Consumer Issues

Arizona Used Car Lemon Law: The 15-Day Implied Warranty

Arizona’s used-car protection is one of the remedies covered in Arizona’s consumer protection laws. This article explains the 15-day, 500-mile implied warranty that applies when someone buys a used vehicle from a dealer: what the warranty covers, what it excludes, who pays for repairs, and how to enforce it if the dealer refuses. It does not cover Arizona’s separate new-car Lemon Law, which provides refunds and replacements for defective new vehicles.

Arizona’s “used car lemon law” is an implied warranty, not a refund law

The phrase “used car lemon law” is what buyers search for, but Arizona does not give used-car buyers the refund-or-replacement remedy that applies to new cars. What it provides instead is a mandatory warranty period. Under A.R.S. § 44-1267, a used motor vehicle dealer cannot exclude, modify, or disclaim the implied warranty of merchantability, or limit the remedies for its breach, before the earlier of midnight on the fifteenth calendar day after delivery or the point when the vehicle has been driven 500 miles after delivery.

The underlying warranty comes from Arizona’s version of the Uniform Commercial Code. A.R.S. § 47-2314 implies a warranty of merchantability in every sale by a merchant, meaning the goods must be fit for the ordinary purposes for which they are used. A dealer normally disclaims that warranty with an “as is” clause, but § 44-1267 blocks that disclaimer for the first 15 days or 500 miles.

Two limits define who is protected. The warranty applies only to sales by a licensed used motor vehicle dealer, so a purchase from a private party carries no statutory warranty and is genuinely “as is.” An attempt by a dealer to disclaim the warranty during the protected period renders the purchase agreement voidable at the buyer’s option.

What the 15-day, 500-mile warranty covers

The standard is narrower than a bumper-to-bumper warranty. Under A.R.S. § 44-1267, the implied warranty of merchantability is met if the vehicle functions in a safe condition, as defined by Arizona’s vehicle equipment rules in title 28, and is substantially free of any defect that significantly limits its use for the ordinary purpose of transportation on a public highway. A cosmetic flaw or a worn part that does not affect safe, ordinary driving is not a breach.

The clock is measured carefully. The warranty expires at midnight on the fifteenth calendar day after delivery or once the car has been driven 500 miles, whichever comes first. When counting days, any day on which the warranty is breached, and every day after that on which the vehicle still fails to conform, is excluded from the 15-day count. When counting miles, the miles driven to obtain or in connection with repairs, servicing, or testing of the nonconforming vehicle are excluded from the 500-mile total.

The warranty does not reach damage the buyer causes. It does not extend to problems that arise after the sale from abuse, misuse, neglect, failure to perform regular maintenance, failure to maintain adequate oil, coolant, or other required fluids, off-road use, racing, or towing.

Who pays for repairs and what the dealer owes

The remedy is repair, not an automatic refund. When the warranty is breached, the buyer must give the dealer reasonable notice, and the dealer then has a reasonable opportunity to repair the vehicle before the buyer pursues other remedies. The cost is shared for the first repairs: under A.R.S. § 44-1267, the buyer pays one-half of the cost of the first two repairs needed to bring the vehicle into compliance, capped at $25 per repair. In practice that means a maximum out-of-pocket cost of $25 for each of the first two covered repairs, with the dealer absorbing the rest.

The dealer’s exposure is capped. The maximum liability of the seller under this section is limited to the purchase price paid for the used vehicle. There is no provision for consequential damages, rental cars, or a forced buyback within § 44-1267 itself; a buyer who wants more has to look to the general Uniform Commercial Code remedies discussed below.

The warranty statement and “as is” waivers

Arizona requires the warranty to appear in writing. Under A.R.S. § 44-1267, a used-vehicle sales agreement is voidable at the buyer’s option unless it contains, in conspicuous bold-faced 10-point or larger type, a statement that the seller warrants the vehicle will be fit for its ordinary purposes for 15 days or 500 miles after delivery, whichever is earlier, and that the buyer may have to pay up to $25 for each of the first two repairs. Including that statement does not by itself create an express warranty beyond the statutory one.

A buyer can waive the warranty, but only in a narrow way. The waiver is valid only for a particular defect, and only if the dealer fully and accurately discloses that specific defect, the buyer agrees to buy the car on those terms, and the buyer signs and dates a conspicuous disclosure listing the problem on the first page of the sales agreement. A blanket “as is” waiver that does not name a specific disclosed defect does not meet these conditions. The dealer carries the burden of proving, by a preponderance of the evidence, that a valid waiver was obtained.

Federal law adds a separate disclosure. The Federal Trade Commission’s Used Car Rule requires dealers to post a Buyers Guide window sticker on each used vehicle showing whether it is sold with a warranty or “as is.” The federal Buyers Guide and the Arizona warranty operate independently, so a Buyers Guide marked “as is” does not override the mandatory 15-day, 500-mile state warranty on a dealer sale.

How to enforce a breach

If a dealer refuses to honor the warranty, A.R.S. § 44-1267 directs buyers and sellers to the general sales remedies in Arizona’s UCC (title 47, chapter 2) and requires them to follow that chapter’s requirements. The statute builds in a sequence: notice first, then a chance for the dealer to repair, then other remedies.

  1. Give the dealer written notice of the defect

    Notify the dealer in writing as soon as a qualifying defect appears, within the 15-day or 500-mile window. Describe the problem, the delivery date, and the current odometer reading. Reasonable notice to the seller is a prerequisite under A.R.S. § 44-1267 before other remedies become available.

  2. Allow a reasonable opportunity to repair

    The dealer is entitled to a reasonable chance to fix the vehicle. Keep the car available for inspection and repair, and keep copies of every repair order. The buyer pays no more than $25 toward each of the first two covered repairs.

  3. Document costs and communications

    Save the sales agreement, the Buyers Guide, repair invoices, and all messages with the dealer. These records establish the delivery date, the odometer reading, the defect, and whether the dealer was given the required opportunity to repair.

  4. Pursue UCC remedies or a complaint if the dealer refuses

    If the dealer will not repair, the remaining remedies come from title 47, chapter 2, which can include damages up to the purchase price. Disputes within the small claims limit can be filed in an Arizona justice court, and a complaint can be filed with the Arizona Attorney General’s consumer protection section.

Two enforcement paths exist outside a private lawsuit. Arizona’s justice courts hear small claims disputes without lawyers, which fits many used-car warranty claims given the purchase-price cap on liability. Separately, the Arizona Attorney General’s consumer resources let a buyer file a consumer complaint against a dealer; the office does not represent individual consumers in court but investigates patterns of unlawful dealer conduct.

Frequently asked questions

Does Arizona have a lemon law for used cars?

Not in the refund-or-replacement sense that applies to new cars. Arizona instead requires used motor vehicle dealers to provide a nondisclaimable implied warranty of merchantability for the earlier of 15 days or 500 miles after delivery under A.R.S. § 44-1267. The remedy is repair, with the dealer’s total liability capped at the purchase price.

Does the warranty apply if I bought the car “as is”?

On a dealer sale, an “as is” clause does not remove the 15-day, 500-mile warranty. A dealer can only waive the warranty for a particular defect that is specifically disclosed and separately signed for on the first page of the sales agreement. A general “as is” statement that names no specific defect does not meet the waiver conditions in A.R.S. § 44-1267, and the dealer must prove any valid waiver.

What if I bought the car from a private seller?

The statutory warranty applies only to sales by a licensed used motor vehicle dealer. A purchase from a private party is not covered by A.R.S. § 44-1267 and is generally “as is,” though a buyer may still have claims for fraud or misrepresentation under other Arizona consumer laws.

How much can I recover if the dealer will not fix the car?

Under A.R.S. § 44-1267, the seller’s maximum liability is the purchase price paid for the vehicle. During the warranty period the buyer pays no more than $25 toward each of the first two covered repairs, and the dealer covers the balance. Any further remedy comes from the general UCC sales provisions in title 47, chapter 2.

Is a defect discovered after 500 miles still covered?

The warranty expires at the earlier of 15 days or 500 miles after delivery, so a defect that first appears after that point falls outside the statute. Miles driven for repairs, servicing, or testing of a nonconforming vehicle do not count toward the 500-mile total, and days on which the vehicle remains in breach are excluded from the 15-day count.

Sources

See also: Statute of Limitations on Debt in Arizona: Time Limits by Type. See also: Suing Under the Arizona Consumer Fraud Act. See also: buying a used car in Arizona.
Not legal advice. Statuteworks publishes procedural reference guides intended to help you understand how legal processes work. Laws and procedures change. For advice about your specific situation, consult a licensed attorney in your state. Read our editorial process →