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Lemon Law & Credit Report

I bought a lemon that was replaced under my state's lemon law. Will that appear as a repo on my credit report?

I bought a car about 3-4 months ago. It gave me problems the dealer was unable to fix. I was able to get a new car. I was told that I was able to do that because my case fell under the Lemon Law in Arizona. How will this effect my credit score or credit report? Will it show like a repo or something like that?

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Bill's Answer
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  • A vehicle returned under a state's lemon law is not a repo.
  • Lemon Law vehicles should have no effect on a credit score.
  • All states offer Lemon Laws.

In general, a lemon law requires a manufacturer to repair a vehicle until it works properly, or if it cannot do so, it must either give the consumer a full refund or a new vehicle. Arizona's lemon law is similar to lemon laws in the other 49 states, and all are patterned after California’s Tanner Act, which was passed in 1980. Arizona’s lemon law can be found in Arizona Title 44, Chapter 9, Article 5: Motor Vehicle Warranties.

A vehicle returned under a state’s lemon law is not a repossession. A car returned under a lemon law should have no effect whatsoever on your credit score, assuming you continued to make all of your payments on time throughout this ordeal.

I hope that the information I provided helps you Find. Learn. Save.



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