What Is the Lemon Law in Oregon for Used Cars
Oregon's lemon law, codified in ORS 646A.400 et seq., provides consumer protections for defective motor vehicles; however, these protections apply exclusively to new vehicles. The state's lemon law covers vehicles purchased or leased for a duration of two years or 24,000 miles from the original delivery date, whichever occurs first. Oregon does not extend lemon law remedies to previously owned vehicles, leaving used car buyers to rely on alternative legal protections and federal safeguards.
What Protections Do Used Car Buyers Have in Oregon?
Although Oregon's lemon law excludes used vehicles, several protective mechanisms remain available through federal law and state-specific disclosure requirements.
Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act extends federal protection to consumers who purchase used vehicles with written warranties. When a dealer or manufacturer provides a written warranty on a used vehicle, this federal statute permits buyers to pursue legal action for breach of warranty. Consumers may recover actual damages, reasonable attorney fees, and court costs for warranty violations. Notably, if a dealer enters into a service contract with the consumer, the Magnuson-Moss Act prohibits disclaiming implied warranties, even when "as is" language appears in the sales contract.
FTC Used Car Rule Requirements
The Federal Trade Commission enforces the Used Car Rule, which mandates that dealers display a Buyers Guide on every used vehicle offered for sale. This disclosure document must clearly communicate whether the vehicle is offered with a warranty or sold "as is." The Buyers Guide specifies which systems are covered under any warranty, the duration of warranty coverage, and the percentage of repair costs the dealer will cover. Dealers must also advise consumers to obtain independent vehicle history reports and check for outstanding safety recalls.
Understanding "As Is" Sales in Oregon
Used vehicles sold "as is" in Oregon are transferred without warranty obligations from the dealer. Oregon law recognizes the validity of "as is" designations when properly communicated to consumers at the time of purchase. When a vehicle carries this designation, the buyer accepts all risks associated with the vehicle's mechanical condition, appearance, and functionality.
What "As Is" Means for Buyers
A purchase marked "as is" signifies the following:
- The dealer relinquishes all responsibility for repairs or defects discovered following the sale
- The buyer assumes complete financial liability for all vehicle malfunctions, system failures, and damage
- No implied warranties of merchantability or fitness for a particular purpose extend to the transaction (absent specific exceptions)
- Problems identified immediately after delivery remain the buyer's sole responsibility
Limited Dealer Disclosure Requirements
Even in "as is" transactions, Oregon dealers are required to comply with specific statutory obligations. The FTC Buyers Guide must plainly state that the vehicle is sold without warranty. Dealers cannot misrepresent the vehicle's condition, title status, or mechanical history. If a vehicle is sold with a salvage or rebuilt title, the dealer must disclose this status before the sale is concluded. Accurate odometer readings must be recorded on all sales documents. Dealers are also prohibited from concealing known defects through misrepresentation or fraud.
Limited Exceptions to "As Is" Sales
Notwithstanding "as is" designations, legal remedies remain available when dealers commit certain prohibited acts:
- The dealer knowingly misrepresents material facts about the vehicle's condition, title history, or mechanical status
- The dealer conceals known defects from the buyer through intentional fraud or deception
- The dealer provides false odometer readings or fails to accurately record mileage
- The dealer violates express warranty terms or specific written representations made during the sales transaction
- The dealer breaches a service contract covering specific vehicle systems or components
Filing a Consumer Complaint
Oregon Department of Justice
Consumer Protection Division
550 Capitol Street NE, Salem, OR 97302
Phone: (503) 378-4400
Toll-free: (877) 877-9392
Official Website: Consumer Protection Division
