Texas Lemon Law: Complete Guide for 2026


Last verified: February 2026

Key Points

  • Primary Law: Texas Occupations Code Chapter 2301, Subchapter M (§ 2301.601-2301.613)
  • Coverage: New vehicles including cars, trucks, vans, motorcycles, ATVs, motor homes, and towable recreational vehicles
  • Presumption: Four Times Test, Serious Safety Hazard Test, or 30-Day Test within specified periods
  • Remedies: Repair, replacement, or repurchase at manufacturer’s option (consumer may reject inadequate offer)
  • Administered By: Texas Department of Motor Vehicles (TxDMV)
  • Filing Deadline: Within 6 months of warranty expiration or 24 months/24,000 miles from delivery

Quick Penalties Overview

Violation Type Consumer Remedy Additional Options
Failure to repair defect after reasonable attempts Replacement or repurchase State-ordered hearing and decision
Serious safety hazard unrepaired Expedited relief available Lower threshold for qualification
Warranty violations Monetary compensation, service contracts, or trade assistance Federal Magnuson-Moss claims with attorney fees

Table of Contents

📑 Table of Contents (click to expand)

The Texas Lemon Law

The Texas Lemon Law, codified in Texas Occupations Code Chapter 2301, Subchapter M, provides significant consumer protections for buyers of new motor vehicles in the Lone Star State. Originally enacted in 1983, the law has been strengthened over the years, with major expansions in 1991 to broaden the definition of “lemon” and extend filing deadlines, and again in 1997 to include towable recreational vehicles.

Unlike many state lemon laws that send consumers to court, Texas provides an administrative process through the Texas Department of Motor Vehicles (TxDMV). This process is designed to be accessible to consumers without requiring an attorney, though legal representation may still be beneficial.

The Texas lemon law works alongside the federal Magnuson-Moss Warranty Act and the Texas Deceptive Trade Practices Act (DTPA), giving consumers multiple potential avenues for relief. While the state lemon law does not require manufacturers to pay consumer attorney fees, federal claims under Magnuson-Moss may allow fee recovery.

What Vehicles Are Covered

Texas has one of the broader lemon laws in terms of vehicle coverage, protecting consumers who purchase various types of new vehicles.

Covered Vehicle Types

  • Passenger cars: Sedans, coupes, hatchbacks, and similar vehicles
  • Trucks: Pickup trucks and commercial trucks
  • Vans: Passenger and cargo vans
  • SUVs and crossovers: All sport utility vehicles
  • Motorcycles: Street-legal motorcycles
  • All-terrain vehicles (ATVs): Covered under the lemon law
  • Motor homes: Self-propelled recreational vehicles
  • Towable recreational vehicles (TRVs): Travel trailers and fifth wheels (added in 1997)
  • Neighborhood electric vehicles: Low-speed electric vehicles

Vehicles Not Covered

  • Used vehicles (unless still under original manufacturer warranty for some claims)
  • Repossessed vehicles purchased at auction
  • Non-travel trailers
  • Boats and watercraft
  • Farm equipment and tractors
  • Vehicles with defects caused by owner abuse, neglect, or unauthorized modifications

Requirements for Coverage

To qualify for Texas lemon law protection, the vehicle must:

  • Be purchased from a licensed Texas dealer or lessor
  • Have a manufacturer’s written warranty
  • Have a defect reported within the warranty period
  • Have a problem that substantially impairs use or market value, or creates a serious safety hazard

Texas Lemon Law Tests and Presumptions

Texas uses three distinct tests to determine whether a vehicle qualifies as a lemon. A vehicle must pass at least one of these tests to be eligible for relief under the state lemon law.

Test 1: The Four Times Test

Requirement Details
Initial Repairs Vehicle taken to dealer for same problem 2 or more times within first 12 months or 12,000 miles
Additional Repairs Same problem repaired 2 or more additional times in the 12 months or 12,000 miles following first repair
Problem Status Same defect continues to exist

Test 2: Serious Safety Hazard Test

Requirement Details
Initial Repair Vehicle submitted for repair of a serious safety hazard once during first 12 months or 12,000 miles
Additional Repair Same safety hazard repaired once more in the 12 months or 12,000 miles following first attempt
Problem Status Serious safety hazard continues to exist

A “serious safety hazard” is a life-threatening defect that creates a substantial risk of death or serious bodily injury if the vehicle is driven.

Test 3: The 30-Day Test

Requirement Details
Days Out of Service Vehicle out of service for warranty repairs for cumulative total of 30 or more days
Time Period Within first 24 months or 24,000 miles of ownership
Loaner Vehicle No comparable loaner vehicle offered during this time
Repair Attempts At least 2 repair attempts during first 12 months or 12,000 miles

Written Notice Requirement

Before a vehicle can qualify under any test, the owner must:

  • Notify the manufacturer in writing of the defect
  • Give the manufacturer at least one opportunity to repair the vehicle after providing written notice

Consumer Remedies: Repair, Replacement, or Repurchase

When a vehicle qualifies as a lemon under Texas law, the TxDMV may order various remedies depending on the circumstances.

Possible Remedies

  • Repair: Order the manufacturer to make additional repair attempts
  • Repurchase (Buyback): Manufacturer buys back the vehicle from the consumer
  • Replacement: Manufacturer provides a comparable new vehicle
  • Trade assistance: Help trading in the vehicle
  • Service contracts: Extended warranty coverage
  • Monetary compensation: Cash payment for diminished value or other losses

Repurchase Calculation

If the TxDMV orders a repurchase, the manufacturer must refund:

  • Full purchase price of the vehicle
  • Sales tax
  • License and registration fees
  • Finance charges (if applicable)
  • Towing and rental car expenses

Reasonable Use Offset

The manufacturer may deduct a reasonable allowance for the consumer’s use of the vehicle. This offset is calculated based on the miles driven before the first repair attempt for the defect that qualifies the vehicle as a lemon.

Replacement Requirements

If replacement is ordered, the vehicle must be:

  • Identical or substantially similar to the original
  • Same model year or newer
  • Equipped with similar options and features

How to File a Lemon Law Claim in Texas

Texas provides an administrative process through TxDMV that does not require an attorney, though consumers may benefit from legal representation.

Step 1: Document Everything

  • Keep all repair orders showing dates, mileage, and repairs attempted
  • Save copies of all correspondence with the dealer and manufacturer
  • Record dates when the vehicle was out of service
  • Document phone calls (date, time, who you spoke with, what was discussed)
  • Take photos or videos of defects when possible

Step 2: Notify the Manufacturer in Writing

Send written notice to the manufacturer describing:

  • The defect or condition
  • Your vehicle information (year, make, model, VIN)
  • Repair history
  • Request for the manufacturer to repair the problem

Step 3: Allow Additional Repair Opportunity

After providing written notice, give the manufacturer at least one opportunity to repair the vehicle before filing a complaint.

Step 4: File a Complaint with TxDMV

If the problem is not resolved, file a lemon law complaint with the Texas Department of Motor Vehicles:

  • Complete the complaint form available at TxDMV.gov
  • Include copies of repair orders
  • Attach correspondence with the manufacturer
  • Include records of phone calls and other communications

Step 5: TxDMV Review Process

After you file:

  • TxDMV contacts the manufacturer
  • A state expert may be sent to inspect and attempt repair
  • If the parties cannot reach agreement, a hearing is scheduled

The TxDMV Hearing Process

If negotiation fails, the state conducts a formal lemon law hearing. While less formal than a court trial, proper preparation is essential.

Hearing Preparation

  • Gather all documentation (repair orders, correspondence, photos, videos)
  • Arrange for witnesses who have observed the problems
  • Have your vehicle available for inspection and test drive
  • Prepare a clear timeline of events

What You Must Prove

  • Vehicle was purchased from a licensed Texas dealer or lessor
  • You still own or lease the vehicle
  • The defect is covered by the manufacturer’s warranty
  • You gave the manufacturer a reasonable number of repair attempts
  • You notified the manufacturer in writing and gave at least one repair opportunity after notice
  • The problem substantially impairs use or market value, or creates a serious safety hazard

Possible Hearing Outcomes

  • In your favor: TxDMV orders repair, repurchase, or replacement
  • Dismissed: Claim does not meet requirements; you may pursue other legal remedies

Manufacturer Defenses

Manufacturers may assert various defenses at the hearing to avoid liability.

Common Manufacturer Defenses

Defense Manufacturer’s Argument Consumer’s Counter
No defect exists Vehicle operates as designed Provide documentation of recurring problems and expert testimony
Minor defect Problem does not substantially impair vehicle Document how defect affects daily use, safety, or resale value
No safety hazard Issue is inconvenient but not dangerous Provide evidence of risk to occupants or other drivers
Owner abuse or neglect Consumer caused the problem Show maintenance records and proper use
Unauthorized modifications Aftermarket parts caused the issue Prove defect existed before modification or is unrelated

Used Vehicle Protections

The Texas lemon law does not cover used vehicles. However, used vehicle buyers have other legal protections available.

Alternative Protections for Used Vehicle Buyers

  • Federal Magnuson-Moss Warranty Act: Covers any vehicle with an unexpired manufacturer warranty or service contract
  • Texas Deceptive Trade Practices Act (DTPA): Prohibits false, misleading, or deceptive acts in consumer transactions
  • Common law claims: Breach of warranty, fraud, or misrepresentation
  • Used vehicle dealer disclosure requirements: Dealers must disclose known defects

Title Branding for Buyback Vehicles

Texas requires that vehicles bought back under the lemon law receive a branded title indicating their lemon history. When purchasing a used vehicle, always check the title and vehicle history report for lemon law buyback designations.

Filing Deadlines

Texas lemon law claims must be filed within strict time limits:

Deadline Type Time Limit
From warranty expiration 6 months after warranty expires
From delivery date 24 months or 24,000 miles (whichever comes first)
Applicable deadline Whichever deadline comes first

Important: Report defects as soon as you notice them. Earlier reporting strengthens your case and ensures you meet all deadlines.

Frequently Asked Questions

Does the Texas lemon law cover used vehicles?

No, the Texas lemon law only covers new vehicles purchased from licensed dealers. However, used vehicle buyers may have recourse through the federal Magnuson-Moss Warranty Act if the vehicle has an unexpired warranty, or through the Texas Deceptive Trade Practices Act for fraud or misrepresentation.

Do I need a lawyer to file a Texas lemon law claim?

No, the TxDMV process is designed to be accessible without an attorney. However, manufacturers typically have legal representation at hearings, so consulting with a lemon law attorney may improve your chances of success. For federal Magnuson-Moss claims, attorneys often work on contingency because the law requires manufacturers to pay attorney fees if the consumer prevails.

What is the difference between the Four Times Test and the 30-Day Test?

The Four Times Test focuses on the number of repair attempts for the same defect (2 attempts in the first year plus 2 more in the following year). The 30-Day Test focuses on how long the vehicle has been out of service for any warranty repairs (30 cumulative days in the first 24 months). A vehicle only needs to pass one test to qualify.

Can I still make payments on my vehicle while pursuing a lemon law claim?

Yes. The Texas lemon law does not allow you to stop making loan or lease payments while your claim is pending. Failure to make payments could result in repossession and damage to your credit, regardless of the lemon law outcome.

What if the manufacturer offers a settlement before the hearing?

You are not required to accept any settlement offer. Review any offer carefully and consider consulting with an attorney before accepting. If the offer does not adequately compensate you, you can proceed to the hearing.

Are motorcycles and ATVs covered by Texas lemon law?

Yes, motorcycles, all-terrain vehicles, motor homes, and even towable recreational vehicles are covered under the Texas lemon law, provided they were purchased new from a licensed Texas dealer with a manufacturer warranty.

Resources and Legal Help

Official Resources

Related State Laws

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