Tennessee Lemon Law: Your Complete Legal Guide

Tennessee's Motor Vehicle Warranty Enforcement Act protects consumers who buy or lease new vehicles that turn out to have serious, unfixable defects. Codified at T.C.A. § 55-24-101 through 55-24-112, the law requires manufacturers to either replace a defective vehicle or refund the full purchase price when repairs fail to fix a substantial problem. This guide covers every provision of the statute so you can determine whether your vehicle qualifies and what steps to take.

What Is Tennessee's Lemon Law?

Tennessee's lemon law addresses situations where a new motor vehicle has a defect or condition (called a "nonconformity") that substantially impairs its use, value, or safety, and the manufacturer or its authorized dealer cannot fix the problem after a reasonable number of attempts. When those conditions are met, the manufacturer must provide a replacement vehicle or a full refund.

The law applies only during the "term of protection," which is the shorter of:

• The duration of the applicable express warranty, OR
• One year from the date the vehicle was originally delivered to the consumer

Under T.C.A. § 55-24-102, if a consumer reports a nonconformity during the term of protection, the manufacturer must correct it at no charge to the consumer. This obligation continues even if the actual repairs happen after the term of protection expires.

What Vehicles Are Covered

Understanding whether your vehicle qualifies under Tennessee's lemon law is the first step in pursuing a claim.

Covered Vehicle Types

Tennessee's lemon law covers new motor vehicles that are sold and subject to registration and certificate of title in Tennessee (or any other state). Specifically, the law covers:

• Passenger automobiles: Sedans, coupes, hatchbacks, and similar vehicles
• Pickup trucks: Under 10,000 pounds gross vehicle weight (GVW)
• Vans: Passenger and cargo vans under 10,000 pounds GVW
• SUVs and crossovers: Under 10,000 pounds GVW
• Motorcycles: As defined in T.C.A. § 55-1-103, classified as Class A vehicles
• Electric and hybrid vehicles: Covered under the same framework as gasoline-powered vehicles, including issues with battery systems, charging components, and software

Vehicles Not Covered

The following vehicles are excluded from Tennessee's lemon law:

• Motor homes as defined in T.C.A. § 55-1-104
• Recreational vehicles
• Off-road vehicles
• Vehicles over 10,000 pounds gross vehicle weight
• Motorized bicycles as defined in T.C.A. § 55-8-101
• 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 T.C.A. § 55-24-101, a "consumer" includes:

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

This means if you buy a vehicle from a private party while the original manufacturer's warranty is still active, you may still have lemon law rights.

Tennessee's Lemon Law Presumption

Under T.C.A. § 55-24-105, Tennessee law creates a rebuttable presumption that a "reasonable number of attempts" has been made to repair a vehicle when certain conditions are met. When this presumption applies, the burden shifts to the manufacturer to prove the vehicle is not a lemon.

When the Presumption Applies

Condition	Threshold	Details
Repair Attempts (Same Defect)	3 or more attempts	The same nonconformity must substantially impair the vehicle
Days Out of Service	30 or more calendar days	Cumulative total during the term of protection
Term of Protection	Warranty period or 1 year	Whichever is shorter, measured from original delivery

You only need to meet one of these two conditions (repair attempts or days out of service), not both.

What "Substantially Impair" Means

Tennessee law defines "substantially impair" as a defect that either:

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

Common examples of substantial defects include:

• Engine failures that make the vehicle unreliable
• Transmission problems that impair drivability
• Brake system malfunctions that create safety hazards
• Steering system defects affecting control
• Electrical system failures in critical components
• Persistent check engine or warning lights tied to serious mechanical issues
• Battery degradation or charging failures in electric vehicles

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, the manufacturer must provide one of two remedies under T.C.A. § 55-24-103.

Option 1: Replacement Vehicle

The manufacturer must replace the defective vehicle with a comparable motor vehicle. "Comparable" means:

• 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: Full Refund (Buyback)

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

• Actual vehicle cost: The amount the consumer paid for the vehicle
• Collateral charges: Sales taxes, title charges, license fees, registration fees, and similar governmental charges
• Manufacturer-installed items: Accessories and options installed by the manufacturer or its agent
• Credit life and disability insurance charges
• Other reasonable expenses: Costs incurred in connection with purchasing the vehicle

Reasonable Allowance for Use

The manufacturer may deduct a "reasonable allowance for use" from the refund. This deduction accounts for:

• Miles driven before the consumer first reported the nonconformity to the manufacturer, agent, or dealer
• 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 the nonconformity caused the damage). For 2026, the IRS business mileage rate is 72.5 cents per mile, so the maximum use deduction would be 36.25 cents per mile.

Lienholder Protections

Refunds must be made to the consumer and any lienholder as their interests appear. Lienholders must 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.

Refinancing Protections

Under T.C.A. § 55-24-103(e), if a motor vehicle is financed and returned, the consumer is not liable for any finance charge after the date of the return. Any holder of the consumer's debt must refinance the remaining balance on commercially reasonable terms.

How to File a Lemon Law Claim in Tennessee

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

Step 1: Document Everything

Start building your case from the first sign of trouble:

• Keep all repair orders and invoices
• Record dates when the vehicle was in the shop and when it was returned
• Note the specific symptoms and problems you experience
• Save all correspondence with the dealer and manufacturer
• Take photographs or videos of defects when possible
• Log the odometer reading each time you drop off and pick up the vehicle

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 nonconformity.

Under T.C.A. § 55-24-109, the dealer must provide you with a copy of the repair order each time your vehicle is returned from service. That repair order must include all work performed, parts and labor provided under warranty, the date the vehicle was submitted, the date it was returned, and the odometer reading.

Step 3: Send Written Notice to the Manufacturer

Before you can pursue a refund or replacement under T.C.A. § 55-24-103, you must:

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

Keep a copy of your notice and the certified mail receipt as proof.

Step 4: Allow the Manufacturer's Final Repair Opportunity

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

Step 5: Use the Informal Dispute Settlement Procedure (If Required)

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 is required to notify you of the procedure's existence. Many major automakers participate in the BBB AUTO LINE program for this purpose.

If the dispute settlement process does not resolve your claim, or if no qualifying procedure exists, you may proceed to court.

Step 6: File a Lawsuit

If your claim is not resolved through the dispute settlement process (or if no process exists), you may file a civil lawsuit against the manufacturer. Under T.C.A. § 55-24-111, the lawsuit must be directed at the manufacturer, not the dealer, unless the dealer is also the manufacturer, the manufacturer cannot be served in Tennessee, or the manufacturer has been declared insolvent.

Contact the Tennessee Attorney General

For general guidance, contact the Tennessee Division of Consumer Affairs:

• Phone: 615-741-4737
• Email: consumer.affairs@ag.tn.gov
• Online Complaint Form: core.tn.gov (select "File a Complaint")

Attorney Fees and Costs

Under T.C.A. § 55-24-108, if a consumer prevails in a lemon law action, the court may award:

• Reasonable attorney fees based on actual time expended
• Court costs and expenses reasonably incurred in pursuing the action

This provision means many Tennessee lemon law attorneys work on a contingency basis, collecting fees only if the case succeeds. Additionally, consumers may pursue claims under the federal Magnuson-Moss Warranty Act, which also provides for attorney fee recovery and may allow recovery of incidental and consequential damages.

Manufacturer Defenses

Manufacturers may raise affirmative defenses to avoid lemon law liability. Under T.C.A. § 55-24-103(d), the manufacturer has two statutory defenses:

Defense	What the Manufacturer Argues	How to Counter It
No substantial impairment	The defect does not substantially impair the vehicle's use, safety, or value	Document how the defect affects safety, reliability, or resale value
Consumer abuse, neglect, or modifications	The nonconformity resulted from the consumer's abuse, neglect, or unauthorized modifications	Provide maintenance records showing proper care; show that the defect existed before any modifications or is unrelated

Other common defense strategies manufacturers use in practice include:

• No written notice: Arguing the consumer failed to send certified mail notice before pursuing relief. Counter by keeping certified mail receipts.
• Failure to use dispute settlement: Claiming the consumer did not first resort to the manufacturer's informal dispute process. Counter by documenting compliance or the unavailability of a qualifying program.
• Defect not reported during term of protection: Arguing the consumer did not report the problem within the warranty period or one year. Counter with repair orders showing early reporting.

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, the refund is split between the lessor and lessee:

• Lessee receives: Aggregate deposit and rental payments previously paid, minus service fees
• Lessor receives: The lease price minus payments already received from the lessee

Key Definitions for Lease Transactions

• Lease price: The lessor's actual purchase cost, plus freight charges, accessories, fees to obtain the lease, and 5% of the purchase cost
• Lessee cost: Total deposit and rental payments made by the lessee
• Service fees: Earned interest and insurance or other costs expended by the lessor for the lessee's benefit

Used Vehicle Protections

Tennessee's lemon law primarily applies to new vehicles. However, the law does provide some protections for subsequent owners, and other laws fill the gaps.

Transferred Vehicles

If a vehicle is transferred during the original warranty period, the new owner becomes a "consumer" under the law and may enforce warranty obligations. Coverage depends on the remaining warranty duration at the time of transfer.

Lemon Buyback Disclosure Requirements

Under T.C.A. § 55-24-112, any manufacturer who resells a vehicle that was returned under the lemon law must provide full disclosure of the vehicle's lemon history to the new purchaser. Additionally, vehicles branded as lemon law buybacks from other states may receive a non-repairable title designation from the Tennessee Department of Revenue.

Other Legal Options for Used Vehicle Buyers

Used vehicle buyers without remaining manufacturer warranty may have recourse through:

• Federal Magnuson-Moss Warranty Act: Applies to any vehicle sold with an express warranty, whether new or used
• Tennessee Consumer Protection Act (T.C.A. § 47-18-101 et seq.): Prohibits unfair or deceptive trade practices in consumer transactions
• Common law warranty claims: Actions for breach of express or implied warranty

Statute of Limitations

Under T.C.A. § 55-24-107, any lemon law action must be filed within six months following the later of:

• Expiration of the express warranty term, OR
• One year from original delivery of the vehicle to the consumer

Tolling Provisions

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. The tolling continues until the decision is rendered or the manufacturer fulfills its obligations under the decision.

Preserving Your Other Legal Rights

Under T.C.A. § 55-24-110, Tennessee's lemon law does not limit any rights or remedies available under other laws. Even if you use the manufacturer's informal dispute settlement procedure, you are never precluded from seeking additional rights or remedies available by law. This means you can pursue claims under the Magnuson-Moss Warranty Act, the Tennessee Consumer Protection Act, or common law breach of warranty in addition to or instead of a lemon law claim.

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