Leased Vehicles Under Indiana Lemon Law

Leased vehicles are covered by Indiana’s Lemon Law (§ 24-5-13) on the same terms as purchased vehicles. The lessee — not the lessor — is the protected “consumer” under § 24-5-13.

Lease coverage

• Lessee is the protected consumer.
• Lessor (bank / finance company) has no Lemon Law standing.
• Manufacturer is the Lemon Law defendant.
• Lease term + warranty period define the Rights Period.

What’s recoverable in a leased-vehicle refund

§ 24-5-13-14 refund covers:

• All lease payments made to date.
• Sales tax paid on lease payments.
• Capitalized cost reduction / down payment.
• Acquisition fee.
• Disposition fee (waived).
• Excess mileage / wear charges (waived).
• Incidental damages.

Plus the lease is terminated with no further obligation to the lessee.

Lease termination process

After award:

1. Manufacturer pays the lessor the residual.
2. Lessee surrenders the vehicle.
3. Lessor releases the lessee from further obligation.
4. Lessee receives the lease-payment refund.

Replacement under lease

If lessee chooses replacement:

• New lease on comparable vehicle.
• Original lease terms preserved.
• Sales tax credit transferred.

IDCSA application

IDCSA applies to lease deceptive practices:

• Misrepresentation of lease terms.
• Hidden fees in lease agreement.
• Lease vs. purchase steering without proper disclosure.
• Deceptive end-of-lease charges.

Requires 30-day cure notice for treble damages.

Bottom line

Leased vehicles get the same Lemon Law protection under § 24-5-13. The refund covers lease payments + tax + fees + incidental damages plus terminates the lease.

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