Car Buy-Back (Lemon Law) Program in Texas
If your vehicle has repeated defects, Texas lemon law may entitle you to a full buy-back from the manufacturer. Here's exactly how the process works.
Quick Reference
Governing Statute
Texas Lemon Law (Texas Occupations Code Ch. 2301)
Texas Lemon Law administered by TxDMV. Strong state lemon law with mandatory mediation before suit.
Eligibility Window
24 months / 24,000 miles
Texas Lemon Law applies to defects reported within 24 months or 24,000 miles, whichever comes first.
Repair Attempt Threshold
4+ attempts OR 30+ days out of service OR 2 attempts for serious safety
Texas requires 4 attempts to repair the same defect, or 30 cumulative days out of service, or 2 attempts for serious safety hazards.
Buy-Back Amount
Replacement vehicle or refund (purchase price + sales tax - reasonable use)
TxDMV awards either replacement vehicle or refund. Refund formula similar to CA — purchase price minus usage offset.
Arbitration Process
Yes — TxDMV mediation/arbitration required before suit
Texas requires TxDMV mediation/arbitration as first step. Free for consumer. Many cases resolve here without lawyer.
Resale Disclosure After Buy-Back
Required — "Lemon Law Buyback" branded title; dealer must disclose
Texas brands lemon law buy-backs on title. Sale to subsequent buyer requires disclosure under DTPA.
Texas Standout Rule
Frequently Asked Questions
What law governs car buy-back in Texas?
Texas Lemon Law (Texas Occupations Code Ch. 2301). Texas Lemon Law administered by TxDMV. Strong state lemon law with mandatory mediation before suit.
When am I eligible for a buy-back in Texas?
24 months / 24,000 miles. Texas Lemon Law applies to defects reported within 24 months or 24,000 miles, whichever comes first.
How many repair attempts trigger buy-back in Texas?
4+ attempts OR 30+ days out of service OR 2 attempts for serious safety. Texas requires 4 attempts to repair the same defect, or 30 cumulative days out of service, or 2 attempts for serious safety hazards.
How much will the manufacturer refund in Texas?
Replacement vehicle or refund (purchase price + sales tax - reasonable use). TxDMV awards either replacement vehicle or refund. Refund formula similar to CA — purchase price minus usage offset.
Do I have to arbitrate first in Texas?
Yes — TxDMV mediation/arbitration required before suit. Texas requires TxDMV mediation/arbitration as first step. Free for consumer. Many cases resolve here without lawyer.
Selling a Lemon-Branded Vehicle?
If you're reselling a vehicle that was bought back under lemon law, Texasrequires written disclosure. A bill of sale documents the disclosure.
Generate Bill of SaleThis page is informational only and not legal advice. For your specific case, consult a Texas lemon law attorney. Source: Texas Department of Motor Vehicles — Lemon Law.