Maryland Lemon Law: Complete Guide for 2026


Maryland Lemon Law consumer protection guide

Last verified: February 2026

Key Points

  • Primary Law: Maryland Automotive Warranty Enforcement Act (Md. Code, Commercial Law §§ 14-1501 to 14-1504)
  • Coverage: New motor vehicles within 24 months or 18,000 miles (whichever is earlier)
  • Presumption: 4+ repair attempts OR 30+ days out of service OR 1 brake/steering repair that fails inspection
  • Remedies: Replacement vehicle or refund (up to 15% usage deduction)
  • Written Notice: Required by certified mail before manufacturer remedies apply
  • Attorney Fees: Court may award reasonable attorney fees to prevailing consumers

Quick Penalties Overview

Violation Type Consumer Remedy Additional Damages
Failure to repair after reasonable attempts Refund or replacement Attorney fees to prevailing plaintiff
Failure to disclose lemon buyback status Rescission of sale MVA notification required; title flagging
Bad faith litigation by consumer N/A Defendant may recover attorney fees

Table of Contents

📑 Table of Contents (click to expand)

Maryland’s Lemon Law Overview

Maryland’s lemon law, officially known as the Automotive Warranty Enforcement Act, is codified in the Commercial Law Article, Title 14, Subtitle 15 (Md. Code, Com. Law §§ 14-1501 to 14-1504). This law provides Maryland consumers with significant protections when they purchase or receive a new motor vehicle that fails to conform to the manufacturer’s express warranties.

The Maryland lemon law was designed to ensure that manufacturers stand behind their warranty obligations and provide consumers with effective remedies when vehicles cannot be repaired after reasonable attempts. The law establishes clear procedures for consumers to follow, specific presumptions that help prove a vehicle is a lemon, and meaningful remedies including full refunds or replacement vehicles.

One notable aspect of Maryland’s lemon law is its requirement for written notice by certified mail to the manufacturer before the consumer can pursue remedies. This procedural requirement must be strictly followed to preserve your rights under the law. The manufacturer then has 30 days to complete repairs after receiving notice.

Maryland’s law also places specific obligations on dealers to notify manufacturers when vehicles have repeated problems, creating a paper trail that can help consumers prove their cases. Additionally, the law includes strong disclosure requirements for resold lemon vehicles to protect subsequent purchasers.

What Vehicles Are Covered

Maryland’s lemon law covers specific categories of new motor vehicles registered in the state. Under Md. Code, Com. Law § 14-1501(f), the law applies to vehicles registered as:

Covered Vehicle Types

  • Class A (Passenger) vehicles: Standard passenger cars, including sedans, coupes, and hatchbacks
  • Class D (Motorcycle) vehicles: Street-legal motorcycles
  • Class E (Truck) vehicles: Trucks with a manufacturer’s rated capacity of 3/4 ton or less
  • Class M (Multipurpose) vehicles: SUVs, crossovers, and similar multipurpose vehicles

Vehicles Not Covered

  • Motor homes: Specifically excluded by statute (though the chassis may have separate coverage)
  • Heavy trucks: Trucks with manufacturer’s rated capacity exceeding 3/4 ton
  • Fleet purchases: Purchases of five or more motor vehicles at once
  • Used vehicles: Only new motor vehicles are covered
  • Off-road vehicles: Vehicles not designed for highway use

The Motor Vehicle Administration is authorized to promulgate regulations defining what constitutes a motor home for purposes of this exclusion. Consumers purchasing motor homes should check current MVA regulations for specific guidance.

The Manufacturer’s Warranty Period

Maryland’s lemon law protections apply during the “manufacturer’s warranty period,” which is specifically defined in the statute. Under Md. Code, Com. Law § 14-1501(e), this period is the earlier of:

  • The first 18,000 miles of operation, OR
  • 24 months following the date of original delivery to the consumer

Important note: This statutory warranty period does not extend any manufacturer’s express warranty. If your manufacturer’s warranty is shorter than 24 months/18,000 miles, the lemon law may still provide protection during this period. Conversely, if your manufacturer’s warranty is longer, the lemon law presumption only applies during the first 24 months/18,000 miles.

If the manufacturer’s warranty is written to include miles driven when the vehicle is in someone else’s possession (such as dealer test drives or transportation), the manufacturer must disclose this fact in 12-point bold face type in the written warranty.

Maryland’s Lemon Law Presumption

Under Md. Code, Com. Law § 14-1502(d), Maryland law creates a presumption that a reasonable number of repair attempts have been undertaken if any of the following conditions are met during the warranty period:

The Lemon Law Presumption Applies When:

Condition Requirement Details
Repair Attempts (Same Problem) 4 or more attempts Same nonconformity must substantially impair use and market value
Days Out of Service 30 or more cumulative days Vehicle unavailable due to repair of one or more defects
Brake or Steering Defect 1 repair attempt that fails Repair does not bring vehicle into compliance with safety inspection laws, and manufacturer was notified and given opportunity to cure

The brake or steering provision is particularly significant. If a repair to the braking or steering system has been attempted at least once, the manufacturer has been notified and given opportunity to cure the defect, and the vehicle still does not comply with Maryland’s motor vehicle safety inspection laws, the presumption is triggered.

Extension of Time Periods

Under Md. Code, Com. Law § 14-1502(e), the warranty term, warranty period, and 30-day out-of-service period are extended by any time during which repair services were unavailable due to:

  • War or invasion
  • Strike
  • Fire, flood, or other natural disaster

Written Notice Requirements

Maryland’s lemon law has a critical written notice requirement that consumers must follow. Under Md. Code, Com. Law § 14-1502(b), consumers must provide written notice to the manufacturer or factory branch by certified mail, return receipt requested.

Notice Requirements

The consumer’s written notice must:

  • Be sent during the warranty period
  • Report the nonconformity, defect, or condition
  • Be sent by certified mail with return receipt requested
  • Be directed to the manufacturer or factory branch

The manufacturer must conspicuously disclose this notice procedure to the consumer in writing at the time of sale or delivery of the motor vehicle.

Manufacturer’s Response Obligation

After receiving the consumer’s notice, the manufacturer, factory branch, agent, or authorized dealer must:

  • Provide an opportunity to cure the defect
  • Complete corrections within 30 days of the manufacturer’s receipt of notification
  • Make repairs at no charge to the consumer, even if repairs occur after warranty expiration

Consumer Remedies: Refund vs. Replacement

When a manufacturer is unable to repair a vehicle after a reasonable number of attempts, Md. Code, Com. Law § 14-1502(c) requires the manufacturer or factory branch to provide the consumer’s choice of remedies.

Option 1: Replacement Vehicle

The manufacturer must replace the motor vehicle with a comparable motor vehicle acceptable to the consumer.

Option 2: Vehicle Buyback (Refund)

The manufacturer must accept return of the vehicle and refund to the consumer:

  • Full purchase price
  • License fees
  • Registration fees
  • Similar governmental charges

Deductions: The refund may be reduced by:

  • A reasonable allowance for the consumer’s use of the vehicle, not to exceed 15% of the purchase price
  • A reasonable allowance for damage not attributable to normal wear (but not damage resulting from the defect)

The 15% maximum usage deduction is more favorable to consumers than many other states, which use mileage-based formulas that can result in higher deductions.

Excise Tax Recovery

Under Md. Code, Com. Law § 14-1503, consumers who return a lemon vehicle are entitled to recover the excise taxes originally paid from the Motor Vehicle Administration. If a replacement vehicle is provided, the MVA allows a credit against the excise tax on the replacement vehicle.

Dealer Notification Obligations

Maryland’s lemon law places specific notification duties on dealers. Under Md. Code, Com. Law § 14-1502(f)(1), dealers must notify the manufacturer when:

  • A motor vehicle is delivered to the same dealer for a fourth repair attempt of the same nonconformity, OR
  • The vehicle is out of service for repair for a cumulative total of 20 days

This notification must be sent by certified mail, with a copy sent to the Motor Vehicle Administration. However, failure of the dealer to provide this notification does not affect the consumer’s rights under the lemon law.

Manufacturer Defenses

Under Md. Code, Com. Law § 14-1502(c)(3), manufacturers may raise specific affirmative defenses to lemon law claims.

Valid Affirmative Defenses

Defense Manufacturer’s Argument Consumer’s Counter
Lack of substantial impairment Defect does not substantially impair use and market value Document impact on daily use, safety, and vehicle resale value
Consumer abuse or neglect Defect resulted from consumer’s abuse or neglect Provide maintenance records and evidence of proper care
Unauthorized modifications Defect resulted from unauthorized modifications or alterations Show defect existed before modifications or is unrelated

Note that Maryland’s standard requires that the defect substantially impair both use and market value, which is a slightly different standard than some states that use “use, value, or safety.”

Informal Dispute Settlement Procedures

Under Md. Code, Com. Law § 14-1502(i), if a manufacturer has established an informal dispute settlement procedure that complies with federal regulations (16 C.F.R. Part 703), a consumer may be required to resort to that procedure before the refund or replacement remedies apply.

However, critically, a consumer who has resorted to an informal dispute settlement procedure may not be precluded from seeking the rights or remedies available by law. This means that using the manufacturer’s arbitration program does not waive your right to pursue court remedies if you are not satisfied with the outcome.

Resale Disclosure and Title Requirements

Maryland has comprehensive disclosure requirements for vehicles returned under the lemon law. Under Md. Code, Com. Law § 14-1502(f)(2) and (g):

Notification to MVA

When a manufacturer is required to accept return of a motor vehicle (whether by judgment, decree, arbitration award, settlement, or voluntary agreement), the manufacturer must notify the Motor Vehicle Administration in writing within 15 days.

Disclosure to Dealers

If a returned vehicle is transferred to a Maryland dealer, the manufacturer must disclose in writing:

  • That the motor vehicle was returned to the manufacturer or factory branch
  • The nature of the defect that resulted in the return
  • The condition of the vehicle at the time of transfer to the dealer

This disclosure must be on a separate piece of paper in 10-point all capital type, stating the information clearly and conspicuously.

Disclosure to Consumers

If the returned vehicle is resold to a consumer, the seller must:

  • Provide a copy of the manufacturer’s disclosure form to the consumer prior to sale
  • Send a copy of the disclosure form, signed by the consumer, to the Motor Vehicle Administration

Statute of Limitations

Under Md. Code, Com. Law § 14-1502(k), any action brought under Maryland’s lemon law must be commenced within 3 years of the date of original delivery of the motor vehicle to the consumer.

Key Timing Considerations

  • Defects should be reported during the warranty period (24 months/18,000 miles)
  • Written notice by certified mail is required before pursuing remedies
  • Lawsuit must be filed within 3 years of original delivery
  • Using manufacturer arbitration does not extend the statute of limitations

Attorney Fees

Under Md. Code, Com. Law § 14-1502(l), a court may award reasonable attorney fees to a prevailing plaintiff. However, if the court determines the action was brought in bad faith or was frivolous, it may order the plaintiff to pay the defendant’s reasonable attorney fees.

Frequently Asked Questions

How many repair attempts does Maryland require before a vehicle qualifies as a lemon?

Maryland’s lemon law presumption is triggered after four repair attempts for the same problem, 30 cumulative days out of service for repairs, or one failed repair attempt for a brake or steering defect that leaves the vehicle non-compliant with safety inspection laws. These conditions must occur within 24 months or 18,000 miles of original delivery, whichever comes first.

Do I have to send written notice to the manufacturer in Maryland?

Yes. Maryland requires that you send written notice to the manufacturer or factory branch by certified mail, return receipt requested. This notice must be sent during the warranty period and should describe the defect or nonconformity. The manufacturer then has 30 days to complete repairs. Failure to provide this notice may prevent you from obtaining a refund or replacement.

What is the maximum usage deduction in Maryland?

Maryland caps the reasonable use deduction at 15% of the purchase price. This is more favorable than many states that calculate deductions based on miles driven, which can sometimes result in higher deductions for consumers who drove significant distances before the defect appeared.

Does Maryland’s lemon law cover motorcycles?

Yes, Maryland’s lemon law specifically covers Class D (motorcycle) vehicles that are registered in the state. Motorcycles must meet the same criteria as other covered vehicles to qualify for lemon law protection.

Can I still sue if I use the manufacturer’s arbitration program?

Yes. Under Maryland law, a consumer who has resorted to a manufacturer’s informal dispute settlement procedure cannot be precluded from seeking other legal remedies. If you are not satisfied with the arbitration outcome, you retain the right to pursue your claim in court.

Are motor homes covered under Maryland’s lemon law?

No, motor homes are specifically excluded from Maryland’s lemon law. However, the chassis and drivetrain components of a motor home may have separate warranty coverage from the chassis manufacturer. The Motor Vehicle Administration has regulations that further define what constitutes a motor home.

What if I discover I purchased a former lemon that was not disclosed?

Maryland requires extensive disclosure of lemon buyback status. Manufacturers must notify the MVA within 15 days of accepting a return, and sellers must provide written disclosure to consumers before any resale. If this disclosure was not made, you may have claims for fraud or violations of consumer protection laws in addition to potential rescission of the sale.

Resources and Legal Help

Official Resources

Related State Laws