What Is the Lemon Law in Vermont for Used Cars

Vermont's lemon law framework, codified in 9 V.S.A. Chapter 115 (Sections 4170-4181), provides limited protections for used vehicle purchasers. The statute defines a "new motor vehicle" as one that remains under the manufacturer's express warranty, which means used vehicles can qualify for lemon law remedies if the first repair attempt occurs while warranty coverage is still active. Eligible vehicles include passenger motor vehicles and trucks weighing 12,000 pounds or less, excluding motorcycles, motor-driven cycles, snowmobiles, motorized highway building equipment, and recreation vehicles' living portions.

Used car buyers may pursue lemon law remedies through Vermont's Motor Vehicle Arbitration Board if the vehicle exhibits nonconformities—defects substantially impairing use, market value, or safety—and the manufacturer cannot resolve the problem after reasonable repair attempts occur within the warranty term.

What Protections Do Used Car Buyers Have in Vermont?

Used-car purchasers in Vermont access protections through federal consumer protection statutes and the state arbitration system when warranties remain in effect.

Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act furnishes federal protection to consumers acquiring used vehicles accompanied by written manufacturer or dealer warranties. This federal statute authorizes recovery of actual damages, reasonable attorney fees, and court costs resulting from warranty breaches. The Act stipulates that when sellers furnish service contracts or written warranties with used vehicle purchases, implied warranty protections persist and cannot be disclaimed through "as is" designations.

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. The mandatory disclosure document identifies whether the vehicle carries a dealer warranty or is sold without warranty protections, itemizes which vehicle systems receive coverage and for how long, and specifies the percentage of repair expenses the dealer assumes versus the consumer's responsibility. The Buyer's Guide also encourages consumers to arrange independent mechanical inspections and review vehicle history reports.

Vermont Motor Vehicle Arbitration Board

Vermont's Motor Vehicle Arbitration Board, established under Chapter 115, provides the primary forum for resolving warranty disputes involving vehicles still under manufacturer coverage. Consumers demonstrating reasonable repair attempts, typically three unsuccessful repair attempts for the same defect or thirty cumulative calendar days out of service within the warranty period, may file a Demand for Arbitration to obtain a hearing. The Board has the authority to order replacement vehicles, prorated refunds calculated using statutory formulas, reimbursement of fees and incidental damages, or dismissal.

Understanding "As Is" Sales in Vermont

Vermont law permits dealers to sell used vehicles designated "as is," though significant constraints apply to this practice. Federal regulations require dealers to display an accurate Buyer's Guide indicating "as is" status, and dealers cannot circumvent federal disclosure obligations through "as is" designations alone.

What "As Is" Means for Buyers

When a used vehicle carries an "as is" designation, express warranty protections are disclaimed by the seller, and buyers accept responsibility for mechanical failures discovered after sale completion. Under "as is" sales, the dealer assumes no liability for post-sale repairs or defects, and implied warranties of merchantability generally do not apply absent statutory exceptions.

Limited Dealer Disclosure Requirements

Vermont dealers must comply with specific disclosure obligations regardless of "as is" status. Dealers are required to display the Federal Trade Commission Buyer's Guide on all used vehicles offered for sale before purchase completion. The guide must accurately indicate whether a vehicle is offered "as is" or with dealer warranty coverage. Dealers must provide all warranty terms in writing as part of the purchase agreement. Federal odometer disclosure laws also apply to all vehicle transfers. Dealers cannot use "as is" language to circumvent these mandatory federal and state disclosure requirements.

Limited Exceptions to "As Is" Sales

Despite "as is" designations, Vermont courts recognize remedies remain available when dealers engage in prohibited conduct:

Fraudulent Conduct or Misrepresentation

• Dealers intentionally conceal known defects from buyers
• Dealers make false statements about mechanical condition or vehicle history
• Dealers fail to disclose material defects known at the time of sale

Violations of Disclosure Requirements

• Dealers fail to provide the Buyer's Guide with accurate information
• Dealers misrepresent warranty status or coverage terms
• Dealers provide inaccurate odometer readings or title information

Breach of Federal Consumer Protection Laws

• Dealer conduct violates the FTC Used Car Rule or Magnuson-Moss Warranty Act
• Dealers engage in deceptive practices in violation of Vermont consumer protection statutes

When such circumstances occur, buyers retain the right to pursue legal remedies and seek damages despite having executed an "as is" sales agreement.

Filing a Consumer Complaint

Consumers experiencing disputes with used-car dealers in Vermont may pursue remedies through the following state agencies.

Office of the Vermont Attorney General
Consumer Assistance Program
109 State Street, Montpelier, VT 05609
Phone: (802) 828-3171
Official Website: Office of the Vermont Attorney General

Vermont Motor Vehicle Arbitration Board
PO Box 6, Fairfax, VT 05454
Phone: (802) 828-2943
Official Website: Motor Vehicle Arbitration Board