What Is the Lemon Law in Indiana for Used Cars
Indiana's Motor Vehicle Protection Act, codified as Indiana Code 24-5-13, applies to both new and used vehicles. This statute establishes protections for consumers who purchase or lease defective motor vehicles, as stated by the Indiana Attorney General's Office. Indiana’s Lemon Law requires manufacturers to repair, replace, or repurchase vehicles with nonconformities that substantially impair use, market value, or safety.
Coverage extends to self-propelled vehicles with a declared gross vehicle weight under 10,000 pounds that are registered in Indiana and used primarily on public highways. However, defects must be reported within the "term of protection"—18 months or 18,000 miles from the vehicle's original delivery to a consumer, whichever occurs first. Used vehicles can qualify only if the defect arises and is reported within this 18-month/18,000-mile window measured from when the first buyer originally received the vehicle. The vehicle must also remain under the manufacturer's warranty. The law does not cover conversion vans, motorhomes, farm tractors, road-building equipment, motorcycles, mopeds, snowmobiles, or vehicles designed primarily for off-road use.
What Protections Do Used Car Buyers Have in Indiana?
In addition to Indiana's Motor Vehicle Protection Act, federal statutes provide important consumer safeguards.
Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act provides federal protection for breaches of written or implied warranties on motor vehicles. When a dealer offers a written warranty on a used vehicle, consumers can pursue remedies under this federal law, including recovery of costs and attorney fees for warranty violations.
FTC Used Car Rule
The FTC Used Car Rule requires dealers to display a Buyers Guide on every used vehicle before sale. The disclosure must state whether the vehicle is sold with a warranty or "as is," specify covered systems and duration of coverage, and identify the percentage of repair costs paid by the dealer versus the consumer. The Buyers Guide also advises consumers to obtain independent inspections and check vehicle history reports for previous damage.
Understanding "As Is" Sales in Indiana
Indiana permits dealers to sell used vehicles "as is," meaning the buyer accepts the vehicle in its current condition without warranties from the dealer. When a vehicle is sold "as is," the dealer typically is not responsible for repairs after purchase.
What "As Is" Means for Buyers
When acquiring a vehicle through an "as is" transaction:
- The dealer assumes no liability for repairs after sale completion
- You shoulder complete financial responsibility for defects identified following purchase
- You pay for mechanical, electrical, and structural failures that surface after delivery
- No warranty coverage extends to vehicle condition or functionality
Limited Dealer Disclosure Requirements
Indiana law imposes certain disclosure obligations even for "as is" sales. Dealers must disclose salvage or rebuilt titles in writing for vehicles no older than seven model years. Federal and state odometer laws require accurate mileage reporting at the time of sale. Dealers must also provide the vehicle title at the time of sale or within 21 days, and must issue a 21-day affidavit if immediate title delivery is not possible.
Limited Exceptions to "As Is" Sales
"As is" disclaimers do not shield dealers from liability when dealers:
- Commit fraudulent acts or deliberately conceal known defects from buyers
- Engage in odometer tampering or mileage misrepresentation
- Fail to disclose required salvage or rebuilt history as mandated by state law
- Violate express warranties or specific representations documented in writing
Federal law allows consumers to recover $1,500 or three times actual damages (whichever is greater) plus attorney fees for odometer fraud. Consumers who are not informed about salvage or rebuilt status can recover actual damages (increased up to three times actual damages or $2,500, whichever is greater) plus attorney fees and costs.
Filing a Consumer Complaint
Indiana Attorney General
Consumer Protection Division
302 W. Washington Street, 5th Floor
Indianapolis, IN 46204
Phone: (317) 232-6330
Toll-free: (800) 382-5516
Official Website: Consumer Protection Division
