What’s the Lemon Law in North Carolina?
North Carolina Lemon Law is designed to protect consumers of new vehicles who find themselves unable to get their vehicle repaired, despite repeated attempts – like you have lemon. Under this law, you may qualify for a legal remedy if you have purchased or leased a new vehicle and received three (3) repair attempts for the same mechanical defect, and the repairs still do not resolve the problem.
The North Carolina Lemon Law definition of "lemon" is:
A "lemon" is a defective motor vehicle that is covered under warranty and found to have a substantial defect that impairs the use, value, or safety of the vehicle and has not been repaired after a reasonable number of attempts . A vehicle shall be presumed to have a substantial defect when it has been subject to warranty repairs four (4) times by a manufacturer authorized dealer for the same problem and the defect was not repaired; or one time if it is a serious safety defect.
Purchasing or leasing a new vehicle with the protection and peace of mind of a Factory Warranty is both exciting and, for most buyers, a significant financial commitment. Sometimes your new vehicle warranty does not cover factory defects or reoccuring problems. This is where the North Carolina Lemon law comes into play.
Eligibility for North Carolina Lemon Law
To qualify for relief under North Carolina’s lemon law, you must own or lease a "motor vehicle" that was purchased in North Carolina and is still under warranty. The law also covers used cars, provided that they were sold "as new" at the time of sale. In other words, if the car was sold to you as new, then it may qualify for relief even if you’re not the first owner of the vehicle. A few more things to keep in mind: The vehicle also should be serviced according to manufacturer specifications. Therefore, if your car’s maintenance schedule calls for an "oil change every 5,000 miles," you should make sure that you stay with this schedule. A small mistake on one of these requirements could be sufficient to disqualify you from relief under the law. To qualify for relief, a vehicle must be in the shop four times or more for the same problem, or the car must be out of service for 20 days total (these two requirements are alternatives). To be counted as a qualifying "repair attempt" the vehicle must go back into the shop for the same problem – sometimes referred to as a "warranty repair attempt," which means that the problem would be covered under standard warranty. When the car goes out of service for repairs may also be important here because if it’s out of service for more than ten days because of a manufacturer’s defect, the entire period counts as a repair attempt. If it’s out of service for less than ten days, however, only the time it has been out of service beyond ten days counts as a qualifying "repair attempt." There’s a specific reason for this rule: lemon law privileges don’t attach until the car has been out of service 15 days for repairs, and it can take time to figure out the problem. If you’ve already taken it in for service more than four times, however, then the time spent figuring out the problem should count as part of the repairs. It’s possible to qualify for relief under the North Carolina lemon law, but it’s also easy to miss an important requirement along the way. To avoid this situation, be sure to review the details of your state’s lemon law before arriving at a conclusion, and if you’re unsure about your options for recovery, contact a lemon law attorney for assistance.
Steps To Take If You Purchased a Lemon
Consumers in North Carolina are urged to familiarize themselves with the process of pursuing a claim under the North Carolina Lemon Law in order to understand the series of steps involved. It is worth emphasizing that the first step involves documentation – keeping track of repair receipts, service invoices, and any events that show the vehicle experiencing a congenital defect or nonconformity. The second step involves noting the manufacturer’s repair attempt deadlines, defined as ends of at least four repair attempts, or the elapsed time period of more than 20 days expiring between the first vehicle repair attempt and the fourth repair attempt, when the vehicle is out of service for repair. The third and fourth steps involve submitting manufacturer or dealer notification forms and documentation, and submitting claims between 30 and 120 days before travelling to an informal settlement conference at the North Carolina Department of Transportation (NCDOT). The NCDOT informal settlement conference will involve an informal conference between state and manufacturer representatives and the consumer, explaining the case in pursuit of a settlement. If no settlement is reached, the consumer may submit a petition to proceed to an NCDOT formal hearing.
How to Bring a Lemon Law Claim
North Carolina’s "Lemon Law" offers consumers legal recourse if they have purchased a defective vehicle or automobile that has not operated properly and has not been repaired with "reasonable" care and number of attempts. There are a variety of exceptions to the definition of what constitutes a lemon, including timing of the vehicle problems and nature of the problems and repairs necessary. It is important to note that The Lemon Law also applies to defects in some other motor vehicles, including motorcycles, motor homes, and recreational vehicles. The Lemon Law does not apply to defects in trucks, trucks chassis, trailers or motorcycles over 750ccs if the problem that gives rise to the claim arose within the first twelve months after purchase of the vehicle or before 36,000 miles, whichever comes first. Nor does the Lemon Law apply to any vehicle whose owner altered it after purchase if the problem that gives rise to the claim arose as a result of the alteration and not the assembly or manufacture of the vehicle. In order to file a claim under North Carolina’s Lemon Law, consumers must observe a strict 30 month time limit following the initial purchase of the defective vehicle. The consumer must first give the manufacturer an opportunity to repair the problem. The manufacturer, however, has only 15 days within which to correct the problem after receiving written notification (either by mail, personal delivery or fax) from the consumer. If the problem persists after these repair attempts, the consumer must then give the manufacturer a second chance to correct the defect. The manufacturer has an additional 15 days to correct the defect after being notified of a second repair attempt. If the manufacturer chooses not to exercise its right to a second repair opportunity, the consumer should then file a written notice of dispute with the North Carolina Department of Justice, Consumer Protection Division. This form, however, is not required in cases where the manufacturer has declined to repair the vehicle. After filing the notice of dispute with the Department of Justice, the consumer will then be referred to mediation through the Department of Justice’s Mediation Division. In order to enter mediation through the Department of Justice, the consumer must pay a non-refundable $25.00 administrative fee. The consumer and manufacturer must then attend an informal settlement conference during the mediation process. If the consumer and manufacturer cannot resolve the case through mediation, the Department of Justice will then appoint a settlement officer. The settlement officer will communicate with each party in an effort to initiate a settlement agreement. Each party is required to respond to the officer within ten (10) days of receiving the officer’s request. The settlement officer will send a written statement of the outcome of the efforts to the Department of Justice. If the matter is not resolved, the Department of Justice will refer the case to an Administrative Law Judge to conduct a hearing. After the hearing, the Administrative Law Judge will then produce a final order of the matter. If the consumer wins the claim, the manufacturer can rectify the situation by replacing the vehicle with another of comparable value, refunding the total purchase price of the vehicle in cash or giving the consumer both a new vehicle and a cash settlement to cover attorney fees.
Remedies for North Carolina Lemon Law
Not only does North Carolina Lemon Law provide consumers with protection against manufacturers of defective motor vehicles, it also quickly compensates affected claimants. The sort of relief that a consumer who files a successful lemon law complaint will often get is either a refund or vehicle replacement. Refunds include the full purchase price, taxes, fees and charges related to the sale, finance charges incurred by the consumer, expected document or trade-in fees and less actual offset for the amount of the vehicle’s use . Vehicle replacement generally occurs when, for example, the manufacturer agrees to replace a vehicle with a new one of the same model or a comparable model. Uses are generally measured in the number of miles that the claimant has driven the vehicle, usually considered to be when the vehicle was actually in the hands of the consumer.
Aside from refunds and vehicle replacements, North Carolina Lemon Law could also permit claimants to receive reasonable costs and expenses, including attorney’s fees.
Common Questions About the Lemon Law
‘What’s "Lemon Law" for cars about?’
The North Carolina Lemon Law applies to new motor vehicles including cars, vans, trucks, motorcycles and even trailers.
‘How do I know if I have a case under the Lemon Law?’
If the manufacturer, dealer, or both, are given a list of reasonable number of attempts to repair a defect or condition and are unable to do so, you have a case under the Lemon Law.
‘What counts as reasonable number of attempts to fix a problem?’
Under North Carolina Lemon Law rules, there are two thresholds that must be met in order to determine that a reasonable number of attempts has been exceeded:
‘What if my car/truck is still under warranty?’
The North Carolina Lemon Law applies to vehicles under warranties. If you have a new car that is still under warranty, you should qualify for the Lemon Law protections.
‘Do I have to file the request for arbitration?’
If you bought or leased your vehicle from a registered N.C. dealer, and are seeking relief under the Lemon Law, you must first initiate arbitration with the N.C. Division of Motor Vehicles. If your reason for arbitration doesn’t fall under the Lemon Law, you don’t have to file for mandatory arbitration. Check for exemptions here.
‘How long do I have to file for arbitration protection?’
You’ve got 3 different time limits for three different situations that all end in the arbitration favoring you. We can help you figure out which one fits your case.
‘Will I be stuck with my defective car?’
No! The state Lemon Law requires the dealer to repurchase or replace your vehicle if they are unable to fix the problem during the warranty period. If necessary, the law even provides that the manufacturer may be held liable for additional consequential or incidental damages.
‘Is there any way to shorten the process?’
Sometimes, getting your new car fixed right the first time is best. It may short circuit the process of going through arbitration if you have to get the dealer to fix the car again anyway. But if you don’t get results from the first submission to arbitration, or as part of the settlement process, you can take the issue to court if a contract breach is material.
‘What if I still owe money on my monthly payment for my lemon? ‘
This is an important question we will help you answer.
‘If I lost money on the repairs, can I recover it?’
If you lost money on the repair costs for your lemon, you may be able to recoup those damages in addition to the reimbursement/repurchase for the cost of the vehicle itself.
‘Can I afford to fight the dealer or manufacturer?’
Yes! With our fees added to the cost of doing business, we think you will find our representation affordable. We work on a contingency fee basis, meaning you pay our fees when you receive the award from the dealer, or the manufacturer. As part of arbitration, the dealer is required to pay for both your fees, and the manufacture’s if you win.
Hiring a Lemon Law Lawyer
When you have a North Carolina lemon law claim, you don’t have to go it alone. You can hire a lemon law attorney to help you with your case. An attorney who understands how lemon law claims work and has experience in pursuing lemon law cases can be invaluable. For example, lemon law attorneys can help you fill out and file forms with the right agency. Attorneys also know about deadlines that might apply in lemon law cases, such as a one-year statute of limitations. Consumers with lawyers also have an expert aligned with their interests if they need to go to a hearing to enforce their rights under lemon law statutes, either at administrative hearing or in court. Although most lemon law matters settle before an attorney files a complaint on behalf of a client, if a complaint is filed, an attorney will be able to explain this complicated legal process to a client and help the client navigate the process of getting a fair settlement when it comes time to negotiate .
When you need a North Carolina lemon law attorney, unfortunately you may not be able to rely on unsolicited offers by lawyers, which are prohibited by ethics rules for lawyers. Instead, you can look for attorneys who you think will be a good fit for your lemon law case by asking other people about their experiences with lawyers. You might also want to talk with other consumers who have gone through the lemon law process to find out who they recommend as lemon law attorneys. And you can search online to see what attorneys and firms come up in your search results. You do not have to pay one dollar to get information about the lemon law process, how to pursue a lemon law claim, what lawyers charge, or information on the odds that a lawyer will work on a contingency fee basis and charge no fee unless the lemon law claim is successful.