Indiana Lemon Law: How It Works and Your Rights
Roughly one in five new-car buyers who experience repeated vehicle problems never files a claim — often because they don’t know what the law actually requires. If your car keeps breaking down despite multiple repair visits, Indiana’s lemon law gives you specific, enforceable rights against the manufacturer.
Indiana’s lemon law, codified at Ind. Code § 24-5-13, requires manufacturers to refund or replace a defective vehicle when they fail to fix a substantial defect within a reasonable number of attempts or when the vehicle is out of service for too long. Understanding exactly how that law works — and how it fits alongside federal protections — can be the difference between being stuck with a money pit and getting the remedy you’re owed.
What Is the Indiana Lemon Law? (Ind. Code § 24-5-13 Overview)
Indiana’s lemon law is found at Indiana Code § 24-5-13, known as the Motor Vehicle Protection Act. It establishes the conditions under which a vehicle manufacturer must provide a consumer with a refund or replacement vehicle when a defect cannot be repaired after a reasonable number of attempts during the coverage period.
The statute covers the first 18 months or 18,000 miles of the vehicle’s original warranty period, whichever comes first. During that window, if a defect substantially impairs the vehicle’s use, value, or safety and the manufacturer or its authorized dealer cannot fix it after the required number of attempts, the consumer may be entitled to a remedy.
A key term to understand: a “substantial impairment” is a defect that meaningfully affects how the vehicle operates, how much it’s worth, or whether it can be driven safely. Minor cosmetic issues or nuisances that don’t affect the vehicle’s core function typically do not meet this standard.
What Vehicles and Defects Does Indiana’s Lemon Law Cover?
Indiana lemon law eligibility extends to new motor vehicles purchased or leased in Indiana that are used primarily for personal, family, or household purposes. This includes passenger cars, trucks, and vans.
To qualify under Ind. Code § 24-5-13, the defect must:
- Substantially impair the vehicle’s use, market value, or safety
- First appear during the coverage period (within 18 months or 18,000 miles of original delivery)
- Not result from abuse, neglect, or unauthorized modification by the consumer
Defects that commonly support Indiana lemon law claims include chronic engine stalling, transmission failures, persistent electrical problems, brake system issues, and safety-system malfunctions. If the manufacturer or dealer attempts to address the same defect repeatedly without success, those documented repair visits become your paper trail.
Does Indiana’s Lemon Law Cover Used Cars?
Indiana’s lemon law under Ind. Code § 24-5-13 applies primarily to new vehicles. Used vehicles generally do not qualify under the state statute unless they are still within the original manufacturer’s warranty period and the defect arose within the 18-month/18,000-mile coverage window from the date of original delivery.
However, if you purchased a used vehicle that still carries an active manufacturer’s warranty or a certified pre-owned (CPO) warranty, you may have options under the federal Magnuson-Moss Warranty Act, which covers any vehicle sold with a written warranty regardless of whether it’s new or used. For a deeper look at used-car warranty rights, see our post on what buyers need to know about lemon law and used cars.
How Many Repair Attempts Does Indiana Require?
Indiana’s lemon law sets specific thresholds that trigger the manufacturer’s obligation to offer a refund or replacement. A vehicle may be presumed a lemon under Ind. Code § 24-5-13 if, within the first 18 months or 18,000 miles:
- The same defect has been subject to repair 4 or more times and the defect persists; or
- The vehicle has been out of service for repair for 30 or more cumulative business days during the coverage period
For defects that substantially impair safety, the threshold is lower: 2 or more repair attempts for the same serious safety issue may be sufficient to trigger the presumption.
These thresholds matter because they shift the burden. Once you can show you’ve met the statutory repair-attempt count or out-of-service days, Indiana law creates a presumption that the manufacturer has failed its obligation — and the burden moves to the manufacturer to demonstrate otherwise.
One important practical note: every repair visit must be documented. Keep every repair order, every written estimate, and every communication with the dealership. If a repair is attempted but the paperwork says “no problem found,” that still counts as an attempt for the same issue. For a state-by-state breakdown of how these thresholds compare, see how many repair attempts are typically required under lemon laws across the country.
What Remedies Can You Pursue — Refund, Replacement, or Settlement?
Under Ind. Code § 24-5-13, a consumer who qualifies for relief may be entitled to one of three remedies:
1. Refund (Buyback) The manufacturer repurchases the vehicle and refunds the consumer the full purchase price, including taxes, title, registration fees, and incidental costs — minus a reasonable mileage offset. The mileage offset is calculated based on the miles driven before the defect first manifested, so documenting when the problem first appeared is critical.
2. Replacement Vehicle Instead of a refund, the consumer may elect to receive a comparable replacement vehicle — a new vehicle that is equivalent to the defective one, with the consumer responsible only for any mileage offset corresponding to use before the defect appeared.
3. Cash Settlement In many cases, rather than going through the formal buyback or replacement process, the manufacturer may offer a cash settlement that allows the consumer to keep the vehicle. These settlements are negotiated and do not follow a fixed statutory formula. On the federal Magnuson-Moss track especially, cash settlements are a common resolution. No specific settlement amount can be predicted or guaranteed — what you may be entitled to depends on the facts of your individual case.
Important: Indiana does not currently provide for a civil penalty multiplier (like California’s 2x damages provision for willful violations under the Song-Beverly Act), so the core remedies are refund, replacement, or negotiated settlement. Attorney’s fees, however, may be recoverable — which connects directly to the federal backstop discussed below.
The Federal Magnuson-Moss Backstop: Your Rights Beyond Indiana State Law
The Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.) is the federal law that applies to any vehicle sold with a written warranty — new or used — regardless of the state where you live. It gives consumers the right to sue a manufacturer for breach of warranty and, critically, requires the manufacturer to pay the consumer’s reasonable attorney’s fees if the consumer prevails under 15 U.S.C. § 2310(d)(2).
This fee-shifting provision is the foundation of how lemon law representation typically works at no out-of-pocket cost to the consumer. When the manufacturer pays the legal fees on a successful claim, consumers can pursue their rights without worrying about the cost of litigation.
Magnuson-Moss is especially important in two situations:
- Your vehicle doesn’t quite meet Indiana’s state-law thresholds but still has a clear warranty breach
- You purchased a used vehicle still under a manufacturer’s or CPO warranty
To understand how Indiana’s law fits alongside the federal Magnuson-Moss Warranty Act and when each path makes more sense, our detailed explainer walks through both statutes.
How to Start an Indiana Lemon Law Claim (No Out-of-Pocket Cost)
Starting a claim under Indiana’s lemon law or the Magnuson-Moss Warranty Act does not require you to pay attorney’s fees upfront. Because the law requires manufacturers to pay the consumer’s legal costs when the consumer prevails, representation is typically handled on contingency — meaning the firm pursues your case, and if you win, the manufacturer covers the legal fees.
Here’s how the process generally works:
Step 1: Gather your documentation Collect every repair order, dealer communication, warranty document, purchase agreement, and record of when the defect first appeared. Note the odometer reading at the time of each repair visit.
Step 2: Identify your thresholds Determine whether you’ve met the 4-repair-attempt threshold, the 30-day out-of-service threshold, or the 2-attempt threshold for a safety defect. Your documentation should make this clear.
Step 3: Send written notice to the manufacturer Indiana law requires you to give the manufacturer written notice and a final opportunity to cure the defect before you can pursue a statutory remedy. This notice is typically sent by certified mail to the manufacturer’s registered agent or customer relations department.
Step 4: Request a case review An attorney can evaluate whether your situation qualifies under Indiana’s lemon law or the federal Magnuson-Moss Act — or both. A case review is free and carries no obligation; submitting the form does not create an attorney-client relationship.
If you’re ready to find out whether your vehicle qualifies, start a free case review today. There’s no cost to you, and you’ll get an honest assessment of your options under Indiana and federal law.
Frequently Asked Questions About Indiana’s Lemon Law
What is the coverage period under Indiana’s lemon law? Indiana’s lemon law covers defects that arise within the first 18 months or 18,000 miles from the date of original vehicle delivery, whichever comes first. A defect that first appears during this window and persists despite repair attempts may qualify for a refund or replacement under Ind. Code § 24-5-13.
Does Indiana lemon law cover leased vehicles? Indiana’s lemon law under Ind. Code § 24-5-13 generally applies to vehicles used primarily for personal, family, or household purposes. Whether a leased vehicle qualifies can depend on the specific terms of the lease and how the statute is applied to your situation; a case review can help clarify your eligibility.
How long do I have to file an Indiana lemon law claim? Indiana’s lemon law does not eliminate general contract and warranty statutes of limitations. Federal Magnuson-Moss claims are typically subject to a four-year limitations period, but state-law deadlines may differ. The safest approach is to act promptly — do not wait until your repair attempts pile up past the statute of limitations.
Does the manufacturer have to pay my attorney’s fees in Indiana? Under the federal Magnuson-Moss Warranty Act (15 U.S.C. § 2310(d)(2)), a consumer who prevails in a warranty claim may recover reasonable attorney’s fees from the manufacturer. Indiana’s state lemon law also provides for attorney’s fees in successful claims. This fee-shifting structure is why most lemon law representation can be handled at no out-of-pocket cost to the consumer.
What if the dealership says the problem can’t be reproduced? A repair order that states “no problem found” or “could not duplicate” still counts as a repair attempt under Indiana’s lemon law. Document every visit regardless of outcome. If the problem recurs after a “no problem found” visit, bring the vehicle back immediately and request the issue be noted in writing.
Attorney Advertising. Stop Lemons is an advertising name of Lion Legal, P.C. This post is general information, not legal advice. Contacting us does not create an attorney-client relationship. Lemon law remedies vary by state and are not guaranteed. Prior results do not guarantee a similar outcome.