Vermont Lemon Law: Do You Qualify?

Vermont lemon law at a glance

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The vehicle must be under the manufacturer’s express warranty. No separate time or mileage period is stated. Proceedings must be commenced within one year following the expiration of the express warranty term; the DMV’s guide says the warranty ends “by time or mileage, whichever occurs first”.

Repair attempts

At least 3 repairs of the same nonconformity by the manufacturer, its agent or an authorized dealer, the first within the express warranty term, and it still exists. Each attempt must be shown by a written repair order, and the presumption counts three attempts by the same dealer unless you show good cause for using another. The DMV’s guide counts a repair order marked “no problem found” as an attempt.

Days out of service

30 or more cumulative calendar days during the express warranty term. A vehicle is not out of service if it is available to you for a major part of the day. The term and the 30 days are extended for time repair services were unavailable because of war, invasion, strike, fire, flood or other natural disaster, and the manufacturer must then provide the free use of a vehicle.

The standard

The presumption is one way to show “a reasonable number of attempts”; the defect must substantially impair the use, market value, or safety of the vehicle, and it is an affirmative defense that it does not. The DMV’s notice says a demand may be filed with fewer than three attempts or 30 days for a safety or other reason that meets the reasonable repair threshold.

Written notice

After a reasonable repair attempt or 30 cumulative days out of service, notify the manufacturer and lessor in writing on the manufacturer’s forms, and elect the manufacturer’s dispute mechanism or the Board. The choice precludes the other. A consumer who has stopped financing or lease payments cannot pursue a remedy.

Who is covered

Purchasers (not for resale) and lessees (written lease of two or more years) of new vehicles, anyone to whom the vehicle is transferred during the express warranty, and anyone else entitled by the warranty to enforce it. Not covered: governmental entities, a business that registers or leases three or more vehicles, tractors, motorized highway building equipment, road-making appliances, snowmobiles, motorcycles, motor-driven cycles, trucks over 12,000 lbs GVWR, and the living portion of recreation vehicles.

Used vehicles

No separate used-vehicle provision. A person to whom the vehicle is transferred during the express warranty is a consumer. New and used motor vehicle dealers cannot be sued under the chapter.

Other remedies

Nothing in the chapter limits the rights or remedies otherwise available under any other law. A waiver of the chapter’s rights is void, except in a settlement agreement or where federal law requires otherwise.

Vermont lemon law: frequently asked questions

How many repair attempts does the Vermont lemon law require?

A reasonable number of attempts is presumed after at least three repairs of the same nonconformity by the manufacturer, its agent or an authorized dealer, with at least the first within the express warranty term, if it continues to exist. Each attempt must be shown by a written examination or repair order, and the presumption applies to three attempts by the same dealer unless you show good cause for using another. The statute has no separate attempt count for safety defects; the standard is “a reasonable number of attempts”, and the DMV’s notice says a demand may be filed with fewer for a safety or other reason.

How long do I have to file in Vermont?

Proceedings must be commenced within one year following the expiration of the express warranty term. Separately, arbitration must be held within 45 days of receipt by the manufacturer or the Board of your notice electing arbitration, with an extension of up to 30 more days for good cause.

Do I have to go to court, and can a Board decision be challenged?

Your claim under the chapter is decided by arbitration: the Board, or the manufacturer’s own dispute mechanism if you elect it in your written notice; choosing one precludes the other. Nothing in the chapter limits rights or remedies under any other law. A Board decision is final unless a motion for reconsideration accompanied by new evidence is filed within 30 days of your receipt of it; it then cannot be modified or vacated unless, on appeal to the Superior Court, a party proves by clear and convincing evidence one of four grounds: corruption, fraud or undue means; evident partiality or misconduct by the Board; the Board exceeded its powers; or the Board refused to postpone or hear material evidence or conducted the hearing contrary to its rules. The party who prevails in confirming a decision is awarded its attorney’s fees and costs.

What can I recover if my vehicle qualifies?

The manufacturer must, at your option within 30 days of the effective date of the Board’s order, replace the vehicle or refund the full purchase price in the contract, trade-in and downpayment credits, finance and credit charges, registration fees and similar charges, and incidental and consequential damages, less an allowance for use of the price × miles before the first repair attempt ÷ 100,000. Refunds are made to you and the lienholder as their interests may appear; the DMV’s brochure says that if a refund does not cover the lien payoff, the consumer is responsible for obtaining a clear title. The State refunds the Vermont purchase and use tax in proportion, on your claim to the Commissioner of Motor Vehicles within 90 days of the order.

When must the manufacturer pay, and what if it is late?

Within 30 days of the facsimile transmission confirmation receipt of a Board decision or within 15 days of final adjudication. You receive an additional 10 percent of the total award if the manufacturer fails to complete the transaction by the effective date of the order. Failure to comply with a Board decision is also an unfair or deceptive act under chapter 63, whose private action allows attorney’s fees and exemplary damages up to three times the consideration; the chapter does not say how that action applies to a decision violation.

Statutes cited on this page

• 9 V.S.A. § 4171(2) (who is a consumer: purchaser or lessee, transferees during the express warranty, and the business exclusion)
• 9 V.S.A. § 4171(6) (motor vehicle: a passenger motor vehicle; excluded types and trucks over 12,000 lbs GVWR)
• 9 V.S.A. § 4171(9) (new motor vehicle: still under the manufacturer’s express warranty)
• 9 V.S.A. § 4171(5) (lessee: a written lease of two or more years)
• 9 V.S.A. § 4172(g), (h) (presumption of a reasonable number of attempts: three repairs of the same nonconformity or 30 cumulative calendar days out of service; repair orders and same dealer)
• 9 V.S.A. § 4172(d) (a written repair order and itemized statement each visit)
• 9 V.S.A. § 4172(f) (affirmative defenses: no substantial impairment; abuse, neglect or unauthorized modifications)
• 9 V.S.A. § 4173(a) (written notice to the manufacturer and lessor; election of the manufacturer’s mechanism or the Board, which precludes the other)
• 9 V.S.A. § 4173(a)(2) (the election; a waiver of the chapter’s rights is void)
• 9 V.S.A. § 4173(b) (no remedy if financing or lease payments are discontinued)
• 9 V.S.A. § 4173(c) (arbitration within 45 days of receipt of the notice; a manufacturer’s mechanism that misses it)
• 9 V.S.A. § 4173(d) (the manufacturer’s one final repair opportunity, within the 45-day period and at least five days before the hearing)
• 9 V.S.A. § 4179(a) (proceedings within one year after the express warranty term expires)
• 9 V.S.A. § 4179(b) (the chapter does not limit rights or remedies under any other law)
• 9 V.S.A. § 4175 (no filing fee or costs assessed against the consumer; dealer participation costs)
• 9 V.S.A. § 4176(a) (a Board decision is final unless reconsidered on new evidence or vacated; fees for the party who prevails in confirming it)
• 9 V.S.A. § 4176(a)(2) (the party who prevails in confirming a decision is awarded its attorney’s fees and costs)
• 9 V.S.A. § 4177 (failure to comply with a Board decision is an unfair or deceptive act under chapter 63)
• 9 V.S.A. § 2461(b) (chapter 63: damages, attorney’s fees and exemplary damages up to three times the consideration)
• 9 V.S.A. § 4170 (new and used motor vehicle dealers cannot be sued under the chapter)
• 9 V.S.A. § 4172(i)(1) (a lessee’s refund and the allowance for use: payments × miles before the first repair ÷ miles allowed in the lease)
• 9 V.S.A. § 4172(e)(2) (a recreation vehicle: the chassis warrantor is responsible for any refund)
• Vermont New Motor Vehicle Arbitration Board Rules, rule 4 (request for hearing) and rule 6 (receipt)
• Vermont DMV, Manufacturers’ Guide (VX-114), eligibility criteria (agency guidance)
• 9 V.S.A. § 4172(e)(1) (replacement or refund at the consumer’s option; full purchase price less a use allowance of price × miles before the first repair attempt ÷ 100,000)
• 9 V.S.A. § 4173(f) (refund within 30 days of the Board decision or 15 days of final adjudication; an additional 10 percent of the total award if not completed by the effective date of the order)

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