Michigan Lemon Law

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• Definition of a Lemon
• Manufacturer’s Repair Obligations
• Consumer Remedies
• Reasonable Number of Repair Attempts
• Consumer Notification Requirement
• Mileage Deduction
• Arbitration and Legal Action
• Consumer Notice Requirements
• Summary
• Request Free Case Evaluation

Definition of a Lemon (MCL 257.1402)

A new motor vehicle qualifies as a lemon if it has a defect or condition that:

• Impairs the vehicle’s use or value to the consumer, or
• Prevents the vehicle from conforming to the manufacturer’s express warranty.
  

The defect must be reported within the warranty term or within one year of delivery, whichever comes first.

Manufacturer’s Repair Obligations (MCL 257.1402)

If a defect is reported within the applicable period, the manufacturer or dealer must repair the defect at no charge. This obligation applies even if repairs continue after the warranty expires, as long as the initial report was timely.

Consumer Remedies (MCL 257.1403(1))

If a defect remains after a reasonable number of repair attempts, the manufacturer must provide one of the following:

• Replacement: A comparable new vehicle, or
  
• Refund: The purchase price minus a reasonable allowance for use.
  

For leased vehicles, the consumer may receive a refund of the lease price or accept a replacement vehicle (MCL 257.1403(1)(b)).

Reasonable Number of Repair Attempts (MCL 257.1403(5))

A reasonable number of repair attempts is presumed if:

• The same defect has been repaired four or more times within two years of the first repair attempt and still exists, or
• The vehicle has been out of service for 30 or more days due to repairs within the warranty term or within one year of delivery (whichever comes first).

Consumer Notification Requirement (MCL 257.1403(5))

Before demanding repurchase or replacement, the consumer must:

• Notify the manufacturer in writing after

• the third repair attempt, or

• the vehicle being out of service for 25 days.

• The manufacturer then has five business days to make a final repair attempt.
  

Mileage Deduction (MCL 257.1403(2))

• If a refund is issued, the manufacturer may deduct a reasonable allowance for use, calculated based on:

  • Mileage before the first report of the defect, and

  • Any mileage beyond 25,000 miles.

  Courts or dispute resolution bodies may adjust this deduction if the vehicle’s unreliability limited ordinary use (MCL 257.1403(3)).

Arbitration and Legal Action (MCL 257.1403(3))

Consumers may be required to arbitrate disputes before litigation. Courts or arbitration panels may modify the mileage deduction if fairness requires it due to the vehicle’s unreliability.

Consumer Notice Requirements (MCL 257.1408)

The Secretary of State must include written notice of lemon law rights when issuing titles for new motor vehicles.

Summary

Michigan’s lemon law provides:

• Clear definitions of qualifying defects.

• Mandatory manufacturer repair obligations.

• Replacement or refund after reasonable repair attempts.

• A strict written notice requirement before repurchase/refund remedies.

• A mileage-based deduction formula.

• Arbitration requirements and consumer disclosures.