Indiana Lemon Laws

IC 24-5-13

Chapter 13 - Motor Vehicle Protection

IC 24-5-13-1 - Sec. 1

This chapter is appropriate for all the motor vehicles sold, leased, transferred, or replaced by a manufacturer or its agent within the state of Indiana.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-2 - Sec. 2

"Business day" means all working days in except Sunday or any gazetted holiday which business transactions takes place.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-3 - Sec. 3

"Buyer" is

As added by P.L.150-1988, SEC.1.

IC 24-5-13-3.4 - Sec. 3.4

"Lease" is a contract granting use or holding of a property during a specified period of 4 months for a specified payment.

As added by P.L.24-1989, SEC.25.

IC 24-5-13-3.7 - Sec. 3.7

"Lessor" means a person:

  1. To whom the title of a motor vehicle is transferred under a written lease agreement
  2. Who holds the lessor's rights.

As added by P.L.24-1989, SEC.26.

IC 24-5-13-4 - Sec. 4

"Manufacturer" is a person or a firm involved in the business of manufacturing or importing motor vehicles.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-5 - Sec. 5

"Motor vehicle" or "vehicle" means

As added by P.L.150-1988, SEC.1. Amended by P.L.141-1990, SEC.1; P.L.2-1991, SEC.84.

IC 24-5-13-6 - Sec. 6

"Nonconformity" means any defect or condition that:

As added by P.L.150-1988, SEC.1.

IC 24-5-13-7 - Sec. 7

"Term of protection" is a period that:

  1. Starts:
    • From the date of delivery of a motor vehicle to a consumer
    • From the date of replacement of a motor vehicle
  2. Ends the earlier of:
    • 18 months after the date defined in the subdivision (1)
    • 18,000 miles after the date defined in the subdivision (1).

As added by P.L.150-1988, SEC.1.

IC 24-5-13-8 - Sec. 8

If a motor vehicle is defective and the nonconformity is reported by the consumer within the term of protection, then the manufacturer or repairing agent will be liable for the necessary repairs to conform the motor vehicle.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-9 - Sec. 9

  1. If the manufacturer has not clearly made the confession required by subsection (b), the buyer will not be required to inform the manufacturer through a written statement, but if the manufacturer has made the disclosure, then the buyer must first notify the manufacturer of a claim.
  2. The manufacturer will shall clearly and evidently disclose to the buyer, in the warranty, that a written notification of the nonconformity will be required claiming a refund or replacement. The disclosure will include name and address to which the buyer must send notification.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-10 - Sec. 10

If the manufacturer is unable to remove the defects of a vehicle after a reasonable number of attempts, the buyer will be entitled either for a refund or for a replacement of such vehicle within 30 days.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-11 - Sec. 11

  1. The amount of refund includes the full contract price, plus all allowances for any trade-in less a reasonable allowance for use.
  2. Allowance for use = full contract price * number of miles a vehicle traveled / 100,000
  3. The refund must also include reimbursement of,
    • sales tax
    • The unexpended portion of the registration fee and excise tax that has been prepaid for any calendar year
    • All finance charges
    • The cost of all options added by the authorized dealer.

As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.27.

IC 24-5-13-11.5

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Sec. 11.5

  1. Incase of a leased vehicle, the refund shall be made as,
    1. The manufacturer will pay back all the deposits and lease payments paid by the lessee, including all allowances for trade-in, less a reasonable allowance for use.
    2. The lessor will get,
      1. The purchase cost, including freight.
      2. Any fee paid to obtain the lease.
      3. Any insurance premiums or other costs paid by the lessor for the benefit of the lessee.
      4. Sales tax paid.
      5. 5% of the amount described in subdivision (2)(A), less all deposit and lease payments paid by the lessee, including all credits and allowances for any trade-in vehicle.
  2. Reasonable allowance for use = total lease amount * number of miles the vehicle traveled / 100,000

As added by P.L.24-1989, SEC.28.

IC 24-5-13-12 - Sec. 12

  1. If a buyer selects reimbursement, then the manufacturer should refund any fee incurred by the buyer in transfer of registration or any sales tax as a result of replacement.
  2. If a buyer has financed a vehicle, then after replacement of that vehicle, s/he may not be required to sign any refinancing agreement that would be against him/her.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-13 - Sec. 13

It is clearly stated in Indian lemon laws that the replacement or refund will include towing and rental costs actually incurred by the buyer.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-14 - Sec. 14

A buyer is entitled to retain using a vehicle until the manufacturer offers a refund or replacement vehicle. The utilization of any vehicle held by a buyer after its return to a manufacturer must be reflected in the reasonable allowance for use required by section 11 of this chapter.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-15 - Sec. 15

  1. It will be assumed that a reasonable number of attempts have been made to correct the nonconformity if,
    • The manufacturer has attempted the repairs 4 times and the nonconformity still exist
    • The vehicle has been under custody of a manufacturer or its agent for repair of any nonconformity for at least 30 business days, and the nonconformity continues to exist.
  2. The time period described in subsection (a)(2) shall be extended due to war, invasion or strike.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-16 - Sec. 16

  1. A manufacturer cannot refuse to repair or diagnose any nonconformity for avoiding liability under this chapter.
  2. Each time a vehicle is brought for repair or diagnosis, the manufacturer should provide a written statement to a buyer clearly identifying the work performed or diagnosed.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-17 Repealed

    (Repealed by P.L.65-1992, SEC.4.)

IC 24-5-13-18 - Sec. 18

It is an affirmative defense to any claim if,

As added by P.L.150-1988, SEC.1.

IC 24-5-13-19 - Sec. 19

The chapter does not apply for the buyers who have not first participated in an informal procedure if,

  1. The attorney general has certified the procedure as:
    • Conforming to all respects with 16 C.F.R. 703
    • Conforming with other rules regarding certification adopted by the attorney general, including the requirement of oral hearings, consistent to IC 4-22-2.
  2. The buyer has received a written notice from the manufacturer of the existence of the procedure.

As added by P.L.150-1988, SEC.1. Amended by P.L.24-1989, SEC.29.

IC 24-5-13-20 - Sec. 20

According to Indiana lemon laws, “this chapter does not limit the rights or remedies that are otherwise available to a buyer under any other applicable provision of law”.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-21 - Sec. 21

A buyer has the right to bring a civil action to implement this chapter in any circuit or superior court.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-22 - Sec. 22

The court awards a buyer, who succeeds in an action, a sum equal to the aggregate amount of cost and expenses, including attorney's fees or any other charges incurred in connection with the prosecution.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-23 - Sec. 23

  1. An action must be started within 2 years from the date the buyer first informs the defect to the manufacturer.
  2. Indiana lemon laws states that, “when the buyer has commenced an informal dispute settlement procedure described in section 19 of this chapter, the two (2) year period specified in subsection (a) is tolled during the time the informal dispute settlement procedure is being conducted”.

As added by P.L.150-1988, SEC.1.

IC 24-5-13-24 - Sec. 24

The chapter does not impose any liability on a dealer or creates a ground of action by a consumer against a dealer, and a manufacturer may not, directly or indirectly, expose any franchised dealer to liability under this chapter.

As added by P.L.150-1988, SEC.1.