North Carolina Lemon Law
The North Carolina Lemon Law (NCGS 20-351, officially known as North Carolina’s “New Motor Vehicles Warranties Act”) was enacted in 1987 to protect North Carolina residents who purchase or lease a new motor vehicle. The term “motor vehicle” for purposes of the North Carolina Lemon Law is basically all vehicles that weigh less than 10,000 pounds.
In North Carolina, the lemon law states that if the automobile manufacturer cannot repair your vehicle and “conform it to the warranty”, the manufacturer must take the defective vehicle back (repurchase it) and return your purchase price including all taxes and extras, but less an amount based on the mileage of your defective vehicle at a certain time in your vehicle’s repair history. The law also mandates a refund of all interest paid on the vehicle loan after the first repair visit.
At the consumer’s option under the North Carolina Lemon Law, they may choose a “replacement” vehicle. A replacement vehicle under the lemon law is defined as another “Comparable New Vehicle”. This has been interpreted as a current model year vehicle of the same model. For a successful Lemon Law claim, generally, you will receive credit of your original MSRP towards the MSRP of the current model year. In other words, you would not receive credit of your full purchase price towards the replacement, if you qualify under the North Carolina Lemon Law. For successful lemon law claims, the manufacturer pays your attorneys fees and costs.
There are two ways to qualify under the North Carolina Lemon Law:
- Presenting the vehicle for repair FOUR (4) or more times for the same defect or condition, or
- TWENTY (20) business days out of service for repairs or awaiting repairs, for a defect or condition or series of defects or conditions.
The “defect or condition” must first occur before 24,000 miles or within the first 2 years of ownership, whichever comes first. Additionally, the defect or condition must substantially impair the USE or VALUE of the vehicle. This is usually a subject of contention. The Automobile Manufacturer will try to minimize your vehicle problems in an effort to show that they are not substantial. Never let the auto manufacturer or dealership tell you that your vehicle problems are not substantial.
THREE things that consumers can do to protect their rights under the North Carolina Lemon Law are:
- Always obtain and keep ACCURATE documentation with regards to your vehicle repairs. Make sure that all of your concerns are noted on the “Repair Order” before you leave your vehicle for repair.
- Demonstrate the problem to dealer personnel/ Don’t let them say they “could not duplicate” your concern.
- Maintain your vehicle (oil changes!) and perform all recommended maintenance according to your owner’s manual.
Implementing these three practices will help protect you under the North Carolina Lemon Law, and assist your attorney if you decide to pursue your rights. If you feel you have a Lemon, fill out our FREE ONLINE LEMON LAW CASE REVIEW, or contact Soboleski Law to discuss what we can do to help.
