North Carolina Lemon Law

Written by SkyRidge Law Editorial Team Last updated 7 min read

Key takeaways

  • Protection period: refund/replacement applies to defects occurring no later than 24 months or 24,000 miles after original delivery. Express warranties must remain in effect at least 1 year or 12,000 miles.
  • Repair attempts: same nonconformity presented for repair 4 or more times and it continues to exist.
  • Days out of service: cumulative total of 20 or more business days out of service during or awaiting repair in any 12-month period of the warranty, after written notice to the manufacturer and a repair period not to exceed 15 calendar days.
  • The law is N.C. Gen. Stat. §§ 20-351 to 20-351.11. Read it with your repair orders and your warranty in front of you.
On this page
  1. North Carolina lemon law at a glance
  2. Does your vehicle qualify in North Carolina?
  3. Notice, dispute programs and deadlines
  4. What you can recover
  5. Federal warranty law also applies
  6. Talk to us about your North Carolina vehicle
  7. Frequently asked questions

North Carolina's lemon law is N.C. Gen. Stat. §§ 20-351 to 20-351.11, the North Carolina New Motor Vehicles Warranties Act (Lemon Law). It gives owners a remedy when the manufacturer can't fix a warranty defect after a fair chance. This page sums up the main rules as written in the statute, with links to the official text. Use it to check your dates and your repair visits, then talk to a lawyer about your own records.

North Carolina lemon law at a glance

Statute N.C. Gen. Stat. §§ 20-351 to 20-351.11
Official name North Carolina New Motor Vehicles Warranties Act (Lemon Law)
Vehicles covered New motor vehicles (as defined in G.S. 20-4.01) sold or leased in North Carolina. Excludes house trailers and any motor vehicle weighing more than 10,000 pounds.
Leased vehicles Yes, leased vehicles are covered.
Protection period Refund/replacement applies to defects occurring no later than 24 months or 24,000 miles after original delivery. Express warranties must remain in effect at least 1 year or 12,000 miles.
Repair attempts Same nonconformity presented for repair 4 or more times and it continues to exist.
Days out of service Cumulative total of 20 or more business days out of service during or awaiting repair in any 12-month period of the warranty, after written notice to the manufacturer and a repair period not to exceed 15 calendar days.
Notice to the manufacturer For the days-out-of-service presumption, the consumer must notify the manufacturer directly in writing and allow up to 15 calendar days to correct (not required if the manufacturer failed to disclose this in the warranty or owner's manual). Before suing, the consumer must give the manufacturer written notice of intent to sue at least 10 days before filing.
Dispute programs Not required by the statute itself; a manufacturer may require use of an informal settlement procedure that substantially complies with the Magnuson-Moss Warranty Act if the requirement is clearly stated in the written warranty. No state-run program.
Remedies At the consumer's option, a comparable new replacement vehicle or a refund of the full contract price (including options, dealer prep, non-refundable extended warranty portions), collateral charges, finance charges after the first report, and incidental and consequential damages, less a use allowance = miles up to the 3rd repair attempt or 20th business day out of service x price / 120,000. Damages may be trebled if the manufacturer unreasonably refused to comply.
Attorney's fees Yes, conditionally. A court may award a reasonable attorney's fee to the prevailing party upon a finding that the manufacturer unreasonably failed or refused to fully resolve the matter (or that the action was frivolous and malicious) (§ 20-351.8(3)).
Used vehicles No used-car lemon law. Coverage is limited to 'new motor vehicles' (no certificate of origin ever supplied to a consumer, or sold in writing as new); any other person entitled to enforce the express warranty is a 'consumer'.

Does your vehicle qualify in North Carolina?

The law covers new motor vehicles (as defined in G.S. 20-4.01) sold or leased in North Carolina. Excludes house trailers and any motor vehicle weighing more than 10,000 pounds. The protection period is refund/replacement applies to defects occurring no later than 24 months or 24,000 miles after original delivery. Express warranties must remain in effect at least 1 year or 12,000 miles. Inside that window, the statute presumes the manufacturer has had a fair chance to fix the problem when one of these is true:

  • Repeated repairs: Same nonconformity presented for repair 4 or more times and it continues to exist.
  • Days out of service: Cumulative total of 20 or more business days out of service during or awaiting repair in any 12-month period of the warranty, after written notice to the manufacturer and a repair period not to exceed 15 calendar days.

As with most lemon laws, the defect generally has to be covered by the manufacturer's warranty and serious enough to substantially impair the vehicle's use, value or safety; check the statute's exact wording. Count only visits for the same problem, and check each repair order for your complaint, the dates in and out, and the mileage. See what counts as a repair attempt.

Notice, dispute programs and deadlines

For the days-out-of-service presumption, the consumer must notify the manufacturer directly in writing and allow up to 15 calendar days to correct (not required if the manufacturer failed to disclose this in the warranty or owner's manual). Before suing, the consumer must give the manufacturer written notice of intent to sue at least 10 days before filing.

Not required by the statute itself; a manufacturer may require use of an informal settlement procedure that substantially complies with the Magnuson-Moss Warranty Act if the requirement is clearly stated in the written warranty. No state-run program.

State resource: North Carolina Department of Justice, Consumer Protection Division.

Deadlines can run out before you expect, and contacting a lawyer does not stop them. Read more about lemon law deadlines and notice to the manufacturer.

Questions about your vehicle's repair history?

Tell us what has happened with your vehicle. A member of our team will look at your dates and repair orders with you. Reaching out does not create an attorney-client relationship.

What you can recover

At the consumer's option, a comparable new replacement vehicle or a refund of the full contract price (including options, dealer prep, non-refundable extended warranty portions), collateral charges, finance charges after the first report, and incidental and consequential damages, less a use allowance = miles up to the 3rd repair attempt or 20th business day out of service x price / 120,000. Damages may be trebled if the manufacturer unreasonably refused to comply. Yes, conditionally. A court may award a reasonable attorney's fee to the prevailing party upon a finding that the manufacturer unreasonably failed or refused to fully resolve the matter (or that the action was frivolous and malicious) (§ 20-351.8(3)). Many claims are also resolved by a negotiated settlement. See buyback and replacement.

Federal warranty law also applies

The federal Magnuson-Moss Warranty Act (15 U.S.C. §§ 2301–2312) applies in every state. It covers written and implied warranties on consumer products, including vehicles, and it can help when a vehicle falls outside North Carolina's lemon law, for example some used vehicles sold with a warranty or a service contract.

Talk to us about your North Carolina vehicle

SkyRidge Law P.C. reviews lemon law questions from owners in every state. Lawyers may practice only where they are licensed or otherwise authorized, so before you sign anything we tell you which lawyer would handle your case and where that lawyer is licensed. Send us your repair history and we will look at your dates with you.

Frequently asked questions

How many repair attempts make a car a lemon in North Carolina?

Under N.C. Gen. Stat. §§ 20-351 to 20-351.11, the presumption is met when same nonconformity presented for repair 4 or more times and it continues to exist. The law also counts time in the shop: cumulative total of 20 or more business days out of service during or awaiting repair in any 12-month period of the warranty, after written notice to the manufacturer and a repair period not to exceed 15 calendar days.

Does the North Carolina lemon law cover used cars?

No used-car lemon law. Coverage is limited to 'new motor vehicles' (no certificate of origin ever supplied to a consumer, or sold in writing as new); any other person entitled to enforce the express warranty is a 'consumer'. Even when the state lemon law does not apply, a used vehicle sold with a written warranty or a service contract may have rights under the federal Magnuson-Moss Warranty Act.

Does the North Carolina lemon law cover leased vehicles?

Yes, leased vehicles are covered. Lease buybacks usually involve both you and the leasing company, so keep your lease agreement with your repair orders.

Do I have to notify the manufacturer in North Carolina?

For the days-out-of-service presumption, the consumer must notify the manufacturer directly in writing and allow up to 15 calendar days to correct (not required if the manufacturer failed to disclose this in the warranty or owner's manual). Before suing, the consumer must give the manufacturer written notice of intent to sue at least 10 days before filing. Keep a copy of anything you send and proof of delivery.

Do I have to go to arbitration in North Carolina?

Not required by the statute itself; a manufacturer may require use of an informal settlement procedure that substantially complies with the Magnuson-Moss Warranty Act if the requirement is clearly stated in the written warranty. No state-run program.

Can I recover attorney's fees under the North Carolina lemon law?

Yes, conditionally. A court may award a reasonable attorney's fee to the prevailing party upon a finding that the manufacturer unreasonably failed or refused to fully resolve the matter (or that the action was frivolous and malicious) (§ 20-351.8(3)). We explain exactly how fees work in your case before you sign anything.

Sources

  1. N.C.G.S. Chapter 20, Article 15A New Motor Vehicles Warranties Act (NC General Assembly)
  2. NC Department of Justice - Lemon Law

Questions about your vehicle's repair history?

Tell us what has happened with your vehicle. A member of our team will look at your dates and repair orders with you. Reaching out does not create an attorney-client relationship.

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