Why a North Carolina Lemon Law Attorney

North Carolina’s New Motor Vehicles Warranties Act

North Carolina’s lemon law is formally titled the New Motor Vehicles Warranties Act, codified at N.C. Gen. Stat. § 20-351 through § 20-351.10. It applies to new passenger cars, pick-up trucks, motorcycles, and most vans purchased in North Carolina with a gross vehicle weight under 10,000 lbs. House trailers, mopeds, and electric-assisted bicycles are excluded. To qualify, the defect must substantially impair the vehicle’s use, value, or safety and must arise within the first 24 months or 24,000 miles of original delivery, whichever comes first.

The law doesn’t require the defect to prevent the vehicle from being driven. Issues such as faulty air conditioning or peeling paint may qualify if they substantially impair use, value, or safety. Defects caused by consumer abuse, neglect, odometer tampering, or unauthorized modifications are excluded.

Lemon Law Qualification Thresholds

North Carolina law establishes two paths to lemon law qualification:

• Repair attempts: The same defect has been presented for repair to the manufacturer or an authorized dealer four or more times but continues to exist.
• Out-of-service days: The vehicle has been out of service for a cumulative total of 20 or more business days during any 12-month period due to warranty repairs. To use this threshold, the consumer must first notify the manufacturer in writing and allow a reasonable period, not to exceed 15 calendar days, to correct the problem.

Remedies Available Under North Carolina Lemon Law

If a manufacturer can’t repair the defect within a reasonable number of attempts, you may choose between a comparable new replacement vehicle or a full refund. A refund covers the full contract price, including undercoating, dealer preparation, installed options, and non-refundable portions of extended warranties, along with collateral charges such as sales tax, license and registration fees, finance charges incurred after the first report of the defect, and incidental damages.

Refund amounts are reduced by a mileage allowance calculated as the purchase price multiplied by the miles you drove divided by 120,000. For lessees, the manufacturer may be required to refund all sums paid under the lease plus related upfront charges and separately refund the lessor the lease price plus 5% minus 85% of what the consumer paid. Under N.C. Gen. Stat. § 20-351.8, if a court finds the manufacturer unreasonably refused to comply with its repair or refund obligations, damages may be trebled. Attorney’s fees may also be awarded to the prevailing consumer when a court finds the manufacturer unreasonably failed to resolve the matter.

When Federal Law Provides an Additional Path

The federal Magnuson-Moss Warranty Act (15 U.S.C. § 2301 et seq.) applies to any consumer product sold with a written warranty, including vehicles, and can provide relief when North Carolina’s state statute doesn’t apply. Federal law may be the stronger route when the vehicle is a used car still under a manufacturer’s warranty, or when the defect arose outside the 24-month/24,000-mile state window but repairs occurred during the warranty period. Unlike North Carolina’s statute, the Magnuson-Moss Warranty Act isn’t limited to new vehicles and covers a broader range of consumer products.

North Carolina doesn’t have a state-run arbitration program, but some manufacturers may require consumers to exhaust an informal dispute settlement procedure that complies with federal standards before filing suit if that requirement is clearly written into the warranty. Our affiliated attorneys handle both state lemon law claims and federal Magnuson-Moss Warranty Act claims and can determine which law, or combination of both, may provide the strongest path forward.

Start Your Free North Carolina Lemon Law Case Review

If you believe you’re driving a lemon, don’t navigate the claims process alone. National Lemon Law Center offers a free case review for North Carolina consumers, and our affiliated attorneys serve clients throughout the state with no out-of-pocket cost at any stage.

Call us today at (877) 315-3666 or visit our contact page to get started. There’s no fee unless you prevail, and the consultation costs you nothing.