What Happens When the Dealership Disappears?
You bought a new car. It has been back for repairs more times than you can count. Then you find out the dealership has closed its doors for good. Now what?
Many consumers assume their Florida Lemon Law rights died with the dealership. That is not true. The law points to the manufacturer, not the dealership, as the party responsible for making things right.
Understanding that difference can save your claim.
Florida's Lemon Law Targets the Manufacturer
Florida's Lemon Law, Chapter 681 of the Florida Statutes, is built around manufacturer obligations. When your new or demonstrator vehicle cannot be fixed after a reasonable number of attempts, the statute requires the manufacturer to either replace the vehicle or give you a refund. The dealership is a repair location, not the party on the legal hook.
So when a dealership closes, the manufacturer does not get to walk away. Its obligations under the law stay in place.
This is a critical point. Many consumers spend weeks trying to track down a defunct dealer before realizing they should have been contacting the manufacturer all along.
For a deeper look at how responsibilities are divided between dealers and manufacturers, see our post on who is responsible, the dealer or the manufacturer.
Which Vehicles Are Covered?
Florida's Lemon Law covers new vehicles and demonstrator vehicles that were sold or leased in Florida. Used cars are not covered under Chapter 681. If you are unsure whether your vehicle qualifies, the date and type of purchase matter a great deal.
Your rights under the law run for 24 months from the date of original delivery. A closed dealership does not pause that clock, so acting promptly is important.
What Counts as a Lemon?
To have a valid claim, your vehicle must have a nonconformity. That means a defect or condition that substantially impairs the use, value, or safety of the vehicle and is not caused by abuse or neglect on your part.
Common examples include persistent engine problems, transmission failures, electrical system faults, and braking issues that keep coming back despite repeated repair visits.
The Repair Attempt Rules Still Apply
Even without a local dealership, the repair attempt requirements still matter. Here is how the process generally works:
- Three repair attempts for the same defect: After three attempts to fix the same problem, the consumer sends a written notice to the manufacturer. This is called a Motor Vehicle Defect Notification. It gives the manufacturer one final opportunity to repair the vehicle.
- 30 or more cumulative days out of service: If your vehicle has been out of service for repair for 30 or more cumulative days (60 days for RVs), you may also qualify. Written notice and an opportunity for the manufacturer to inspect and repair the vehicle are still required.
When a dealership has closed, consumers often need to use a different authorized service center for that manufacturer. Keeping records of every repair visit, every repair order, and every day the vehicle was out of service becomes even more important when the original dealer no longer exists.
Our post on days out of service in Florida explains how those days are counted and documented.
What Remedies Are Available?
If a claim succeeds, the statute allows for two possible outcomes:
- A replacement vehicle of the same or a comparable model, or
- A refund of the purchase price, including collateral charges and finance charges, minus a statutory offset for the consumer's use of the vehicle before the defect was first reported.
The refund calculation involves specific rules under the statute. The offset accounts for the miles you drove the vehicle before the problem began, not for all the time you owned it.
Past results do not predict future outcomes.