Years ago, consumers with problem vehicles that kept breaking down even when new were at the mercy of the auto manufacturers when it came to obtaining restitution. Some owners picketed dealerships; others simply sold their cars at a loss to get rid of the problem. These headaches were largely eliminated in the early 1980's when a few states started to create lemon laws to protect consumers from mechanical and safety problems.

Each state has a lemon law now, and tens of thousands of consumers have benefited from these statutes. Generally, a qualifying vehicle must be replaced or have its purchase price refunded if the problem cannot be fixed within a stated amount of time. The laws vary from state to state, and this can be a problem for some consumers who may not be aware of how their state's laws work. One problem in particular for drivers is that not all lemon laws cover leased vehicles.

Leased vehicles are much more popular than they were a generation ago. For drivers who do not put a lot of miles on their vehicle but want to drive a fairly new one, leasing can be a good choice. Pricing on leasing can be cheaper than buying when monthly payments are compared, for instance. The price of leasing could be much higher, however, if the consumer should get a lemon vehicle in a state that doesn't cover leased vehicles. Some state laws have been amended to cover leasing; others have not. If you live in such a state and have a problem vehicle, you may have to pay for the repairs every time the car goes into the shop. Your only other alternative would be to terminate the lease early, which can draw significant financial penalties.

Before you consider leasing a new vehicle, you may wish to check your state's lemon law to see if leased vehicles are covered where you live. A quick call to the office of your state's Attorney General can probably offer some useful information. Alternatively, you can do a search on the Internet for your state's Web page or that of the Attorney General. Most states have lemon law information available on the Internet, so it's simply a matter of spending a few minutes to find it. The small amount of time devoted to finding out if a leased vehicle is covered by your state's statute could save you thousands of dollars later. It's worth the time and effort.