In most cases you are at a complete loss. The Lemon Laws in many states are written to safeguard customers from defects in new cars, not dishonest used vehicle salesmen.
Nonetheless, most states need both used and new car salesmen inform you if the auto they're selling you was once a lemon as defined that state's lemon laws.
If you find that your car was a lemon (you can commonly do this by checking the title of the vehicle) and you were not informed by the dealer you are normally entitled to some compensation.
Sadly, there are many cars which have substantial issues even those cars aren't technically Lemons. In most states there is little lemon law protection for buyers, particularly if a car is sold through a private party.
There are always other forms of recourse if you feel that a used vehicle deal has misrepresented the vehicle they sold you. Certainly report your transaction to the Better Business Bureau (BBB) and the Chamber of Commerce in your region. Speak with a lawyer as well and see if you have other legal recourse.
This is all changing though. States are starting to realize that customers will need protection from unscrupulous used auto salesmen. In 1996, NJ passed a lemon law that covers used car sales. These laws are very limited in nature, and requires that consumers identify issues very quickly after discovering a defect. As a good example, the New Jersey law depends on the odometer reading. It applies to:
- a motor vehicle has 24,000 miles or less: the dealer must provide a warranty for 3 months or 3,000 miles, whichever comes first.
- a motor vehicle has more than 24,000 miles, but much less than 60,000 miles: the dealer should provide a warranty for two months or 2,000 miles, whichever comes first.
- a motor vehicle that has between 60,000 and 100,000 miles: the dealer should provide a warranty for thirty days or 1,000 miles, whichever comes first.
