable new vehicle or refund the full purchase price when they are unable to repair a substantial defect after a reasonable number of attempts.

The Tennessee lemon law works alongside the federal Magnuson-Moss Warranty Act, giving consumers multiple avenues for relief when dealing with a defective vehicle. While the state law focuses specifically on motor vehicles, the federal law may provide additional remedies, including the potential to recover attorney fees in federal court.

The law places the responsibility squarely on manufacturers to fulfill their warranty obligations. It also protects authorized dealers from liability, recognizing that dealers typically have limited control over manufacturing defects. Actions under this law must be brought against the manufacturer unless the manufacturer is not subject to service of process in Tennessee or has been declared insolvent.

What Vehicles Are Covered

Tennessee’s lemon law covers specific types of new motor vehicles. Understanding whether your vehicle qualifies is the first step in pursuing a lemon law claim.

Covered Vehicle Types

Passenger automobiles: Sedans, coupes, hatchbacks, and similar vehicles classified as Class B vehicles
Pickup trucks: Under 10,000 pounds gross vehicle weight
Vans: Passenger and cargo vans under 10,000 pounds GVW
Motorcycles: As defined in T.C.A. § 55-1-103, classified as Class A vehicles
SUVs and crossovers: Under 10,000 pounds gross vehicle weight

Vehicles Not Covered

Motorized bicycles as defined in T.C.A. § 55-8-101
Motor homes as defined in T.C.A. § 55-1-104
Recreational vehicles
Off-road vehicles
Vehicles over 10,000 pounds gross vehicle weight
Lawnmowers and garden tractors
Vehicles purchased by governmental entities
Vehicles purchased by businesses that register three or more vehicles

Who Qualifies as a Consumer

Under Tennessee law, a “consumer” includes:

The original purchaser of a new motor vehicle (not for resale purposes)
The lessee of a motor vehicle
Any person to whom the vehicle is transferred during the warranty period
Any person entitled by the warranty terms to enforce warranty obligations

Tennessee’s Lemon Law Presumption

Under T.C.A. § 55-24-105, Tennessee law creates a presumption that a reasonable number of repair attempts have been made if certain conditions are met during the “term of protection.” When this presumption applies, the burden shifts to the manufacturer to prove that the vehicle is not a lemon.

The Lemon Law Presumption Applies When:

Condition	Requirement	Details
Repair Attempts (Same Problem)	3 or more attempts	Same nonconformity must substantially impair the vehicle
Days Out of Service	30 or more calendar days	Cumulative total during term of protection
Term of Protection	Warranty period or 1 year	Whichever comes first from original delivery date

What Qualifies as “Substantially Impair”?

Tennessee law defines “substantially impair” as a defect that either:

Renders the motor vehicle unreliable or unsafe for normal operation
Reduces the resale market value below the average resale value for comparable motor vehicles

Examples of substantial defects include:

Engine failures affecting reliability
Transmission problems that impair drivability
Brake system malfunctions creating safety hazards
Steering system defects
Electrical system failures affecting critical components
Persistent warning lights indicating serious mechanical issues

Extension of Time Periods

The term of protection and the 30-day out-of-service period may be extended if repair services are unavailable due to war, invasion, strike, fire, flood, or other natural disaster.

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under Tennessee law, the manufacturer must provide one of two remedies as specified in T.C.A. § 55-24-103.

Option 1: Replacement Vehicle

The manufacturer must replace the defective vehicle with a comparable motor vehicle, defined as:

A new motor vehicle of comparable worth
Same make and model as the original
All options and accessories included
Appropriate adjustments for any model year differences

Option 2: Refund (Buyback)

The manufacturer must accept return of the vehicle and refund the full purchase price. Under Tennessee law, “full purchase price” includes:

Actual cost paid: The amount the consumer paid for the vehicle
Collateral charges: Sales taxes, title charges, license fees, registration fees, manufacturer or agent installed items, and similar governmental charges
Credit life and disability insurance charges
Other reasonable expenses: Incurred for the purchase of the motor vehicle

Reasonable Allowance for Use

The manufacturer may deduct a reasonable allowance for use from the refund. This allowance is calculated based on:

Miles driven before the consumer’s first report of the nonconformity
Miles driven during periods when the vehicle was not out of service for repair

Tennessee law caps this deduction at no more than one-half of the IRS standard mileage rate for business use of a personal vehicle, plus any amount for damage beyond normal wear and tear (unless caused by the nonconformity).

Lienholder Protections

Refunds must be made to the consumer and any lienholder as their interests appear. The law protects lienholders by requiring that they be paid in full before any exchange or refund to the consumer is made, unless the lienholder consents to transfer the lien to a replacement vehicle.

How to File a Lemon Law Claim in Tennessee

Successfully pursuing a Tennessee lemon law claim requires careful documentation and adherence to specific procedures.

Step 1: Document Everything

Keep all repair orders and invoices
Record dates when your vehicle was in the shop
Note the specific symptoms and problems experienced
Save all correspondence with the dealer and manufacturer
Take photographs or videos of defects when possible

Step 2: Allow Reasonable Repair Attempts

Give the manufacturer, its agent, or authorized dealer the opportunity to repair the problem. For most defects, this means at least three repair attempts for the same issue.

Step 3: Send Written Notice to the Manufacturer

Before pursuing relief under T.C.A. § 55-24-103, you must:

Send written notification by certified mail directly to the manufacturer
Describe the nonconformity and need for correction
If the manufacturer’s address is not in your owner’s manual or warranty, mail the notice to an authorized dealer who must forward it

Step 4: Allow Final Repair Opportunity

If either presumption condition (3 repair attempts or 30 days out of service) already exists when you send notice, the manufacturer gets an additional 10 days after receiving the notification to correct or repair the nonconformity.

Step 5: Resort to Informal Dispute Settlement (If Available)

Under T.C.A. § 55-24-106, if the manufacturer has an informal dispute settlement procedure that complies with federal FTC regulations (16 CFR Part 703), you must use that process before seeking a refund or replacement. The manufacturer must notify you of this procedure’s availability.

Step 6: File a Lawsuit or Continue Negotiations

If the dispute settlement process does not resolve your claim, or if no such procedure exists, you may file a civil lawsuit against the manufacturer.

Manufacturer Defenses

Manufacturers may raise several affirmative defenses to avoid lemon law liability. Understanding these defenses can help you build a stronger case.

Common Manufacturer Defenses

Defense	Manufacturer’s Argument	Consumer’s Counter
No substantial impairment	Defect does not substantially impair the vehicle	Document how defect affects safety, reliability, or value
Consumer abuse or neglect	Nonconformity resulted from abuse or neglect	Provide maintenance records showing proper care
Unauthorized modifications	Aftermarket parts or alterations caused the problem	Show defect existed before modifications or is unrelated
No written notice	Consumer failed to provide required written notice	Keep certified mail receipts and copies of notices
Did not use dispute settlement	Consumer did not first resort to informal dispute process	Document compliance with or unavailability of process

Used Vehicle Protections

Tennessee’s lemon law primarily covers new motor vehicles. However, the law does provide some protections for subsequent owners:

Transferred Vehicles

If a vehicle is transferred during the warranty period, the new owner becomes a “consumer” under the law
The transferee may enforce warranty obligations if entitled by warranty terms
Coverage depends on remaining warranty duration at time of transfer

Other Protections for Used Vehicle Buyers

While the state lemon law has limited used vehicle coverage, consumers may have recourse through:

Federal Magnuson-Moss Warranty Act: Applies to any vehicle with an unexpired warranty
Tennessee Consumer Protection Act: Prohibits unfair or deceptive trade practices
Common law warranty claims: Breach of express or implied warranty

Disclosure Requirements for Resold Lemons

Under T.C.A. § 55-24-112, vehicles returned as lemons and resold must include disclosure of their lemon history. Consumers buying any used vehicle should check for lemon law history.

Leased Vehicle Coverage

Tennessee’s lemon law provides specific protections for lessees under T.C.A. § 55-24-104.

Refund Calculation for Leased Vehicles

For leased vehicles, refunds are divided between the lessor and lessee:

Lessee receives: Lessee cost (aggregate deposit and rental payments previously paid, less service fees)
Lessor receives: Lease price minus payments already received from lessee

Definitions for Leased Vehicles

Lease price: Lessor’s actual purchase cost plus freight, accessories, fees to obtain the lease, and 5% of the purchase cost
Service fees: Earned interest and insurance or other costs expended by the lessor for the lessee’s benefit

Statute of Limitations

Under T.C.A. § 55-24-107, any action under Tennessee’s lemon law must be commenced within six months following:

Expiration of the express warranty term, OR
One year following original delivery of the motor vehicle to the consumer
Whichever date is later

The statute of limitations is tolled (paused) during any period when the consumer has submitted a dispute to the manufacturer’s informal dispute settlement procedure, until the decision is rendered or the manufacturer fulfills its obligations under the decision.

Frequently Asked Questions

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

Under Tennessee’s lemon law presumption, a vehicle may qualify as a lemon after three or more repair attempts for the same substantial defect, or if the vehicle has been out of service for 30 or more cumulative calendar days for repairs during the term of protection (warranty period or one year, whichever comes first).

Does Tennessee’s lemon law cover motorcycles?

Yes, Tennessee’s lemon law covers motorcycles as defined in T.C.A. § 55-1-103 that are classified as Class A vehicles. The same presumption requirements and remedies apply as with other covered motor vehicles.

Do I have to use the manufacturer’s arbitration program?

If the manufacturer has an informal dispute settlement procedure that complies with federal FTC regulations (16 CFR Part 703) and has properly notified you of its existence, you must resort to that procedure before seeking a refund or replacement under Tennessee law. If no such program exists or it does not comply with federal requirements, you may proceed directly to court.

Can I get a refund for a leased vehicle under Tennessee’s lemon law?

Yes, lessees are protected under Tennessee’s lemon law. If your leased vehicle qualifies as a lemon, you may be entitled to a refund of your deposit and rental payments (less service fees). The lessor receives the remaining lease price minus payments already received.

What is the reasonable use allowance that can be deducted from my refund?

The manufacturer may deduct an allowance for miles driven before you first reported the defect and during periods when the vehicle was available for use. This deduction cannot exceed half of the IRS standard mileage rate for business use, plus any documented damage beyond normal wear and tear.

Does Tennessee’s lemon law cover used cars?

Tennessee’s lemon law primarily covers new vehicles. However, if you purchase a vehicle that is transferred to you during the original warranty period, you may have rights under the law. For used vehicles without remaining manufacturer warranty, consider claims under the federal Magnuson-Moss Warranty Act or Tennessee Consumer Protection Act.