Massachusetts is one of the few states with a used car lemon law that forces dealers to warranty the cars they sell, separate from the better-known new car statute. The law, formally the Used Vehicle Warranty Law, is one of the protections covered in Massachusetts consumer rights and how to enforce them. This article explains who qualifies, how long the dealer warranty lasts, what happens when repairs fail, and how the state’s arbitration program works.
What the used car lemon law covers
The used car lemon law is set out in G.L. c. 90, § 7N¼. It applies to a used car, van, or truck bought from a dealer for personal or family use. A dealer, for this purpose, is anyone who sells more than three cars in a 12-month period, whether or not they hold a used car dealer license, according to the Office of Consumer Affairs and Business Regulation (OCABR).
Two thresholds decide whether a sale is covered. The car must have sold for at least $700, and it must have had fewer than 125,000 miles on the odometer at the time of sale. The statute expressly does not apply to any vehicle a dealer sells for less than $700, and the mileage-based warranty tiers stop at 125,000 miles. Motorcycles, auto homes, off-road vehicles, and vehicles bought mainly for business are also excluded under § 7N¼.
When a dealer sells a covered car, it must give the buyer a written Limited Used Vehicle Warranty that states the term of protection and describes the buyer’s rights. The warranty cannot be waived. If the dealer fails to provide it, or provides one that is incomplete or inaccurate, the warranty period does not start running until a correct disclosure is delivered, a tolling rule written directly into the statute.
## The warranty term is set by mileage at sale
The length of the dealer warranty depends entirely on how many miles were on the car when it was sold. Section 7N¼ sets three tiers, and the term ends at whichever limit, days or miles driven since purchase, comes first:
– Under 40,000 miles: 90 days or 3,750 miles
– 40,000 to 79,999 miles: 60 days or 2,500 miles
– 80,000 to 124,999 miles: 30 days or 1,250 miles
A car sold with 125,000 miles or more carries no lemon law warranty at all. When the true mileage is unknown, the statute assigns a term by the car’s age instead: a car three years old or less gets the 90-day tier, one more than three but less than six years old gets the 60-day tier, and one six years or older gets the 30-day tier, as the OCABR guide summarizes.
The warranty covers any defect that impairs the car’s safety or use. Problems that affect appearance only do not count, and neither does damage from an accident, abuse, vandalism, or the buyer’s own repair attempts or modifications.
## Repair attempts and the $100 repair cap
Once a covered defect appears during the term of protection, the buyer notifies the selling dealer, which must accept the car for repair. The dealer can do the work itself or arrange and pay for another shop to do it. Across all repair attempts under the warranty, the dealer may charge the buyer no more than $100 total, under the terms OCABR describes.
Two timing rules extend the warranty. Any repair to a covered defect carries its own 30-day warranty on that defect, running from the day the repair is finished, even if the original term has since expired. And if the dealer has to order parts, the days spent waiting do not count against the deadline for a refund, up to a maximum of 21 calendar days, [under statute url=”https://malegislature.gov/Laws/GeneralLaws/PartI/TitleXIV/Chapter90/Section7N1~4″]§ 7N¼[/statute].
## Returning the car for a refund
The statute sets two triggers for a refund. Either the dealer fails to fix the same defect after three attempts, or the car is out of service for a cumulative total of 10 business days for any combination of covered defects and still has a problem. When either happens, the dealer must take the car back and refund the repurchase price minus a use allowance, set at 15 cents for each mile driven between sale and repurchase.
Document each repair visit
Each time the dealer returns the car, it must give a warranty repair receipt describing the defect, the work done, and any parts replaced. These receipts establish how many attempts have been made and how many days the car was out of service.
Count the attempts or out-of-service days
A refund right attaches after three failed attempts at the same defect, or after 10 cumulative business days out of service for any covered problems. Days spent waiting on ordered parts do not count, up to 21 calendar days.
Ask the dealer to repurchase the car
The refund includes the purchase price plus items such as documentation fees, finance and registration charges, towing up to 30 miles, and up to $15 a day for alternate transportation after the second day out of service. The dealer subtracts 15 cents per mile driven and any rebates.
Transfer the title back
The buyer transfers the title to the dealer through the Registry of Motor Vehicles. A financed car needs a lien release from the lender before the RMV will process the transfer.
G.L. c. 90, § 7N, lets any buyer void a sale within seven days if the car fails to pass the state safety and emissions inspection and the cost to fix the inspection failures exceeds 10 percent of the purchase price. And a demonstrator or nearly new used car may still fall under the new car statute, G.L. c. 90, § 7N½, which covers the first year or 15,000 miles.
Frequently asked questions
Does the dealer warranty apply if the car was sold “as is”?
Yes. The § 7N¼ warranty applies by law to any qualifying used car sold by a dealer, and it cannot be waived. An “as is” label or a signed waiver does not remove the warranty, and the federal Buyers Guide sticker does not change the state right. The exclusions are the price and mileage thresholds, not the dealer’s paperwork.
What is the difference between the used car and new car lemon laws?
The used car law, G.L. c. 90, § 7N¼, covers dealer-sold used cars under 125,000 miles for 30 to 90 days based on mileage. The new car law, G.L. c. 90, § 7N½, covers new and certain demonstrator vehicles for one year or 15,000 miles and is enforced against the manufacturer. A car can qualify under both in some situations.
How much is deducted from the refund?
The statute allows the dealer to subtract 15 cents for every mile the car was driven between the date of sale and the date of repurchase, plus any rebates included in the contract. The refund otherwise includes the purchase price and specified costs such as finance charges, registration fees, and towing, as the OCABR guide details.
What if the car has 125,000 miles or was a private sale?
Neither is covered by the dealer warranty tiers. A private-party buyer’s main protection is the seller’s duty to disclose known safety or use defects, which supports canceling the sale within 30 days if a known defect was hidden, under the private party rules. The Lemon Aid Law and a claim under G.L. c. 93A may also apply depending on the facts.
Where can a buyer file a complaint against a dealer?
The Office of Consumer Affairs and Business Regulation runs the arbitration program, and the Attorney General’s office handles consumer complaints against dealerships. Because a § 7N¼ violation is an unfair or deceptive act, it can also support a private demand and lawsuit under Chapter 93A.