Maryland Lemon Law: Do You Qualify?

Maryland lemon law at a glance

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The earlier of the first 18,000 miles or 24 months from the date of original delivery to the consumer (§ 14-1501(e)(1)). The period is extended by time when repair services are unavailable because of war, invasion, strike, fire, flood, or other natural disaster (§ 14-1502(e)). The remedy applies where the manufacturer is unable to repair "during the warranty period" (§ 14-1502(c)(1)).

Covered vehicles

A vehicle registered in Maryland as Class A (passenger), Class D (motorcycle), Class E (truck) with a 3/4 ton or less manufacturer's rated capacity, or Class M (multipurpose) (§ 14-1501(f)(1)). Motor homes are excluded (§ 14-1501(f)(2); COMAR 11.15.03.01 defines a motor home). Trailers are not among the listed classes. The Act has no personal-use requirement.

Repair attempts

A reasonable number of attempts is presumed after 4 or more repairs of the same defect within the warranty period where it continues to exist (§ 14-1502(d)(1)). A narrow 1-attempt path applies to a braking- or steering-system failure that was subject to the same repair at least once, where the manufacturer was notified and given the opportunity to cure and the repair does not bring the vehicle into compliance with Maryland's safety inspection laws (§ 14-1502(d)(3)).

Days out of service

30 or more days in total during the warranty period, for repair of one or more nonconformities, defects, or conditions (§ 14-1502(d)(2)). The statute says "days"; this tool counts calendar days, which is its own reading. The days may be spread across different defects.

Written notice

The consumer must report the nonconformity to the manufacturer by certified mail, return receipt requested, during the warranty period, and give it an opportunity to cure (§ 14-1502(b)(1)-(2)). The notice procedure must be conspicuously disclosed in writing at sale or delivery. Corrections are due within 30 days of the manufacturer's receipt (§ 14-1502(b)(3)). The statute does not say what follows if the report is not made. The Attorney General advises sending a copy of the letter to its Consumer Protection Division with the complaint form.

What you get back

At the consumer's option, a comparable replacement or a refund of the full purchase price including license fees, registration fees, and similar governmental charges, less an allowance for use (not to exceed 15 percent of the purchase price; the statute gives no formula) and an allowance for damage not attributable to normal wear (not damage resulting from the defect) (§ 14-1502(c)(1)). Excise tax is refunded by the Motor Vehicle Administration, calculated on the amount of the purchase price refunded (§ 14-1503(b)). If the manufacturer is found to have acted in bad faith, the court may award up to $10,000 (§ 14-1504(b)). A court may award reasonable attorney's fees to a prevailing plaintiff, and may order fees paid by a party whose action is in bad faith or frivolous (§ 14-1502(l)).

Used vehicles and leases

A "consumer" includes a person to whom a new vehicle is transferred during the applicable warranty (§ 14-1501(b)(2)). The Attorney General says the Act might apply if the original owner purchased the vehicle less than 24 months ago. Lessees have their own provision: § 14-2004(d)(1)(i) gives a lessee the replacement-or-return remedy against the manufacturer. The refund is measured by the lease, less an allowance for unimpaired use ((d)(1)(i)2), and the lessee may not be charged early-termination fees on return ((d)(3)).

Exclusions and defenses

The Act does not apply to a fleet purchase of five or more motor vehicles (§ 14-1502(m)). It is an affirmative defense that the defect does not substantially impair use and market value, or results from abuse, neglect, or unauthorized modifications or alterations (§ 14-1502(c)(3)). An agreement in a new-vehicle purchase that waives, limits, or disclaims these rights is void (§ 14-1502(j)(1)).

What you must prove

Laing v. Volkswagen states three elements: the existence of a defect, that the manufacturer is unable to fix it after a reasonable number of attempts, and that it substantially interferes with the use and market value of the vehicle. In Laing, expert testimony was needed to show a defect on that record.

Other claims and arbitration

A violation of the Act is an unfair or deceptive trade practice (§ 14-1504(a); § 13-301(14)(xi)), and § 13-408 allows a private action. Laing treats such a claim as derivative of the Lemon Law claim. A manufacturer's informal dispute procedure is optional ("may resort", § 14-1502(i)(1)) and does not preclude court remedies (§ 14-1502(i)(2)); the arbitrator's decision binds only the manufacturer (Attorney General).

Maryland lemon law: frequently asked questions

What qualifies as a lemon under the Maryland lemon law?

A defect or condition that substantially impairs the use and market value of the vehicle to the consumer and that the manufacturer or its dealer is unable to repair during the warranty period after a reasonable number of attempts (§ 14-1502(c)(1)). A reasonable number is presumed after 4 repairs of the same defect, 30 or more days out of service, or a qualifying braking or steering repair (§ 14-1502(d)).

What is Maryland's braking and steering 1-attempt rule?

If a braking- or steering-system failure was subject to the same repair at least once within the warranty period, the manufacturer was notified and given the opportunity to cure, and the repair does not bring the vehicle into compliance with Maryland's safety inspection laws, a reasonable number of attempts is presumed (§ 14-1502(d)(3)). It applies only to braking and steering.

Does the Maryland lemon law cover motorcycles or used cars?

Motorcycles registered as Class D are covered (§ 14-1501(f)(1)(ii)); motor homes are not (§ 14-1501(f)(2)). A person to whom a new vehicle is transferred during the applicable warranty is a "consumer" (§ 14-1501(b)(2)), and the Attorney General says the Act might apply if the original owner purchased the vehicle less than 24 months ago.

Do I need to send a certified letter before making a Maryland claim?

The statute requires the consumer to report the nonconformity to the manufacturer by certified mail, return receipt requested, during the warranty period, and the manufacturer has 30 days from receipt to correct it (§ 14-1502(b)). The statute does not say what follows if the report is not made. The Attorney General says that if the manufacturer cannot correct the problem within 30 days of the letter, it must repurchase or replace the vehicle.

What can I recover and how long do I have in Maryland?

A comparable replacement, or a refund of the full purchase price including license fees, registration fees, and similar governmental charges, less a use allowance of up to 15 percent of the purchase price and an allowance for damage not attributable to normal wear (§ 14-1502(c)(1)); the MVA refunds excise tax (§ 14-1503). A court may award attorney's fees to a prevailing plaintiff (§ 14-1502(l)(1)). An action must be commenced within 3 years of original delivery (§ 14-1502(k)).

Statutes cited on this page

• Md. Code Ann., Com. Law § 14-1502 (Maryland Automotive Warranty Enforcement Act: manufacturer duty to repair, refund, or replace)
• Md. Code Ann., Com. Law § 14-1501(f) (Definition of "motor vehicle": the four vehicle classes at (f)(1), the motor-home exclusion at (f)(2))
• Md. Code Ann., Com. Law § 14-1501(e)(1) (Warranty period: 24 months from delivery or 18,000 miles, whichever earlier)
• Md. Code Ann., Com. Law § 14-1502(d) (Reasonable number of repair attempts: statutory presumption; 4-attempt (d)(1), 30-day cumulative (d)(2), braking-steering 1-attempt (d)(3))
• Md. Code Ann., Com. Law § 14-1502(d)(3) (1-attempt braking/steering presumption: post-repair safety-inspection failure)
• Md. Code Ann., Com. Law § 14-1502(b)(1) (Consumer reports the nonconformity to the manufacturer by certified mail during the warranty period)
• Md. Code Ann., Com. Law § 14-1502(c)(1) (manufacturer must replace or refund at the consumer's election; allowance for use capped at 15% of purchase price; allowance for damage not attributable to normal wear)
• Md. Code Ann., Com. Law § 14-1502(c)(3) (affirmative defenses: no substantial impairment of use and market value; abuse, neglect, or unauthorized modifications)
• Md. Code Ann., Com. Law § 14-2004(d)(1)(i) (lessee’s option to a replacement or return where the manufacturer is unable to repair after a reasonable number of attempts)
• Md. Code Ann., Com. Law § 14-1502(m) (the subtitle does not apply to a fleet purchase of five or more motor vehicles)
• Md. Code Ann., Com. Law § 14-1502(k) (action must be commenced within 3 years of original delivery)
• Md. Code Ann., Com. Law § 14-1504(a) (a violation of the subtitle is an unfair or deceptive trade practice under Title 13)
• Md. Code Ann., Com. Law § 13-301(14)(xi) (an unfair or deceptive trade practice includes a violation of the Automotive Warranty Enforcement Act)
• Md. Code Ann., Com. Law § 13-408 (Maryland Consumer Protection Act: private action for injury or loss from a prohibited practice; attorney’s fees)
• Maryland Attorney General, Lemon Law (guidance page: send a copy of the letter to the Consumer Protection Division with the complaint form)
• Laing v. Volkswagen of America, Inc., No. 1040, Sept. Term 2007, 180 Md. App. 136, 949 A.2d 26 (2008)

This page summarizes the statute in plain language and is not legal advice. The linked official text controls.