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What To Know About The Oregon Lemon Law (2022)

The Oregon lemon law dictates that a vehicle with a defect “significant enough to substantially reduce the vehicle’s use, value, or safety” must be repaired to satisfactory condition within a reasonable number of attempts or days.

If the manufacturer cannot repair the vehicle, they must replace the vehicle with the same (or a similar enough) vehicle or buy back the vehicle for its original purchase price.

Oregon Lemon Law Rules for New Cars

a man and woman work on car engine

Oregon’s lemon law is specifically geared toward new vehicles.

This means it applies to all new vehicles sold at car lots.

Lemon Law Requirements for New Vehicles

The lemon law applies in Oregon if:

  • The issue(s) with the vehicle is “significant enough to substantially reduce the vehicle’s use, value, or safety”.
  • The issue(s) with the vehicle is covered by the vehicle’s warranty.
  • The issue(s) with the vehicle occurs within the lemon law rights period.
  • The vehicle came with the issue(s). (i.e. You didn’t drive it off the lot and immediately sideswipe a curb, jacking up the running board or suspension.)

If your car meets the definition of a “lemon” in Oregon, the car dealership/manufacturer is required to do one of the following things:

  • Repair the car within a reasonable number of attempts
  • Repair the car within a reasonable number of days
  • Replace the car with an identical or equivalent vehicle that is acceptable to you
  • Accept a return of the vehicle for a full refund (minus a “reasonable allowance” for the time the vehicle was used)

Repair the car within a reasonable number of attempts

What constitutes a reasonable number of attempts to repair a vehicle in Oregon is four (4), three attempts and one final attempt.

The exception to this is if the issue with the vehicle is likely to cause injury or death, which reduces the number of failed repair attempts to two (2), one attempt plus one final attempt.

If the dealer/manufacturer cannot repair the vehicle after four attempts (two in the case of a serious safety defect), the manufacturer must allow you to return the car for an identical (or comparable) vehicle or refund.

Repair the car within a reasonable number of days

What constitutes a reasonable number of days in Oregon is 30 (60 for RVs/motor homes).

If your vehicle is in the shop more than 30 days with any number of serious issues, it’s considered a lemon and the manufacturer must allow you to return the vehicle for an identical (or like) vehicle or refund.

These 30 days do not have to be consecutive. Instead, they are cumulative.

Any time your car is in the shop within the lemon law period for the same defect counts toward your 30 days, even if they occur months apart.

Replace the car with a “substantially identical” vehicle

If the manufacturer cannot repair the vehicle within the allotted number of attempts or days, they must allow you to return it.

When you return the car, you may request a replacement vehicle.

This replacement vehicle must be similar enough to the original vehicle (same make, model, have the same features, etc.) and acceptable to you.

The manufacturer is responsible for any additional fees and taxes associated with the replacement.

Buy back the vehicle for a full refund

If you do not want a replacement vehicle after your first vehicle turns out to be a lemon, you may request a refund instead.

When refunding a lemon, dealers must refund the full buying price of the car (including all taxes and fees), but may deduct a “reasonable allowance” for usage of the vehicle.

This allowance is calculated by a standard formula.

Oregon Lemon Law Rules for Used Cars

The lemon law does not apply to used vehicles in Oregon, regardless of warranty status.

Oregon Lemon Law Time Limit

The lemon law coverage period in Oregon is 24 months (2 years) or 24,000 miles, whichever comes first.

The issue(s) with the vehicle must be initially reported during this period.

Once reported, follow-up attempts to fix the same issue extend the coverage period, and you may still file a lemon law claim after the 4th failed attempt at repair (the 2nd if it’s a serious safety issue).

Any claim made through the court must be made within 12 months (1 year) of expiration of the lemon law coverage period (2 years or 24,000 miles, whichever comes first).

How do I file a lemon law claim in Oregon?

Before filing a lemon law claim in Oregon, you must contact the manufacturer about the defect with the vehicle.

To do this, send a certified letter to the address provided in your vehicle’s warranty paperwork or owner’s manual.

Include the following information:

  • Your name and contact information
  • Vehicle VIN number
  • Vehicle make, model and year
  • Dealership from which the vehicle was purchased
  • Date the vehicle was purchased
  • The issue(s) with the vehicle
  • A list of repair attempts with copies of work orders/receipts
  • A statement that you are giving the company a final attempt repair

Upon receipt, the manufacturer must provide you with the name of a reasonably accessible repair facility for their final attempt at repair.

If the manufacturer fails to repair the vehicle to satisfactory condition, and refuses a replacement or refund, you must proceed with the manufacturer’s informal dispute settlement procedure (if there is one) as explained in your vehicle’s paperwork before you file a lawsuit in court.

Only after you have gone through the informal dispute settlement procedure with the manufacturer are you eligible to file a lawsuit through the state.

General Lemon Law FAQ

To further your understanding of lemon laws, here are some frequently asked questions about how they pertain to vehicles.

What is a lemon law?

A lemon law is a law that protects consumers from defective products or “lemons,” generally by enforcement of a warranty.

What is a lemon car?

“Lemon car” meaning varies slightly from state to state, but, in general, if a new car has a defect the dealer or manufacturer cannot fix, that car is a lemon.

Defects in lemon cars typically affect the operation or safety of a vehicle, but not always.

Structural issues that affect that value of a car are also covered.

Is there a federal lemon law?

There is no federal lemon law specifically geared toward vehicles.

However, there is a federal warranty act called the Magnuson-Moss Warranty Act which protects consumers from false or misleading warranties and makes warranties easier to enforce.

Since cars sold by dealerships typically come with full warranties, the Magnuson-Moss Warranty Act applies to them.

This act serves as the basis for state-specific lemon laws.

What’s in the Magnuson-Moss Warranty Act (as it applies to vehicles)?

The Magnuson-Moss Warranty Act includes several key points that pertain to vehicle warranties.

These points are:

  • No product is required to have a warranty (and many used cars don’t).
  • The terms of a warranty must be fully disclosed in simple, understandable language.
  • Any ambiguity in the language of a warranty is held against the warrantor (in this case, the manufacturer or dealer).
  • Warrantors cannot require only branded parts be used with their products for a warranty to remain valid (Ford can’t require only Ford parts be used on your vehicle).
  • Service contracts must follow these same rules.

Basically, if you feel like you’ve been duped by a warranty, you may have a case under the Magnuson-Moss Act.

And if your vehicle comes with a “full warranty”:

  • A dealer/manufacturer must repair any defect for free within a reasonable amount of time/reasonable number of attempts

Or, if the dealer/manufacturer cannot repair the vehicle, they must:

  • Replace the vehicle with an exact-match vehicle or allow you to return the vehicle for a full refund (including all taxes and fees)

Does the federal lemon law cover used cars?

If the used cars come with warranties, it does.

The Magnuson-Moss Act is not directed toward products themselves, but the warranties which cover them.

So, if you bought a used car that came with both a defect AND a warranty that covers that defect, the dealer must either repair your vehicle (in a satisfactory manner).

If they fail to do so, you can seek restitution under the Magnuson-Moss Act.

You may be able to come to an agreement with the dealer through arbitration, but, more likely, you will have to take the matter to court.

Does the lemon law apply to leased vehicles?

Yes. In Oregon, the lemon law applies to leased vehicles that are new and under a manufacturer’s warranty.

Chucking A Lemon In Oregon

When you buy a new car, whether you really need one or are just looking for an upgrade, there’s nothing worse than getting it home only to discover it’s a non-functional dud.

But manufacturers shouldn’t be shipping dud cars to dealerships and dealerships shouldn’t be putting dud cars out on their lots.

That’s the point of lemon laws, to ensure new vehicles driven off of car lots are safe, functional, and free from major defects.

So, if you think you’ve gotten a lemon car in Oregon, you shouldn’t accept it and you shouldn’t delay.

You do have recourse, and the sooner you bring the issue to the dealer’s and manufacturer’s attention, the stronger your “lemon” claim will be.