Florida Lemon Law Rights Consumer Guide
This Florida Lemon Law Rights Consumer Guide was prepared by the Florida Attorney General and contains a great explanation of the Florida lemon law definition and the Florida lemon law statute and its presumptions. If after you read this guide you have questions about your rights under the Florida automobile lemon law or the lemon law process generally, or you want to skip the guide and just get free help seeking damages under the Florida lemon law on new cars, connect with a Florida lemon law attorney for a free lemon law case review here. Simply put, whenever you need help with the Florida car lemon law (or the Magnuson-Moss Warranty Act, the federal lemon law), CarLemon is your one stop lemon law infosource.
Note: The information contained in this Florida Lemon Law Rights Consumer Guide is general information and is not intended to provide specific legal advice. This information applies to motor vehicles acquired on or after October 1, 1997.
- Is My Vehicle Covered?
- How the Florida Lemon Law Works
- Lemon Law Remedy Calculation Guideline
- State-certified Manufacturer Programs
- Florida New Motor Vehicle Arbitration Board
- New Motor Vehicle Arbitration Board Case Summaries
- Recreation Vehicles
- Motor Vehicle Defect Notification and Instructions
- “Bought Back” Vehicles Under Florida’s Lemon Law
Florida’s Lemon Law only applies to NEW or demonstrator vehicles sold in the state of Florida. New or demonstrator vehicles that are leased in Florida are also covered, if they are lease-purchased, or if the lease is for one year or more and the lessee is responsible for taking the vehicle in for repair. If the vehicle is transferred from one consumer to another during the first 24 months after delivery to the original consumer, and both consumers use the vehicle for personal, family or household purposes, the consumer to whom the vehicle is transferred may be covered under the Lemon Law.
The Lemon Law Does NOT Cover:
- Trucks weighing more than 10,000 pounds gross vehicle weight;
- Off-road vehicles;
- Vehicles which are purchased for purposes of resale;
- Motorcycles and mopeds;
- The living facilities of recreation vehicles.
The Lemon Law covers defects or conditions that substantially impair the use, value or safety of the new or demonstrator vehicle (these are called “nonconformities”). These defects must be first reported to the manufacturer or it authorized service agent (usually, this is the dealer) during the “Lemon Law Rights Period,” which is the first 24 months after the date of delivery of the motor vehicle to the consumer. If the manufacturer fails to conform the vehicle to the warranty after a reasonable number of attempts to repair these defects, the law requires the manufacturer to buy back the defective vehicle and give the consumer a purchase price refund or a replacement vehicle. The law does not cover defects that result from accident, neglect, abuse, modification or alteration by persons other than the manufacturer or its authorized service agent. DO NOT DELAY in reporting a problem as this may cost valuable time and protection.
Consumers should KEEP RECORDS of all repairs and maintenance. A written repair order should be obtained from the service agent (dealer) for each examination or repair under the warranty. The consumer should note the date the vehicle was taken in for repair and and date he or she was notified that work was completed. Odometer mileage when the vehicle was taken to the shop and when it was picked up after repair should also be noted. Consumers should keep all receipts or invoices for payment of expenses related to the purchase/lease of the vehicle and to any repair.
If the vehicle has been back to the service agent for repair of the same recurring problem at least three times, the consumer gives written notification by certified, registered or express mail, to the manufacturer (not the dealer) to afford a final opportunity to repair the vehicle. Check the warranty book or owner’s manual or other written manufacturer supplement for the address given by the manufacturer. A Motor Vehicle Defect Notification form may used for this purpose. Click here for the Instructions and Motor Vehicle Defect Notification form. Upon receipt of the notification, the manufacturer has 10 days to direct the consumer to a reasonably accessible repair facility, and then up to 10 days from delivery of the vehicle to fix it.
If the vehicle is in and out of the authorized repair shop for repair of one or more different problems for 15 or more cumulative days, the consumer gives written notification of this fact to the manufacturer (not the dealer), by certified, registered or express mail. Check the warranty book or owner’s manual or other written manufacturer supplement for the address given by the manufacturer. A Motor Vehicle Defect Notification form may used for this purpose. Click here for the Instructions and Motor Vehicle Defect Notification form. After the manufacturer’s receipt of the notification, the manufacturer or its authorized service agent must have at least one opportunity to inspect or repair the vehicle. The consumer may be eligible for a purchase price refund or a replacement vehicle if the vehicle is out of service for repair for a cumulative total of 30 or more days.
If the manufacturer does not provide a refund or a replacement vehicle, consumers may invoke their rights through one or two arbitration programs. The dispute must be submitted for arbitration to a manufacturer sponsored program, if that program was certified by the State of Florida when the consumer purchase or leased the vehicle and the manufacturer’s warranty or other written material explained how and where to file a claim with a state-certified program.
A list of Manufacturers who sponsor state-certified programs can be found by clicking here, or to find out if a manufacturer has a state-certified program, Consumers in Florida may call the Lemon Law Hotline (1-800-321-5366), consumers out of state may call (850) 488-2221. “State-certified” means the manufacturer’s program meets certain state and federal requirements; it does not mean that the program is administered or sponsored by the State of Florida.
If a manufacturer has no state-certified program, or if the manufacturer has a state-certified program, but the program fails to make decision in 40 days, or the consumer is not satisfied with the state-certified program’s decision, the dispute must be submitted to the Florida New Motor Vehicle Arbitration Board, which is administered by the Office of the Attorney General. The consumer initiates the process by contacting the Lemon Law Hotline (1-800-321-5366; 1-850-488-2221) to obtain a Request for Arbitration form. The form is submitted for eligibility screening to the Department of Agriculture and Consumer Services, Division of Consumer Services.
Once a case is approved for arbitration before the Florida New Motor Vehicle Arbitration Board, a hearing will be scheduled within 40 days. A panel of three arbitrators hears the case at a location that is reasonably convenient for the consumer. Hearings are held during normal working hours and are conducted in accordance with Florida’s Open Meetings Law. Arbitration hearings are conducted in English. Consumers who do not speak or understand English must bring an interpreter to the hearing, at the consumer’s expense. The interpreter should be fluent in both languages, since the hearing may contain very technical evidence that must be translated precisely. At the hearing’s conclusion, the board renders an oral decision which is subsequently reduced to writing and mailed to the consumer and the manufacturer.
If the board determines the vehicle is a “lemon,” the consumer is awarded either a replacement vehicle or a refund (the Consumer may choose whether they want a refund instead of a replacement vehicle), including costs incurred in connection with the acquisition of the vehicle (collateral charges) and costs directly caused by the substantial defect which resulted in the award (incidental charges). The consumer is charged an offset for the use of the vehicle. The offset is calculated according to a statutory formula based on the mileage attributable to the consumer as of the date of settlement or an arbitration hearing, whichever occurs first. The case is dismissed if the board rules in favor of the manufacturer. Decisions of the board are final unless an appeal is filed with the circuit court within 30 days. If the award is not appealed, the manufacturer must comply within 40 days of receipt of the written decision.
Lemon Law Remedy Calculation GuidelineThe following information is provided as a guideline to assist consumers in estimating the amount a consumer might recover if a refund or a replacement motor vehicle is awarded under the Lemon Law. The information is provided as a guide, only, and does not constitute a guarantee of entitlement to any relief under the law. Whether the consumer is entitled to a remedy under the Lemon Law, and the amount of any such remedy, is determined by the New Motor Vehicle Arbitration Board on a case-by-case basis. The consumer and manufacturer may also agree, before the arbitration hearing, to a remedy that may be more or less than what is calculated using this guideline. This is a general guideline only, and may not apply to every situation.
Calculating the Reasonable Offset for useThe Lemon Law charges the consumer an offset for their use of the vehicle, which is based on the mileage the consumer has put on the vehicle as of the date of a settlement agreement or an arbitration hearing, whichever occurs first. In the case of a refund award, the cash awarded to the consumer is reduced by the amount of the offset. In the case of a replacement vehicle award, the consumer will have to pay the offset to the manufacturer to obtain the replacement motor vehicle.
Formula: Purchase Price (reduced by any manufacturer rebate to the consumer and exclusive of debt from any other transaction) (Note, if a Lease, purchase price is the price the lessor paid for the vehicle) multiplied by Mileage attributable to the Consumer (reduced by mileage at delivery and other non-consumer mileage) as of the date of settlement or an arbitration hearing, divided by 120,000 (60,000 if the vehicle is a recreation vehicle).
Examples of “other non-consumer mileage” include, but are not limited to: test drives by the service agent during the course of repairs, by the manufacturers during pre-arbitration vehicle inspections, by independent inspectors of manufacturer-sponsored informal dispute settlement programs, by decision-makers of manufacturer-sponsored informal dispute settlement programs and by the New Motor Vehicle Arbitration Board during state-run arbitration hearings, etc.
Non RV ExampleIf your purchase price was $24,000.00 and your mileage at the applicable date was 20,000 miles, your offset would be $4,000.00.
RV ExampleIf your purchase price was $50,000.00 and your mileage at the applicable date was 10,000 miles, your offset would be $8,333.33.
IF YOU ARE SEEKING A REFUND, the refund is calculated depending upon whether you financed the purchase, leased the vehicle or paid cash. Each of these is addressed below.
IF YOU FINANCED THE PURCHASE OF YOUR VEHICLE, by borrowing all or a portion of the purchase price, your finance institution (e.g. bank, credit union or finance company) may have a lien on the vehicle. The Lemon Law states that, in these situations, if a refund is awarded, the consumer and the lien holder (bank, credit union or finance company) shall be paid as their interests may appear. This usually means that the consumer is awarded the amounts paid by the consumer toward the purchase of the vehicle, reduced by the offset for use, and the loan on the vehicle is paid off by the manufacturer. The following are examples of items that may be recoverable by the Consumer:
- The amount of any cash down payment (Note that if the down payment is, in whole or in part, a manufacturer rebate, the portion that is a rebate usually will not be included in the consumer’s award);
- The amount of periodic payments (principal and interest) made on the loan as of date of repurchase of the vehicle by the manufacturer;
- The amount of any reasonable “collateral charges” in addition to the cash down payment (costs wholly incurred as a result of the acquisition of the vehicle) that were not financed (e.g. window tinting, government fees, extended warranty, additional items installed in/on the vehicle, etc.). You should have some documentation or other proof of the amount paid, such as canceled checks, receipts, invoices, etc.
- The amount of any allowance for a trade-in vehicle. This means the net trade-in allowance in the purchase agreement, if this is acceptable to the Consumer and Manufacturer. If this amount is not acceptable, then, 100% of the retail value of the trade-in vehicle as depicted in the NADA Official Used Car Guide (Southeastern Edition) in effect at the time of the trade-in. The Manufacturer must produce the applicable NADA guide.
If you traded in a vehicle on which you owed a debt to a lien holder, and the dealer “inflated” or increased the allowance for your trade-in to account for this debt, the manufacturer may not accept the net trade-in allowance on your purchase agreement. In this event, the Arbitration Board will look to the retail value of the trade-in vehicle, as reflected in the NADA Official Used Car Guide (Southeastern Edition) which was in effect at the time of your trade-in, and that figure will be reduced by the amount of debt you owed on your trade-in vehicle when you traded it in. If the NADA Guide provides for increasing the retail value for such things as low mileage, and specified accessories, and your trade-in vehicle had these items, the Board may utilize the higher retail value. Use of the NADA Guide in these circumstances could result in your trade-in allowance being a negative amount, which may further reduce the amount of money awarded to you.
On the other hand, if you traded in a vehicle on which there was minimal, or no debt remaining, and the net trade-in allowance given by the selling dealer was less than the retail value in the NADA guide, use of the NADA retail value may increase the amount of money awarded to you. Some research on this issue prior to entering into settlement negotiations or prior to an arbitration hearing might assist you in making an informed election with regard to your trade-in allowance. You should inquire of your local public library whether they have the correct edition of the NADA Guide. If you have a pending arbitration claim, you may also request the Manufacturer to produce a copy of the page(s) of the guide applicable to your trade-in vehicle.
The amount of any reasonable “incidental charges” (e.g. postage, long distance calls, rental car, towing, warranty deductibles or repair charges, etc.) incurred as a direct result of the nonconformity (defect or condition that substantially impairs the use, value or safety of the vehicle). You should have some documentation or other proof of the amount paid, such as canceled checks, receipts, invoices, etc.
To arrive at a total, add the amounts in numbers 1 through 4, above (if your trade-in allowance is a negative, the effect will be to subtract that amount), then, subtract the offset for use, and then add the total of any amounts in number 5. This should give you an estimate of your portion of a refund. The lien holder (your lending institution or finance company) should be paid the balance owed or payoff on the loan as of the date the vehicle is repurchased by the Manufacturer.
IF YOU LEASED YOUR VEHICLE, then you are the “lessee” and the entity to which you send your payments every month is, most likely, the “lessor.” The Lemon Law states that refunds shall be made to the lessor and lessee as follows: the lessee shall receive the “lessee cost” (which is the aggregate deposit and rental payments previously paid by the lessee) and the lessor shall receive the “lease price” (which is defined in the statute) less the lessee cost. The lessor shall not charge a penalty for early termination of the lease. In layman’s terms, the consumer/lessee’s portion of the refund may consist of:
- The amount of any security deposit paid at lease signing;
- Other costs paid out-of-pocket to obtain the lease (e.g. service fees, pro-rated taxes, government fees, first monthly payment in advance, etc.);
- Total amount of lease payments (in addition to a first month’s payment made in advance at lease signing) made as of the date of repurchase of the vehicle;
- The amount of any allowance for a trade-in vehicle. (See Number 4 in the “If You Financed the Purchase of Your Vehicle” section and the “Important Note About Trade-in Allowances.” All of those provisions apply to lease transactions);
- The amount of any reasonable “collateral charges” (costs wholly incurred as a result of the acquisition of the vehicle) that were not included in the amounts paid at lease signing or incorporated in your monthly lease payments (e.g. window tinting, government fees, extended warranty, additional items installed in/on the vehicle, etc.). You should have some documentation or other proof of the amount paid, such as canceled checks, receipts, invoices, etc.
- The amount of any reasonable “incidental charges” (e.g. postage, long distance calls, rental car, towing, warranty deductibles or repair charges, etc.) incurred as a direct result of the nonconformity (defect or condition that substantially impairs the use, value or safety of the vehicle). You should have some documentation or other proof of the amount paid, such as canceled checks, receipts, invoices, etc.
To arrive at a total, add the amounts in numbers 1 through 5, above (if your trade-in allowance is a negative, the effect will be to subtract that amount), then, subtract the offset for use, and then add the total of any amounts in number 6. This should give you an estimate of your portion of a refund. The Manufacturer should pay the lessor the “lease price” less the aggregate deposit and lease payments previously paid by you.