Be on the lookout for arbitration clauses
Most dealerships and manufacturers work an arbitration clause into your contract when you buy a car. These state that any disputes you may have with a company must be settled through arbitration, which means settling your dispute through a third party — not in court. Before signing any documentation, look for the arbitration clause and read it carefully. You may have a chance to opt out of it within the first few months of ownership. But if you don’t, it will be considered legally binding.
If you do have to go through arbitration because of a lemon car, try to opt for your state’s consumer protection agency as the third party, rather than a private arbitrator or the manufacturer’s arbitration team. The arbitrator — or arbitration panel, in some cases — will analyze the situation and determine what solution will best suit both parties.
If you’re not happy with the arbitration ruling, you can appeal it. However, this requires hiring an attorney and providing lots of documentation. The process can be long and expensive, so determine if it’s worth your time and money before pursuing a lawsuit against the company.