South Dakota Lemon Law: Your Complete Legal Guide

What Is South Dakota's Lemon Law?

South Dakota's Motor Vehicle Warranty Law, codified in SDCL 32-6D-1 through 32-6D-11, protects consumers who purchase new vehicles that turn out to have serious, unfixable defects. Enacted in 1993, this law gives buyers a path to either a replacement vehicle or a full refund when a manufacturer cannot repair a covered defect within a reasonable number of attempts.

The law applies to vehicles purchased or leased in South Dakota that are used primarily for personal, family, or household purposes. If your new car, truck, SUV, or motorcycle has a recurring problem that the dealer cannot fix, you may have a lemon law claim.

What Vehicles Are Covered

South Dakota's lemon law covers vehicles intended primarily for use on public highways that meet certain criteria. Understanding which vehicles qualify is the first step in determining whether you have a valid claim.

Covered Vehicle Types

• New or previously untitled motor vehicles that are self-propelled and designed for highway use
• Passenger cars and sedans used substantially for personal, family, or household purposes
• Trucks and SUVs under the 15,000 lb. GVWR limit
• Vans and minivans for personal use
• Motorcycles intended for highway use and personal purposes
• Light pickup trucks under the weight threshold

Vehicles NOT Covered

• Motor homes (the law specifically excludes them under SDCL 32-6D-1)
• Motor vehicles with a manufacturer's gross vehicle weight rating of 15,000 pounds or more
• Vehicles purchased for the purpose of resale
• Vehicles not used substantially for personal, family, or household purposes
• Mopeds and off-road vehicles

Key Definitions

Consumer: The purchaser, other than for purposes of resale, of a new or previously untitled motor vehicle used in substantial part for personal, family, or household purposes. The consumer must be entitled by the terms of the warranty to enforce its obligations.

Lemon Law Rights Period: The period ending one year after the date of original delivery to a consumer or the first 12,000 miles of operation, whichever occurs first. You must first report the defect during this window for the lemon law to apply.

Nonconforming Condition: A defect or condition that does not conform to the terms of the manufacturer's express warranty, significantly impairs the use, value, or safety of the motor vehicle, and arises solely in the course of ordinary use.

South Dakota's Lemon Law Presumption

Under SDCL 32-6D-5, South Dakota law creates a rebuttable presumption that the manufacturer has had reasonable attempts to correct a nonconforming condition when certain thresholds are met. This presumption shifts the burden of proof in favor of the consumer.

When the Presumption Applies

The presumption applies when either of the following conditions is met within 24 months of delivery or 24,000 miles, whichever occurs first:

Condition	Requirement	Details
Repair Attempts (Same Problem)	4 or more attempts PLUS 1 final attempt	At least one attempt must occur during the lemon law rights period
Days Out of Service	30 or more cumulative calendar days	Including the final repair attempt, with at least one repair during the lemon law rights period
Lemon Law Rights Period	1 year or 12,000 miles	Nonconformity must first be reported during this period
Extended Repair Period	24 months or 24,000 miles	Total time allowed for all repair attempts including the final opportunity

Important: The 30-day out-of-service calculation does not include time when repair could not be performed because of conditions beyond the control of the manufacturer or its dealers. Examples include war, invasion, strike, fire, flood, or other natural disaster.

What Qualifies as a Nonconforming Condition?

South Dakota defines a nonconforming condition as one that meets all three of these criteria:

• It does not conform to the terms of any express warranty issued by the manufacturer
• It significantly impairs the use, value, or safety of the motor vehicle
• It occurs or arises solely in the course of ordinary use of the motor vehicle

The nonconformity must NOT arise from:

• Abuse, neglect, or modification not authorized by the manufacturer
• Any accident or other damage occurring after dealer delivery to the consumer

Minor cosmetic issues, normal wear items, and problems caused by aftermarket parts generally do not qualify as nonconforming conditions under the statute.

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under South Dakota law, the consumer has the right to choose between a replacement vehicle or a full refund. The manufacturer cannot force one option over the other.

Option 1: Replacement Vehicle

Under SDCL 32-6D-3, the manufacturer must provide:

• A comparable new motor vehicle of the same make and model (or a reasonably equivalent vehicle)
• Refund of all collateral charges, including excise tax, license, registration fees, and similar government charges

Option 2: Full Refund

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

• Full contract price: Including undercoating, dealer preparation, and transportation charges
• Installed options: Cost of all options installed at the time of purchase
• Extended warranties and service contracts: Nonrefundable portions of any extended warranty or service contract
• Collateral charges: Excise tax, license, registration fees, and similar government charges
• Finance charges: All finance charges incurred after the consumer first reported the nonconformity to the manufacturer or dealer
• Incidental damages: Reasonable cost of alternative transportation during the period the consumer was without the vehicle due to the nonconforming condition

Usage Deduction Formula

The manufacturer may offset the refund by a reasonable allowance for the consumer's use of the vehicle before the first report of the defect. South Dakota calculates this as:

Usage Deduction = (Full Purchase Price x Miles Before First Report) / 100,000

For example, if you purchased a vehicle for $40,000 and drove 5,000 miles before reporting the first defect, the usage deduction would be $2,000.

South Dakota uses 100,000 miles as the denominator in this formula. This is more favorable to consumers than states that use 120,000 miles, as it results in a slightly higher per-mile deduction but a lower total deduction for vehicles reported early.

Refunds are made to the consumer and any lienholders, as their interests may appear. If there is a loan on the vehicle, the lender will receive the remaining balance and the consumer receives the rest.

How to File a Lemon Law Claim in South Dakota

Filing a successful lemon law claim in South Dakota requires careful documentation and strict adherence to notice and procedural requirements. Missing a step can delay or derail your claim.

Step 1: Document Everything From Day One

Thorough documentation is the foundation of a strong lemon law claim. Keep the following records:

• All repair orders, work orders, and invoices from every dealer visit
• Dates your vehicle was dropped off and picked up from the shop
• Written descriptions of the symptoms you experienced each time
• All correspondence with the dealer and manufacturer, including emails and letters
• Photos or videos of the defect, warning lights, or safety issues when possible
• A log of how the defect affects your daily use of the vehicle

Tip: Request a repair order every time you bring your vehicle in for service. If a visit is not documented on a repair order, it may not count toward the four-attempt threshold required under the lemon law.

Step 2: Report the Nonconformity

Deliver the motor vehicle to the manufacturer or its authorized dealer and give notice of the nonconforming condition during the lemon law rights period (1 year or 12,000 miles, whichever comes first). Verbal notice to the dealer is sufficient for this step, but written notice creates a stronger record.

Step 3: Allow Repair Attempts

Give the manufacturer or authorized dealer a reasonable opportunity to repair the nonconformity. The manufacturer's obligation to repair extends up to 24 months or 24,000 miles from delivery, whichever occurs first, as long as the initial notice was given during the lemon law rights period.

Step 4: Send Written Notice for Final Repair Opportunity

Before filing a lawsuit, you must give the manufacturer written notice by certified mail demanding correction of the defect. This triggers the final repair opportunity process outlined in SDCL 32-6D-6.

Step 5: Exhaust Informal Dispute Settlement Procedure (If Applicable)

If the manufacturer has established an informal dispute settlement procedure that complies with federal rules and regulations under the Magnuson-Moss Warranty Act, you must exhaust that remedy before filing suit. Not all manufacturers maintain such programs, so check with the manufacturer first.

Final Repair Opportunity

South Dakota's lemon law includes a unique "final repair opportunity" provision that gives manufacturers one last chance to fix the vehicle before legal action can proceed. This step is mandatory and cannot be skipped.

Notice Requirements

Under SDCL 32-6D-6, consumers must send a "notice of nonconforming condition" by certified mail. This written statement must include:

• A description of the motor vehicle (year, make, model, VIN)
• A description of the nonconforming condition
• All previous attempts to correct the condition, identifying who made each attempt and when

Manufacturer's Response Timeline

Within seven calendar days of receiving the certified mail notice, the manufacturer must notify the consumer of a reasonably accessible repair facility where the final attempt will be made.

Final Repair Period

After the consumer delivers the vehicle to the designated repair facility, the manufacturer has fourteen calendar days to attempt to correct the nonconforming condition and bring the vehicle into conformity with the express warranty.

If the Final Repair Fails

If the manufacturer is unable to repair the vehicle within the 14-day final repair period, the consumer may bring a civil action against the manufacturer to enforce the lemon law. At this point, the presumption under SDCL 32-6D-5 works in the consumer's favor.

Attorney Fees and Legal Costs

Under SDCL 32-6D-8, if the manufacturer has breached its obligations under the lemon law, the consumer may recover reasonable attorney fees in addition to the refund or replacement remedy. This provision is significant because it makes it financially feasible for consumers to hire a lawyer to pursue their claim.

Many lemon law attorneys in South Dakota work on a contingency basis, meaning the consumer pays nothing upfront. If the case is successful, the manufacturer typically pays the attorney fees as part of the judgment or settlement.

Manufacturer Defenses

Under SDCL 32-6D-7, manufacturers have specific affirmative defenses available when a consumer files a lemon law claim.

Defense	Manufacturer's Argument	Consumer's Counter
No significant impairment	The alleged nonconforming condition does not significantly impair use, market value, or safety	Document how the defect affects daily use, resale value, or creates safety concerns
Abuse or neglect	The nonconforming condition resulted from consumer abuse or neglect	Provide maintenance records showing proper care and timely service
Unauthorized modification	The condition resulted from a modification or alteration not authorized by the manufacturer	Show the defect existed before any modifications or is unrelated to the modification

The burden of proving these defenses rests with the manufacturer. Consumers who keep thorough maintenance records and follow the owner's manual recommendations are in the strongest position to defeat these defenses.

Resale of Returned Lemon Vehicles

South Dakota has specific requirements for vehicles returned under the lemon law. These rules protect subsequent purchasers from unknowingly buying a vehicle with a history of serious defects.

Requirements for Reselling Lemon Buybacks

Under SDCL 32-6D-9, if a motor vehicle has been returned under the lemon law (whether through a court judgment or informal dispute settlement), it may not be resold in South Dakota unless both of these conditions are met:

• Written disclosure: The manufacturer must disclose in writing to the subsequent purchaser that the vehicle was returned under the lemon law and describe the nature of the nonconformity
• Title branding: The manufacturer must return the title to the South Dakota Department of Revenue, advising that the vehicle was returned under the lemon law. The department then brands the title with the statement: "This vehicle was returned to the manufacturer because it did not conform to its warranty."

This title branding follows the vehicle permanently and appears on all subsequent titles issued for that vehicle, regardless of how many times it changes hands.

Dealer Protection

South Dakota's lemon law includes strong protections for motor vehicle dealers, recognizing that manufacturing defects are the manufacturer's responsibility, not the dealer's.

Under SDCL 32-6D-10:

• Nothing in the lemon law imposes any liability upon a motor vehicle dealer or authorized dealer
• No cause of action is created against dealers by the lemon law
• Manufacturers may NOT charge back or require reimbursement from dealers for any costs arising out of the lemon law, including refunds or vehicle replacements

This means your lemon law claim is directed at the manufacturer, not the dealership where you purchased the vehicle.

Statute of Limitations

Under SDCL 32-6D-11, any action brought under South Dakota's lemon law against the manufacturer must be commenced within three years following the date of original delivery of the motor vehicle to the consumer.

If you miss this three-year deadline, you lose the right to file a lemon law claim under state law. However, you may still have options under the federal Magnuson-Moss Warranty Act, which has a four-year statute of limitations for breach of warranty claims.

Federal Warranty Protection as an Alternative

If your vehicle does not qualify under South Dakota's state lemon law, you may still have rights under the federal Magnuson-Moss Warranty Act (15 U.S.C. 2301). This federal law covers:

• Both new and used vehicles still under a manufacturer's warranty
• Vehicles that may exceed the state lemon law's weight or mileage limits
• Situations where the state statute of limitations has passed but you are within four years of the warranty breach

The Magnuson-Moss Act allows consumers to sue for breach of warranty and recover attorney fees, making it a valuable backup to state lemon law protections.

Tips for Strengthening Your Claim

Follow these practical steps to build the strongest possible lemon law case:

• Always go to an authorized dealer for warranty repairs, not an independent shop
• Request a written repair order for every visit, even if the dealer says the problem could not be replicated
• Describe the same problem consistently on each repair order so there is a clear pattern
• Keep a personal log of dates, mileage, and symptoms between dealer visits
• Send all formal notices by certified mail with return receipt requested
• Do not make unauthorized modifications to the vehicle while pursuing a claim
• File your claim promptly and do not wait until close to the three-year deadline

Filing a Consumer Complaint in South Dakota

If you believe a manufacturer or dealer has violated your consumer rights, you can file a complaint with the South Dakota Attorney General's Division of Consumer Protection:

• Phone: 605-773-4400
• Toll-free (in-state): 1-800-300-1986
• Website: consumer.sd.gov
• Complaint form: South Dakota Attorney General Consumer Complaint Form

The Division of Consumer Protection can mediate disputes and investigate complaints, though they do not provide legal representation to individual consumers.

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