The North Carolina Lemon Law was passed by the General Assembly in 1987 to provide relief to citizens of that state who have purchased a new car, motorcycle, van or light truck. Leased vehicles are covered in addition to those that have been purchased. Qualifying vehicles must not exceed ten thousand pounds gross vehicle weight.

A vehicle is a lemon if it is “seriously defective” and could not be repaired in a “reasonable number of attempts.” The law defines a “reasonable” number of repair attempts at four. The vehicle will also qualify as a lemon if the cumulative days in the shop during the warranty period equals or exceeds 20 days. This is more generous than many other states’ lemon laws, which typically require 30 days in the shop to qualify. All in all, North Carolina’s lemon law qualifies as a fairly generous one.

A serious defect is defined as “any defect or condition or series of defects or conditions which substantially impair the value of the motor vehicle to the consumer.” The defect must be in a part of the car that is covered by the vehicles warranty, but it is not limited only to problems that affect the car’s ability to be driven. Your vehicle may qualify, for instance, if the headlights keep falling out.

The defect must appear within the vehicles “express warranty period” and state law requires all new vehicles to be sold with a warranty of at least 12 months or 12,000 miles. For warranties that exceed 24 months or 24,000 miles, the lemon law requires that the defect must appear during the first 24 months or 24,000 miles.

Arbitration is available, but is not mandatory. If used, the ruling may be appealed by the consumer. If arbitration is optional, it is probably advisable to avoid it, if possible. While the ruling may be appealed by the consumer, the next stop after an appeal would be a lawsuit. Filing a suit directly instead of arbitration would probably save a step. Plus, North Carolina offers an additional reason to file a suit first. Should a lawsuit take place, the consumer is entitled to triple damages should they win their case. This provides a nice incentive to the manufacturer to settle the case, rather than to take it to court.

Remedies available to the consumer as a result of settlement, lawsuit or arbitration, are:

• 1. Refund of the full purchase price including, but not limited to, charges for undercoating, dealer preparation and installed options, plus the nonrefundable portions of extended warranties and service contracts;
• 2. All supplemental or collateral charges, including but not limited to, sales tax, license and registration fees, and similar government charges;
• 3. All finance charges incurred by the consumer after he first reports the defect to the manufacturer, its agent, or its authorized dealer; and
• 4. Any incidental damages and monetary consequential damages, less a reasonable allowance for the consumer's use of the vehicle.  This may cover a rental car used while the vehicle was out of service, for instance.

As with most states, relief is subject to an allowance for miles driven and wear and tear.

If you are having trouble with your car, sport utility vehicle or van, you may find that you need the help of an attorney. LegalMatch can help find an experienced attorney near where you live. Confidentiality is protected, all legal representatives are licensed, and inquiries are free.

More details can be found the North Carolina Lemon Law page (PDF)