says that about 1% of new cars are lemons, which means that they have unfixable and repeated problems. That comes out to about 150,000 cars per year. Every state has some version of a lemon law to protect consumers so that they don't get stuck with unreliable and expensive vehicles.

To take advantage of lemon laws, though, you have to know what falls under those laws and what does not. Each state is different, but two conditions are almost universal.

In general, the car has to have a substantial defect that is covered by the warranty, and it continues to have the problem after a reasonable number of attempts to repair it. “Substantial defect” has a somewhat murky definition, but it does not include minor things like loose door handles or other small issues. In some places, a bad paint job can be a substantial defect. Things that compromise the safety of the occupants are also usually substantial defects.

The same holds true for the number of reasonable attempts. While definitions of reasonable do vary from state to state, which makes it hard to pin down exactly what the number would be, there are some generally accepted requirements.

Again, if it is a serious safety issue, most states require that it be fixed in one visit. For all other issues, it might be defined as three or four visits, or it might be defined as the number of days in a year that the vehicle has been in the shop.

The lemon law conditions in Georgia

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Georgia has its own requirements, too. There are a few conditions to meet before you can pursue compensation under Georgia's lemon law.

You need to have bought, leased, or registered the vehicle in Georgia, and you have to be the original purchaser or lessee.

Repair attempts have to be made at a facility authorized by the dealer or manufacturer. Those repair attempts have to be made within the Lemon Law rights period, which is 24,000 miles or 24 months, whichever happens first.

The vehicle must have been purchased for either personal use or business use if the business has less than 10 vehicles and is not a limousine service.

In addition, the defect must be covered by the warranty and must negatively impact the vehicle's value, safety, or use.

If those six conditions are met, then you have a lemon on your hands under Georgia law.

According to Georgia's

Consumer Protection Division

, there are some additional things to keep in mind. Georgia puts a time limit on filing for arbitration, so make sure that you get your application in as soon as you fulfill the conditions. You will have 12 months after the 24-month/24,000-mile period is up.

You should also keep good records. As soon as you end up in the shop the first time, you should be thinking about what could happen next, and keep those records handy in case you need them later. You carry the burden of proof if arbitration is necessary.

You can get either a refund or a replacement on your lemon

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Even though ending up with a lemon might be a nightmare, there's definitely light at the end of the tunnel. If all those conditions are met, you are entitled to a refund or a replacement. Most states, including Georgia, require that you go through arbitration before ending up in court, and manufacturers and dealers rarely want to deal with an escalation of that nature.

Nolo points out that people with good records and documentation tend to fare better in arbitration. Remember, it's better to be over-prepared, so if you end up in the shop for a warranty issue shortly after purchase, start keeping records.

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Georgia State Laws