Illinois Lemon Law
Imagine driving down Route 45 and your engine stalls. Again. The worst part is that the car is entirely new, yet it breaks down more than the old beater you replaced. You bought a lemon.
Fortunately, Illinois has consumer protections that enable drivers to replace a lemon without having to go through the courts. This alleviates consumer anxiety about competing with a large automaker or dealership.
The New Vehicle Buyer Protection Act requires manufacturers to maintain a third-party dispute resolution program for Lemon Law claims. If the manufacturer cannot bring the vehicle back to warranty standards,the owner is entitled to a refund or comparable replacement.
However, Illinois' Lemon Law is less lenient than those in other states. This law only applies under specific conditions, and consumers must file properly to take advantage of their protections.
What is the Lemon Law in Illinois?
The Illinois Lemon Law, formally known as the New Vehicle Buyer Protection Act (815 ILCS 380), requires manufacturers to reimburse owners for defective vehicles. However, manufacturers are allowed a reasonable amount of time to fix the problem before it is considered a lemon.
Several factors determine whether your vehicle is considered a lemon.
Most importantly, the vehicle must have a nonconformity that "substantially impairs the use, market value, or safety of the new vehicle" and "is covered by an express warranty applicable to such vehicle."
Many situations may disqualify a vehicle. The Lemon Law only covers new vehicles, either purchased or leased for a minimum of one year.
However, it excludes the following vehicle types:
- Used Cars
- Modified vehicles
- Motorcycles
- Boats
- Trucks and vans over 8,000 pounds
- Trailers
The Illinois Lemon Law aims to ensure that consumers can effectively address severe warranty defects and hold manufacturers accountable for their quality promises.
How Does Illinois' Lemon Law Work?
The Illinois New Buyer Protection Act safeguards consumers who purchase or lease new vehicles that fail to meet the manufacturer's warranty. The law applies to most passenger cars, SUVs, recreational vehicles, and light trucks and vans from facilities within Illinois.
This Lemon Law requires that all manufacturers create an "Industry Third-Party Dispute Resolution Program" to mediate claims. Dealerships must include information on these programs in the ownership manual provided during the vehicle sale.
You must file a claim through the manufacturer's dispute resolution program, rather than working solely with the dealership. Many consumers have missed the filing deadline because they believed the dealership was officially managing the situation on behalf of the manufacturer.
Starting the claims process may seem daunting, but it is easier than you think. Most of the required forms are provided by the dealership or manufacturer. Most of your responsibilities include filling out forms, following deadlines, and keeping thorough records.
Step-by-Step Process
Step 1: Confirm the Vehicle Qualifies
The Illinois Lemon Law only covers defects that substantially impair the vehicle's use, safety, or value. The defect must also breach the manufacturer's express warranty, but this condition is typically fulfilled by default.
Bringing in a vehicle for a minor cosmetic repair won't be covered, and the dealership will likely charge for the repair. Owners should strongly consider whether their defect qualifies before initiating a claims process.
New leased vehicles also qualify if your contract is at least one year long. You can check its repair history through GoodCar's title check service. This will reveal whether your vehicle has a recurring problem or even if there is an active lemon law claim on the vehicle.
Lemons must also come from a dealership operating within the state of Illinois. Vehicles that are brought in from another state will not qualify, even if they are reregistered in your jurisdiction. Several excluded vehicle types are listed in the "What is the Lemon Law in Illinois?" section.
Step 2: Provide Written Notice to the Manufacturer
If you believe your vehicle qualifies as a lemon, then the next step is to send a written notice to the manufacturer. This notice must be sent within eighteen months of the vehicle's original delivery to the consumer.
You can get the necessary forms and information from the dealership or by following the steps outlined in the new owner's manual. However, these forms must be sent to the manufacturer, as a claim cannot be initiated through the dealership.
Step 3: Allow Repair Attempts
Dealerships will have a repair service facility they trust to fix the nonconformity. These facilities are maintained to address potential lemon claims promptly. Illinois allows sellers a reasonable opportunity to address the nonconformity before requiring them to reimburse the consumer.
The presumption of a 'reasonable' chance occurs when the defect persists after four service attempts or the vehicle has been held in service for thirty or more total days. Notably, the four service attempts must all be for the same defect.
Vehicle owners must act quickly, as the service attempts must also occur within the statutory warranty period of one year. Waiting too long may cause the deadline to lapse during repairs.
Step 4: Compensation
If the dealer cannot bring the vehicle to warranty standard, they must offer reasonable compensation to the victimized consumer. Potential remedies include a refund of the full purchase price or a replacement with a comparable vehicle.
Refunds will account for a reasonable use allowance, which refers to depreciation in the vehicle's value prior to the appearance of the nonconformity. Additionally, the refund includes collateral charges such as title and registration fees, but does not include taxes.
The consumer retains the right to choose their method of compensation.
Step 5: Going to Court
You may disagree or distrust the resolution program's decision and proceed to court. Other Illinois and Federal laws may offer better terms than the Lemon Law. However, you cannot seek legal action without first going through the manufacturer's third-party service.
It is recommended to consult an Illinois Lemon Law attorney for further information. These lawyers specialize in the state's warranty laws and can best argue how your consumer rights were infringed upon. They can also analyze any shortcomings in the previous mediation process.
Lemon Law attorneys also do not typically charge unless they win your court claim. They are paid out of the manufacturer's pocket, making them essentially free for consumers to rely upon.
All repair attempts and vehicle notes should be kept as evidence of the work done. This means you should keep detailed records of all service dates, durations, and odometer changes. These details will all be taken into account in the final compensation decision.
Illinois Lemon Law Qualifications
Before any compensation is awarded, the vehicle must meet the requirements established by Illinois' New Vehicle Buyer Protection Act. To qualify, a vehicle must meet the following qualifications:
- Be purchased or leased from a distributor operating in Illinois
- Be currently covered under the manufacturer's express warranty
- Be one of the covered vehicle types
- Have an ongoing nonconformity that substantially impairs the vehicle's use, value, or safety
- Failed to be repaired by the manufacturer in a reasonable number of attempts
- Be reported to the manufacturer within eighteen months of the vehicle's delivery
Unlike some other states, Illinois' Lemon Law does not protect used vehicles, even if the original warranty still covers them. This exception should be considered when choosing between buying used and new, even at a reputable dealership.
Violates Manufacturer's Warranty
The New Vehicle Buyer Protection Act requires manufacturers to repair vehicles in accordance with their warranty promises. The warranty must be provided at the time of sale, along with the new owner's manual, containing information on how to proceed with a lemon claim.
The "warranty" only refers to the manufacturer's express warranty. This act does not protect other promises made through a dealership's extended warranty or vehicle service contract.
Vehicle Types
In Illinois, a new vehicle is defined in the same manner as in Statute Section 1-146, encompassing passenger cars, trucks, and vans. However, the Lemon Law adds extra stipulations that may include or exclude certain vehicle types.
The law does not cover used cars, motorcycles, boats, or vehicles that have been modified by a party other than the manufacturer or its authorized agents.
The vehicle must also have been purchased primarily for "personal, household, or family purposes." This means that a vehicle specifically purchased for business operations is not covered by the Illinois Lemon Law.
Substantial Nonconformity
Defects that qualify as a serious nonconformity will impact the vehicle's use, market value, or safety. For example, a qualifying defect might impact the driver's control over the steering wheel or brakes.
Cosmetic issues, such as squeaky seats or minor scratches, will not meet the standard. Other nonconformities caused by owner neglect or abuse are also disqualified.
Failed Repair Attempts
Vehicles must meet one of two presumptions to prove that the manufacturer failed to reasonably correct the nonconformity. These presumptions are established to prevent manufacturers from holding someone's vehicle hostage through repeated service attempts.
The first presumption occurs when the manufacturer fails to address the problem after four or more attempts. The four service appointments must all have been for the same issue. So, a repair for the transmission and another for the brakes will not both count toward the presumption.
The second presumption is met when the vehicle has been held in repairs for at least thirty days. This time does not need to be consecutive. Therefore, it is essential to keep track of the total days the manufacturer spends with your vehicle.
Illinois Lemon Law Rights Period and Time Limit
There are two deadlines that Illinois vehicle owners must be aware of. The first is the statutory warranty period. This period is either one year or 12,000 miles after the vehicle's original delivery, whichever comes first.
Vehicle owners must spot the nonconformity and meet the presumption for failed attempts within the statutory warranty period. Illinois' requirements are stricter than those of other states, which only require the owner to report the problem within this time.
The statutory warranty period is extended if the car cannot be brought into repair due to war, invasion, strike, fire, flood, or other natural disasters.
The second deadline refers to the time frame within which you must file a lemon law claim with the manufacturer. Written notice must be sent to the manufacturer within eighteen months of the vehicle's delivery to the consumer. Late notifications may result in the dismissal of a claim.
In many ways, Lemon Laws are created to protect consumers, making them advantageous to vehicle owners. However, these deadlines create a safeguard that prevents consumers from fraudulently abusing the system.
Deadlines also push consumers to report their problems earlier. The longer they wait to file a claim, the more time the manufacturer gets to prove that the driver's abuse or neglect caused the defect.
Refer to our step-by-step process above to learn how to meet the deadline. →
Compensation and Remedies Under Illinois Law
The dispute board will order the manufacturer to provide compensation after repeated failed attempts to fix the nonconformity. The consumer has the right to choose between a refund, adjusted for use, and a comparable new vehicle replacement.
Refund
A refund occurs when the manufacturer accepts the vehicle's return and reimburses the owner. Multiple factors determine the refund amount. The vehicle's original sale price plays the most significant role. This price is determined by what the owner paid at the time, not by the vehicle's current value.
However, the refund price may be adjusted based on a reasonable allowance for the consumer's use of the vehicle. The reasonable allowance for use is the depreciation "directly attributable to the wear and tear incurred by the new vehicle as a result of its having been used prior to the first report of a nonconformity to the seller."
This means that the refund is reduced by the amount you used the vehicle before sending it to the manufacturer's service facility for the first time. Proving or disproving the reasonable allowance is why it is so essential to keep strong repair records so that you can show mileage and condition.
Refunds also include collateral charges, such as towing, rental car fees, and title fees. However, taxes are not covered by collateral charge refunds.
Replacement
Getting a replacement vehicle is another option. The dealership can offer a comparable replacement, typically meaning a vehicle in the same make, model, and year as the defective lemon.
The replacement is considered a new vehicle under the lemon law, and the manufacturer must pay for collateral charges, such as registration fees. Consumers who have lost trust in the dealer or manufacturer do not have to accept a replacement and may always demand a refund.
Why Work with an Illinois Lemon Law Attorney
Hiring a Lemon Law attorney is a prudent choice that can significantly ease the process of a warranty lawsuit. These professionals give your case credence and tell manufacturers that you're prepared to prove their wrongdoing.
An Illinois Lemon Law Attorney understands the New Vehicle Buyer Protection Act and other consumer rights laws. They know how to store and repair information and various communications so that they can be leveraged in court and prove your case.
These attorneys also ensure that you meet any filing deadlines that could derail or weaken your argument. All these benefits are contingent, meaning they are only paid if you win. In successful claims, the manufacturer pays the attorney's fees, not the consumer.
This allows consumers to pursue justice and fair compensation without risking their financial standing through out-of-pocket legal fees.
FAQ
No, the Illinois Lemon Law does not protect used cars. It only covers newly purchased or leased vehicles with a contract of one year or more.
Consumers must submit a formal claim to the manufacturer's third-party dispute resolution program within eighteen months of the vehicle's original delivery date.
However, the vehicle must meet the presumptions for failed repair within the statutory warranty period. This deadline is one year or 12,000 miles after the vehicle's original delivery, whichever comes first.
Yes. Consumers must go through the manufacturer's third-party dispute resolution program before appealing a lemon law claim in court. This process allows the manufacturer time to rectify the issue without resorting to court resources.
However, if you believe you have a non-lemon grievance against the manufacturer, you may be able to skip the mediation process. In such cases, it is advisable to consult with an attorney for guidance on future actions.
A substantial defect is any problem that breaches warranty and seriously impacts the vehicle's use, safety, or value. Defects that damage the driver's control would be a substantial defect toward the vehicle's safety, while a cosmetic scratch is not impactful enough.
Illinois lemon owners can seek a refund or a comparable replacement. Consumers have the final choice over which method they prefer. Replacements must be of equal value to the vehicle's original purchase price.
In most cases, Lemon Law attorneys work on a contingency basis. This means that the manufacturer pays them if the court sides with you and significantly reduces the client's risk.
Illinois Lemon Law covers the following vehicle types:
- Passenger Cars
- Trucks and Vans under 8,000 pounds
- Recreational Vehicles (trailers excluded)
Illinois Lemon Law does NOT cover the following vehicle types:
- Used cars
- Altered vehicles
- Motorcycles
- Boats
The vehicle owner's manual is an essential resource for understanding your warranty and Lemon Law protections. It typically outlines how to contact the manufacturer, file a warranty or Lemon Law claim, and follow proper repair procedures. It should also include clear disclosures about your consumer rights, the duration of your warranty coverage, and the specific steps required to initiate a claim in the event of defects.
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