What Is the Lemon Law in Arizona for Used Cars

Arizona's Motor Vehicle Warranty Law, or Lemon Law, codified as A.R.S. § 44-1261 through 44-1267, provides legal recourse for consumers who purchase defective motor vehicles. This law requires manufacturers to repair, replace, or refund vehicles with substantial defects that cannot be corrected after reasonable attempts at repair. Arizona's lemon law applies to both new and used vehicles, though coverage differs significantly. According to the Arizona Attorney General, new vehicles receive protection for the full warranty period or two years/24,000 miles, while used vehicles are covered for 15 days or 500 miles after delivery, whichever comes first.

What Protections Do Used Car Buyers Have in Arizona?

While Arizona provides limited state-level protection for used vehicle purchases through an implied warranty of merchantability, federal law provides important consumer protections.

Arizona Used Car Lemon Law

Unlike many states that exclude used vehicles entirely, Arizona extends limited warranty protection to used car buyers through A.R.S. § 44-1267. This statute creates an implied warranty of merchantability that lasts 15 days or 500 miles after delivery, whichever occurs first.

Under this protection:

• The vehicle must function in a safe condition and remain substantially free of defects that significantly limit its use for ordinary transportation
• The purchaser must pay up to $25 for each of the first two repairs if the warranty is breached
• The dealer must receive two opportunities to repair the vehicle before the purchaser can seek a refund
• The maximum dealer liability equals the purchase price paid for the vehicle
• The warranty does not extend to damage from abuse, misuse, neglect, failure to maintain proper fluids, off-road use, racing, or towing

Dealers cannot exclude, modify, or disclaim this implied warranty during the 15-day/500-mile period. Any attempt to do so renders the purchase agreement voidable at the purchaser's option.

Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act provides federal protection for used car purchases. This statute applies to any consumer product sold with a written warranty, including used vehicles. Under this federal law, consumers can pursue legal action for breach of express warranties, breach of implied warranties, and violations of service contract terms.

FTC Used Car Rule

The Federal Trade Commission enforces the Used Car Rule, requiring dealers to display a Buyer's Guide on every used vehicle offered for sale. This disclosure document must clearly state:

• Whether warranty coverage applies or the vehicle is sold without warranty protection
• Which vehicle systems and components fall under warranty terms
• The length of time warranty protection remains in effect
• The portion of repair expenses the dealer covers under warranty
• Recommendations to secure vehicle history documentation and verify outstanding safety recalls

Understanding "As Is" Sales in Arizona

While Arizona's implied warranty of merchantability applies to most used vehicle sales, dealers may disclaim this protection under specific circumstances outlined in A.R.S. § 44-1267.

What "As Is" Means for Buyers

When dealers properly waive the implied warranty for particular defects:

• The dealer has no obligation to cover repair costs for the disclosed defects
• You bear complete responsibility for the specifically identified mechanical issues
• Defects found after purchase involving the disclosed problems are at your expense
• The waiver applies only to defects fully and accurately disclosed before purchase

Limited Dealer Disclosure Requirements

Arizona law permits dealers to waive the implied warranty of merchantability only for particular defects and only when:

• The dealer fully and accurately discloses that the vehicle has specific defects due to circumstances unusual to the dealer's business
• The purchaser agrees to buy the vehicle after disclosure of the defect
• The purchaser signs and dates a conspicuous statement printed on the first page of the sales agreement identifying each specific defect

Limited Exceptions to "As Is" Sales

Even with a proper waiver of the implied warranty for specific defects, legal remedies may exist if:

• The dealer deliberately hid defects they knew existed beyond those properly disclosed
• The dealer provided false information that led to the purchase decision
• The vehicle's defects were severe enough to prevent its use for normal driving despite disclosure

Filing a Consumer Complaint

Arizona consumers who may have disputes with used car dealers can file complaints with the Consumer Information and Complaints Unit.

Arizona Attorney General's Office
Consumer Information and Complaints Unit
2005 N Central Avenue, Phoenix, AZ 85004
Phone: (602) 542-5763
Toll-free: (800) 352-8431
Official Website: Arizona Attorney General's Office Consumer Information and Complaints Unit