Press Room

An Act modernizing protections for consumers in automobile transactions bolsters consumers’ rights and protections when buying a vehicle in Massachusetts. It expands the existing Lemon Law, increases used car warranties, and strengthens consumer protection surety bonds. The legislation also grants people who lease a vehicle the right to cure a payment default, giving them some parity with people who finance the purchase of a vehicle. 

The details of the legislation are below. 

Expands Lemon Law Protections. Builds on existing protections for motor vehicle buyers by allowing a buyer to void a sale if the vehicle fails to pass inspection within seven days of delivery. The window to void a sale is currently seven days from the date of purchase.

Protects Buyers of Older, More Affordable Cars. Increases the maximum mileage of the used vehicle warranty from 125,000 miles to 175,000 miles.

Doubles Consumer Protection Bond. Doubles—from $25,000 to $50,000—the amount of the surety bond that used car dealers are required to post for the benefit of consumers who experience fraud.

Eases Recovery Against Surety Bond. Allows the Attorney General to make claims against dealers’ surety bonds on behalf of affected consumers, in addition to the existing ability of car buyers to pursue their own claims. Removes the current hurdle that a consumer must wait for a final court judgement before pursuing a claim.

Gives Lessees a Grace Period. Gives those who choose to lease their vehicle the right to cure a payment default before their car is repossessed. Lessees would have 21 days to pay the amount due to the creditor or lessor after a notice of their rights is mailed to them, mirroring the ‘right to cure’ currently available to people who finance a vehicle purchase.