The lemon law applies only to new cars. You must file a lemon law complaint within the shortest of the following time periods:

Under the Texas Deceptive Trade Practices Act (DTPA), it is not lawful for a seller to not tell you about a known fault, to get you to buy the car. This law must be followed by everyone, not just used car dealers.

Under this law, a seller who knows about a problem with the car and doesn't tell you, or who tries to cover up the problem, may have to pay you up to three times your damages (for example, the cost of the repairs) plus court costs and attorneys' fees.

To use the Trade Practices Act you have to write the seller a letter telling him about the problem and the amount of your damages. In your case, the damages will be either what it will cost to get the car repaired or the difference between what you paid for the car and what it is really worth. If this amount is less than $ 5,000.00, you might want to file in small claims court. You don't need a lawyer to represent you in small claims court.

When a car is repossessed, the finance company or bank will sell the car for whatever they can get for it in its present condition. The money from that sale will first go to pay for the cost of the repossession, with any remaining money going to pay off what is owed on your car loan. If the money from the sale of your car is not enough to pay off your loan, the finance company will probably file suit against you to collect the "deficiency" (which is the unpaid balance owed on your car loan, including unpaid interest and late charges).

When you buy a vehicle from a licensed Texas car dealer, the dealer is required to complete all the papers that are necessary to title and register the vehicle in your name. The dealer must also file them with the county tax assessor-collector's office within 20 working days of the date you bought the vehicle.

If you do not receive the title within a month, you can file a complaint with the Texas Department of Transportation. When you file the complaint, you must show you had proof of insurance at the time of sale and send that proof when you return the form. To get a complaint form, you can write: Texas Department of Transportation, Motor Vehicle Division, Enforcement Section - New Complaints, P.O. Box 2293, Austin, Texas 78768 or call: (512) 463-8588. You may also go to the following internet link to print a form: ftp://ftp.dot.state.tx.us/pub/txdot-info/mvd/dealerform.pdf.