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Should the vehicle qualify, the owner will be required to compensate the manufacturer a “reasonable offset” for use of the vehicle. Once this payment is made, the manufacturer will have 40 days in which to provide the owner’s choice of a replacement vehicle of comparable type, or a refund of the purchase price. If the consumer elects to take the refund, the amount will include all incidental charges, such as taxes, license fees and dealer preparation charges.
Should the manufacturer not comply, the consumer is entitled to relief under the law. If the manufacturer offers an arbitration program that is certified by the state, the owner must enter into arbitration. Said arbitration is not binding upon the consumer, and the consumer retains the right to sue following the arbitration result. A vehicle owner who wins a lemon law case is entitled to either a refund or a suitable replacement vehicle, at the owner’s option.
Iowa does permit the resale of vehicles that have been returned to the manufacturer as a result of defects. These vehicles must be marked “Salvage” or “Rebuilt” on the title. Sale of such vehicles must include a statement that the vehicle is a returned defective model.
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For more information on the Iowa Lemon Law, see their homepage.
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