Summary. What warranties exist, what "as is" can and cannot do, how lemon laws work, the fraud patterns to recognize, and why the holder rule matters more than anything else in the finance office.

Part I: Three contracts at once

When you buy a car you sign, in one sitting, three legally distinct things: a sale, a warranty arrangement, and — usually — a financing contract. They have different rules, different remedies, and different adversaries, and the single most common mistake buyers make is treating the transaction as one thing.

The sale is governed by state commercial law and by consumer protection statutes. The warranty is governed by state warranty law overlaid by the federal Magnuson-Moss Warranty Act. The financing is governed by the Truth in Lending Act and, crucially, by a Federal Trade Commission rule that lets you assert your claims against the sale directly against the lender.

Understanding that third point is worth more than everything else in this article, because it answers the question every disappointed car buyer asks: the dealer won't help me, so why should I keep paying?

Part II: Warranties

An express warranty is any affirmation of fact or promise about the goods that becomes part of the basis of the bargain — the manufacturer's written warranty, the dealer's written warranty, and, importantly, statements made by the salesperson that describe the vehicle. "This transmission was rebuilt last year" is an express warranty if it helped induce the sale. Puffery — "you'll love this car" — is not.

The implied warranty of merchantability arises by operation of law in a sale by a merchant seller: the goods must be fit for the ordinary purposes for which such goods are used. A car that will not reliably drive is not merchantable.

The implied warranty of fitness for a particular purpose arises where the seller knows the buyer's particular purpose and the buyer relies on the seller's skill in selecting the goods — "I need something that can tow a 5,000-pound trailer."

The Magnuson-Moss Warranty Act overlays all of this for consumer products. 15 U.S.C. § 2301 supplies the definitions; 15 U.S.C. § 2304 sets minimum standards for anything labeled a "full" warranty, including that a warrantor must remedy within a reasonable time and without charge, and must permit the consumer to elect a refund or replacement after a reasonable number of failed attempts.

And the provision that matters most in practice is 15 U.S.C. § 2308: a supplier who gives a written warranty may not disclaim or modify implied warranties. It may limit their duration to the duration of the written warranty, if the limitation is reasonable, conscionable, and conspicuous — but it cannot make them disappear.

The practical rule that follows: if the dealer gave you any written warranty, an "as is" disclaimer of implied warranties is invalid. This single sentence resolves a large number of used car disputes, and virtually no buyer knows it.

Remedies under 15 U.S.C. § 2310 include a civil action for damages and — critically — costs and reasonable attorney's fees to a prevailing consumer. That fee-shifting is why lawyers take these cases.

Part III: "As is," and what it cannot do

Used cars are frequently sold "as is," meaning without implied warranties. Four limits:

  1. Some states prohibit "as is" sales of consumer vehicles entirely, or require a minimum warranty period.
  2. A written warranty defeats the disclaimer, as above.
  3. A service contract sold within 90 days of the sale also defeats the disclaimer under the Magnuson-Moss framework — a fact the finance office does not mention when selling one.
  4. "As is" never immunizes fraud. A misrepresentation about accident history, title status, or mileage is actionable regardless of any disclaimer. As is means "no promises," not "you may lie to me."

The Buyers Guide. 16 C.F.R. part 455 — the FTC's Used Car Rule — requires dealers to display a Buyers Guide on every used vehicle offered for sale, stating whether it is sold with a warranty or as is, what percentage of repair costs the dealer will pay, and a warning to get an independent inspection. The Buyers Guide must be given to the buyer, and it supersedes contrary provisions in the sales contract. A dealer whose contract says "as is" but whose Buyers Guide showed a warranty is bound by the Guide.

Part IV: Lemon laws

Every state has one, and they differ, but the architecture is consistent.

Coverage. Typically new vehicles, within a defined period — commonly the first year or two, or a mileage figure — and typically only for defects that substantially impair the use, value, or safety of the vehicle. Some states cover leased vehicles, some cover used vehicles, and a few cover motorcycles or recreational vehicles.

The trigger. Either:

  • A reasonable number of repair attempts for the same defect — commonly three or four; often one attempt for a defect likely to cause death or serious injury; or
  • The vehicle has been out of service for a cumulative number of days, commonly 30.

The remedy. Replacement or repurchase, at the consumer's election in many states, with a mileage offset for use.

And the requirement that decides most cases: written notice to the manufacturer, and often an opportunity for a final repair attempt, before suit. This is where lemon law claims die. The defect is real, the repair attempts are documented, and the claim fails because the buyer complained to the dealer instead of notifying the manufacturer in writing at the address in the warranty booklet.

Many states also require participation in a manufacturer-sponsored arbitration program if one that meets specified standards exists. These programs vary enormously in fairness; some are genuinely useful and fast, others are not. The federal minimum standards in 15 U.S.C. § 2310 set floor requirements for informal dispute settlement mechanisms a warrantor requires consumers to use.

What to document from day one: every repair order, with the customer complaint stated in your words, the date in, the date out, and the mileage. A repair order that says "customer states intermittent stall at low speed" is a lemon law exhibit. One that says "check engine light — no problem found" is not, even though the same conversation happened.

Part V: Revocation of acceptance — the underused alternative

Lemon laws are not the only route, and often not the best one.

Revocation of acceptance under state commercial law lets a buyer who has accepted goods revoke that acceptance where a non-conformity substantially impairs their value to the buyer, and acceptance was either induced by the difficulty of discovery or by the seller's assurances, or made on the reasonable assumption the non-conformity would be cured and it was not.

Why it can be better than a lemon law claim:

  • It applies to used cars, which many lemon laws do not cover.
  • It runs against the dealer, who is in front of you, rather than the manufacturer.
  • It does not require a specific number of repair attempts — the test is substantial impairment.

What it requires: revocation within a reasonable time after discovering the ground, before any substantial change in the goods not caused by their own defects, and notice to the seller. Then the buyer must hold the vehicle for the seller and stop using it, which is the practical difficulty — most people need the car.

The combination that works: send a written revocation, stop making the car your daily driver if you can, and simultaneously invoke the holder rule against the lender.

Part VI: The fraud patterns

These recur so consistently that they have names.

Yo-yo financing (spot delivery). You sign, take the car home, and days or weeks later the dealer calls: the financing "fell through," come back and sign a new contract at a higher rate — and by the way your trade-in has been sold. This is a recognized abusive practice. Whether it is lawful depends on the contract: if the contract was unconditional, the dealer is bound; if it was expressly conditional on financing approval, the terms of that condition and how promptly the dealer acted matter. Never leave with a car on a conditional contract if you can avoid it, and never surrender the trade-in title until financing is final.

Odometer fraud. 49 U.S.C. § 32705 requires a written mileage disclosure on transfer, and 49 U.S.C. § 32710 provides a private civil action for a violation committed with intent to defraud, with treble damages or a statutory minimum, whichever is greater, plus attorney's fees. This is a powerful and underused statute.

Title washing. A vehicle branded salvage, flood, or rebuilt in one state is retitled in another with a clean title. Check the vehicle identification number against the national title information system and a commercial history report — and note that both can miss damage that was never claimed on insurance, which is why an independent inspection matters more than a report.

Undisclosed prior damage. A repainted quarter panel, a replaced airbag, a frame repair. A dealer that knows and does not disclose commits fraud in most states; a dealer that does not know may still have made an express warranty by describing the car as accident-free.

Packing the payment. The finance office quotes a monthly payment rather than a price, then adds a service contract, gap insurance, paint protection, and etching without changing the payment much — by extending the term. Always negotiate the out-the-door price, never the payment.

Forged or altered documents. Signatures added, numbers changed after signing, blank spaces filled in later. Never sign a document with blanks, and take a photograph of every page you sign before you leave.

Deceptive advertising and bait-and-switch. State unfair and deceptive acts and practices statutes reach these, and 15 U.S.C. § 45 supplies the federal standard those statutes generally track.

Part VII: Financing, and the rule that changes everything

Disclosures. The Truth in Lending Act, 15 U.S.C. § 1601, and its closed-end credit provisions at 15 U.S.C. § 1638 require disclosure of the amount financed, the finance charge, the annual percentage rate, the total of payments, and the payment schedule — before consummation. The APR, not the monthly payment, is the number that tells you the price of the money.

And now the important one.

The Holder Rule. 16 C.F.R. part 433 requires consumer credit contracts to contain a notice in capital letters stating that any holder of the contract is subject to all claims and defenses the debtor could assert against the seller, with recovery limited to amounts paid by the debtor.

Read that again, because it is the most useful sentence in consumer auto law. When a dealer sells your installment contract to a bank or finance company — which happens almost always, within days — that lender takes the contract subject to your claims against the dealer. If the dealer defrauded you, sold you a wrecked car as clean, or breached a warranty, you can assert that against the lender, defensively when they sue you and, in most readings, affirmatively up to the amounts you have paid.

This is why a buyer with a fraudulent car deal is not powerless. The dealer may be judgment-proof, gone, or indifferent. The lender is neither, and the lender's claim to your payments is only as good as the dealer's conduct.

Also in the finance office:

  • Service contracts are not warranties. They are insurance-like products, often heavily marked up and frequently cancellable for a prorated refund — which most buyers never claim. But note: a service contract sold within 90 days defeats an "as is" disclaimer.
  • Gap insurance covers the difference between the loan balance and an insurance payout after a total loss. Sometimes useful, usually overpriced at the dealer, and refundable if the loan is paid early.
  • Credit life and disability insurance are rarely good value.
  • Negative equity from a trade-in rolled into the new loan is the most reliable way to be underwater for years.

Part VIII: Arbitration

Most retail installment contracts and many purchase agreements contain arbitration clauses with class action waivers. They are broadly enforceable, and they reshape the practical landscape considerably.

What survives: individual arbitration of your claim, which for a straightforward warranty or fraud case can be workable and is sometimes faster than court. Many clauses carve out small claims court, and small claims is often the best forum for a consumer auto dispute — no lawyer needed, low filing fee, fast hearing, and the dealer must send someone.

What is lost: class treatment, and often the leverage that comes with it.

What to check before signing: whether there is an arbitration clause; whether there is an opt-out (many give 30 days to opt out in writing, and almost nobody does); who pays the arbitration fees; and whether small claims is preserved.

And a related note on the fee-shifting statutes: Magnuson-Moss, the odometer statute, and most state deceptive practices acts award attorney's fees to a prevailing consumer, which is what makes representation available at all. Arbitration clauses generally do not eliminate those fee provisions, but they change the forum in which they are applied.

Part IX: Five deals that went wrong

The truck that stalls in intersections

Ben bought a new pickup. Four times in five months it stalled at low speed, twice in an intersection. Each time the dealer found "no fault codes" and returned it.

Is this a lemon? Probably — a stall in traffic substantially impairs safety, and four attempts for the same defect exceeds the threshold in most states. Many states also reduce the required number of attempts to one or two where the defect is likely to cause death or serious injury, and a stall in an intersection is squarely that.

But the case is being lost right now, in the service department. The repair orders say "no fault codes found." They do not say what Ben told them. The customer complaint must be recorded in the customer's own words, because that is what proves the same defect was presented four times. "Customer states engine stalls at low speed, twice while turning across traffic" is the exhibit. "No codes" is not.

What Ben does:

  1. Ask for a copy of every repair order, every time, before leaving the service drive. Read it there.
  2. If the complaint is not written accurately, ask for it to be corrected before signing.
  3. Send written notice to the manufacturer at the address in the warranty booklet — not to the dealer. This is the step that most lemon claims die on.
  4. Keep a log with dates, mileage, and what happened, including the days the truck was unavailable.
  5. Check whether the state requires manufacturer arbitration first.

The "certified pre-owned" sedan with a bent frame

Dana bought a certified used car and later learned from a body shop that the unibody had been repaired.

Three theories, and they stack:

  • Express warranty, if the certification, the listing, or the salesperson described the car as accident-free or as having passed a multi-point inspection. A certification is a set of representations, and representations that are false are actionable.
  • Fraud or deceptive practices, if the dealer knew. Dealers frequently do, because the vehicle came through auction with a disclosure.
  • Implied warranty of merchantability, if the repair affects safety or reliability — and note that the certification and any warranty extended with it defeat any "as is" language in the contract under 15 U.S.C. § 2308.

What Dana needs: the body shop's written assessment, photographs, the listing and window sticker as advertised, the certification checklist, and the auction announcement if it can be obtained in discovery.

And the leverage: the lender holds a contract subject to her claims under the Holder Rule at 16 C.F.R. part 433. A demand letter that copies the lender changes the conversation considerably.

The call four days later

Marcus signed on Saturday, drove home, and traded in his old car. Wednesday the dealer called: financing "fell through," come in and sign at a higher rate. His trade-in had already been sold at auction.

This is the yo-yo pattern, and everything turns on the paperwork.

  • If the contract was unconditional, the dealer is bound by it and the "financing fell through" story is a renegotiation attempt, not a legal event.
  • If the contract expressly conditioned the sale on financing approval, the terms of that condition control — and even then, many states limit how long a dealer may sit on a conditional delivery, and require prompt restoration of the trade-in and the down payment on rescission.

What Marcus does, in order:

  1. Do not sign a new contract under pressure. Nothing requires him to sign anything that day.
  2. Read the original contract for a financing condition and any deadline in it.
  3. Demand return of the trade-in, or its actual value if it has been sold, plus the down payment.
  4. Put everything in writing, and keep the original contract, the delivery paperwork, and the trade-in documents.
  5. Complain to the state attorney general or motor vehicle dealer board, which regulate dealer licensing and take these seriously.

The general lesson: the trade-in title and the down payment are the leverage. Never surrender them until the financing is unconditionally final.

The odometer that went backwards

Elena bought a used van showing 84,000 miles. A service record from a prior owner, found in the glove box, showed 141,000 miles two years earlier.

This is the strongest consumer auto claim there is. 49 U.S.C. § 32705 requires a written mileage disclosure on transfer, and 49 U.S.C. § 32710 creates a private action for a violation with intent to defraud, awarding treble damages or a statutory minimum, whichever is greater, plus attorney's fees.

Building the proof of intent: prior title records with mileage, inspection and emissions records, service records, the auction announcement, and — often decisive — wear inconsistent with the reading. A steering wheel and pedals worn like a 140,000-mile vehicle in a car showing 84,000 tells a jury a great deal.

And check for title washing at the same time. A vehicle branded in one state and retitled clean in another travels with the same paperwork problems.

The finance office that added $4,300

Terrence negotiated a price of $22,000 and financed. The contract shows an amount financed of $26,300: a service contract, gap insurance, paint sealant, and window etching he does not remember agreeing to. His payment matched what he was quoted, because the term went from 60 months to 72.

What to look at, in order:

  1. The itemization of the amount financed. Every add-on must appear. Compare it against the price you negotiated.
  2. Whether he signed for each product separately. Most products require a separate signed authorization; a signature obtained by flipping pages is contestable.
  3. The cancellation rights. Service contracts and gap insurance are typically cancellable for a prorated refund — often at any time, sometimes in full within a short window. Most buyers never claim it. That refund goes to the lender and reduces the principal.
  4. The disclosures required by 15 U.S.C. § 1638. If the APR or amount financed is understated, there is a claim.
  5. Whether anything was added after signing, which is why photographing every page before leaving matters.

The immediate practical move: cancel the add-ons in writing, in the first weeks, and demand written confirmation that the refund was applied to the loan principal.

Part X: Leases, private sales, and online purchases

Leases are financing arrangements with their own disclosure regime, and three provisions cause most disputes: the mileage allowance and the per-mile charge for exceeding it; the excess wear and tear standard, which is defined in the lease and applied by an inspector at return; and the early termination formula, which is frequently punishing. Lemon laws cover leased vehicles in many states. Get an independent pre-return inspection a month before turn-in, and repair what is cheaper to fix than to be charged for.

Private party sales are a different world. There is generally no implied warranty of merchantability, because that warranty arises from sale by a merchant. A private seller is not a merchant. What remains is fraud — a private seller who lies about accident history or mileage is liable — and the odometer disclosure requirement, which applies to private transfers too. The pre-purchase inspection matters more here than anywhere, because it is essentially the only protection.

Online and remote purchases add distance to every problem. The vehicle arrives sight-unseen, the seller is in another state, and the arbitration clause may name a distant forum. Two protections: pay in a way that preserves a dispute right where possible, and insist on an independent inspection at origin by a mechanic you retain, before shipment. Return policies advertised by online sellers are contractual promises and are enforceable — read the actual terms, including who pays shipping and what condition the vehicle must be in.

Auctions are typically as-is with announcements, and the announcements are the contract. What was announced at the block — frame damage, title brand, mileage discrepancy — binds. Get the announcement sheet.

Part XI: The repossession that follows

Many auto disputes end with a repossession, and the rules are worth knowing before that day.

Self-help repossession is generally lawful without a court order, provided it occurs without a breach of the peace. That phrase does real work: taking a car from an open driveway at 3 a.m. is usually fine; cutting a lock, entering a closed garage, or proceeding over the debtor's objection at the scene generally is not. A repossession accomplished by breach of the peace exposes the creditor to liability and can defeat a deficiency claim.

After repossession, the creditor must generally send notice of the intended disposition, sell in a commercially reasonable manner, apply the proceeds, and account for any surplus or claim any deficiency. Defects in the notice or in the commercial reasonableness of the sale are the standard defenses to a deficiency suit, and they are common — cars sold at wholesale auction for far less than retail, notices missing required content, sales conducted without the required advance notice.

And the Holder Rule persists. A buyer who was defrauded does not lose those claims because the car was repossessed; they become defenses and counterclaims in the deficiency action. See Defending a Debt Collection Lawsuit and Collecting a Judgment.

Before it happens: communicate with the lender in writing, ask about deferment or a modified payment, and understand that voluntarily surrendering the vehicle does not avoid a deficiency — it only avoids repossession fees.

Part XII: Before you buy

The intervention with the highest return is the one that happens before signing.

  1. Get an independent pre-purchase inspection by a mechanic you chose. A dealer that refuses is telling you something. This costs a small amount and is the single best money in the transaction.
  2. Run the VIN through the national title information system and a commercial history service. Neither is complete; both catch things.
  3. Negotiate the out-the-door price, in writing, before discussing financing or trade-in. Three separate negotiations, conducted separately.
  4. Get your own financing pre-approval from a credit union or bank, then let the dealer try to beat it.
  5. Read the Buyers Guide and take it with you. It controls over contrary contract terms.
  6. Never sign anything with blank spaces. Photograph every page.
  7. Do not take delivery on a conditional contract, and do not hand over the trade-in title until financing is unconditionally final.
  8. Decline the finance office extras on the spot and reconsider later; almost all can be purchased afterward, usually cheaper.

Part XIII: Recalls, safety defects, and the manufacturer's separate obligation

Warranty law and safety regulation run on separate tracks, and buyers frequently conflate them.

A safety recall is not a warranty claim. When a manufacturer determines that a vehicle contains a defect related to motor vehicle safety, or that it fails to comply with a federal safety standard, it must notify owners and remedy the defect without charge — regardless of warranty status, regardless of mileage, and regardless of who owns the car now. There is no "your warranty expired" answer to a recall.

What this means practically:

  • Check the VIN for open recalls before buying and periodically afterward. The lookup is free and takes a minute.
  • A dealer must perform recall work at no charge, including on a used car it just sold you.
  • It is generally unlawful for a dealer to sell a new vehicle with an open recall, and several states restrict selling used vehicles with open safety recalls or require disclosure.
  • Recall repairs do not count toward lemon law repair attempts in some states and do in others — check.

"Secret warranties" and technical service bulletins. Manufacturers issue technical service bulletins to dealers describing known defects and repair procedures, and sometimes extend warranty coverage for particular components without a public announcement. Bulletins are published and searchable. Look up the bulletins for your vehicle and your symptom before the first service visit. Arriving with the bulletin number is one of the most effective things a consumer can do in a service department, because it converts "no fault found" into "here is the documented condition and the prescribed repair."

Warranty extensions and customer satisfaction programs. These are real, common, and rarely advertised. Ask directly: "Is there any extended warranty coverage, service campaign, or customer satisfaction program covering this component?"

And note the interaction with used car sales. A dealer that sells a car with a known unrepaired safety defect faces exposure well beyond warranty law — under state deceptive practices statutes tracking 15 U.S.C. § 45, and in tort if someone is hurt. That exposure is leverage.

Part XIV: Where to complain, and what each does

Consumer auto disputes have an unusually rich complaint landscape, and complaints here work better than in most fields because dealers hold licenses.

The state motor vehicle dealer board or licensing agency. The most underused and often the most effective. Dealers are licensed, licenses can be conditioned or revoked, and boards frequently mediate disputes informally with real results. A dealer that ignores a customer will not ignore its licensing authority.

The state attorney general's consumer protection division. Handles deceptive practices complaints, maintains patterns across complaints, and in many states will mediate individual disputes.

The manufacturer's customer assistance line, for warranty and lemon issues — and note that a documented call there can also serve the written-notice function if followed up in writing.

The National Highway Traffic Safety Administration, for safety defects. Individual complaints are how defect investigations start, and a pattern of similar complaints is what produces a recall.

The Consumer Financial Protection Bureau, for financing, servicing, and credit reporting problems.

The Federal Trade Commission, for advertising and Used Car Rule violations.

Small claims court, which deserves to be on this list because for a dispute under the jurisdictional limit it is frequently the fastest and most effective forum: no lawyer required, a modest filing fee, a hearing within weeks, and a dealer that must send a representative. Many arbitration clauses expressly preserve small claims.

What makes a complaint work: the same thing that makes a dispute letter work. Dates, documents, what was represented, what was delivered, what you asked for, and what they said. Attach the Buyers Guide, the contract, the repair orders, and the advertisement. A complaint with exhibits gets a different response than a narrative.

Part XV: What a case is worth, and who pays for it

Consumer auto disputes are economically viable in a way most small disputes are not, and the reason is fee-shifting.

The damage measures, roughly:

  • Breach of warranty: the difference between the value of the vehicle as warranted and its value as delivered, plus incidental and consequential damages — towing, rental cars, repairs paid out of pocket, lost wages for service visits.
  • Lemon law: repurchase or replacement, usually with a mileage offset for the use the buyer got, plus in many states a civil penalty for a manufacturer's bad-faith refusal.
  • Revocation of acceptance: return of the purchase price plus incidental and consequential damages, against cancellation of the contract.
  • Odometer fraud: treble damages or a statutory minimum, whichever is greater — a structure that makes even a modest deception expensive for the seller.
  • State deceptive practices statutes: actual damages, frequently with a multiplier or statutory minimum, and in many states treble damages for willful violations.

Attorney's fees. 15 U.S.C. § 2310, the odometer statute at 49 U.S.C. § 32710, most state lemon laws, and most state deceptive practices acts award costs and reasonable attorney's fees to a prevailing consumer. That is the whole reason a lawyer will take a $9,000 case.

What this means for a consumer: the consultation is usually free, the representation is usually contingent or fee-shifted, and the calculus for the dealer changes the moment a lawyer's letter arrives — because the dealer is now exposed not only to the claim but to the cost of defending it and the cost of the consumer's counsel.

What it means strategically: demand letters work. A well-documented demand that cites the specific statute, states the facts, quantifies the damages, and notes the fee provision resolves a large share of these disputes without a filing. The letter that does not work is the angry one with no exhibits.

And a caution about time. Warranty claims have limitations periods, revocation must occur within a reasonable time after discovering the defect, and lemon law presumptions expire on their own schedule. The single most common way a good claim dies is delay — a buyer who spends a year hoping the dealer will come around and then discovers the lemon law window closed at 24 months. Send the notice early. It costs nothing and it preserves everything.

Part XVI: The eight sentences worth memorizing

If nothing else in this article survives, these should.

  1. "As is" does not survive a written warranty, and it does not survive a service contract sold within ninety days. 15 U.S.C. § 2308.
  2. "As is" never protects fraud. No disclaimer licenses a lie about mileage, title, or damage.
  3. The Buyers Guide controls over contrary language in the sales contract. 16 C.F.R. part 455.
  4. The Holder Rule makes the lender answerable for the dealer's conduct, up to what you have paid. 16 C.F.R. part 433.
  5. Notify the manufacturer in writing, not just the dealer. That single step saves most lemon claims.
  6. The repair order must record your complaint in your words. Read it before you sign it.
  7. Negotiate the out-the-door price, never the monthly payment. The payment hides the term, and the term hides everything.
  8. Never sign a document with blank spaces, and photograph every page before you leave.

And one habit that is worth all eight: get an independent pre-purchase inspection from a mechanic you chose. A seller who refuses has told you the answer.

Frequently asked questions

The dealer sold it "as is." Do I have any rights? Often yes. A written warranty or a service contract sold within 90 days defeats the disclaimer, some states restrict as-is sales, and "as is" never protects fraud.

How many repairs before it's a lemon? Usually three or four for the same defect, or 30 cumulative days out of service — but check your state, and notify the manufacturer in writing.

The dealer won't help. Can I stop paying the lender? Not unilaterally — but the Holder Rule makes the lender subject to your claims against the dealer. Raise them, in writing, and get advice before missing payments.

Is a service contract a warranty? No. But one sold within 90 days of the sale defeats an "as is" disclaimer.

They called and said my financing fell through. That is the yo-yo pattern. Read the contract for a financing condition, do not sign a new one under pressure, and get advice immediately.

Is it worth suing over a used car? Often yes, because Magnuson-Moss, the odometer statute, and state deceptive practices acts shift attorney's fees to a prevailing consumer.

Related documents

This article is educational and not legal advice. Lemon laws, as-is restrictions, and deceptive practices statutes are state law and vary substantially. Check your state before acting.