North Carolina Lemon Law: Do You Qualify?

North Carolina lemon law at a glance

Coverage window

Repairs are owed for a problem reported within one year, or the term of the express warranties, whichever is greater, after delivery. A refund or replacement is for a defect that occurred no later than 24 months or 24,000 miles after delivery (the statute says "or"; the Attorney General’s guide says whichever comes first). The warranty term, the one-year period and the 20-day period are extended by any time repair services are not available because of war, strike or natural disaster.

Repair attempts

The same problem presented for repair four or more times and still there. The Act has no separate rule for safety defects.

Days out of service

20 or more cumulative business days during any 12-month period of the warranty. The statute does not define "business day".

Written notice

For the presumption you must notify the manufacturer directly in writing and allow a reasonable period, not more than 15 calendar days, to correct the problem. Notice is not required if the manufacturer failed to disclose the requirement or an address in the warranty or owner’s manual. Before suing you must also give written notice of your intent to sue at least 10 days before filing.

Substantial impairment

The refund is for a defect that substantially impairs the value of the vehicle to you. The presumption is one way to show a reasonable number of attempts; the consumer may also prove substantial impairment of value in a manner other than the presumption.

Defenses

It is an affirmative defense that the problem is the result of abuse, neglect, odometer tampering by the consumer, or unauthorized modifications or alterations of the vehicle. Accident is not named.

Dispute program

The Act creates no state program. A manufacturer may require you to use its informal settlement procedure before suing only if it substantially complies with the Magnuson-Moss Warranty Act and the requirement is written clearly and conspicuously in the warranty.

Who you sue

A consumer may bring a civil action against the manufacturer. The Act does not create a cause of action against an authorized dealer. The Attorney General has a duty to bring a civil action when the interests of the public require it, and the Department of Justice’s guide says: "If you have a complaint about new car warranties contact us for help or call toll free within North Carolina at 1-877-5-NO-SCAM". Other rights and remedies under any other law are preserved.

Used vehicles, leases and exclusions

The Act covers a "new motor vehicle", a lessee, and any person entitled by the terms of the manufacturer’s express warranty to enforce it, so a later owner may be covered while that warranty runs; there is no separate used-vehicle provision. It excludes any motor vehicle that weighs more than 10,000 pounds, a "house trailer" and a purchase for resale. The vehicle must be sold or leased in North Carolina.

Filing deadline

The Act states none. Whether the four-year limit for contracts for sale in G.S. 25-2-725 applies is not addressed in the sources we reviewed.

North Carolina lemon law: frequently asked questions

How many repair attempts does the North Carolina lemon law require?

The Act presumes a reasonable number of attempts when the same problem has been presented for repair four or more times and still exists, or when the vehicle has been out of service for 20 or more cumulative business days during any 12-month period of the warranty. Both depend on your written notice to the manufacturer and up to 15 calendar days for it to correct the problem. You can also try to prove substantial impairment of value in another way.

Do I have to notify the manufacturer in writing?

For the presumption, yes: you must notify the manufacturer directly in writing, not just the dealer. The manufacturer must clearly disclose that requirement and a name and address in the warranty or owner’s manual, and notice is not required if it fails to. Before filing suit you must also give written notice of your intent to sue at least 10 days earlier. You sue the manufacturer; the Act gives no cause of action against an authorized dealer.

How long do I have to sue under the North Carolina lemon law?

The Act states no filing deadline. Separately, G.S. 25-2-725 requires an action on a contract for sale to be commenced within four years after the cause of action accrued, but whether that section governs claims under the Act is not addressed in the sources we reviewed. Talk to an attorney promptly.

Does the North Carolina lemon law cover used or leased vehicles?

Leased vehicles are covered, with their own refund rules: the lessee recovers the sums paid under the lease and in entering it, less the allowance for use, and the lessor is repaid the lease price plus 5% less 85% of what the lessee paid. There is no separate used-vehicle provision. The Act covers a "new motor vehicle" (one whose certificate of origin was never supplied to a consumer, or that the manufacturer, its agent or its authorized dealer states in writing is sold as new), and its definition of "consumer" includes any other person entitled by the terms of an express warranty to enforce it. Its periods run from original delivery, so a later owner may be covered while the manufacturer’s warranty is still running.

What can I recover if my vehicle qualifies in North Carolina?

At your option, a comparable new vehicle or a refund of the contract price, collateral charges such as sales tax and registration fees, finance charges after you first reported the problem, and incidental and monetary consequential damages, reduced by an allowance for use (miles up to the third repair attempt or the twentieth business day out of service, x price, / 120,000). In an action under the Act, damages are trebled upon a finding that the manufacturer unreasonably refused to comply, and a court may award the prevailing party a reasonable attorney’s fee on the findings the statute lists. A manufacturer or dealer that resells a returned vehicle must tell the next buyer, before the sale, that it was returned and the defect that substantially impaired its value.

Statutes cited on this page

• N.C. Gen. Stat. § 20-351.1(1) ("Consumer": purchaser, lessee, and any other person entitled by the terms of an express warranty to enforce it)
• N.C. Gen. Stat. § 20-351.1(3) ("Motor vehicle": sold or leased in this State; excludes house trailers and vehicles over 10,000 pounds)
• N.C. Gen. Stat. § 20-351.1(4) ("New motor vehicle")
• N.C. Gen. Stat. § 20-351.2(a) (repairs owed if the nonconformity is reported within one year or the warranty term, whichever is greater)
• N.C. Gen. Stat. § 20-351.3(a) (refund or replacement for a defect that occurred no later than 24 months or 24,000 miles after original delivery)
• N.C. Gen. Stat. § 20-351.3(b) (a lessee's refund: sums paid under and in entering the lease; the lessor's share)
• N.C. Gen. Stat. § 20-351.3(c) (reasonable allowance for use: miles up to the third repair attempt or the twentieth business day out of service, x price, / 120,000)
• N.C. Gen. Stat. § 20-351.4 (affirmative defenses: abuse, neglect, odometer tampering by the consumer, unauthorized modifications)
• N.C. Gen. Stat. § 20-351.5(a) (presumption of a reasonable number of attempts: four attempts or 20 business days, after written notice and up to 15 calendar days to correct)
• N.C. Gen. Stat. § 20-351.5(b), (c) (other proof of substantial impairment; extension for war, strike or natural disaster)
• N.C. Gen. Stat. § 20-351.6 (civil action by the Attorney General)
• N.C. Department of Justice, Lemon Law (guidance page: the Department offers help with new car warranty complaints)
• N.C. Gen. Stat. § 20-351.7 (civil action: 10 days written notice of intent to sue; informal settlement procedure the manufacturer may require)
• N.C. Gen. Stat. § 20-351.8 (relief in court: damages trebled on an unreasonable refusal; attorney fees to the prevailing party)
• N.C. Gen. Stat. § 20-351.3(d) (resale of a returned vehicle: disclosure to the next buyer)
• N.C. Gen. Stat. § 20-351.9 (no cause of action by a consumer against an authorized dealer)
• N.C. Gen. Stat. § 20-351.10 (other rights and remedies preserved)
• N.C. Gen. Stat. § 25-2-725(a) (four years for an action for breach of a contract for sale; the Act states no period of its own)

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