STANDARDS OF THE NEW MEXICO LEMON LAW
Motor Vehicle Quality Assurance Act
The following is a brief explanation of most relevant provisions of the New Mexico
lemon law.  The complete text of the lemon law can be found at New Mexico Stat. Ann. §
57-16A-1 et seq.
VEHICLES COVERED
The New Mexico lemon law covers passenger motor vehicles, including automobiles,
pickup trucks, motorcycles and vans, that are sold and registered in the state; are
normally used for personal, family or household purposes; and have a gross vehicle
weight of less than 10,000 pounds.
CONSUMERS COVERED
The lemon law covers the following “consumers”:
1.   The purchaser, for the purposes other than resale, of a new or used motor vehicle
normally used for personal, family or household purposes; 
2.   Any person to whom the motor vehicle is transferred during the duration of an
express warranty applicable to the motor vehicle; and
3.   Any other person entitled by the terms of the warranty to enforce its obligations.
The lemon law appears not to cover a lessee.
VEHICLE CONVERTERS
The lemon law applies to vehicle converters.
PROBLEMS COVERED
The New Mexico lemon law covers any defect or condition that substantially impairs the
use and market value of the motor vehicle to the consumer. This is referred to as a
nonconformity.
The lemon law provides manufacturers with an affirmative defense if it can be shown
that a nonconformity is the result of abuse, neglect, or unauthorized modifications or
alterations of the motor vehicle.
MANUFACTURER’S DUTY TO REPAIR A VEHICLE
If a new motor vehicle does not conform to all applicable express warranties, and the
consumer reports the nonconformity to the manufacturer, its agent or authorized dealer
during the term of the express warranties or a period of one year following the date of
the motor vehicle’s original delivery to a consumer, whichever comes first, then the
manufacturer, its agent or authorized dealer must make the necessary repairs to
conform the vehicle to the express warranties.

MANUFACTURER’S DUTY TO REPURCHASE OR REPLACE A VEHICLE
If the manufacturer, its agent or authorized dealer is unable to conform the new motor
vehicle to any applicable express warranty by repairing or correcting any nonconformity
after a reasonable number of repair attempts, the manufacturer must either replace or
repurchase the motor vehicle.
REASONABLE NUMBER OF REPAIR ATTEMPTS
The New Mexico lemon law establishes a presumption that a reasonable number of
repair attempts has been undertaken to conform a motor vehicle to the applicable
express warranties if, during the express warranty term or a period of one year following
the date of the motor vehicle’s original delivery to a consumer, whichever is the earlier
date, either of the following occurs:
1.   The same uncorrected nonconformity has been subject to repair four or more times
by the manufacturer, its agents or authorized dealers, but the nonconformity
continues to exist; or
2.   The motor vehicle is in the possession of the manufacturer, its agent or authorized
dealer for repair for a cumulativ e total of 30 or more business days, excluding down
time for routine maintenance as prescribed by the manufacturer.
The term of an express warranty, the one year period and 30 day period are extended by
any period of time during which repair services are not available to the consumer
because of a war, invasion, strike or fire, flood or other natural disaster.
NOTICE AND OPPORTUNITY TO REPAIR
The presumption that a reasonable number of repair attempts has been undertaken
does not apply against a manufacturer unless the manufacturer has received prior direct
written notification from or on behalf of the consumer, and has an opportunity to cure
the defect alleged. The manufacturer must provide, either in the warranty or a separate
notice, written notice and instruction to the consumer regarding this notification
requirement.
DISPUTE RESOLUTION
The lemon law provisions requiring repurchase or replacement of a nonconforming
motor vehicle do not apply to a consumer who has not first used an informal dispute
settlement procedure that complies with 16 C.F.R. Part 703.  The Attorney General may
investigate and determine whether the informal dispute settlement procedure is fair and
impartial and conforms to the requirements of 16 C.F.R. Part 703.
TIME PERIOD FOR FILING CLAIMS
An action must be commenced within the later of (1) 18 months following the date of the
vehicle’s original delivery to a consumer, or (2) if the consumer resorts to an informal
dispute settlement procedure, 90 days following the procedure’s final action.

USED MOTOR VEHICLES
The lemon law prohibits a used motor vehicle dealer from excluding, modifying or
disclaiming the implied warranty of merchantability, or limiting remedies for breach of
the implied warranty of merchantability before the earlier of 15 days or 500 miles after
the vehicle’s delivery. A used motor vehicle dealer who limits the implied warranty of
merchantability of a used motor vehicle renders the purchase agreement voidable.  The
maximum liability of a seller is limited to the purchase price paid for the used motor
vehicle, to be refunded to the consumer or lender, as applicable, in exchange for return
of the vehicle, unless the seller knew or should have known of the defect given the
circumstances in which the vehicle was acquired or sold and the seller did not disclose
that defect.  A consumer or seller aggrieved by a used motor vehicle transaction must
pursue a remedy under the Uniform Commercial Code.

REMEDIES UNDER THE NEW MEXICO LEMON LAW

REPURCHASE
The New Mexico lemon law sets out the following amounts that a manufacturer must
pay when it repurchases a new motor vehicle under the lemon law:
1.   The full purchase price; and
2.   All collateral charges, defined as those additional charges to a consumer not directly
attributed to a manufacturer’s suggested retail price label for a new motor vehicle,
including all taxes, license, title and registration fees and other governmental
charges related to the purchase of the motor vehicle;
3.   Less a reasonable allowance for the consumer’s use of the v ehicle.
Refunds must be made to the consumer and lienholder, if any, as their interests may
appear.
The reasonable allowance for use is that amount directly attributable to use by the
consumer prior to the first report of the nonconformity to the manufacturer, agent or
dealer, and any subsequent period when the motor vehicle is not out of service by reason
of repair. 
REPLACEMENT
When replacing a new motor vehicle under the New Mexico lemon law, the
manufacturer must replace with an identical or reasonably equivalent motor vehicle. 
The consumer is responsible for a reasonable allowance for use.  The reasonable
allowance for use is that amount directly attributable to use by the consumer prior to the
first report of the nonconformity to the manufacturer, agent or dealer, and any
subsequent period when the motor vehicle is not out of service by reason of repair.