Indiana’s lemon law provides comprehensive protection for consumers who purchase new defective vehicles. The law covers new vehicles, demonstrators, and even leased vehicles—a broader scope than many states. If a manufacturer cannot repair a substantial defect within four attempts or 30 days, you have the right to demand a refund or replacement vehicle. Indiana’s coverage period of 18 months or 18,000 miles is moderate, giving you a reasonable window to discover and document problems.

Indiana consumers enjoy strong protections under this statute, and the law recognizes that repeatedly returning to a dealer for the same problem represents a failure of the manufacturer’s warranty obligation. If your vehicle qualifies as a lemon, you can pursue relief through arbitration (if the manufacturer participates) or through the courts, with potential recovery of attorney fees if you prevail.

Indiana Lemon Law: Key Facts

Aspect	Details
Statute	IC § 24-5-13-1 et seq.
Coverage	New vehicles, demonstrators, leases
Mileage/Time Limit	First 18 months or 18,000 miles (whichever comes first)
Repair Attempts Required	4 attempts for same defect OR 30 days out of service
Arbitration Required First?	BBB Auto Line arbitration if manufacturer uses it
Attorney Fees	Yes — recoverable if consumer prevails
Enforcement Agency	Indiana Attorney General (Consumer Protection Division)

What Qualifies as a Lemon in Indiana

A vehicle qualifies as a lemon in Indiana if it has a defect that substantially impairs its use, value, or safety, occurring within the first 18 months or 18,000 miles of ownership. The manufacturer must have had at least 4 attempts to repair the same defect, or the vehicle must have been out of service for 30 cumulative days during the coverage period. Unlike some states, Indiana’s definition covers demonstrators (vehicles used by dealerships for promotional purposes) and leased vehicles, not just purchased vehicles.

The defect must substantially impair the vehicle—cosmetic issues or minor operational variations don’t typically qualify. Safety defects involving brakes, steering, airbags, or seatbelts are taken seriously in Indiana lemon law cases. The law protects against both a single serious defect and the cumulative burden of multiple defects affecting different systems.

How to Document Your Lemon Claim

Maintain detailed records of every service visit, including the date, your vehicle’s mileage, the exact defect you reported, the repair order number, what the dealer attempted to fix, and whether the defect returned. Collect and keep all original repair orders and invoices. Document any communications with the dealer—phone calls, emails, or in-person conversations—including the date, time, and names of representatives you spoke with. If you received a loaner vehicle during repairs, keep records of those dates. Organize all materials chronologically for easy reference when filing your claim.

How to File a Lemon Law Claim in Indiana

Step 1 — Send Written Notice to the Manufacturer

Prepare a certified letter to the vehicle manufacturer stating that your vehicle is a lemon under Indiana law. Include the VIN, purchase date, current mileage, descriptions of all defects, dates of all repair attempts, and copies of repair orders. Send this letter via certified mail with return receipt requested. This official notice informs the manufacturer of your intention to seek relief and begins the formal lemon law process.

Step 2 — Attempt Manufacturer Arbitration (If Required)

If your vehicle’s manufacturer participates in BBB Auto Line arbitration, you may be required to pursue arbitration before filing a lawsuit. BBB arbitration is free to the consumer and typically concludes within 40-60 days. Present your repair documentation and explain why you believe your vehicle is a lemon. If the arbitrator rules in your favor, the manufacturer must provide a refund or replacement.

Step 3 — File a Claim or Lawsuit

If arbitration is unavailable, the manufacturer declines to participate, or you disagree with the arbitration decision, you can file a civil lawsuit in your county’s court. Indiana law allows prevailing consumers to recover attorney fees and costs, so many attorneys will take these cases on contingency. You may also file a complaint with the Indiana Attorney General’s office for investigation.

Real Situations in Indiana

An Indianapolis buyer purchased a new Ford Fusion that developed transmission problems at 8,500 miles. Over 16 months, the owner returned to the dealer four separate times to address the same transmission lag and hesitation. Each repair was unsuccessful, with the defect recurring within weeks. After the fourth repair attempt, the owner sent a lemon law notice to Ford citing IC § 24-5-13. Ford authorized a full purchase price refund, and the consumer received funds within 30 days.

A Fort Wayne case involved a new Subaru Outback that spent 35 cumulative days in service for various defects—a recurring fuel system issue, air conditioning malfunction, and electrical gremlins. Although the defects were different, the total out-of-service days exceeded Indiana’s 30-day threshold. The manufacturer offered a replacement vehicle of equal or greater value rather than a refund, and the consumer accepted the replacement.

A South Bend consumer leased a new Honda Civic that developed a persistent engine knock within weeks of delivery. The dealer performed four service visits attempting to diagnose and repair the issue, but the knocking sound returned each time. Under Indiana’s lemon law coverage for leases, the leasing company (with manufacturer authorization) arranged a replacement vehicle and waived all remaining lease obligations, allowing the consumer to walk away without penalty.

Common Mistakes Indiana Lemon Law Buyers Make

Not documenting repair attempts thoroughly: Simply visiting the dealer multiple times isn’t enough—you must have written documentation of each visit and what was attempted. Always request written repair orders and keep detailed notes of your complaints and the dealer’s responses.
Ignoring the 18-month/18,000-mile deadline: Indiana’s coverage period is finite. If you experience problems, begin documenting immediately and don’t delay in pursuing your claim. Once you reach 18 months or 18,000 miles, your lemon law protection ends.
Accepting temporary fixes instead of permanent solutions: If a dealer patches a problem temporarily but the underlying defect remains, this doesn’t satisfy the repair attempts requirement. Push for permanent resolution of the root cause before accepting any settlement.

This article is for informational purposes only and does not constitute legal advice. Last reviewed: March 2026.

Indiana Lemon Law: What Qualifies and How to Get a Refund or Replacement (2026)