North Carolina's lemon law and your rights as a buyer

What the lemon law protects, what it doesn't, and what rights you keep when you buy used. With the state's exact deadlines.

This guide summarizes the recorded scope for North Carolina (N.C. Gen. Stat. §§ 20-351 a 20-351.10 (New Motor Vehicles Warranties Act)). Eligibility, deadlines and notice requirements depend on the law and applicable coverage; read the state conditions below, including used-vehicle conditions where relevant.

What it covers

New passenger cars, pickups, motorcycles and most vans bought in North Carolina, with a defect covered by the manufacturer's warranty that substantially impairs use, value or safety (A/C or paint can count).

Rights period: The defect must appear within the first 24 months or 24,000 miles after original delivery, whichever comes first (G.S. 20-351.3).

When it is presumed a lemon

Four or more unsuccessful repair attempts for the same defect, or 20 or more cumulative business days out of service in any 12-month warranty period; plus direct written notice to the manufacturer and a final attempt of up to 15 calendar days (G.S. 20-351.5). The written notice is only needed for the 20-business-day route, and it is not needed if the manufacturer failed to tell you about that requirement clearly and conspicuously in the warranty or the owner's manual (G.S. 20-351.5(a)(2)). You can also prove the defect another way, without the presumption (G.S. 20-351.5(b)). And separately from all of that: before you sue, you must give the manufacturer written notice at least 10 days ahead that you intend to sue (G.S. 20-351.7).

The presumption does not replace the other requirements. Check the official conditions and procedure for your situation.

The process

North Carolina has no state arbitration board. First the manufacturer's dispute program if the warranty requires it (or BBB AUTO LINE); if unresolved, a civil lawsuit. The court may order the losing party to pay the winning party's attorney fee, and that runs both ways: it can fall on you too if you bring a frivolous or malicious action (G.S. 20-351.8(3)). The Attorney General takes complaints but does not represent individuals.

Who handles it: North Carolina Department of Justice — Attorney General, Consumer Protection Division.

Hotline: 1-877-5-NO-SCAM (1-877-562-7226) en NC / in NC · 919-716-6000 (fuera de NC / outside NC) · 919-716-0058 (español / Spanish).

What you get if you win

At the consumer's choice: a comparable new vehicle or a refund of the full price (options, prep, taxes, plates, finance charges from the first report and incidental damages), plus the non-refundable portion of extended warranties and service contracts, minus a use allowance: miles × price ÷ 120,000, counting only the miles up to the third repair attempt on the same defect or up to the twentieth business day out of service, whichever comes first (G.S. 20-351.3(c)). If the manufacturer unreasonably refused to comply, the court may treble the damages (G.S. 20-351.8(2)).

What it does not cover

Towable house trailers and any vehicle weighing more than 10,000 pounds, both excluded by the Act's own definition (G.S. 20-351.1(3)); vehicles bought for resale; defects outside the manufacturer's warranty or caused by abuse, accident or modifications; defects that appear after 24 months / 24,000 miles from original delivery. Motorcycles ARE covered: the Act does not exclude them. And a used car is not excluded just for being used: if it is still inside the factory warranty and inside the 24 months / 24,000 miles counted from original delivery, the buyer counts as a consumer, because the Act includes anyone entitled to enforce an express warranty (G.S. 20-351.1(1)).

I bought used: what do I have left

More than it seems, even if it isn't the lemon law:

• The Buyers Guide (FTC). The guide states the dealer warranty. "As Is" describes that warranty; it does not by itself resolve other state-law rights or remaining manufacturer coverage. The federal rule applies in 48 states (Maine and Wisconsin have their own equivalent rules). If the sale is conducted in Spanish, the dealer must post a Spanish-language Buyers Guide.
• Remaining manufacturer warranty. Check the warranty contract and its duration and transfer conditions; vehicle age does not guarantee coverage.
• In North Carolina: There is no used-car lemon law. You are protected by: mandatory disclosure of damage, flood, salvage and reconstruction (G.S. 20-71.4, with a civil claim under G.S. 20-348); the unfair and deceptive trade practices act (G.S. 75-1.1, with treble damages); the federal odometer statement; and, if the car was returned to the manufacturer as a lemon, in North Carolina or in another state, the manufacturer's or dealer's duty to tell you in writing before the sale and to explain what the defect was (G.S. 20-351.3(d)). Most dealers sell "as is": with no written warranty there is no implied warranty to claim.