Are leased cars covered in Texas, California and Florida?
In the three states we have verified most fully, leases are covered; what changes is how the refund is calculated.
| State | Covered? | How the refund works |
|---|---|---|
| Texas | Yes | Based on the lessor’s price paid; TxDMV publishes a lease repurchase worksheet |
| California | Yes | Restitution based on what you actually paid under the lease |
| Florida | Yes, leases of 1 year or more | You receive your lessee cost; the lessor receives the rest; no early-termination charge (§ 681.104(2)(b)) |
Who gets the money in a lease buyback?
A leased car has two owners of money: you and the leasing company. A lease buyback pays the leasing company for its interest in the vehicle and returns your own payments to you, minus any usage offset your state applies. The lease then ends. Florida forbids an early-termination charge in this situation.
What if your lease ends during the claim?
A lemon law claim does not stop the lease clock. If your lease will end before the claim is decided, tell the program and the leasing company in writing, and ask how the return will be handled before you sign any turn-in paperwork. Buying out the lease turns the car into a used purchase for you, but the original window still counts from the first delivery, so a pending claim does not disappear. Get advice before either step, because a release in lease-end paperwork can affect the claim.
Lease rules in other states
Other states add their own lease rules, from who you must notify to what happens to the lease.
| State | Rule |
|---|---|
| New York | The new-car lemon law covers cars bought, leased or transferred within 18,000 miles or two years of delivery. |
| Michigan | Lessees can choose a refund or a comparable replacement. If a lessee accepts a replacement, the lease cannot be changed except to list the new VIN. |
| Georgia | Leased vehicles are covered; at a set step in the process you must notify the lessor in writing. |
| Washington | You may not stop loan or lease payments while a claim is pending. |
| Massachusetts | State arbitration covers new and leased cars bought from dealers; apply within 18 months of delivery. |
Example: how a Florida lease offset is calculated
Florida’s Attorney General explains that for a lease, the usage offset uses the agreed-upon value in the lease agreement, reduced by any manufacturer rebate, instead of a purchase price. The miles counted are yours only: subtract the mileage at delivery and test drives during repairs and inspections.
| Item | Amount |
|---|---|
| Agreed-upon value in the lease | $36,000 |
| Your miles up to the settlement or hearing | 12,000 |
| Offset: $36,000 × 12,000 ÷ 120,000 | $3,600 |
You then receive your lessee cost back, minus that offset, and the leasing company receives the rest. Florida also bars an early-termination charge.
Are business leases and company cars covered?
Lemon laws mostly protect personal leases, but some states include small business vehicles. California covers vehicles under 10,000 lbs when the business has no more than five vehicles registered in the state. Georgia covers new vehicles bought, leased or registered there for personal use, or up to 10 business vehicles a year. If your company leases the car, check who the “consumer” is under your state’s law.
How to protect yourself as a lessee during a claim
Lessees have a few extra steps to protect themselves during a claim.
- Keep making lease payments while the claim is open, unless your attorney or the program says otherwise.
- Tell the leasing company in writing about the claim.
- Keep every repair order and loaner record.
- Do not turn the car in early on your own; that can complicate the refund.
- If the lease ends during the claim, ask the program how to handle the return before you sign anything.
Use the checker on this page, which treats leases separately, or run the lemon law check for a leased car from the home page.
Frequently asked questions
Can you lemon law a leased car?
Yes. Texas, California and Florida all cover new leased vehicles under the same repair tests as purchases. Florida requires a lease of one year or more.
What do you get back in a lease buyback?
Generally what you paid under the lease. In Florida you receive your lessee cost with no early-termination charge; the lessor receives the rest.
Should I keep paying my lease during a lemon law claim?
Yes, in most cases. Stopping payments can harm your credit and your claim. Ask your attorney or the program before changing anything.
Can I return a leased car if it has problems?
Not simply by handing it back. If the car is a lemon, the lemon law process can end the lease with a refund of your payments. Otherwise, early return follows the lease’s early-termination terms.
How can I legally get out of a car lease?
Through the lease’s own early-termination or transfer terms, or, for a vehicle with a qualifying defect, through a lemon law claim. Florida, for example, forbids an early-termination charge in a lemon law lease refund.
Does a lemon law claim end my lease?
A lease buyback ends it: the leasing company is paid and you get your lessee cost back, minus any offset. A replacement may keep the lease going; in Michigan, the lease stays the same except for the new VIN.
Who gets the money in a lease buyback?
Both you and the leasing company. In Florida, you receive your lessee cost and the lessor receives the rest, with no early-termination charge.
Can I buy out my lease while a lemon law claim is open?
Get advice first. A buyout makes you the owner of a used vehicle, and lease-end paperwork can include a release. The original window still counts from the first delivery.
Sources
Checked on October 12, 2026. Read how we verify every rule in our editorial policy.
- TxDMV: Texas Lemon Law
- California Civil Code § 1793.2
- Florida Statutes, Chapter 681 (Lemon Law)
- New York Attorney General: New York’s lemon laws
- Michigan Department of Attorney General: Michigan’s Lemon Law
- Georgia Consumer Protection Division: Georgia Lemon Law
- Washington Attorney General: General Lemon Law
- Mass.gov: Apply for Lemon Law Arbitration
- Florida AG: Lemon Law Remedy Calculation Guideline
- California Civil Code § 1793.22 (Tanner Act)