Purchasing a used car in Nevada is often a significant investment, whether it is new or used. However, what happens if the car turns out to be defective? In Nevada, as in other states, consumer protection laws are in place to protect buyers. One of the most commonly referenced statutes in this context is the “lemon law.”
While many people associate lemon laws with new vehicles, questions frequently arise about whether these laws also extend to used cars. This article explores the application of Nevada’s lemon laws to used cars and provides clarity for consumers navigating these legal protections.
Nevada’s lemon law, found in the Nevada Revised Statutes (NRS) Section 597.600 to 597.680, is designed to protect consumers who end up purchasing defective vehicles. The law applies to vehicles that fail to conform to the manufacturer’s warranty and exhibit substantial defects that impair the vehicle’s use, value, or safety. It grants consumers the right to a repair, replacement, or refund if their car meets the legal definition of a “lemon.”
Nevada’s lemon law explicitly applies to new vehicles purchased or leased in the state. A vehicle potentially qualifies as a “Lemon” if:
– The defect arises within the first year or 12,000 miles, whichever comes first.
– The manufacturer or authorized dealer cannot repair the issue after a reasonable number of attempts.
– However, when it comes to used cars, the coverage is more nuanced. The lemon law generally does not apply to vehicles sold “as-is” or without a manufacturer’s warranty. Most used cars are sold in this manner, leaving buyers without state lemon law protection.
Though Nevada’s lemon law primarily covers new vehicles, there are certain situations where it may extend to used cars:
If a used car is still under the manufacturer’s original warranty, the lemon law may apply. For instance, if a defect covered by the warranty arises during the specified period, the manufacturer is obligated to address it.
Certified pre-owned (CPO) vehicles are often sold with extended warranties or guarantees from the manufacturer or dealership. If these warranties include protections for defects, the lemon law could apply to enforce repairs or refunds.
There is a notification requirement under the Nevada lemon law when a vehicle that is bought back as a Lemon is resold. It must have a decal affixed to the vehicle indicating it is a “Lemon Law Buyback” and written notification that the vehicle is a “Lemon Law Buyback” must also be provided to the consumer by the selling dealer under NRS 597.682. If any selling dealer does not provide these required notifications to a consumer purchasing this type of used vehicle it can be liable under NRS 597.688 for damages (including punitive damages) and to pay the consumer’s attorneys’ fees and costs.
Nevada law also prohibits dealers from knowingly selling vehicles with undisclosed defects. In such cases, additional consumer protection laws, such as the Nevada Deceptive Trade Practices Act (NRS 598.0903–598.0999) and common law fraud, may come into play.
Many used cars in Nevada are sold “as-is,” meaning the buyer accepts the vehicle in its current condition without warranties or guarantees. An as-is sale effectively waives most legal protections under the lemon law, leaving buyers responsible for any issues that arise after purchase. For this reason, it is crucial for buyers to have the vehicle inspected by a trusted mechanic before finalizing the transaction.
In addition to Nevada’s lemon law, federal protections exist under the Magnuson-Moss Warranty Act. This Act applies to any consumer product, including vehicles, sold with a warranty. If a used car comes with a written warranty, the manufacturer or seller must fulfill its terms. Consumers can pursue legal remedies if warranty-covered defects are not adequately resolved or repaired within a reasonable opportunity.
Although this federal law does not replace Nevada’s lemon law, it supplements state protections and may provide an avenue for addressing issues with used cars. Under the Act it is possible to recover cash compensation with keeping the vehicle for its defect and repair caused diminished value. Another benefit of this law is it provides a consumer with the ability to recover attorneys’ fees for a successfully resolved claim.
Nevada law includes other protections for car buyers beyond lemon laws. For instance, the Nevada Deceptive Trade Practices Act prohibits dealerships from engaging in fraudulent or misleading practices. If a dealer fails to disclose a vehicle’s known defects, misrepresents its history, or engages in other deceptive behaviors, the buyer may have legal recourse.
Another important statute is NRS 482.3666, which governs the sale of rebuilt or salvage vehicles. Dealerships are required to disclose if a car has been salvaged, rebuilt, or damaged in an accident. Failure to provide such information can result in legal action.
If you believe you have purchased a defective used car in Nevada, consider the following steps:
Nevada’s lemon law and related statutes can be challenging, particularly when dealing with used cars. The complexities of warranty terms, as-is sales, and potential dealership misconduct often require expert guidance.
We can help evaluate the circumstances of your purchase, identify applicable legal protections, and represent your interests in negotiations or court proceedings. Contact us today.
To minimize the risk of purchasing a defective used car, consumers should take proactive steps:
Use services like Carfax or AutoCheck to obtain a vehicle history report. These reports reveal critical details, such as previous accidents, odometer discrepancies, and repair/maintenance records.
Have the vehicle inspected by a professional mechanic before purchase. An inspection can uncover hidden issues that may not be immediately apparent.
Carefully review the purchase agreement and warranty terms including reading the fine print in the back of any documents. Ask the dealer to clarify any ambiguous language and to even remove unfair language before signing or no deal.
Purchase vehicles from established dealerships with positive reviews and transparent policies. Avoid private sellers or disreputable dealers with a history of complaints.
Nevada’s lemon law provides robust protections for consumers purchasing new vehicles, but its application to used cars is limited. Buyers of used cars must carefully assess the terms of the sale, particularly whether a warranty applies. While the lemon law may extend to used cars under certain conditions, such as transferable warranties or CPO programs, most used car sales fall outside its scope.
Federal laws like the Magnuson-Moss Warranty Act and state statutes addressing deceptive trade practices can offer additional safeguards. However, the best defense against purchasing a defective vehicle is due diligence before the sale. By researching the car’s history, inspecting it thoroughly, and understanding the purchase terms, consumers can avoid common pitfalls and make informed decisions.
For those who encounter issues with a used car, seeking legal advice is crucial. An experienced attorney can help navigate the complexities of Nevada’s consumer protection laws and pursue remedies when warranted. Ultimately, understanding your rights as a buyer is the first step toward protecting your investment.
Federal Trade Commission. (n.d.). Buying a used car. Retrieved from https://www.ftc.gov
Nevada Revised Statutes § 482.3666 (2024). Rebuilt vehicles and salvage disclosures. Retrieved from https://www.leg.state.nv.us
Nevada Revised Statutes §§ 597.600-597.688 (2024). Nevada lemon law. Retrieved from https://www.leg.state.nv.us
Nevada Revised Statutes §§ 598.0903–598.0999 (2024). Deceptive trade practices. Retrieved from https://www.leg.state.nv.us
By: Shalev Amar, Esq.
Shalev Amar is the Founder and Manager of Amar Law Group. Prior to founding Amar Law Group, Mr. Amar was a Managing Partner for twelve years of a consumer law firm that exclusively handled motor vehicle claims on behalf of consumers.
