If you've purchased a defective vehicle in North Carolina, you may be able to seek compensation under the North Carolina Lemon Law, also known as the New Motor Vehicles Warranties Act. This law applies to new vehicles bought in North Carolina that have needed multiple repairs. To qualify, the defect must be covered by the manufacturer's warranty and you must be within the warranty period. You must notify the manufacturer in writing and give them 15 days to fix the issue. If they are unable to fix the problem within a reasonable number of attempts (generally considered to be four or more repair attempts or 20 or more business days out of service), they are required to replace your vehicle or refund you. To apply for the North Carolina Lemon Law, it is recommended that you work with a skilled lemon law attorney who can guide you through the process and advocate on your behalf.
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What is the North Carolina lemon law? | The North Carolina lemon law, titled the New Motor Vehicles Warranties Act, helps consumers who buy or lease a new motor vehicle from a manufacturer or dealer within North Carolina when their new vehicle must be repaired several times. |
What vehicles are covered? | North Carolina’s lemon law covers almost any new motor vehicle or motorcycle sold or leased in North Carolina. The law only excludes mopeds, electric-assisted bicycles, house trailers, or any motor vehicle that weighs more than 10,000 pounds. When it comes to used cars, used cars are not covered. |
Who is covered under the North Carolina lemon law? | Consumers who purchase or lease a new motor vehicle from a commercial lender, lessor, manufacturer, or dealer are covered under North Carolina’s lemon law. |
What problems does the lemon law cover? | The North Carolina lemon law does not explicitly define what types of nonconformities (defects or conditions covered under the manufacturer’s warranty) it covers, however, it does state that a defect or condition that substantially impairs the value of the motor vehicle to the consumer is considered a nonconformity. |
What is the manufacturer’s duty to repair? | If you purchase or lease a motor vehicle in North Carolina and you notify the manufacturer, its agent, or its authorized dealer of a defect within the greater of 1) the express warranty, 2) one year, or 3) 12,000 miles after the original delivery date, then the law requires the manufacturer to repair your vehicle free of charge. It is the manufacturer’s responsibility to repair the vehicle to conform with the express warranties, even if these repairs must be made after the expiration of the warranty period. |
What is considered a “reasonable” number of repair attempts? | The North Carolina lemon law creates a presumption that a reasonable number of attempts have been made if either of the following occur: The vehicle has been subject to repair four or more times by the manufacturer or its authorized dealers for the same nonconformity, but the nonconformity continues to exist, or The vehicle is out of service by reason of repair of one or more nonconformity for a cumulative total of 20 or more business days. |
Replace or Repurchase: What is the manufacturer’s responsibility? | If the manufacturer is unable to repair the vehicle within a reasonable number of attempts, which occur no later than 24 months or 24,000 miles following the delivery of the vehicle to the consumer, the manufacturer must repair or replace the vehicle at your choice. |
How can BBB AUTO LINE help me? | BBB AUTO LINE is one of the largest and longest-running out-of-court dispute resolution programs in the United States. For the past 40 years, they have helped consumers and businesses resolve vehicle warranty, lemon law, and class action disputes in a hassle-free, timely, and cost-effective manner. |
What You'll Learn
What vehicles are covered by the NC Lemon Law?
The North Carolina Lemon Law covers any new motor vehicle or new motorcycle sold or leased in the state of North Carolina. This includes pickup trucks, passenger cars, and most vans. The law does not cover used vehicles, mopeds, house trailers, or any motor vehicle purchased or leased before October 1, 2005, with a gross vehicle weight of 10,000 pounds or more. The law further does not cover any vehicle purchased or leased after October 1, 2005, weighing more than 10,000 pounds.
The lemon law defines a "reasonable number of attempts" as four or more repair attempts for the same condition without success. After this, if the non-conformity remains or if the vehicle is out of service for more than 20 business days, the manufacturer must repurchase or replace the vehicle.
To successfully complete a lemon law claim and seek compensation for the defect in your vehicle, you must first gather information and documentation regarding your potential claim. This includes service records, work orders, repair records from the dealership, correspondence with the manufacturer or dealership, purchase orders, and any records or warranties related to the vehicle. You will then need to open a file with this information and send a letter directly to the manufacturer, stating that you are seeking relief under lemon law for the defect(s) in your vehicle. The manufacturer will generally begin an investigation of its own and negotiations will commence to reach an agreement to remedy the situation. If the matter is not resolved during negotiations, you can seek legal advice on alternatives, including arbitration and litigation.
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Who is covered under the NC Lemon Law?
The North Carolina Lemon Law, titled the New Motor Vehicles Warranties Act, covers consumers who purchase or lease a new motor vehicle from a commercial lender, lessor, manufacturer, or dealer. The law covers almost any new motor vehicle or motorcycle sold or leased in North Carolina, excluding mopeds, electric-assisted bicycles, house trailers, or any motor vehicle that weighs more than 10,000 pounds. Used cars are not covered under the North Carolina Lemon Law.
To qualify for compensation under the North Carolina Lemon Law, consumers must generally have a product that has suffered multiple repair attempts under the manufacturer's factory warranty. The law presumes that a reasonable number of attempts have been made to fix the defects if the same defect has been presented for repair four or more times without success, or if the vehicle has been out of service for a cumulative total of 20 or more business days during any 12-month period of the warranty.
If the manufacturer is unable to repair the vehicle within a reasonable number of attempts, which must occur no later than 24 months or 24,000 miles following the delivery of the vehicle, they must offer a replacement vehicle or a refund. If a refund is chosen, the manufacturer must pay the full purchase price, all collateral charges, all finance charges incurred after the first report of the defect, and any incidental and monetary consequential damages.
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What problems does the NC Lemon Law cover?
The North Carolina Lemon Law covers a range of problems that consumers may encounter when purchasing or leasing a new motor vehicle. The law is designed to protect consumers from "lemons", or vehicles with defects that cannot be repaired after a reasonable number of attempts. Here are some of the specific issues addressed by the North Carolina Lemon Law:
- Serious Defects: The law covers any defect or condition that substantially impairs the value of the motor vehicle to the consumer. This includes not only issues that affect the drivability of the car but also problems such as leaks, lack of air conditioning or heat, and serious paint issues.
- Express Warranty: The law requires all vehicles to have an express warranty of at least 12 months or 12,000 miles. If a defect occurs within this warranty period, the manufacturer is responsible for repairing or correcting the issue.
- Reasonable Number of Repair Attempts: The law presumes that a reasonable number of repair attempts have been made if the same defect has been presented for repair four or more times without success, or if the vehicle has been out of service for a cumulative total of 20 or more business days during any 12-month warranty period.
- Manufacturer's Responsibility: If the manufacturer is unable to repair or correct the defect after a reasonable number of attempts within 24 months or 24,000 miles following the delivery of the vehicle, they are required to offer the consumer a replacement vehicle or a refund.
- Compensation: The law outlines the compensation that consumers are entitled to if they choose a refund. This includes the full contract price, collateral charges, finance charges incurred after reporting the defect, and any incidental and consequential damages.
- Exclusions: It's important to note that the North Carolina Lemon Law does not cover issues resulting from abuse, neglect, odometer tampering, or unauthorized modifications made to the vehicle.
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What is the manufacturer's duty to repair?
In North Carolina, the lemon law applies to any new motor vehicle other than a house trailer, provided that the vehicle does not have a gross weight of 10,000 pounds or more. This includes pickup trucks, motorcycles, and most vans.
The lemon law does not apply to cars purchased or leased before October 1, 1987. It also does not cover vehicles with a gross weight of 10,000 pounds or more.
The manufacturer's duty to repair is a critical component of the lemon law. Here's what you need to know:
- The manufacturer is responsible for repairing any defects or conditions that substantially impair the value of the vehicle to the consumer.
- The defect must be covered by the manufacturer's express warranty and must occur within the warranty period.
- The warranty period must be at least 12 months or 12,000 miles, and if it exceeds 24 months or 24,000 miles, the consumer's right to a replacement or refund is limited to defects that occur within the first 24 months or 24,000 miles.
- The manufacturer must make repairs or arrange for them to be made to conform the vehicle to the express warranties, even if the repairs are made after the warranty period has expired.
- The manufacturer is entitled to a "`reasonable opportunity` to repair the defect before legal action can be taken.
- A "reasonable opportunity" is generally considered to be three to four repair attempts for the same problem within a specific timeframe.
- If the issue poses a severe safety threat, such as failed brakes, even one or two repair attempts can be considered reasonable.
- The cumulative number of days the car is out of commission is also a factor in determining reasonableness. In California, for example, a total of 30 or more days in a repair facility is considered reasonable.
- If the manufacturer is unable to repair the defect within a reasonable number of attempts or days, they become obligated to buy back the defective vehicle or provide a refund or replacement.
- The manufacturer is responsible for all costs associated with repairs, including towing charges and rental car fees incurred by the consumer during the repair process.
- The manufacturer is also responsible for attorney's fees if the consumer hires a lawyer to resolve the issue.
- It is important to note that the dealership has no obligation to buy back the vehicle, as the warranty is provided by the manufacturer.
In summary, the manufacturer's duty to repair under the lemon law in North Carolina involves making all necessary repairs to conform the vehicle to its express warranties, even after the warranty period has ended. The manufacturer must be given a reasonable opportunity to repair, which is typically considered three to four attempts or 30 days, depending on the severity of the defect and the cumulative number of days the car is out of service. If repairs cannot be made within a reasonable timeframe, the manufacturer is obligated to buy back the vehicle or provide a refund or replacement.
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What is considered a reasonable number of repair attempts?
The North Carolina Lemon Law was enacted to give better remedies to consumers who buy or lease a new car that is a "lemon". The law covers any new motor vehicle other than a house trailer, provided that the vehicle does not have a gross weight of 10,000 pounds or more.
A vehicle is considered a lemon if it is “seriously defective” and could not be repaired in a “reasonable number of attempts”. A serious defect is defined as "any defect or condition or series of defects or conditions which substantially impair the value of the motor vehicle to the consumer". The defect must be covered by the manufacturer's express warranty and must have appeared within the warranty period.
So, what is considered a reasonable number of repair attempts? This is a subjective question and can vary from state to state. However, in North Carolina, a reasonable number of attempts have been deemed to have been undertaken if:
- The same defect has been presented to the manufacturer or its authorized dealer for repair four or more times without success, or
- The vehicle has been out of service during or while awaiting repair of a defect or series of defects for a cumulative total of 20 or more business days during any 12-month period of the warranty, provided that the consumer has notified the manufacturer directly in writing of the defects and allowed them a reasonable period (not more than 15 calendar days) to fix them.
It is important to note that the consumer must write directly to the manufacturer about the problems early on if the dealer is having trouble fixing them. Additionally, the consumer should keep detailed records of all repair attempts and correspondence.
If the manufacturer has not fixed the vehicle after a reasonable number of attempts, the consumer is entitled to choose a comparable new replacement vehicle or a refund. The consumer may also be entitled to attorney's fees if the manufacturer is found to have unreasonably refused to resolve the complaint.
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Frequently asked questions
The North Carolina lemon law, titled the New Motor Vehicles Warranties Act, helps consumers who buy or lease a new motor vehicle from a manufacturer or dealer within North Carolina when their new vehicle must be repaired several times.
North Carolina's lemon law covers almost any new motor vehicle or motorcycle sold or leased in North Carolina. The law only excludes mopeds, electric-assisted bicycles, house trailers, or any motor vehicle that weighs more than 10,000 pounds.
Consumers who purchase or lease a new motor vehicle from a commercial lender, lessor, manufacturer, or dealer are covered under North Carolina's lemon law.
The North Carolina lemon law does not explicitly define what types of nonconformities (defects or conditions covered under the manufacturer’s warranty) it covers, however, it does state that a defect or condition that substantially impairs the value of the motor vehicle to the consumer is considered a nonconformity.
Contact a skilled lemon law attorney to help you complete the process. Manufacturers are often more likely to cooperate with legal representation than the consumer directly, and there are many potential pitfalls that a lawyer can help you avoid.