North Carolina Lemon Law: Complete Guide for 2026

Last verified: February 2026

Key Points

Primary Law: New Motor Vehicles Warranties Act (N.C.G.S. Chapter 20, Article 15A, Sections 20-351 to 20-351.10)
Coverage: New passenger cars, pickup trucks, motorcycles, and most vans purchased in North Carolina
Presumption: 4+ repair attempts for same defect OR 20+ business days out of service within 24 months/24,000 miles
Remedies: Comparable replacement vehicle or full purchase price refund at consumer’s choice
Written Notice: Consumer must provide written notice to manufacturer before seeking remedy
Attorney Fees: Prevailing consumers may recover attorney fees and costs

Quick Penalties Overview

Violation Type	Consumer Remedy	Additional Damages
Failure to repair after reasonable attempts	Refund or replacement vehicle	Attorney fees and costs if consumer prevails
Manufacturer fails to respond within 15 days	Consumer may proceed with legal action	Court costs and reasonable expenses
Violation of warranty obligations	Full purchase price refund	Incidental damages including finance charges

📑 Table of Contents (click to expand)

North Carolina Lemon Law Overview
What Vehicles Are Covered
North Carolina’s Lemon Law Presumption
Consumer Remedies: Refund vs. Replacement
How to File a Lemon Law Claim
Manufacturer Defenses
Used Vehicle Protections
Dispute Resolution Options
Statute of Limitations
Frequently Asked Questions
Resources and Legal Help

North Carolina Lemon Law Overview

North Carolina’s Lemon Law, officially known as the New Motor Vehicles Warranties Act (N.C.G.S. 20-351 to 20-351.10), provides important consumer protections for buyers of defective new vehicles in the state. The law requires manufacturers to repair defects that affect the use, value, or safety of a new motor vehicle within the first 24 months of purchase or 24,000 miles, whichever occurs first.

Under North Carolina law, if a manufacturer or its authorized dealer cannot repair a substantial defect after a reasonable number of attempts, the consumer is entitled to either a comparable replacement vehicle or a full refund of the purchase price. The law places the burden on manufacturers to honor their warranty obligations while providing consumers with clear remedies when those obligations are not met.

North Carolina’s Lemon Law is enforced by the North Carolina Attorney General’s Office, which provides guidance and assistance to consumers seeking to exercise their rights under the statute.

What Vehicles Are Covered

The North Carolina Lemon Law covers specific types of vehicles purchased in the state. Understanding coverage requirements is essential before pursuing a claim.

Covered Vehicle Types

New passenger cars: Sedans, coupes, hatchbacks, and similar vehicles
Pickup trucks: Light-duty trucks used primarily for personal purposes
Motorcycles: Street-legal motorcycles with manufacturer warranties
Vans: Including minivans and passenger vans
Demonstrator vehicles: Demo vehicles sold as new with remaining warranty

Vehicles Not Covered

Used vehicles (even with remaining warranty)
House trailers and recreational vehicles (living portions)
Commercial vehicles used primarily for business purposes
Off-road vehicles not designed for highway use
Vehicles purchased outside North Carolina

North Carolina’s Lemon Law Presumption

Under N.C.G.S. 20-351.5, North Carolina law creates a presumption that a manufacturer has had a “reasonable number of attempts” to repair a vehicle if specific 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 affecting use, value, or safety
Days Out of Service	20 or more cumulative business days	Vehicle unavailable for repair during 12-month period of warranty
Warranty Coverage Period	24 months or 24,000 miles	Whichever comes first from date of purchase
Written Notice	Required before remedy	Consumer must notify manufacturer with 15-day response period

Important: North Carolina counts business days, not calendar days, when calculating time out of service. This distinction can affect whether your vehicle meets the presumption threshold.

What Qualifies as a Defect Under North Carolina Law?

A defect covered under the Lemon Law must be something that affects the use, value, or safety of the vehicle and is covered by the manufacturer’s warranty. Examples include:

Engine or transmission problems affecting drivability
Brake system malfunctions
Steering defects
Electrical system failures
Airbag or safety system defects
Faulty air conditioning systems
Peeling paint or significant body defects
Water leaks causing interior damage

The defect does not need to prevent you from driving the vehicle. Even problems like faulty air conditioning or peeling paint may qualify under the North Carolina Lemon Law if they affect the vehicle’s value.

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under North Carolina law, the consumer has the right to choose between two remedies.

Option 1: Comparable Replacement Vehicle

The manufacturer must provide a comparable new replacement vehicle. This is typically an identical make and model with equivalent features and equipment.

Option 2: Full Refund (Buyback)

If the consumer chooses a refund, the manufacturer must return:

Full contract price: Including charges for undercoating, dealer preparation, and installed options
Extended warranties: Non-refundable portions of extended warranties and service contracts
Upfront charges: Sales tax, license fees, registration fees
Finance charges: Interest incurred after the consumer first reported the problem
Incidental damages: Reasonable expenses related to the defect

Reasonable Allowance for Use: The refund is reduced by a reasonable allowance for the consumer’s use of the vehicle. North Carolina uses this formula:

Allowance = Purchase Price x (Miles Driven Before First Report / 120,000)

How to File a Lemon Law Claim in North Carolina

Filing a successful lemon law claim in North Carolina requires following specific procedures and providing proper notice to the manufacturer.

Step 1: Document All Repairs

Keep copies of all repair orders and invoices
Record the dates your vehicle was in the shop
Document the specific problems you reported
Note the number of business days the vehicle was out of service
Save all correspondence with the dealer and manufacturer

Step 2: Send Written Notice to the Manufacturer

Before seeking a remedy, you must notify the manufacturer in writing about the defect. Your notice should include:

Your name and contact information
Vehicle identification (year, make, model, VIN)
Description of the defect or nonconformity
Repair history summary
Your requested remedy (refund or replacement)

Step 3: Allow Manufacturer Response Time

Under North Carolina law, the manufacturer has a reasonable period, not to exceed 15 days, to fix the defect after receiving your written notice.

Step 4: Request Your Remedy

If the manufacturer fails to repair the vehicle within the 15-day period, you may demand a refund or replacement vehicle.

Step 5: Pursue Resolution Through Dispute Resolution or Court

If the manufacturer refuses to comply, you may use the manufacturer’s dispute resolution program (if available) or file a lawsuit in court.

Manufacturer Defenses

Manufacturers may raise several defenses to avoid lemon law liability in North Carolina.

Common Manufacturer Defenses

Defense	Manufacturer’s Argument	Consumer’s Counter
Consumer abuse or neglect	Defect caused by owner misuse	Provide maintenance records showing proper care
Unauthorized modifications	Aftermarket parts caused the problem	Show defect existed before modifications
Defect not substantial	Problem does not impair use, value, or safety	Document specific impacts on vehicle use
Insufficient notice	Consumer did not provide proper written notice	Keep proof of certified mail delivery
Outside warranty period	Defect reported after 24 months or 24,000 miles	Show first report was within coverage period

Used Vehicle Protections

North Carolina’s Lemon Law does not cover used vehicles. However, used car buyers may have other protections available.

Alternative Protections for Used Vehicle Buyers

Remaining manufacturer warranty: If the original warranty is still in effect, you may have claims against the manufacturer
Dealer warranties: Some dealers offer written warranties on used vehicles
Unfair and Deceptive Trade Practices Act: N.C.G.S. 75-1.1 prohibits unfair or deceptive business practices, which may apply to dishonest vehicle sales
Federal Magnuson-Moss Warranty Act: Provides federal warranty protections

What to Do If You Bought a Defective Used Car

Review any warranty provided with the vehicle
Check if the original manufacturer warranty is still active
Document all defects and repair attempts
Consult with a consumer protection attorney
File a complaint with the NC Attorney General if dealer fraud is suspected

Dispute Resolution Options

North Carolina law recognizes manufacturer-sponsored dispute resolution programs as a potential first step before litigation.

Manufacturer Arbitration Programs

Many manufacturers have their own dispute resolution programs. Your warranty may require you to use these programs before going to court. Check your warranty documentation for details.

BBB AUTO LINE

The BBB AUTO LINE program is used by several major manufacturers to resolve lemon law disputes through mediation and arbitration. This program is typically free to consumers.

Court Action

If alternative dispute resolution fails or is not required, you may file a lawsuit in North Carolina courts. Consumers who prevail may recover attorney fees and court costs.

Statute of Limitations

Understanding deadlines is critical for preserving your North Carolina lemon law rights.

Key Timeframes

Coverage period: Defect must occur within 24 months or 24,000 miles of purchase
Reporting deadline: Defect must be reported during the manufacturer’s warranty period
Lawsuit filing: Claims should generally be filed within the applicable statute of limitations (typically 3-4 years for contract claims)

Tip: Begin pursuing your claim as soon as the vehicle qualifies as a lemon. Delays can complicate your case and reduce your potential recovery.

Frequently Asked Questions

How many repair attempts are required under North Carolina’s Lemon Law?

Under the lemon law presumption, a vehicle may qualify after four or more repair attempts for the same defect. Alternatively, if the vehicle has been out of service for 20 or more cumulative business days during any 12-month period of the warranty, it may also qualify.

Does North Carolina’s Lemon Law cover used vehicles?

No, the North Carolina Lemon Law only covers new vehicles purchased in the state. Used vehicle buyers may have protections under the original manufacturer warranty (if still in effect), dealer warranties, or consumer protection statutes.

Do I need to give the manufacturer written notice?

Yes, North Carolina law requires consumers to provide written notification to the manufacturer before seeking a remedy. The manufacturer then has up to 15 days to attempt to fix the defect.

What is the “reasonable allowance for use” deduction?

The reasonable allowance for use is an amount deducted from your refund based on the miles you drove before first reporting the defect. It is calculated by dividing the miles driven by 120,000 and multiplying by the purchase price.

Can I recover attorney fees under North Carolina’s Lemon Law?

Yes, if you prevail in a lemon law claim, the court may award reasonable attorney fees and costs. This makes it easier to obtain legal representation for your case.

Are motorcycles covered under North Carolina’s Lemon Law?

Yes, motorcycles purchased new in North Carolina are covered by the Lemon Law if they have a manufacturer’s warranty and meet all other requirements.