What to do if You Think Your New Car is a Lemon

The term lemon although may sound citrusy and fruity is actually a term used when referring to a poorly built car. This is because both will leave a sour taste in your mouth. In the 1800s the term lemon was used to describe people who were unfriendly and over time the term was being used for anything that was defective or broken.

A lemon car is a car that when purchased requires many repairs of the same problem. These repairs usually include problems with the transmission, engine or brakes. Problems that may be life threatening if it’s not working properly.

Unlike the US which has a lemon law that gives consumers compensation when they find that they’ve purchased a defective car and the manufacturer won’t fix it. Here in Canada, there is no such law. Ontario tried to pass a lemon law back in 2002 but the efforts were unsuccessful. Each province does however have some consumer protection statues. Consumers can submit a dispute to the Canadian Motor Vehicle Arbitration Plan (CAMVAP).

This CAMVAP program is a free arbitration program for consumers. The hearings are held in the consumer’s community. The process takes approximately 2-3 months. Most times you will not need a lawyer to help you as the manufacturers don’t use lawyers. An inspection of the vehicle usually takes place. The arbitrator can either get the manufacturer to buyback the vehicle, have the manufacturer’s pay for the repairs to take place or reimburse repairs already completed including the out of pocket expenses such as towing, testing and rental related to the problem with the car. The arbitrator can also order that the manufacturer have no liability.

Many people have purchased lemons in the past and many have become extremely angry over it. If you recently bought a lemon that was made in the last 4 years, don’t suffer in silence, consider using the CAMVAP. This program may be able to help you resolve your dispute with the car’s manufacturer.

If you’re buying a used vehicle and want to prevent yourself from purchasing a lemon, review the past maintenance history prior to the purchase. Ask for the VIN number so you can conduct a search of the vehicle maintenance history.

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