Minnesota Used Car Warranty Law

325F.662 - Sale of used motor vehicles

Subdivision 1 - Definitions

  1. "Consumer" is,
    • A buyer who buys a motor vehicle not to resale but to fulfill personal, family, or household needs
    • A person to whom the new motor vehicle is transferred during the express warranty period
  2. "Dealer" is,
    • An authorized person or firm involved in the trade of selling or repairing used motor vehicles on behalf a manufacturer within this state
    • A motor vehicle dealer or lessor, as defined in section 168.27, subdivisions 2, 3, and 4
  3. "Motor vehicle" means a passenger automobile, as defined in section 168.011, subdivision 7, including pickup trucks and vans.
  4. "Used motor vehicle" is,
    • A motor vehicle which has been sold out or exchanged for the second time or more
    • A vehicle whose title is already been assigned to a person.
  5. "Express warranty" means warranty expressed in writing and offered at the time of sale of a used motor vehicle.
  6. "Buyer's Guide" means the window form required by the Federal Trade Commission's "Used Motor Vehicle Trade Regulation Rule," Code of Federal Regulations, title 16, section 455.2.

Subd. 2 - Written Warranty Required

  1. Each used motor vehicle sold within the state shall contain an express warranty. According to Minnesota lemon laws, “at a minimum, such warranty applies for the following terms:
    • If the used motor vehicle has less than 36,000 miles, the warranty must remain in effect for at least 60 days or 2,500 miles, whichever comes first;
    • If the used motor vehicle has 36,000 miles or more, but less than 75,000 miles, the warranty must remain in effect for at least 30 days or 1,000 miles, whichever comes first”.
  2. Incase of a defect or condition, the dealer must repair or replace the covered part, or  refund the amount to the consumer.
  3. The following parts are covered under express warranty, if the mileage of a used motor vehicle is less than 36,000 miles:
    • all lubricated parts, intake manifolds, engine block, cylinder head, rotary engine housings, and ring gear
    • the automatic transmission case, internal parts, and the torque converter; or, the manual transmission case, and the internal parts
    • the axle housings and internal parts, axle shafts, drive shafts and output shafts, and universal joints; but excluding the secondary drive axle on vehicles, other than passenger vans, mounted on a truck chassis
    • the master cylinder, vacuum assist booster, wheel cylinders, hydraulic lines and fittings, and disc brakes calipers
    • the steering gear housing and all internal parts, power steering pump, valve body, piston, and rack
    • the water pump
    • the externally-mounted mechanical fuel pump
    • the radiator
    • the alternator, generator, and starter.
  4. The following parts are covered under express warranty, if the mileage of a used motor vehicle is more than 36,000 miles but less than 75,000 miles:
    • all lubricated parts, intake manifolds, engine block, cylinder head, rotary engine housings, and ring gear
    • the automatic transmission case, internal parts, and the torque converter; or, the manual transmission case, and internal parts
    • the axle housings and internal parts, axle shafts, drive shafts and output shafts, and universal joints; but excluding the secondary drive axle on vehicles, other than passenger vans, mounted on a truck chassis
    • the master cylinder, vacuum assist booster, wheel cylinders, hydraulic lines and fittings, and disc brake calipers
    • the steering gear housing and all internal parts, power steering pump, valve body, and piston
    • the water pump
    • the externally-mounted mechanical fuel pump.
    1. A dealer's obligations under the express warranty remain in effect notwithstanding the fact that the warranty period has expired, if the consumer promptly notified the dealer of the malfunction, defect, or failure in the covered part within the specified warranty period and, within a reasonable time after notification, brings the vehicle or arranges with the dealer to have the vehicle brought to the dealer for inspection and repair.
    2. Incase of unavailability of a repair facility, a dealer shall choose a place where the vehicle must be taken for inspection and repair.
    3. If the defect occurs at a place from where it is impossible to take the vehicle to the dealer, the consumer, upon the consent of the dealer, may have the repairs completed elsewhere.
    4. Despite of the restrictions of this paragraph, a consumer may have non-warranty maintenance and repairs made other than by the dealer and without the dealer's assent.
  6. This section can neither limit the rights and duties of a manufacturer under a warranty issued to the consumer nor force a dealer to repair or replace the covered part, if the repair or replacement is covered by a manufacturer's new car warranty.
  7. No defects due to collision, abuse, negligence, or lack of adequate maintenance will be covered under express warranty.
  8. All the terms of the express warranty must be entirely, truly, and clearly disclosed to the buyer.

Subd. 3 - Exclusions

In spite of the requirements of subdivision 2, a dealer may not be enforced to present an express warranty for a used motor vehicle:

  1. sold for less than $3,000, inclusive of the trade-in allowance of any vehicle, but exclusive of tax, license fees, registration fees, and finance charges
  2. with an engine designed to use diesel fuel
  3. with a gross weight, as defined in section 168.011, subdivision 16, in excess of 9,000 pounds
  4. that has been altered or modified for show or for racing
  5. that is eight years old, from the 1st of January of the designated model year
  6. that is manufactured by a manufacturer which has never produced more than 10,000 motor vehicles in a year
  7. that has been driven 75,000 miles or more at time of sale
  8. that has not been falling in line with applicable federal emission standards in force at the time of manufacture as provided by the Clean Air Act, United States Code, title 42, sections 7401 through 7642, and regulations adopted pursuant thereto, and safety standards as provided by the National Traffic and Motor Safety Act, United States Code, title 15, sections 1381 through 1431, and regulations adopted pursuant thereto.
  9. that has been issued a salvage certificate of title under section 168A.151.

Subd. 4 - Waiver

While buying a used motor vehicle, a buyer may dispense with the express warranty for a covered part if:

Subd. 5 - Warranty Automatic

As stated in Minnesota lemon laws, “if a dealer fails to give the express warranty required by this section, the dealer nevertheless is considered to have given the express warranty as a matter of law”.

Subd. 6 - Buyers’ Guide Requirements

To sell a vehicle and to offer an express warranty, a dealer shall conform to all respects of the Federal Trade Commission's "Used Motor Vehicle Trade Regulation Rule," Code of Federal Regulations, title 16, part 455.

Subd. 7 - Honoring of Express Warranties

  1. Each express warranty offered with the sale of a used motor vehicle must be respected by the dealer in accordance with the terms of the express warranty.
  2. Due to repair or replacement of a covered part, the dealer remains responsible for one additional warranty period.
  3. A dealer has the right to bind the duration of implied warranties to the duration of the express warranty.

Subd. 8 - Refunds

  1. A refund amount comprises of the actual purchase price of the used motor vehicle and all other collateral charges, including excise tax, registration tax, license fees, and reimbursement for towing, less a reasonable allowance for the consumer's use not going beyond 10 cents per mile driven or 10% of the purchase price, whichever is less.
  2. The amount of the excise tax to be paid by the dealer to the consumer under paragraph (a) is the tax paid by the consumer when the vehicle was purchased less an amount equal to the tax paid multiplied by a fraction, the denominator of which is the purchase price of the vehicle and the numerator of which is the allowance deducted from the refund for the consumer's use of the vehicle.
  3. It’s the duty of a dealer to provide a detailed statement of each of the amounts refunded. If the dealer does not state the amount of excise tax separately, or if the dealer does not apply for a refund of the tax within 1 year of the return of the motor vehicle, the department of public safety may refund the tax amount, to the consumer, if any, as their interests appear on the records of the registrar of motor vehicles.

Subd. 9 - Civil Remedies

A dealer violating this section will be awarded with the penalties and remedies, including a personal right of action, as provided in section 8.31. In addition, a breach of subdivision 7 is also a violation of section 325F.69.

Subd. 10 - Limitation on Actions

Any actions brought under this section must be instigated within 1 year of the expiration of the express warranty.

Subd. 11 - Remedy Nonexclusive

This section does not limit the rights or cures available to a consumer under any other law.