Virtually every state has a lemon law, and North Carolina is no exception.  The North Carolina Lemon Law (NC Lemon Law), otherwise known as the New Motor Vehicles Warranties Act, is a powerful consumer protection law designed to help buyers of new vehicles with persistent defects that the manufacturer or its authorized dealer is unable to fix.

Virtually all new motor vehicles are sold with a warranty of some kind.  These warranties require the manufacturer to repair the vehicle should it experience certain covered defects during the warranty period.  If a problem occurs with your vehicle that is unrepairable or that the manufacturer refuses to resolve (for example, by repeatedly claiming that it cannot identify the problem or that the problem is a “normal operating characteristic”), 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.

You Don’t Have to Live With a Lemon

At Norris Emery, PLLC, we can help you get rid of your Lemon.  Under the North Carolina Lemon Law, if a vehicle is a lemon, 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, the Magnuson-Moss Warranty Act.

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 NC 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 to you is negatively affected, the defect is covered.

You Might Have A Lemon If… – The NC 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
• 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 can be a big gap what the manufacturer is required by law to do and what they actually do willingly.  Because the only person who can enforce the North Carolina Lemon Law statute is the consumer who is injured, manufacturers usually don’t take action unless forced to do so.  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 the NC Department of Justice 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.

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 Lemon Law Firm Can Assist You

To discuss your situation and learn how we can help you, call 919-981-4475 for a free initial telephone consultation about your lemon law rights.