Leased Vehicles Under Illinois Lemon Law

Illinois’s Lemon Law covers leased vehicles. 815 ILCS 380 defines “consumer” to include lessees.

How the Illinois Lemon Law applies to leases

Lessees have full standing. Remedies:

• Lease terminated without penalty.
• Refund of payments made.
• Released from remaining lease obligation.
• Manufacturer pays collateral charges and incidental damages.
• Parallel ICFA damages and attorney fees in civil court.

A reasonable use deduction still applies.

The refund math for leases

Element	Amount
Cap-cost reduction	Refunded
Monthly payments made	Refunded
Acquisition fee, doc fees	Refunded
Sales tax	Refunded
Registration fees	Refunded
Incidental damages	Refunded
Subtotal	(sum)
Less: reasonable allowance for use	Subtract
Net cash to lessee	Final amount
Plus: lease terminated	(no cash; lease cancelled)

Why lessees sometimes hesitate

• “I’ll just return it at lease end.” — But you’d continue payments + face disposition fee + excess-mileage/wear charges. Bringing a Lemon Law claim now stops payments and gets prior payments refunded.
• “I don’t own it, so I can’t sue.” — Illinois Lemon Law gives lessees standing.

Lease-specific procedural considerations

The leasing company as a necessary party

When lease terminates under Illinois Lemon Law remedy, the leasing company is notified for title transfer.

Mileage caps

Illinois’s 12,000-mile threshold is statutory.

Manufacturer-affiliated leasing companies

Many lease programs use captive finance subsidiaries.

What if your lease has end-of-term wear charges?

Manufacturers can’t impose disposition or wear-and-tear charges when the lease terminates via Illinois Lemon Law remedy.

What you should do

1. Pull every repair order since the lease started.
2. Note your lease’s monthly payment, remaining term, and cap-cost reduction.
3. Send § 380/3 notice.
4. Get a free case review.

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