Lemon Law

North Carolina, like several other states, has a “lemon law” statute for the purchase or lease of new vehicles.  Titled the New Motor Vehicles Warranties Act, the statute protects the buyer of a new motor vehicle, including cars, pickup trucks, motorcycles, vans and motor homes weighing less than 10,000 pounds from defective vehicles.  Under this law all new vehicles have a one year or 12,000 miles express warranty.  If you discover a defect, the manufacturer must repair it.  If the manufacturer has been given a reasonable opportunity to repair the defect and is unable to do you, the buyer can get a replacement vehicle or a refund.  A “reasonable opportunity to repair” is presumed when the vehicle has been presented for repair four or more times for the same defect or where the vehicle was out of service for repair for more than 20 days in a 12 month period. 

It is important to read the warranty that the manufacturer gives you and comply with the procedures they outline.  For example, they may require written notice of a last repair attempt and 15 days to do so.  When the manufacturer makes a repair attempt, be sure the invoice accurately shows the number of days the vehicle was being repaired and use the same language on the nature of the defect with subsequent repair attempts.  If the manufacturer is unable to repair the problem, the consumer shall return the vehicle and has the choice of accepting a comparable new vehicle or getting a refund of the full contract price minus a reasonable allowance for the use of the vehicle calculated based on the number of miles driven by the consumer.  The refund includes things such as undercoating, dealer preparation and transportation, installed options, sales tax, license and registration fees, finance charges incurred after the manufacturer was notified of the defect.

 

If the manufacturer fails to abide by the lemon law statute, he may be liable for treble damages and attorney fees under the Unfair and Deceptive Trade Practices law in North Carolina.

 

Keep in mind that the lemon law does not apply to used vehicles.  Many people believe that the purchase of a used vehicle comes with a 3 day right to return. This is not true in North Carolina, unless it is specifically written in the sales documents.