What Is the Lemon Law in Tennessee for Used Cars

Tennessee's Motor Vehicle Warranty Law, codified in Title 55, Chapter 24 of the Tennessee Code, provides protections for consumers purchasing defective vehicles. However, Tennessee's lemon law applies exclusively to new vehicles and does not extend to used car purchases.

Tennessee's lemon law establishes specific criteria for vehicle protection. A vehicle qualifies as a lemon when it has a defect or condition that makes it unreliable or unsafe for normal operation. Consumers must report problems to the manufacturer in writing by certified mail, and manufacturers must make reasonable repair attempts. Coverage criteria require either three repair attempts by the manufacturer or dealer for the same defect, or the vehicle is out of service for repairs for a total of 30 or more days. The law applies to motor vehicles intended primarily for personal, family, or household use.

Used vehicles purchased in Tennessee receive no protection under the state's lemon law. Most used cars in Tennessee are sold in an "as is" condition, eliminating manufacturer and dealer warranties. Consequently, used car buyers must rely on federal consumer protection statutes and general warranty principles established under Tennessee law for any recourse against defects discovered after purchase.

What Protections Do Used Car Buyers Have in Tennessee?

Although Tennessee's lemon law provides no used car coverage, federal statutes and state warranty principles establish important protections for used vehicle transactions.

Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act establishes federal protection when dealers or manufacturers issue written warranties on motor vehicles, including used cars. This federal statute permits consumers to pursue legal action for breaches of express warranties issued by dealers or manufacturers and violations of implied warranty obligations, provided the vehicle carries a written warranty. Consumers may recover damages when a dealer or manufacturer fails to honor the terms of a written warranty or violates implied warranty protections established under federal law.

FTC Used Car Rule Requirements

The Federal Trade Commission's Used Car Rule mandates that dealers display a Buyer's Guide on every used vehicle before sale. This disclosure document must clearly indicate whether the vehicle carries warranty coverage or is offered without protection, specify which systems or components receive warranty coverage, state the duration of any warranty, identify the percentage of repair costs the dealer assumes, and provide information about vehicle history records and safety recalls. The Buyer's Guide requirement applies uniformly to used vehicle sales in Tennessee and ensures consumers have transparent information about warranty status before completing a purchase.

Understanding "As Is" Sales in Tennessee

Tennessee law permits dealers to sell used vehicles "as is," eliminating express warranty coverage. Most used cars in Tennessee are sold in "as is" condition, meaning the seller takes no responsibility for the vehicle's condition after delivery. However, the application of "as is" language in Tennessee is not absolute and does not eliminate all warranty protections available under state law and federal standards.

What "As Is" Means for Buyers

When purchasing a vehicle "as is," the dealer assumes no liability for repairs or defects discovered following the sale, and you accept complete financial responsibility for all mechanical, electrical, and structural failures. Problems identified immediately after delivery remain your expense without recourse to the dealer. The "as is" designation typically disclaims all express warranties.

However, Tennessee law recognizes that certain implied warranties may survive an "as is" purchase if the vehicle is so fundamentally defective that it cannot serve its intended purpose. This means that in extreme cases where a vehicle is completely inoperable or dangerously unsafe, the implied warranty of merchantability may still apply despite the "as is" language.

Limited Dealer Disclosure Requirements

Tennessee dealers must comply with Federal Trade Commission standards and display the Buyer's Guide on all used vehicles offered for sale. The guide must clearly identify whether the vehicle is offered "as is" or with dealer warranty coverage. Dealers must provide written documentation regarding any promised warranties or repair guarantees before transaction completion. The Buyer's Guide becomes part of the purchase contract and cannot be removed prior to sale. Dealers must clearly disclose the warranty status and any limitations on coverage in writing so that consumers understand their rights and obligations before finalizing the purchase.

Limited Exceptions to "As Is" Protection

Despite an "as is" designation, legal remedies may exist in Tennessee when:

• The dealer engaged in fraudulent conduct by intentionally concealing known defects from the buyer
• A dealer makes misrepresentations regarding the vehicle's mechanical condition or history
• An "as is" clause does not protect dealers who commit fraud or who sell vehicles that are incapable of performing their basic function as transportation
• A vehicle is so fundamentally defective that implied warranties of merchantability are violated, such as being completely inoperable at the time of sale

Filing a Consumer Complaint

Tennessee consumers experiencing disputes with used car dealers may submit complaints to state regulatory agencies responsible for consumer protection and motor vehicle dealer oversight.

Tennessee Attorney General
Division of Consumer Affairs
P.O. Box 20207, Nashville, TN 37202
Phone: (615) 741-4737
Official Website: Tennessee Consumer Affairs Division

Tennessee Motor Vehicle Commission
Department of Commerce and Insurance
500 James Robertson Parkway, Nashville, TN 37243
Phone: (615) 741-2711
Official Website: Department of Commerce and Insurance