Minnesota
Minnesota Lemon Law (2026): How to Qualify & Get a Refund
Independently fact-checked against primary sources (last audited August 17, 2026). · Reviewed by the RecordingLaw editorial team. · Law checked current as of August 17, 2026. · 6 primary sources cited on this page. How we verify our legal content
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 vehicles purchased or leased from authorized Minnesota dealers. 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
- 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
| Requirement | Details |
|---|---|
| Personal use threshold | Vehicle must be used at least 40% for personal, family, or household purposes |
| Point of sale | Must be purchased or leased from an authorized new motor vehicle dealer in Minnesota |
| Warranty coverage | Must be covered by the manufacturer's express warranty |
| State of sale | Must be sold or leased in the state of Minnesota |
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
| Trigger | Threshold | Details |
|---|---|---|
| Repeated repairs (same defect) | 4 or more attempts | The same nonconformity must substantially impair the vehicle's use or market value |
| Safety defect | 1 or more attempts | Applies to complete failure of brakes or steering likely to cause death or serious bodily injury |
| Total days out of service | 30 or more business days | Cumulative total during the coverage period, not necessarily consecutive |
| Coverage period | Warranty period or 2 years from delivery | Whichever expires first |
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 offer the consumer either a full refund or a comparable replacement vehicle. Under Minnesota Statutes § 325F.665, Subdivision 3, if the manufacturer offers a replacement, the consumer has the right to reject it and demand a full refund instead.
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
- Finance charges: All interest and loan origination fees
- 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. The consumer always controls which remedy they ultimately receive.
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. You must use this arbitration process before filing a lawsuit, unless the manufacturer does not maintain a compliant program.
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 participate in arbitration and are dissatisfied with the result, you have an additional six months after the arbitration decision to file a lawsuit, even if the three-year period has expired
Manufacturer Defenses
Manufacturers may raise several affirmative defenses against lemon law claims.
| Defense | Description | How to Counter |
|---|---|---|
| No substantial impairment | The defect does not substantially impair use or market value | Document how the defect affects daily driving and vehicle resale value |
| Consumer abuse or neglect | The problem was caused by consumer misuse or failure to maintain | Provide complete maintenance records showing adherence to the owner's manual schedule |
| Unauthorized modifications | Aftermarket parts or alterations caused the defect | Show the problem existed before any modifications were made |
| Insufficient notice | The consumer did not provide the required written notice | Keep copies of all written correspondence and certified mail receipts |
| Out of time | The claim falls outside the warranty period or two-year window | Demonstrate that the defect was first reported within the coverage period |
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
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. 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 consumer always controls which remedy they ultimately receive.
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?
Yes. If the manufacturer maintains an arbitration program that complies with federal regulations (16 CFR Part 703) and is located within Minnesota, you must use it before filing a lawsuit. 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 go through arbitration first and are dissatisfied, you have an additional six months after the decision to file suit.
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.
Updates
Independently fact-checked against the cited primary sources; governing law re-checked for recent changes
Governing law re-checked for recent changes
Governing law re-checked for recent changes
Reviewed and approved by an editor
The Law Behind This Article
This article rests on the statutory provisions below, held in our own legal record and retrieved from the official source. Tap a section to read the operative text.
Minnesota Statutes, Chapter 325F: CONSUMER PROTECTION; PRODUCTS AND SALES
§ 325F.665NEW MOTOR VEHICLE WARRANTIES; MANUFACTURER'S DUTY TO REPAIR, REFUND, OR REPLACEIn force
Subdivision 1. Definitions. (a) For the purposes of this section, the terms in paragraphs (b) to (i) have the meanings given them. (b) "Consumer" means the purchaser or lessee, other than for purposes of resale or sublease, of a new motor vehicle used for personal, family, or household purposes at least 40 percent of the time, and a person to whom the new motor vehicle is transferred for the same purposes during the duration of an express warranty applicable to the motor vehicle. The term also includes an ambulance service licensed under chapter 144E that has purchased or leased a new motor vehicle of the type specified in paragraph (f), and a person to whom the ambulance is transferred for the same purpose during the duration of any applicable express warranty. (c) "Manufacturer" means a person engaged in the business of manufacturing, assembling or distributing motor vehicles, who will, under normal business conditions during the year, manufacture, assemble or distribute to dealers at least ten new motor vehicles.
Official text (excerpt) · last checked 2026-09-10 · Read the full text in our law library · Verify at revisor.mn.gov
Cited in 21 court opinions in our collectionLatest citing opinion in our collection: 2022
Opinions citing this section in our collection:
- Green v. BMW of North America, LLC (Supreme Court of Minnesota 2013, 826 N.W.2d 530)“…ant BMW of North America, LLC, under Minnesota’s lemon law, Minn.Stat. § 325F.665 (2012). 1 After a bench trial, the dis…”
- Pfeiffer v. Ford Motor Co. (Court of Appeals of Minnesota 1994, 517 N.W.2d 76)“…y to handle complaints filed under the Minnesota Lemon Law, Minn.Stat. § 325F.665 (1992). The FCAB denied their complaint…”
- Curtis B. Braatz v. Parsons Electric Company and Zurich North America/GAB Robins, Inc., Relators. (Supreme Court of Minnesota 2014, 850 N.W.2d 706)“…es for a $25,157 damage award under Minnesota’s lemon law, Minn. Stat. § 325F.665 (2012). Green, 826 N.W.2d at 532-33. W…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
§ 325F.662SALE OF USED MOTOR VEHICLESIn force
Subdivision 1. Definitions. For the purposes of this section, the following terms have the meanings given to them. (a) "Consumer" means the purchaser, other than for purposes of resale, of a used motor vehicle used primarily for personal, family, or household purposes. (b) "Dealer" means a motor vehicle dealer or lessor, as defined in section 168.27, subdivisions 2, 3, and 4, whether licensed or unlicensed, or the dealer's or lessor's agent, who is engaged in the business of selling or arranging the sale of used motor vehicles in this state; except that, the term does not include a bank or financial institution, a business selling a used motor vehicle to an employee of that business, a lessor selling, either directly or indirectly, a leased used motor vehicle to that vehicle's lessee or a family member or employee of the lessee, or a licensed auctioneer selling motor vehicles at an auction if, in the ordinary course of the auctioneer's business, the sale of motor vehicles is incidental to the sale of other real or personal property. (c) "Motor vehicle" means a passenger automobile, as defined in section 168.002, subdivision 24, including pickup trucks and vans.
Official text (excerpt) · last checked 2026-07-29 · Read the full text in our law library · Verify at revisor.mn.gov
Cited in 1 court opinions in our collectionLatest citing opinion in our collection: 2018
Opinions citing this section in our collection:
- Nelson Auto Center, Inc. v. Multimedia Holdings Corporation (District Court, D. Minnesota 2018)“…3 Minn. Stat. §§ 325F.662-666 (automobile dealer licensing regula…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
United States Code Title 15
§ 2301DefinitionsIn forcecited in 39 of our articles
For the purposes of this chapter: The term “consumer product” means any tangible personal property which is distributed in commerce and which is normally used for personal, family, or household purposes (including any such property intended to be attached to or installed in any real property without regard to whether it is so attached or installed). The term “Commission” means the Federal Trade Commission. The term “consumer” means a buyer (other than for purposes of resale) of any consumer product, any person to whom such product is transferred during the duration of an implied or written warranty (or service contract) applicable to the product, and any other person who is entitled by the terms of such warranty (or service contract) or under applicable State law to enforce against the warrantor (or service contractor) the obligations of the warranty (or service contract). The term “supplier” means any person engaged in the business of making a consumer product directly or indirectly available to consumers. The term “warrantor” means any supplier or other person who gives or offers to give a written warranty or who is or may be obligated under an implied warranty.
Official text (excerpt) · last checked 2026-07-28 · Read the full text in our law library · Verify at uscode.house.gov
Cited in 1,671 court opinions in our collectionLatest citing opinion in our collection: 2026
In the courts (editorial summary, independently checked):Walsh v. Ford Motor Company (1986) held that except where Magnuson-Moss expressly prescribes a rule, the Act applies state written and implied warranty law, citing Section 2301(7)'s definition of implied warranty as one arising under state law. Birdsong v. Apple (2009) dismissed Act claims once the state warranty claims failed.
Opinions citing this section in our collection:
- John F. "Jack" Walsh v. Ford Motor Company (Court of Appeals for the D.C. Circuit 1986, 807 F.2d 1000)✓Ford owners sought nationwide classes over transmissions that slipped from park into reverse; reading Section 2301(7) and (6), the D.C. Circuit held Magnuson-Moss applies state warranty law except where the Act expressly prescribes a rule, and vacated class certification.
- Birdsong v. Apple, Inc. (Court of Appeals for the Ninth Circuit 2009, 590 F.3d 955)✓iPod buyers alleged the player risked hearing loss; because Section 2301(7) ties implied warranty to state law, the Ninth Circuit treated the Magnuson-Moss claim as standing or falling with the California warranty claims and affirmed dismissal once those failed.
- Robert E. Kelly Virginia L. Kelly v. Fleetwood Enterprises, Inc. (Court of Appeals for the Ninth Circuit 2004, 377 F.3d 1034)“…gnizable under the Magnuson-Moss Warranty Act (the “Act”), 15 U.S.C. § 2301 et seq. This consumer dis…”
Identified automatically from the court opinions citing this section — not a ranking of which case controls.
Also relied on in: Arkansas Lemon Law (2026): How to Qualify & Get a Refund, Washington Lemon Law (2026): How to Qualify & Get a Refund, Florida Lemon Law (2026): How to Qualify & Get a Refund
Search our full record of US law — 2.1 million sections, every state + federal →
Sources and References
- Minnesota Statutes § 325F.665: New Motor Vehicle Warranties (Full Text)(revisor.mn.gov).gov
- Minnesota Attorney General: Lemon Law Consumer Guide(ag.state.mn.us).gov
- Minnesota Attorney General: Car Laws Brochure (PDF)(ag.state.mn.us).gov
- Minnesota Driver and Vehicle Services: Title Branding(dps.mn.gov).gov
- Federal Trade Commission: Magnuson-Moss Warranty Act(ftc.gov).gov
- Minnesota Statutes § 325F.662: Sale of Used Motor Vehicles(revisor.mn.gov).gov
- BBB AUTO LINE: Lemon Law Dispute Resolution Program(bbbprograms.org)