What Is the Lemon Law in Delaware for Used Cars
Delaware's Lemon Law, codified as 6 Del. C. § 5001 et seq., establishes manufacturer obligations when defects substantially impair a vehicle's use, value, or safety. The statute applies exclusively to new automobiles purchased or leased in Delaware during the warranty term or within one year following original delivery, whichever occurs first. Used vehicles do not fall within the scope of Delaware's lemon law protections, as confirmed by the Delaware Attorney General's Consumer Protection Unit.
What Protections Do Used Car Buyers Have in Delaware?
While Delaware's lemon law excludes used vehicles from coverage, federal legislation offers essential safeguards for consumers.
Magnuson-Moss Warranty Act
Federal law establishes baseline warranty rights for used vehicle purchasers. The Magnuson-Moss Warranty Act provides remedies when sellers breach written warranty terms on consumer goods, including automobiles. Available legal actions include:
- Breach of written warranties provided by dealers or manufacturers
- Breach of warranties implied by law
- Failure to honor service contract obligations
FTC Used Car Rule
The Federal Trade Commission's Used Car Rule requires dealers to display a Buyer's Guide on each used vehicle before sale. This disclosure must identify:
- Whether warranty protection applies or the vehicle is sold without coverage
- Which mechanical systems and parts fall under warranty terms
- How long warranty protection remains in effect
- The dealer's share of repair expenses under warranty
- Recommendations to obtain vehicle history documentation and check for outstanding recalls
Understanding "As Is" Sales in Delaware
Delaware permits dealers to sell used vehicles "as is," meaning the dealer provides no warranty or guarantee of any kind. Delaware establishes that "as is" designation in the context of vehicle sales is ordinarily understood to mean that the buyer assumes the entire risk as to the vehicle's quality and condition.
What "As Is" Means for Buyers
When you purchase a vehicle under an "as is" designation:
- The dealer has no obligation to repair defects after sale
- You assume full financial responsibility for all repairs following delivery
- You pay for any problems discovered after taking possession
- No warranty coverage exists for the vehicle's mechanical condition
Limited Dealer Disclosure Requirements
Delaware law imposes specific disclosure obligations on motor vehicle dealers through 21 Del. C. § 6309. Dealers must complete and display a Federal Trade Commission Buyer's Guide on all used vehicles, and buyers must receive a copy before sale completion.
Dealers must disclose to buyers if the vehicle title has been branded "reconstructed," "flood damaged," "salvage," or designated as a former taxi. Buyers must acknowledge this disclosure by signing a Division of Motor Vehicles-approved statement. Dealers must submit a copy of the disclosure with the title application. Without proper disclosure, buyers may rescind the contract at any time and receive a full refund of all purchase money, interest paid, and fees.
Limited Exceptions to "As Is" Sales
Legal protections may still apply notwithstanding an "as is" designation when:
- Dealers engage in fraudulent conduct during contract preparation or execution
- Dealers alter sales documents or agreements without authorization
- Dealers refuse to honor express warranty commitments made in writing
Filing a Consumer Complaint
Consumers facing issues with used car dealers in Delaware can file complaints with the state's Consumer Protection Unit.
Delaware Department of Justice
Consumer Protection Unit
820 North French Street, Fifth Floor, Wilmington, Delaware 19801
Phone: (302) 577-8600
Toll-free: (800) 220-5424
Official Website: Consumer Protection Unit
