Last verified: February 2026
Key Points
- Primary Law: Alabama Lemon Law (Code of Alabama § 8-20A-1 through § 8-20A-6)
- Coverage: New motor vehicles purchased or leased in Alabama
- Presumption: 3+ repair attempts OR 30+ calendar days out of service within 24 months/24,000 miles
- Remedies: Replacement vehicle or full refund at manufacturer’s option
- Arbitration: Consumers must use manufacturer’s arbitration program if certified
- Attorney Fees: Court may award reasonable attorney fees to prevailing consumer
Quick Penalties Overview
| Violation Type | Consumer Remedy | Additional Damages |
|---|---|---|
| Failure to repair after reasonable attempts | Replacement or refund | Incidental damages, attorney fees |
| Willful violation of lemon law | Actual damages | Court may award attorney fees and costs |
| Failure to honor arbitration decision | Consumer may proceed to court | Potential additional penalties |
Table of Contents
📑 Table of Contents (click to expand)
Understanding Alabama’s Lemon Law
Alabama’s lemon law, codified in Code of Alabama § 8-20A-1 through § 8-20A-6, provides protections for consumers who purchase or lease new motor vehicles that turn out to be defective. Originally enacted in 1985 and subsequently amended, the law requires manufacturers to repair, replace, or refund the purchase price of vehicles that cannot be brought into conformity with the manufacturer’s express warranty after a reasonable number of repair attempts.
The Alabama lemon law applies specifically to new motor vehicles and requires consumers to follow certain procedures before seeking legal remedies. Unlike some states with stronger consumer protections, Alabama’s law gives the manufacturer the choice between providing a replacement vehicle or a refund, which can be a significant limitation for consumers.
One important aspect of Alabama’s law is its requirement that consumers utilize the manufacturer’s certified informal dispute settlement procedure, if one exists, before pursuing remedies in court. This arbitration requirement can delay the process but may also provide a faster resolution without the expense of litigation.
What Vehicles Are Covered
Alabama’s lemon law has specific requirements regarding which vehicles qualify for protection. Understanding these requirements is essential before pursuing a claim.
Covered Vehicle Types
- New passenger automobiles: Sedans, coupes, hatchbacks, and similar vehicles
- Trucks: Pickup trucks used primarily for personal, family, or household purposes
- Vans and SUVs: Sport utility vehicles and passenger vans
- Leased vehicles: New vehicles obtained through lease agreements
- Demonstrator vehicles: Demo vehicles sold as new with full warranty coverage
Vehicles Not Covered
- Used vehicles, regardless of remaining warranty
- Motorcycles
- Motor homes and recreational vehicles (the living portion)
- Vehicles with a gross vehicle weight rating over 10,000 pounds
- Vehicles purchased primarily for business purposes
- Off-road vehicles not designed for highway use
- Vehicles sold “as is” without manufacturer warranty
Alabama’s Lemon Law Presumption
Under Alabama’s lemon law, a rebuttable presumption exists that the manufacturer has had a reasonable number of attempts to conform the vehicle to the warranty if certain conditions are met. This presumption helps consumers establish their case without having to prove what constitutes “reasonable.”
The Lemon Law Presumption Applies When:
| Condition | Requirement | Details |
|---|---|---|
| Repair Attempts (Same Problem) | 3 or more attempts | Same nonconformity must substantially impair use, value, or safety |
| Days Out of Service | 30 or more calendar days | Vehicle unavailable due to repair of one or more nonconformities |
| Timeframe | Within 24 months or 24,000 miles | Whichever comes first from date of original delivery |
Important: The 30-day out of service period does not need to be consecutive. Cumulative days count toward the total, but the days must result from actual repair attempts, not from the consumer’s failure to pick up the vehicle.
What Qualifies as a “Nonconformity”?
A nonconformity under Alabama law is any defect or condition that substantially impairs the use, value, or safety of the motor vehicle. This includes:
- Engine or transmission problems affecting drivability
- Brake system malfunctions
- Steering defects creating safety hazards
- Electrical system failures affecting critical functions
- Persistent warning lights indicating serious mechanical issues
- Air conditioning or heating failures in extreme cases
- Water leaks causing interior damage
Minor defects such as squeaks, rattles, or cosmetic issues generally do not qualify unless they significantly affect the vehicle’s value or the consumer’s ability to use it safely.
Consumer Remedies: Refund vs. Replacement
When a vehicle qualifies as a lemon under Alabama law, the manufacturer must provide either a replacement vehicle or a refund. Unlike some states, Alabama gives the manufacturer the choice between these remedies, not the consumer.
Option 1: Replacement Vehicle
If the manufacturer chooses replacement, they must provide:
- A comparable new motor vehicle acceptable to the consumer
- All applicable express warranties
- Reimbursement for incidental costs including registration fees and taxes
Option 2: Refund (Buyback)
If the manufacturer chooses to refund, they must pay:
- Full purchase price: Including sales tax and title fees
- Finance charges: Any interest paid on the vehicle loan
- License and registration fees: DMV costs paid by the consumer
- Incidental damages: Towing costs, rental car expenses, and similar costs
Usage Deduction: The manufacturer may deduct a reasonable allowance for the consumer’s use of the vehicle. This is typically calculated based on the miles driven before the first repair attempt.
Usage Deduction = (Purchase Price x Miles at First Repair) / 120,000
How to File a Lemon Law Claim in Alabama
Filing a successful lemon law claim in Alabama requires careful documentation and adherence to specific procedures.
Step 1: Document Everything
- Keep all repair orders and invoices
- Record dates your vehicle was dropped off and picked up
- Document the specific symptoms you experienced
- Save all correspondence with the dealer and manufacturer
- Take photographs or videos of defects when possible
- Keep records of any rental car expenses or towing costs
Step 2: Allow Reasonable Repair Attempts
Give the manufacturer or its authorized dealer a reasonable opportunity to repair the vehicle. The presumption requires at least three attempts for the same problem or 30 days out of service.
Step 3: Provide Written Notice to Manufacturer
Before pursuing remedies, send written notice to the manufacturer describing:
- The nature of the defect
- Your vehicle information (year, make, model, VIN)
- A summary of repair attempts
- Your request for replacement or refund
Step 4: Use Manufacturer’s Arbitration Program
If the manufacturer has an informal dispute settlement procedure certified under FTC regulations, you must use it before filing a lawsuit. The arbitration decision is binding on the manufacturer but not on the consumer.
Step 5: File a Lawsuit if Necessary
If arbitration does not resolve your claim satisfactorily, you may file a lawsuit in Alabama state court. Consider consulting with a lemon law attorney, as the manufacturer must pay your attorney fees if you prevail.
Manufacturer Defenses
Manufacturers may raise several defenses to avoid lemon law liability. Understanding these defenses helps consumers build stronger cases.
Common Manufacturer Defenses
| Defense | Manufacturer’s Argument | Consumer’s Counter |
|---|---|---|
| Consumer abuse or neglect | Defect caused by improper use or lack of maintenance | Provide maintenance records showing proper care |
| Unauthorized modifications | Aftermarket parts or modifications caused the problem | Show defect existed before modifications or is unrelated |
| Defect not substantial | Problem is minor or cosmetic | Document how defect affects safety, use, or value |
| Insufficient repair attempts | Manufacturer was not given adequate opportunity to repair | Provide complete repair history meeting presumption requirements |
| Accident damage | Problem resulted from collision or external damage | Obtain expert testimony showing defect is manufacturing related |
Used Vehicle Protections
Alabama’s lemon law does not cover used vehicles. However, used car buyers in Alabama may have other protections:
Available Protections for Used Vehicles
- Remaining manufacturer warranty: If a used vehicle is still under the original manufacturer’s warranty, you may have warranty claims against the manufacturer
- Dealer warranties: Some dealers provide limited warranties on used vehicles
- Implied warranty of merchantability: Under general contract law, vehicles must be fit for their ordinary purpose
- Federal Magnuson-Moss Warranty Act: Provides remedies for breach of written warranties
- Alabama Deceptive Trade Practices Act: May apply if the dealer misrepresented the vehicle’s condition
Vehicles Sold “As Is”
If a used vehicle is sold “as is” with proper disclosure, the buyer generally assumes all risk of defects. Alabama law requires dealers to clearly disclose when a vehicle is sold without warranty.
Statute of Limitations
Alabama’s lemon law has specific timeframes within which claims must be initiated:
- Reporting period: Nonconformities must be reported within the warranty term or 24 months/24,000 miles from delivery, whichever comes first
- Filing deadline: Claims should be pursued promptly after the presumption conditions are met
- General contract limitations: Alabama’s general statute of limitations for contract claims is six years
Important: Do not delay in pursuing your claim. The sooner you act after meeting the presumption requirements, the stronger your case will be.
Frequently Asked Questions
How many repair attempts does Alabama require before a vehicle is considered a lemon?
Under Alabama’s lemon law presumption, a vehicle may qualify as a lemon after three or more repair attempts for the same substantial defect, or if the vehicle has been out of service for 30 or more calendar days for repairs. These conditions must occur within the first 24 months or 24,000 miles of ownership, whichever comes first.
Do I need a lawyer to file an Alabama lemon law claim?
While you can pursue a claim without an attorney, having legal representation significantly improves your chances of success. If you prevail in a lemon law case, the manufacturer may be required to pay your reasonable attorney fees, so many lemon law attorneys work on contingency with no upfront cost to you.
Does Alabama’s lemon law cover used cars?
No, Alabama’s lemon law only covers new motor vehicles. However, if a used vehicle is still under the original manufacturer’s warranty, you may have claims under that warranty or under the federal Magnuson-Moss Warranty Act.
Can I choose between a refund and replacement in Alabama?
No. Unlike some states that give consumers the choice, Alabama law allows the manufacturer to decide whether to provide a replacement vehicle or a refund. This is one of the limitations of Alabama’s lemon law compared to other states.
What is the usage deduction in an Alabama lemon law buyback?
The manufacturer may deduct a reasonable amount for the miles you drove before the first repair attempt for the defect. This is typically calculated by multiplying the purchase price by the miles driven, then dividing by 120,000. For example, if you paid $30,000 and drove 3,000 miles before the first repair, the deduction would be approximately $750.
Do I have to use the manufacturer’s arbitration program?
Yes, if the manufacturer has an informal dispute settlement procedure that complies with FTC regulations, you must use it before filing a lawsuit. However, the arbitration decision is binding only on the manufacturer. If you are not satisfied with the result, you can still pursue your claim in court.
Resources and Legal Help
Official Resources
- Code of Alabama (Full Text)
- Alabama Attorney General: Consumer Protection Division
- FTC Warranty Rules