Last verified: February 2026
Key Points
- Primary Law: New Motor Vehicle Arbitration Act (RSA 357-D)
- Coverage: New motor vehicles under manufacturer’s express warranty
- Presumption: 3+ repair attempts for same defect OR 30+ business days out of service
- Remedies: Replacement vehicle or full refund at consumer’s choice
- Arbitration: New Hampshire Motor Vehicle Arbitration Board
- Attorney Fees: Court may award costs and reasonable attorney fees to prevailing plaintiff
Quick Penalties Overview
| Violation Type | Consumer Remedy | Additional Damages |
|---|---|---|
| Failure to repair after reasonable attempts | Refund or replacement | Incidental and consequential damages |
| Failure to comply with Board decision | Court enforcement | Unfair/deceptive trade practice under RSA 358-A:2 |
| Resale of serious safety defect vehicle in NH | Prohibited | Potential criminal and civil penalties |
Table of Contents
📑 Table of Contents (click to expand)
- New Hampshire’s Lemon Law Overview
- What Vehicles Are Covered
- New Hampshire’s Lemon Law Presumption
- Written Notice Requirements
- Consumer Remedies: Refund vs. Replacement
- Leased Vehicle Provisions
- NH Motor Vehicle Arbitration Board
- Manufacturer Defenses
- Serious Safety Defect Provisions
- Statute of Limitations
- Frequently Asked Questions
- Resources and Legal Help
New Hampshire’s Lemon Law Overview
New Hampshire’s lemon law, officially known as the New Motor Vehicle Arbitration Act, is codified in RSA Chapter 357-D. The law was enacted in 1991 and has been amended several times to strengthen consumer protections and expand coverage to additional vehicle types including motorcycles, snowmobiles, and off-highway recreational vehicles.
The legislative intent behind RSA 357-D is clear: manufacturers should be obligated to provide speedy and less costly resolution of automobile warranty problems. The law requires manufacturers to refund the consumer’s purchase price or provide a replacement vehicle whenever the manufacturer is unable to make the vehicle conform with its applicable warranty.
New Hampshire established a dedicated Motor Vehicle Arbitration Board to hear consumer complaints and issue binding decisions. This Board provides an accessible, relatively quick forum for consumers to seek relief without the expense and delay of traditional litigation.
A notable feature of New Hampshire’s law is that dealers cannot be sued under the lemon law. The obligation to repair and the liability for lemons rests entirely with the manufacturer. However, dealers are required to provide repair orders and documentation, and they cannot charge back costs to the manufacturer arising from lemon law claims.
What Vehicles Are Covered
New Hampshire’s lemon law covers a broad range of motor vehicles. Under RSA 357-D:2, “motor vehicle” includes:
Covered Vehicle Types
- Passenger vehicles: Private passenger and station wagon type vehicles with gross weight not exceeding 11,000 pounds
- Four-wheel motor vehicles: Any 4-wheel vehicle with gross weight not exceeding 11,000 pounds (except tractors and mopeds)
- Motorcycles: Street-legal motorcycles purchased with manufacturer warranties
- Off-highway recreational vehicles (OHRVs): As defined in RSA 215-A:1, VI
- Snowmobiles: As defined in RSA 215-C:1, XV and RSA 357-C:1, XXVI
Vehicles Not Covered
- Tractors and agricultural equipment
- Mopeds
- Vehicles with gross weight exceeding 11,000 pounds
- Vehicles purchased by governmental entities
- Vehicles purchased for purposes of resale
- Vehicles purchased for the purpose of subleasing (for lessees)
Consumer Definition
Under RSA 357-D:2, III, a “consumer” means:
- The purchaser (other than for resale) of a new motor vehicle
- The lessee of a new motor vehicle (other than for sublease)
- Any person to whom the motor vehicle is transferred during the warranty period
- Any other person entitled by the warranty terms to enforce warranty obligations
Importantly, governmental entities are specifically excluded from the definition of consumer.
New Hampshire’s Lemon Law Presumption
Under RSA 357-D:3, VII, New Hampshire law creates a presumption that a reasonable number of repair attempts have been made if certain conditions are met during the express warranty term.
The Lemon Law Presumption Applies When:
| Condition | Requirement | Details |
|---|---|---|
| Repair Attempts (Same Problem) | 3 or more attempts | Same nonconformity identified in written repair orders; must substantially impair use, market value, or safety |
| Days Out of Service | 30 or more business days | Cumulative total during the warranty term for repair of nonconformities |
| Same Agent Requirement | Repairs by same agent/dealer | Presumption only applies to attempts by the same authorized dealer unless consumer shows good cause for using different dealer |
Important: Under RSA 357-D:3, VIII, for the presumption to apply, each repair attempt must be evidenced by a written examination or repair order. The presumption generally only applies to repairs undertaken by the same agent or authorized dealer, unless the consumer can show good cause for taking the vehicle to a different dealer.
Extension of Warranty and Out-of-Service Periods
The warranty term and the 30-day out-of-service period are extended by any time during which repair services were not available to the consumer because of:
- War or invasion
- Strike
- Fire, flood, or other natural disaster
If such an extension is required, the manufacturer must provide free use of a vehicle to the consumer whose vehicle is out of service. A vehicle is not deemed “out of service” if it is available to the consumer for a major part of the day.
Written Notice Requirements
New Hampshire’s lemon law has specific notice requirements that consumers must follow. Under RSA 357-D:4, after the third repair attempt or after 30 business days out of service, the consumer must notify the manufacturer and lessor (if applicable) in writing.
Notice Requirements
The written notice must:
- Be on forms provided by the manufacturer
- Identify the nonconformity, defect, or condition
- State the consumer’s election to proceed under the lemon law
- Indicate whether the consumer chooses to use the manufacturer’s dispute settlement mechanism or the NH Motor Vehicle Arbitration Board
Manufacturer Disclosure Obligations
Manufacturers must provide:
- Forms for consumer notification along with clear and conspicuous disclosure of consumer rights at the time of vehicle delivery
- Self-addressed notice forms sufficient to notify the manufacturer
- Clear and conspicuous notice informing consumers of their rights under the lemon law
These disclosure requirements cannot be delegated to dealers. The forms and notices must be in a form prescribed by rules adopted by the Department of Justice and cannot include window stickers.
Consumer Election
The consumer must elect whether to proceed before the NH Motor Vehicle Arbitration Board or through the manufacturer’s dispute settlement mechanism. This election is binding: choosing one method precludes using the other.
Consumer Remedies: Refund vs. Replacement
When a vehicle qualifies as a lemon under New Hampshire law, the consumer has the right to choose between two remedies under RSA 357-D:3, V.
Option 1: Replacement Vehicle
The manufacturer must replace the motor vehicle with a new motor vehicle from the same manufacturer, if available, of comparable worth to the same make and model with all options and accessories. Appropriate adjustments are allowed for model year differences.
Option 2: Vehicle Buyback (Refund)
The manufacturer must accept return of the vehicle and refund to the consumer:
- Full purchase price: As indicated in the purchase contract
- Credits and allowances: All credits and allowances for any trade-in or down payment
- License fees: All license and registration fees paid
- Finance charges: Credit charges and similar charges
- Incidental and consequential damages: As applicable
Usage Deduction: A reasonable allowance for use may be deducted. This amount is directly attributable to use by the consumer prior to the first repair attempt and is calculated as follows:
| Vehicle Type | Formula Denominator |
|---|---|
| Passenger vehicles | 100,000 miles |
| Motorcycles/Snowmobiles/OHRVs (250cc or smaller) | 20,000 miles |
| Motorcycles/Snowmobiles/OHRVs (over 250cc) | 40,000 miles |
Usage Deduction = (Full Purchase Price × Miles Before First Repair) / [Denominator from table]
Payment Timeline
Under RSA 357-D:4, VI, the manufacturer must provide the refund or make the replacement within 30 days of a Board decision, or within 15 days of final adjudication in court.
Leased Vehicle Provisions
New Hampshire’s lemon law has detailed provisions for leased vehicles under RSA 357-D:3, IX. Leases must be for a term of 2 or more years to qualify.
Refund to Lessee
The manufacturer must provide to the lessee:
- The aggregate deposit and rental payments previously paid to the motor vehicle lessor
- Incidental and consequential damages, if applicable
- Minus a reasonable allowance for use (calculated using the same formula as for purchased vehicles, but based on aggregate deposits and rental payments)
Refund to Lessor
The manufacturer must provide to the motor vehicle lessor:
- The lessor’s actual purchase cost, less payments made by the lessee
- Freight costs, if applicable
- Dealer or manufacturer-installed accessories costs, if applicable
- Any fee paid to another to obtain the lease
- An amount equal to 5% of the lessor’s actual purchase cost (in lieu of early termination costs)
Lease Termination
The lessee’s lease agreement is terminated upon a Board decision in favor of the lessee. The lessee is not liable for any further costs or charges to the manufacturer or motor vehicle lessor under the lease agreement.
NH Motor Vehicle Arbitration Board
New Hampshire established a dedicated Motor Vehicle Arbitration Board under RSA 357-D:5 to hear lemon law disputes.
Board Composition
The Board consists of 5 members and 3 alternate members appointed by the Governor and Council for 3-year terms:
- One member and one alternate who are new car dealers in New Hampshire
- One member and one alternate knowledgeable in automobile mechanics
- Three members and one alternate representing consumers with no direct involvement in the motor vehicle industry
Filing Fees
- Consumer: $50 filing fee
- Manufacturer: $250 filing fee
Fees are retained by the Department of Safety to defray costs associated with the Board.
Hearing Timeline
Under RSA 357-D:4, IV, arbitration must be held within 40 days of receipt of the consumer’s notice, unless good cause exists for an extension (not to exceed an additional 30 days). If the manufacturer requests the extension, they must provide free use of a vehicle to the consumer if the consumer’s vehicle is out of service.
Final Repair Opportunity
Within the 40-day period, the manufacturer has one final opportunity to correct and repair the defect. If the consumer is satisfied with the repair, arbitration proceedings terminate without prejudice to the consumer’s right to request arbitration be recommenced if the repair proves unsatisfactory.
Appeals
Under RSA 357-D:6, the Board’s decision is final and cannot be modified or vacated unless a party proves by clear and convincing evidence that:
- The award was procured by corruption, fraud, or undue means
- There was evident partiality, corruption, or misconduct by the Board
- The Board exceeded its powers
- The Board refused to postpone a hearing after sufficient cause, refused to hear material evidence, or conducted the hearing contrary to rules so as to substantially prejudice a party’s rights
Any appeal must be filed with the Superior Court within 30 days of the Board’s written decision.
Manufacturer Defenses
Manufacturers may raise specific affirmative defenses under RSA 357-D:3, VI.
Valid Affirmative Defenses
| Defense | Manufacturer’s Argument | Consumer’s Counter |
|---|---|---|
| Lack of substantial impairment | Defect does not substantially impair use, market value, or safety | Document impact on daily use, safety concerns, or resale value |
| Consumer abuse or neglect | Nonconformity resulted from abuse or neglect by consumer | Provide maintenance records showing proper care |
| Unauthorized modifications | Defect resulted from unauthorized modifications or alterations | Show defect existed before modifications or is unrelated |
Dealer Liability Protection
Under RSA 357-D:8, nothing in the lemon law imposes liability on a franchised motor vehicle dealer or creates a cause of action against a dealer, except for written express warranties made by the dealer apart from manufacturer warranties. Dealers cannot be made defendants in lemon law actions (except as noted), and manufacturers cannot charge back costs to dealers arising from lemon law claims.
Serious Safety Defect Provisions
New Hampshire has a unique provision regarding vehicles with serious safety defects. Under RSA 357-D:12:
Definition of Serious Safety Defect
A “serious safety defect” means a life-threatening malfunction or nonconformity that:
- Impedes the consumer’s ability to control or operate the vehicle for ordinary use or reasonable intended purposes, OR
- Creates a risk of fire or explosion
Resale Prohibition
Any manufacturer, agent, or authorized dealer is prohibited from reselling in New Hampshire any vehicle determined or adjudicated by the Board as having a serious safety defect. This is a stronger protection than many states provide and ensures that dangerously defective vehicles cannot be passed on to unsuspecting New Hampshire consumers.
Statute of Limitations
Under RSA 357-D:11, any proceeding under the lemon law must be commenced within one year following the later of:
- The expiration of the express warranty term, OR
- The manufacturer’s final repair attempt of the nonconformity that gave rise to the consumer’s request for replacement or refund
Preserving Other Rights
Importantly, nothing in RSA 357-D limits the rights or remedies otherwise available to a consumer under any other provision of law. Consumers may have additional claims under the Uniform Commercial Code, consumer protection laws, or common law.
Frequently Asked Questions
How many repair attempts does New Hampshire require?
New Hampshire law presumes a vehicle is a lemon after three repair attempts for the same nonconformity (as documented in written repair orders), or after 30 business days out of service for repairs during the warranty term. These attempts should generally be at the same authorized dealer unless you can show good cause for using a different dealer.
Does New Hampshire’s lemon law cover motorcycles and snowmobiles?
Yes. New Hampshire’s lemon law covers motorcycles, off-highway recreational vehicles (OHRVs), and snowmobiles in addition to passenger vehicles. The usage deduction formula differs for these vehicles, using a 20,000-mile denominator for engines 250cc or smaller and 40,000 miles for larger engines.
Can I sue the dealer under New Hampshire’s lemon law?
No. Under RSA 357-D:8, dealers cannot be sued under the lemon law except for their own written express warranties separate from the manufacturer’s. The manufacturer bears full responsibility for lemon law claims. However, dealers must provide proper documentation and cannot interfere with your lemon law rights.
What happens if a vehicle with a serious safety defect is resold?
New Hampshire law prohibits manufacturers, agents, and authorized dealers from reselling in New Hampshire any vehicle that the Arbitration Board has determined has a serious safety defect. This is a stronger protection than many states and helps ensure dangerous vehicles do not end up back on the road.
Do I have to choose between arbitration and the manufacturer’s program?
Yes. When you file your written notice, you must elect whether to proceed through the NH Motor Vehicle Arbitration Board or the manufacturer’s dispute settlement mechanism (if one exists). This choice is binding, and you cannot pursue the other option if you are unsatisfied with the result. The Board process costs $50 to file and typically offers neutral arbitrators.
What if the manufacturer delays arbitration beyond 40 days?
If the manufacturer cannot show good cause for the delay and the arbitration is not held within 40 days, you may be entitled to receive the relief you requested under the lemon law. If the manufacturer requests an extension, they must provide you with free use of a replacement vehicle if your car is out of service.
Resources and Legal Help
Official Resources
- New Hampshire Lemon Law Statute (RSA 357-D)
- New Hampshire Department of Justice
- New Hampshire Division of Motor Vehicles
- Consumer Protection Bureau