Arizonans who lease vehicles are not protected under the state's lemon law, even if their car spends months in the shop. A new bill moving through the Arizona Legislature could change that.
Under current Arizona law, the leasing company is considered the legal owner of the vehicle, not the person driving and paying for it. That means lessees cannot bring a lemon law claim against a manufacturer for a defective vehicle.
Arizona's lemon law was interpreted by the Arizona Supreme Court to say the consumer with lemon-law rights is the owner of the vehicle. In a lease, the leasing company is the legal owner. In a lease, the leasing company is the legal owner.
House Bill 2323 has passed the Arizona House and is now in the Senate. The bill would amend the state's lemon law to include lessees under the definition of a consumer, giving them the same access to repairs, refunds, or replacements that vehicle buyers currently have.
Valley attorney Shalev Amar of Amar Law Group said he has seen the gap in consumer protections play out for years and is hopeful the legislation will address it.
"So, the great thing about this amendment to the law, which is going through the legislative process, (is) the lemon law is now specifically adding lessees, and that's consumers who have leased vehicles under the definition of a consumer. So that will give full lemon law rights to you, whether you finance or you lease the vehicle," Amar said.
Amar said the change would only come if consumers make their voices heard.
"I can argue within the bounds of the law, but I cannot change the law. And so, if you want the law changed, what you need to do is speak to your local representative, your local state senator, and if enough people complain about this issue, they will change the law," Amar said.
If you have a vehicle lease (or recently did):
- Keep all repair paperwork and service invoices
- Document repeated issues ( i.e., dates, mileage, and what the dealer said)
- Ask if your car is still under the manufacturer's warranty
If there have been three or more repair attempts for the same serious issue, or long stretches in the shop, here's when you need to know your rights.
Contact a lemon-law attorney.
Often times evaluations are usually free, and they can help you find the best option or solution for your problem.
The Let ABC15 Know will continue to follow House Bill 2323 as it moves through the Arizona Senate.
CAR DEALERSHIP DISPUTES
The Let ABC15 Know Team has heard from dozens of viewers locked in disputes with dealerships. Before you can fight back against a misleading dealer or a defective vehicle, you need to know what kind of problem you actually have.
One viewer, John B., bought a car online that was advertised as having just over 1,000 miles. When the vehicle arrived, he said the odometer read over 2,200 miles.
"People definitely get those two areas of law confused," Shalev Amar said.
John’s complaint falls under consumer fraud, which typically involves deception by dealers or sellers and the misrepresentation of the vehicle or finance terms.
"Consumer Fraud is basically the concealment or omission of a material fact that a buyer should know about. It could also be obviously being misled or lied to about a vehicle when you ask a question about it," Amar said.
Lemon law often applies to warranty enforcement.
"They assume, because they have a lemon vehicle, meaning they have a defective vehicle, that therefore the lemon law applies. But a vehicle can be defective for a variety of reasons," Amar said.
There are protections for used vehicle owners. Under the Arizona lemon law, there is a 15-day, 500-mile implied warranty of merchantability that applies to used vehicles. However, it only covers substantial vehicle defects.
"So, it can't be a cup holder. It can't just be a little trim piece. What's substantial? (then) Transmission, engine, suspension, steering, if it's violently shaking, if it's dying on you, if the vehicle is not starting, those are obviously all substantial defects, conditions or non-conformities," Amar said.
Whether it is consumer fraud or the lemon law, the burden of proof falls on the consumer.
"The problem is that people don't have proof," Amar said.
"There's a lot of he said, she said, he said, he said, and, and what consumers need to know is, if you don't have it in writing, or you don't have it recorded, you can assume it didn't happen," Amar said. “So, what I always urge consumers to do in that situation is, in Arizona, you are allowed to record conversations as long as at least one person knows about it, and so you call the dealership. Make sure your phone is recording the conversation.”
It is extremely important to create a paper trail by documenting and recording everything.
"Get paperwork immediately. Take it into the repair shop immediately. If the repair shop is too far away, take it to local dealer to document what has happened, so you have proof of the mileage of when it happened, and the date when it happened. And if you have the proof that's within less than 15 days, 500 miles, then you could have a case," Amar said.
