What Is the Lemon Law in Iowa for Used Cars
Iowa's lemon law, codified as Iowa Code Chapter 322G, does not cover used cars. The statute applies exclusively to new or previously untitled motor vehicles purchased or leased in the state. Vehicles must be under two years old or have less than 24,000 miles to qualify for lemon law protection.
The law requires manufacturers to repair, replace, or repurchase vehicles with nonconformities that substantially impair use, value, or safety. Coverage extends to vehicles weighing less than 15,000 pounds gross vehicle weight rating that are primarily designed for transportation over public streets and highways. The "lemon law rights period" runs for the manufacturer's written warranty term, two years from original delivery, or 24,000 miles, whichever expires first.
What Protections Do Used Car Buyers Have in Iowa?
Although Iowa's lemon law does not extend to used vehicles, federal statutes provide important consumer protections.
Magnuson-Moss Warranty Act
The Magnuson-Moss Warranty Act offers federal protection when sellers breach written or implied warranties on motor vehicles. Consumers who receive written warranties on used vehicles can seek remedies under this federal statute, including compensation for costs and legal fees resulting from warranty breaches.
FTC Used Car Rule
The FTC Used Car Rule mandates that dealers post a Buyers Guide on each used vehicle offered for sale. This disclosure identifies whether warranty protection exists or if the sale occurs "as is," describes which systems receive coverage and for how long, and specifies the division of repair expenses between dealer and consumer. The Buyers Guide encourages consumers to arrange independent inspections and review vehicle history documentation.
Understanding "As Is" Sales in Iowa
Iowa law allows dealers to sell used vehicles "as is," transferring all post-sale repair responsibility to the buyer. The Iowa Attorney General's Office emphasizes that Iowa does not grant consumers the right to cancel vehicle purchases from dealer lots.
What "As Is" Means for Buyers
When purchasing a vehicle on an "as is" basis:
- Dealers disclaim implied warranties of merchantability and fitness
- Buyers accept full financial liability for defects emerging after purchase
- Buyers bear costs for mechanical, electrical, and structural issues arising post-sale
- Written express warranties or dealer representations remain binding
Limited Dealer Disclosure Requirements
Iowa imposes specific disclosure obligations regardless of "as is" status. Dealers must furnish a damage disclosure statement for vehicles seven model years old or newer, indicating whether the vehicle carried salvage, rebuilt, or flood title status in any jurisdiction. Federal odometer disclosure laws also apply to all vehicle transfers.
Limited Exceptions to "As Is" Sales
"As is" provisions do not protect dealers who:
- Engage in fraudulent conduct or intentionally hide known vehicle defects
- Falsify odometer readings or manipulate mileage information
- Issue false statements or use deceptive tactics to secure the sale
- Fail to comply with damage disclosure mandates for salvage, rebuilt, or flood vehicles
Filing a Consumer Complaint
Iowa Attorney General
Consumer Protection Division
Hoover State Office Building
1305 E. Walnut Street, Des Moines, IA 50319
Phone: (515) 281-5926
Toll-free: (888) 777-4590
Official Website: Consumer Protection Division
