Magnuson-Moss Warranty Act vs. Nebraska Lemon Law for Defective Used Cars

Does Nebraska's Lemon Law Cover Used Cars?

Discovering that your newly purchased used car has severe mechanical problems is a nightmare. Many buyers in Omaha, Kearney, and North Platte immediately assume they can use the state Lemon Law to force the dealer to take the car back. Unfortunately, the Neb. Rev. Stat. § 60-2701 is incredibly strict. State protections generally apply only to brand new vehicles within their first year of delivery. If you purchased a used car, even one that is only two years old, the state Lemon Law usually will not apply to you. However, you are not out of luck. You can search our directory to find a lawyer who handles federal warranty claims to help you get your money back.

The Magnuson-Moss Warranty Act Explained

Because state laws often leave used car buyers unprotected, the federal government stepped in. The 15 U.S.C. § 2301 (often called the Federal Lemon Law) provides a powerful legal avenue for consumers. This federal statute applies to any consumer product that comes with a written warranty, including used cars. If the manufacturer or dealer fails to honor that written warranty after a reasonable number of repair attempts, you can sue them for a breach of warranty in courts like the Hall County District Court, Grand Island or the Douglas County District Court, Omaha.

Federal Breach of Warranty Claims

Under the Magnuson-Moss Warranty Act, you do not have to meet the rigid '4 attempts or 40 days' rule of the state statute. Instead, you simply have to prove that a written warranty existed, that the car had a defect covered by that warranty, and that the dealer failed to fix it after a 'reasonable' number of chances. Furthermore, you can also assert claims for a breach of the implied warranty of merchantability under Neb. U.C.C. § 2-314, which guarantees that a car is reasonably fit for safe transportation.

Certified Pre-Owned (CPO) Vehicles

Certified Pre-Owned vehicles are marketed as heavily inspected, premium used cars that come with a manufacturer-backed warranty. Because of this written warranty, CPO vehicles are fully covered by the Magnuson-Moss Warranty Act. If your CPO vehicle's engine fails and the dealer cannot repair it properly, the manufacturer is in breach of their federal obligations. An attorney can help you demand a cash settlement or force a buyback.

Transferred Factory Warranties

If you buy a slightly used car that still has the remaining balance of its original 3-year/36,000-mile bumper-to-bumper factory warranty, that warranty transfers to you as the new owner. If a defect arises while that transferred warranty is still active, the Magnuson-Moss Warranty Act protects you. The manufacturer cannot deny a claim simply because you are the second owner, provided the warranty terms do not strictly forbid transfers.

How Much Does It Cost to File a Federal Claim?

One of the greatest benefits of the Magnuson-Moss Warranty Act is its fee-shifting provision. Found under 15 U.S.C. § 2310(d)(2), this rule states that if you win your breach of warranty lawsuit, the manufacturer must pay your reasonable attorney fees and court costs. Because of this, most consumer protection attorneys in Nebraska will take a strong federal warranty case on a contingency basis without requiring you to pay thousands of dollars in upfront legal fees.

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