North Carolina Lemon Law
Virtually every state has a lemon law, and North Carolina is no exception. The North Carolina Lemon Law, otherwise known as the New Motor Vehicles Warranties Act, is a powerful consumer protection law designed to help buyers of new vehicles that suffer from persistent defects that the manufacturer or its authorized dealer is unable to fix.
All new motor vehicles are sold with a warranty of some kind. The warranty requires the manufacturer to repair your vehicle should it experience certain covered defects at any time during the warranty period. If a problem occurs with your vehicle that the manufacturer cannot fix, then it may be in breach of its warranty and may be required to repurchase your "lemon" or replace it with a comparable new vehicle (but hopefully not one that is also defective).
Manufacturers do not like to admit that they have manufactured a Lemon. It therefore may not come as a surprise that they are often unwilling to repurchase or replace your vehicle, no matter how many times you may take it back to the dealership for repair, even though that is what the law requires! Rather, if you do not take action, they may simply try to "run out the clock" on your warranty and push the problem off to you once they feel they are no longer on the hook.
This is where we come in. If you have purchased a new vehicle for personal or family use and have taken it three or more times for the same problem, or it has been in the shop longer than 20 days within any twelve month period of the warranty, then your vehicle may be a lemon.
Protect Yourself Against Auto Defects
At the Norris Law Firm, PLLC, we can help you get rid of your Lemon. Under the North Carolina Lemon Law, if a vehicle is a lemon then the manufacturer is required to either repurchase it from you or replace it with a comparable new vehicle.
What Vehicles are Covered - The North Carolina Lemon Law applies to all new motor vehicles that are purchased or leased for family or personal use. The North Carolina Lemon Law doesn't just apply to new cars, it also covers trucks, vans, motorcycles, and just about any other "self propelled" vehicle that weighs less than 10,000 pounds, with the exception of mopeds. In other words, if you have purchased a new motor vehicle and drive it on the highway, it is probably covered.
Notably, the North Carolina Lemon Law does not apply "house trailers" or any vehicle weighing more than 10,000 pounds. However, if you purchased one of these types of vehicles and it came with a written warranty, you may be covered by another federal law.
What defects are covered - First, the defect or condition must be covered by the terms of the warranty itself. This usually not a problem for new vehicles because most new motor vehicle warranties include "bumper to bumper" coverage for a period of time following purchase, which means almost all defects or conditions are covered. Although it is important to read the warranty book itself to determine if your vehicle's problem is covered, you will most likely have found this out during the first few trips to the dealership for repair.
If the defect or condition is covered by the warranty terms, then the North Carolina Lemon Law covers any kind of defect or condition or series of defects or conditions which substantially impair the value of the motor vehicle to the consumer. The defects or conditions do not have to necessarily affect how the vehicle drives, but can include things such as defective paint, air conditioning or heating systems, vibrations, or other excessive noise that cannot be fixed. If it matters to you, and the vehicle's value ito you is negatively affected, the defect is covered.
You Might Have A Lemon If... - The North Carolina Lemon Law provides powerful remedies to new vehicle buyers who experience recurring problems within the first 24 months or 24,000 miles of ownership. If this happens, manufacturers, through their authorized dealers, must be given a "reasonable number of attempts" to fix the problem.
Under the North Carolina Lemon Law, a manufacturer is presumed to have been given a "reasonable number of attempts" if:
- The vehicle has been returned to the dealer for repair four or more times, but the same problem continues to exist; or
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The vehicle was out of service to the consumer for a cumulative total of 20 or more business days during any 12-month period of the warranty.
If the final repair attempt doesn't fix your problem, the manufacturer must repurchase your vehicle or replace it with a comparable new vehicle. The choice is yours! As mentioned before, however, there is a long way between what the manufacturer is required to do and what they actually do. Because the only person who can enforce the North Carolina Lemon Law statute the consumer who is injured, manufacturers usually don't take action unless they are forced to. We can help.
North Carolina Attorney General
The Consumer Division of the North Carolina Attorney General's Office is broadly charged with protecting consumer rights and enforcing consumer statutes in North Carolina. Although they cannot and do not get involved in representing individuals (that is what we do), they offer very helpful advice and guidance to consumers. The Attorney General has weighed in on the North Carolina Lemon Law and its provisions with the following material, which is published on their website:
"The North Carolina Lemon Law, also known as the New Motor Vehicles Warranties Act (N.C.G.S. 20-351), applies to new passenger cars, pick-up trucks, motorcycles and most vans bought in North Carolina. It requires manufacturers to repair defects that affect the use, value, or safety of a new motor vehicle within the first 24 months or 24,000 miles (whichever comes first). Your car may be covered by the Lemon Law if all of the following have happened:
- The problem occurs in some part of the vehicle that is covered by the manufacturer's warranty and you are within the warranty period. It does not need to be something that keeps you from being able to drive the car. For example, faulty air conditioning or peeling paint could be considered defects under the Lemon Law.
- You tell the manufacturer about the problem in writing and give them a reasonable period, but not more than 15 days, to fix it.
- The manufacturer makes "a reasonable number of attempts" to fix the vehicle. This means that the car has been repaired for the same problem four or more times, or that it has been out of service a cumulative total of 20 or more business days during a 12 month period of the warranty.
- The manufacturers' efforts to fix the lemon fail. Under the law, they must either replace your car or buy it back. You get to decide between a comparable new car and a refund.
It is a good idea to read your warranty to find out what kind of remedies your manufacturer might offer outside of the Lemon Law. Your rights under the Lemon Law: If the manufacturer hasn't fixed your car after a reasonable number of attempts, you are entitled to choose a comparable new replacement vehicle, or a refund. The law does not spell out what a comparable new replacement vehicle is, though it would most likely be an identical make and model. If your car is a lemon, you are entitled to a refund of:
- The full contract price including, but not limited to, charges for undercoating, dealer-preparation and installed options, plus the non-refundable portions of extended warranties and service contracts.
- All upfront charges, including but not limited to, sales tax, license and registration fees.
- All finance charges you incurred after you first reported the problem to the manufacturer, or authorized dealer.
- Any incidental damages, less a reasonable allowance for your use of the vehicle.
Under the law, the refund is reduced by a "reasonable allowance" for your use of the vehicle. The following formula is used to calculate the refund: Refund = (Purchase Price - (Purchase Price x Actual Mileage)) /120,000 What About Disputes? Many auto manufacturers have dispute resolution programs for customers with warranty problems. Some require you to use these programs before you go to court. Read your warranty for more information. You may also wish to see if the Better Business Bureau's dispute resolution service can help, or consider seeking advice from a private attorney."
Call to Learn More
Call or email us to discuss your individual situation and to see if you might be able to begin the process of ridding yourself of your lemon. There is no charge to you for our fees, as they are paid by the manufacturer. What else do you have to lose but your lemon?
Learn How our Law Firm Can Assist You
To discuss your situation and learn how we can help you, private attorney. Call 919-805-3392 to schedule a free initial consultation about the North Carolina Lemon Law.
