Texas Lemon Law (TX)

Qualifying Criteria in Texas

Under Texas's lemon law, your vehicle may qualify as a lemon if it meets the following criteria:

• Vehicle type: New motor vehicles purchased or leased in Texas
• Defect type: A nonconformity that substantially impairs the use, market value, or safety of the vehicle and is covered under the manufacturer's warranty
• Coverage period: The defect must occur within 2 years of delivery or 24,000 miles, whichever comes first
• Repair attempts: The manufacturer or authorized dealer must have attempted to repair the same defect at least 4 times, or the vehicle must have been out of service for a cumulative total of 30 or more days

Manufacturer Obligations

Must repair the nonconformity. If unable, must replace or repurchase the vehicle. The Texas Department of Motor Vehicles (TxDMV) administers the program.

Available Remedies

If your vehicle qualifies as a lemon under Texas law, you are entitled to:

• Replacement vehicle
• Full repurchase including taxes, fees, and incidental costs minus reasonable use offset

The "reasonable use allowance" deduction is typically calculated based on the mileage you accumulated before the first repair attempt, proportional to the vehicle's expected lifetime mileage. This ensures the manufacturer is not paying for use you already received from the vehicle.

Step-by-Step Filing Process in Texas

Follow these steps if you believe your vehicle qualifies as a lemon under Texas law:

1. 1 Report the defect to the authorized dealer or manufacturer
2. 2 Allow at least 4 repair attempts for the same defect, or 2 attempts for a serious safety hazard, or 30+ total days out of service in the first 24 months/24,000 miles
3. 3 Send written notice to the manufacturer (some manufacturers require this before a final attempt)
4. 4 File a complaint with the TxDMV within the statutory deadline
5. 5 Attend the TxDMV hearing (held via phone or in-person in Austin)
6. 6 Accept or appeal the decision within 45 days

Arbitration in Texas

Consumer must file a complaint with the Texas Department of Motor Vehicles (TxDMV). The department holds a hearing with a state-appointed hearing examiner. This is mandatory before going to court.

Important: In Texas, arbitration is a required step before you can file a lawsuit. This means you must exhaust the arbitration process first. The arbitration decision may or may not be binding depending on the specific program. If you are not satisfied with the outcome, you typically have the right to appeal or file a civil action in court.

Filing Deadline

Within 24 months of delivery or the warranty period. Must file with TxDMV within 6 months of the warranty expiration or 30 months from purchase.

Missing the filing deadline can forfeit your rights under the lemon law. Keep detailed records of every repair visit, including dates, mileage, descriptions of the problem, and copies of all repair orders and receipts. This documentation will be critical for your claim.

Additional Notes

Texas has a strong state-administered program through TxDMV. Only 2 repair attempts needed for a serious safety hazard (a defect creating risk of death or substantial bodily harm). Covers new vehicles, leased vehicles, and demonstrator vehicles. The TxDMV hearing is free. Texas also covers towable recreational vehicles (travel trailers). The manufacturer may be ordered to pay reasonable attorney fees.