Minnesota Lemon Law (2026): How to Qualify & Get a Refund

Minnesota Statutes § 325F.665 protects buyers and lessees of new motor vehicles against defects that substantially impair use or market value. The law presumes a lemon after four unsuccessful repair attempts for the same defect, or 30 cumulative business days out of service, within the warranty period or two years of delivery. Qualifying consumers may receive a full refund or a replacement vehicle.

Overview of Minnesota's Lemon Law

Minnesota Statutes § 325F.665 protects consumers who buy or lease new motor vehicles that turn out to have serious, unfixable defects. The law requires manufacturers to either replace the vehicle or provide a full refund when a vehicle fails to conform to the manufacturer's express warranty after a reasonable number of repair attempts.

The statute applies to a purchaser or lessee who acquires a new motor vehicle for personal, family, or household use at least 40 percent of the time, and not for resale or sublease. It covers defects that substantially impair the use or market value of the vehicle. Minnesota's lemon law is considered one of the more consumer-friendly in the United States because it caps usage deductions at the lower of 10 cents per mile or 10% of the purchase price.

What Vehicles Are Covered

Understanding which vehicles fall under the statute is the first step in evaluating a potential lemon law claim.

Covered Vehicle Types

• Passenger automobiles: Including sedans, SUVs, pickup trucks, and vans
• Self-propelled chassis of recreational vehicles: The motorized chassis and van portion of motorhomes
• Ambulances: Licensed under Minnesota Chapter 144E
• Leased vehicles: Under lease agreements exceeding four months. A lessee has the same rights as a buyer except that the lessee's remedy is a refund only, not a replacement vehicle
• Electric vehicles: EVs and plug-in hybrids are covered. Battery defects that substantially impair the vehicle qualify under the same standards as any other component failure

Key Coverage Requirements

Vehicles Not Covered

• Vehicles purchased primarily for resale or sublease
• Vehicles used more than 60% for business purposes
• Motorcycles and mopeds
• Off-road vehicles not designed for highway use
• Vehicles that operate only on tracks
• Towable recreational vehicles (travel trailers, fifth wheels)

Minnesota's Lemon Law Presumption

Under Minnesota Statutes § 325F.665, Subdivision 3, the law creates a rebuttable presumption that the manufacturer has had a reasonable number of repair attempts when specific thresholds are met. This presumption shifts the burden to the manufacturer to prove the vehicle is not a lemon.

When the Presumption Applies

Written Notice Requirement

The presumption only applies after the consumer sends written notice to the manufacturer. This is a critical procedural step. The notice must inform the manufacturer of the defect and request a remedy.

If the consumer sends the notice to the dealer instead of the manufacturer, the dealer must forward it to the manufacturer by certified mail with return receipt requested. The manufacturer then gets one additional opportunity to cure the defect after receiving the notice.

Extended Coverage Period

Even after the two-year or warranty period expires, consumers may still pursue a refund or replacement if:

• The repair attempts occurred within three years of the original delivery date
• The consumer first reported the nonconformity to the manufacturer during the term of the applicable express warranty

This three-year extended window gives consumers additional time to pursue their claims.

What Qualifies as "Substantially Impairs"

The nonconformity must substantially impair the use or market value of the vehicle. Common qualifying defects include:

• Engine or transmission failures
• Complete brake or steering system failures (treated with heightened urgency)
• Persistent electrical problems that affect vehicle operation
• Chronic stalling, starting, or acceleration issues
• Safety system malfunctions (airbags, stability control, collision avoidance)
• Significant water leaks into the passenger compartment
• Heating or air conditioning system failures
• Recurring check engine lights tied to emissions or performance problems

Minor cosmetic defects, small rattles, or issues that do not affect the vehicle's safe operation or market value generally do not qualify.

Consumer Remedies: Refund or Replacement

When a vehicle qualifies as a lemon under Minnesota law, the manufacturer must either replace it with a comparable motor vehicle or accept its return and refund the purchase price. Under Minnesota Statutes § 325F.665, Subdivision 3, the choice between those two belongs to the manufacturer in the first instance, but if it offers a replacement, the consumer has the right to reject it and require a full refund instead.

Subdivision 4 removes the replacement option entirely for consumers who lease. If the manufacturer must accept return of a leased vehicle, the lessee "is not entitled to a replacement vehicle, but is entitled only to a refund," calculated on the amounts the lessee actually paid under the written lease, less the same use allowance. The lease is terminated, and the manufacturer separately refunds the lessor the vehicle's original purchase price plus early termination costs capped at 15 percent of that price, less what the lessee already paid.

Option 1: Full Refund

The manufacturer must refund the following amounts:

• Full purchase price: Including all options and dealer-installed modifications made within 30 days of delivery
• Trade-in value: The stated dealer value of any trade-in vehicle
• All government charges: Sales tax, excise tax, license fees, and registration fees
• Other charges: The list is open-ended. Subdivision 3(a) requires "all other charges including, but not limited to" the taxes and fees above. Note that interest, finance charges, and loan origination fees are not named anywhere in § 325F.665, so a manufacturer may contest them
• Towing costs: Reimbursement for any towing expenses related to the defect
• Rental vehicle expenses: Costs for rental or loaner vehicles while the lemon was out of service

Usage Deduction: The manufacturer may subtract a reasonable allowance for vehicle use. Under Minnesota law, the deduction covers only miles driven during the period in which the vehicle's use and market value were not substantially impaired, and it cannot exceed the lesser of:

• 10 cents per mile driven, OR
• 10% of the total purchase price

Once the defect substantially impaired the vehicle, those miles are excluded from the deduction. Minnesota's usage deduction formula is one of the most favorable to consumers in the country.

Option 2: Replacement Vehicle

The manufacturer may offer a comparable replacement vehicle. If you prefer a refund, you may reject the replacement and require the manufacturer to provide one. That veto runs one direction only: a consumer who would rather have a replacement cannot force the manufacturer to provide one instead of a refund, and a lessee cannot obtain a replacement at all.

How to File a Lemon Law Claim in Minnesota

Filing a successful claim requires thorough documentation and strict adherence to the statutory procedures.

Step 1: Document Everything From Day One

• Keep every repair order, work order, and invoice
• Record the date, duration, and outcome of each repair visit
• Write down the specific symptoms you experienced and when they occurred
• Save all correspondence with the dealer and manufacturer (emails, letters, texts)
• Retain rental car and towing receipts
• Take photographs or videos of defects whenever possible

Step 2: Send Written Notice to the Manufacturer

Before invoking lemon law remedies, you must provide written notice. Your notice should include:

• Your full name and contact information
• Vehicle identification number (VIN), make, model, and year
• A clear description of the nonconformity
• A summary of the repair history (dates, what was attempted, outcomes)
• A specific request for a refund or replacement under § 325F.665

Send the notice by certified mail with return receipt requested so you have proof of delivery.

Step 3: Review the Lemon Law Disclosure

At the time of purchase, the manufacturer is required to provide a written statement on a separate piece of paper, printed in at least 10-point capital letters, informing the consumer of their rights under the lemon law. This disclosure must describe the arbitration program. If you did not receive this disclosure, note that fact in your records.

Step 4: Participate in Arbitration

Minnesota requires manufacturers to operate or participate in an informal dispute settlement mechanism located within the state. Use it before you sue. Subdivision 6(a) provides that the refund and replacement provisions of Subdivision 3 "do not apply to a consumer who has not first used this mechanism before commencing a civil action, unless the manufacturer allows a consumer to commence an action without first using this mechanism." The only statutory exception is the manufacturer's own consent, so a consumer who skips arbitration without it forfeits the lemon law's refund and replacement remedy.

Mandatory Arbitration Process

Minnesota's lemon law contains detailed requirements for the arbitration programs that manufacturers must provide.

Program Requirements

• The arbitration program must be located in the state of Minnesota
• It must comply with federal regulations under 16 CFR Part 703
• Both parties must be able to appear and present oral testimony within Minnesota
• The consumer's filing fee cannot exceed the conciliation court filing fee
• Either party may be represented by an attorney
• Arbitration decisions must include itemized amounts for all refunds or replacement values

Many manufacturers use the BBB AUTO LINE program, which is free to consumers. National participants include Ford, Lincoln, Buick, Cadillac, Chevrolet, GMC, Hyundai, Genesis, Kia, Infiniti, Nissan, Mazda, Volkswagen, Audi, Rivian, Lucid, and others. You can reach BBB AUTO LINE at (800) 955-5100 or visit bbbprograms.org to confirm your manufacturer's participation before filing.

After the Arbitration Decision

• The decision is nonbinding unless both parties agree to be bound
• Either party may appeal to district court within 30 days of receiving the decision
• If no appeal is filed within 30 days, the court will confirm the decision upon application by either party
• Written arbitration decisions are admissible as evidence in any subsequent court action

Bad Faith Appeals

Under Subdivision 8, if a court determines that a party appealed an arbitration decision in bad faith by asserting frivolous claims or unfounded positions solely to delay resolution, the court shall award the prevailing party:

• Three times actual damages (treble damages)
• All court costs and disbursements
• Reasonable attorney fees

This provision discourages manufacturers from using appeals as a stalling tactic.

Statute of Limitations

Timing matters when pursuing a lemon law claim in Minnesota.

• Filing deadline: A civil action must be commenced within three years of the original delivery date of the vehicle
• Prerequisite: The consumer must have first reported the nonconformity during the warranty period or within two years of delivery (whichever is earlier)
• Post-arbitration deadline: If you applied to an informal dispute settlement mechanism within the three years and are aggrieved by its decision, Subdivision 10 requires the civil action to be commenced within six months after the date of the final decision. This six-month window replaces the three-year period rather than adding to it. It can extend your time if the three years have run, but it can also cut your time short: arbitrate in year one and lose, and you have six months from the decision, not the balance of the three years

Manufacturer Defenses

Manufacturers may raise several affirmative defenses against lemon law claims.

Resale of Lemon Vehicles and Title Branding

Minnesota has strong protections against unknowing purchase of former lemon vehicles.

Resale Restrictions

Under Subdivision 5, a vehicle returned under Minnesota's lemon law or a similar law from another state may not be resold in Minnesota unless:

• The manufacturer provides the same express warranty it would provide for a new vehicle, with coverage of at least 12 months or 12,000 miles (whichever comes first)
• The manufacturer provides a written disclosure stating the vehicle was returned because it did not conform to the manufacturer's express warranties

Safety Defect Ban: If the vehicle was returned because of a complete failure of the braking or steering system that was likely to cause death or serious bodily injury, it may NOT be resold in Minnesota under any circumstances.

Title Branding

Under Subdivision 14, the Minnesota registrar of motor vehicles must record "lemon law vehicle" on the certificate of title and all subsequent titles for any vehicle returned under this statute. This title branding also applies to vehicles with out-of-state titles that bear similar lemon law designations.

Federal Protections: The Magnuson-Moss Warranty Act

In addition to Minnesota's state lemon law, consumers may also have claims under the federal Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.). This federal law:

• Applies to any consumer product with a written warranty, including vehicles
• Allows recovery of attorney fees and court costs if the consumer prevails
• Does not preempt state lemon law claims, meaning you can pursue both simultaneously
• Has no cap on the number of repair attempts required, giving courts flexibility

The Magnuson-Moss Act can be particularly useful when the state lemon law's presumption thresholds have not been met but the manufacturer has still failed to honor its warranty.

Filing a Complaint With the Attorney General

If you believe a manufacturer or dealer has violated Minnesota's lemon law, you can file a complaint with the Minnesota Attorney General's Office:

• Online: Use the Consumer Assistance Request Form at ag.state.mn.us
• Phone (Twin Cities): (651) 296-3353
• Phone (Greater Minnesota): (800) 657-3787

The Attorney General's Office can contact the manufacturer or dealer on your behalf and may investigate patterns of violations.

More Minnesota Laws

• Minnesota Car Accident Laws

Frequently Asked Questions

How many repair attempts trigger Minnesota's lemon law presumption?

The presumption applies after four or more unsuccessful repair attempts for the same defect, or after the vehicle has been out of service for 30 or more cumulative business days. For a complete failure of the braking or steering system that is likely to cause death or serious bodily injury, only one repair attempt is required.

Can I reject a replacement vehicle and demand a refund instead?

Yes, if you bought the vehicle. Under Minnesota Statutes § 325F.665, Subdivision 3, if the manufacturer offers a replacement vehicle, you have the right to reject it and require a full refund instead. The right runs one direction only: the manufacturer chooses in the first instance whether to replace or refund, and a consumer who wants a replacement cannot force one over a refund offer. Under Subdivision 4, a consumer who leases is not entitled to a replacement vehicle at all and is entitled only to a refund.

How is the usage deduction calculated in Minnesota?

The manufacturer may deduct a reasonable allowance for vehicle use. This deduction covers only miles driven during the period when the vehicle's use and market value were not substantially impaired, and it cannot exceed 10 cents per mile OR 10% of the purchase price, whichever is less. Once the defect substantially impaired the vehicle, those miles are excluded from the calculation.

Do I have to go through arbitration before filing a lawsuit?

In practice, yes. Subdivision 6(a) states that the refund and replacement provisions of Subdivision 3 do not apply to a consumer who has not first used the mechanism before commencing a civil action, unless the manufacturer allows the consumer to sue without using it. Manufacturer consent is the only exception the statute grants, so skipping arbitration on your own forfeits the lemon law's refund and replacement remedy. Many major manufacturers participate in programs like BBB AUTO LINE, which is free to consumers.

Does Minnesota's lemon law cover electric vehicles?

Yes. Electric vehicles and plug-in hybrids are covered under the same standards as gasoline-powered vehicles. Battery defects that substantially impair the vehicle's use or market value qualify as nonconformities under § 325F.665, just like engine or transmission failures in traditional vehicles.

How long do I have to file a lemon law claim in Minnesota?

You must file a civil action within three years of the vehicle's original delivery date, provided you first reported the defect during the warranty period or within two years of delivery. If you applied to an arbitration mechanism within those three years and are aggrieved by the decision, Subdivision 10 requires suit within six months after the date of the final decision. That six-month window replaces the three-year deadline instead of adding to it, so it can shorten your time as well as extend it. Calendar the arbitration decision date immediately.

What happens if a lemon vehicle is resold in Minnesota?

A lemon vehicle can only be resold if the manufacturer provides a new express warranty of at least 12 months or 12,000 miles and gives the buyer written disclosure that the vehicle was previously returned under the lemon law. Vehicles returned for brake or steering failures that could cause death or serious injury cannot be resold at all. All lemon vehicles receive permanent title branding.