New Hampshire Lemon Law: Your Complete Legal Guide
Overview of New Hampshire's Lemon Law
New Hampshire's lemon law, formally known as the New Motor Vehicle Arbitration Act (RSA 357-D), protects consumers who purchase or lease new motor vehicles that turn out to have persistent defects. The law provides an efficient, informal process for resolving warranty disputes between consumers and manufacturers.
Under this law, if a manufacturer or its authorized dealers cannot repair a substantial defect after a reasonable number of attempts, the consumer may be entitled to a replacement vehicle or a full refund. The New Hampshire Motor Vehicle Arbitration Board, administratively attached to the Division of Motor Vehicles, oversees claims and conducts hearings.
This guide covers every major provision of RSA 357-D, including which vehicles qualify, how the lemon law presumption works, what remedies are available, and how to file a claim with the Arbitration Board.
What Vehicles Are Covered
New Hampshire's lemon law covers a broad range of new motor vehicles. Under RSA 357-D:2, "motor vehicle" includes any vehicle with a gross weight not exceeding 11,000 pounds that is purchased or leased by a consumer.
Covered Vehicle Types
- Passenger vehicles: Private passenger and station wagon type vehicles
- Light trucks: Four-wheel motor vehicles 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)
Who Qualifies as a Consumer
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
Governmental entities are specifically excluded from the definition of consumer. Leases must be for a term of two or more years to qualify under the lemon law.
The Lemon Law Presumption
Under RSA 357-D:3, VII, New Hampshire law creates a rebuttable presumption that a reasonable number of repair attempts have been made when certain conditions are met during the express warranty term.
When the Presumption Applies
| 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 one or more nonconformities |
| Same Agent Requirement | Repairs by the same dealer | Presumption generally applies only to attempts by the same authorized dealer, unless consumer shows good cause for using a different dealer |
Documentation Requirements
Under RSA 357-D:3, VIII, each repair attempt must be documented with a written examination or repair order. Without proper written records, the presumption does not apply. Consumers should always request and keep copies of every repair order, invoice, and service record.
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 applies, the manufacturer must provide free use of a vehicle to the consumer whose vehicle is out of service. A vehicle is not considered "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 before seeking relief. 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.
What the Notice Must Include
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
Under RSA 357-D:9, 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 follow rules adopted by the Department of Justice and cannot include window stickers.
Choosing Your Path: Arbitration Board vs. Manufacturer Program
The consumer must elect whether to proceed before the NH Motor Vehicle Arbitration Board or through the manufacturer's dispute settlement mechanism. This choice is binding. Selecting one method prevents you from using the other if you are dissatisfied with the outcome.
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 (Full Refund)
The manufacturer must accept return of the vehicle and provide a refund that includes:
- Full purchase price as indicated in the purchase contract
- Credits and allowances for any trade-in or down payment
- License and registration fees paid by the consumer
- Finance charges and similar credit charges
- Incidental and consequential damages as applicable
Usage Deduction Formula
A reasonable allowance for use may be deducted from the refund. This amount covers use by the consumer before the first repair attempt and is calculated using the following formula:
| Vehicle Type | Formula Denominator |
|---|---|
| Passenger vehicles and light trucks | 100,000 miles |
| Motorcycles/Snowmobiles/OHRVs (250cc or smaller) | 20,000 miles |
| Motorcycles/Snowmobiles/OHRVs (over 250cc) | 40,000 miles |
Formula: Usage Deduction = (Full Purchase Price x Miles Before First Repair Attempt) / Denominator
For example, if a consumer paid $35,000 for a passenger vehicle and drove 3,000 miles before the first repair attempt, the usage deduction would be ($35,000 x 3,000) / 100,000 = $1,050.
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 includes detailed provisions for leased vehicles under RSA 357-D:3, IX. The lease must be for a term of two or more years to qualify.
Refund to the Lessee
The manufacturer must provide the lessee with:
- 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 the Lessor
The manufacturer must provide the motor vehicle lessor with:
- 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 party 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 the lessee's favor. The lessee is not liable for any further costs or charges to the manufacturer or motor vehicle lessor under the lease agreement.
How to File a Lemon Law Claim
Filing a lemon law claim in New Hampshire involves several steps. Following this process carefully helps ensure your claim proceeds smoothly.
Step 1: Document Every Repair Attempt
Keep copies of all repair orders, invoices, and service records. Each repair attempt must be documented in writing. Note the date you dropped off the vehicle and the date you picked it up to track out-of-service days.
Step 2: Send Written Notice to the Manufacturer
After meeting the lemon law threshold (three repair attempts or 30 business days out of service), send written notice using the forms the manufacturer provided at the time of purchase. The notice must identify the defect, state your election to proceed under the lemon law, and specify whether you choose the Arbitration Board or the manufacturer's dispute settlement mechanism.
Step 3: Submit Your Demand for Arbitration
If you choose the NH Motor Vehicle Arbitration Board, submit the Demand for Arbitration form along with supporting documents. You must also send an exact duplicate of your filing to the manufacturer at the applicable zone office address.
Include your check or money order for $50, payable to "State of New Hampshire - DMV."
Mail to: New Hampshire Motor Vehicle Arbitration Board, 23 Hazen Drive, Concord, NH 03305
Step 4: Attend the Hearing
The Board must hold a hearing within 40 days of receiving your complaint. During this period, the manufacturer has one final opportunity to repair the defect. If the repair is satisfactory, the arbitration terminates without prejudice to your right to restart the process if the problem returns.
Step 5: Receive the Board's Decision
The Board will render a decision within 30 days of the hearing's conclusion. If the Board rules in your favor, the manufacturer must provide a refund or replacement within 30 days.
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 five members and three alternate members appointed by the Governor and Council for three-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
| Party | Fee |
|---|---|
| Consumer | $50 |
| Manufacturer | $250 |
Fees are retained by the Department of Safety to defray costs associated with the Board.
Hearing Timeline and Extensions
Under RSA 357-D:4, IV, the hearing must take place 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.
Appeals Process
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.
Costs and Attorney Fees
Under RSA 357-D:10, in any court action by a consumer against a manufacturer or distributor based on an alleged breach of an express warranty, the court may award costs and reasonable attorney fees to the prevailing consumer.
This fee-shifting provision helps level the playing field between individual consumers and large automobile manufacturers. It means that if you successfully pursue a lemon law claim in court, the manufacturer may be required to pay your legal expenses on top of the refund or replacement.
However, the provision works both ways. If the court determines that the consumer's action was brought with no substantial justification, it may award costs and reasonable attorney fees to the manufacturer.
Unfair and Deceptive Practices Enforcement
Under RSA 357-D:7, failure of the manufacturer or distributor to comply with a decision of the Arbitration Board constitutes an unfair or deceptive act or practice under New Hampshire's Consumer Protection Act (RSA 358-A:2).
This means that if a manufacturer ignores or refuses to honor a Board ruling, the consumer gains additional legal remedies under New Hampshire's broader consumer protection laws. These remedies may include treble damages and additional attorney fees.
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 the 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 the defect existed before modifications or is unrelated |
Dealer Liability Protection
Under RSA 357-D:8, the lemon law does not impose liability on a franchised motor vehicle dealer and does not create 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 notable 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 consumers in the state.
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 Legal Rights
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, the New Hampshire Consumer Protection Act (RSA 358-A), or common law.
Contact the NH Motor Vehicle Arbitration Board
For questions about your rights under the lemon law, complaint forms, or the arbitration process, contact:
New Hampshire Motor Vehicle Arbitration Board 23 Hazen Drive Concord, NH 03305 Phone: (603) 227-4385 Email: lemonlaw@dos.nh.gov Website: dmv.nh.gov
More New Hampshire Laws
Sources and References
- New Hampshire RSA 357-D: New Motor Vehicle Arbitration (Full Statute Text)(gc.nh.gov).gov
- RSA 357-D:2 - Definitions(www.gencourt.state.nh.us).gov
- RSA 357-D:3 - Enforcement of Warranties(www.gencourt.state.nh.us).gov
- RSA 357-D:4 - Procedure to Obtain Refund or Replacement(www.gencourt.state.nh.us).gov
- RSA 357-D:5 - New Motor Vehicle Arbitration Board Established(www.gencourt.state.nh.us).gov
- RSA 357-D:6 - Appeal From Board's Decision(www.gencourt.state.nh.us).gov
- RSA 357-D:7 - Unfair and Deceptive Acts and Practices(www.gencourt.state.nh.us).gov
- RSA 357-D:10 - Costs and Attorney's Fees(www.gencourt.state.nh.us).gov
- RSA 357-D:11 - Limitations on Actions(www.gencourt.state.nh.us).gov
- RSA 357-D:12 - Sale of Defective Motor Vehicles(www.gencourt.state.nh.us).gov
- NH DMV - New Motor Vehicle Arbitration Board (Lemon Law)(www.dmv.nh.gov).gov
- New Hampshire Department of Justice - Consumer Protection Bureau(www.doj.nh.gov).gov
- RSA 358-A:2 - Acts Unlawful (Consumer Protection Act)(www.gencourt.state.nh.us).gov