The Maryland Lemon Law
If you have a new motor vehicle (car, light truck, or motorcycle) that is constantly in need of repair, you may be eligible for a refund or replacement vehicle. The dealer or manufacturer can attempt to resolve the issue. If the repairs do not correct the problem and significantly impair your vehicle's use and market value, Maryland's Lemon Law may be of assistance.
Lemon Law In Maryland
If your new car spends more time in the shop than it does on the road, you have a problem. In most cases, the manufacturer's warranty will provide you with the coverage required to have your vehicle repaired at no cost. Your warranty will specify which parts and systems of your vehicle are covered and how long they are covered. If you require repairs, you must have them performed by a dealer, though you are not required to use the same dealer who sold you your vehicle.
However, in some cases, the dealer may be unable to repair your vehicle's problem. If this is the case, you may have a lemon on your hands.
Maryland's Lemon Law applies to new or leased motor vehicles (including cars, light trucks, and motorcycles) that are less than 24 months old, have been driven less than 18,000 miles, and are registered in Maryland. The law allows consumers whose vehicles meet certain criteria to receive a refund or a replacement vehicle if repair attempts fail to correct a problem and the problem significantly impairs the vehicle's use and market value.
Not all new cars with issues qualify as lemons, but you must act quickly to receive legal relief if yours does.
Car As "Lemon"
The lemon law in Maryland only applies to cars, light trucks, and motorcycles that:
- Are licensed in Maryland, and
- Have less than 18,000 miles on them and have been owned for less than 24 months.
Even if you are not the original owner, Lemon Law may apply to your vehicle if purchased less than 24 months ago by the original owner.
The law requires a dealer or manufacturer to correct a defect within 30 days of receiving a certified mail letter from the consumer. Suppose the manufacturer or dealer is unable to do so. In that case, the consumer is entitled to a refund or replacement vehicle under the Lemon Law if the car has any of the following defects:
- A brake or steering failure that was not repaired after the first attempt, causing the vehicle to fail Maryland's safety inspection; or
- Any one problem that significantly impairs the vehicle's use and market value that has not been corrected after four repair attempts; or
- Any issues that significantly impair the vehicle's use and market value have caused it to be out of service for 30 days or more.
If you suspect your car is a lemon—for example, if the dealer has attempted to repair the problem once or twice and you believe the problem significantly impairs the vehicle's use and market value—you should contact the manufacturer immediately. You are not required to wait until the dealer has attempted four repairs or until the vehicle has been out of service for 30 days.
What To Do If Your Car Is A "Lemon"
If your vehicle is a lemon, you are entitled to a replacement vehicle, or the manufacturer must refund the full purchase price minus a use allowance of up to 15% of the purchase price.
Suppose you have not yet notified the manufacturer and believe your vehicle meets the definition of a lemon. In that case, you should do so immediately by letter sent by certified mail, return receipt requested. Send a copy of your letter and a completed complaint form to the Consumer Protection Division, and keep a copy for your records. You should include the following in your letter:
- List your vehicle's make, model, year, and VIN.
- Include the name of the dealership where you purchased your vehicle and the date of purchase.
- Describe the issue you're experiencing.
- Describe what you did to resolve the issue, including copies of repair orders and dates of repair attempts.
After receiving your letter, the manufacturer has 30 days to correct the problem. The manufacturer may authorize the repair to be performed by the dealer.
The Manufacturer's Duty
If your car is a lemon and the manufacturer cannot repair it within 30 days of receiving your letter, the manufacturer is required to repurchase or replace your vehicle. If you previously contacted the manufacturer, send a follow-up letter by certified mail, return receipt requested, outlining your problem, the steps to resolve it, and the action you want to be taken.
The manufacturer can either replace your vehicle with a comparable one or buy it back, whichever you prefer. The repurchase price you are offered should include all license fees, registration fees, and other similar governmental charges. The manufacturer may deduct up to 15% of the purchase price for your vehicle use and a reasonable allowance for damage other than normal wear and tear.
The manufacturer does not refund excise taxes. The Motor Vehicle Administration will either return them to you or credit them toward your next vehicle. If you have any questions about excise taxes, don't hesitate to get in touch with the Motor Vehicle Administration at 800-950-1MVA.
If the manufacturer refuses to provide you with a replacement vehicle or a refund, or if you need help negotiating the appropriate refund price, file a complaint with the Consumer Protection Division, and we will contact the manufacturer to assist you in your negotiations.
Arbitration Option
All automobile manufacturers provide some complaint resolution procedures. If the manufacturer refuses to repurchase or replace your vehicle, it may offer to arbitrate your dispute. This is an optional procedure; you can choose whether or not to use it. The arbitrator's decision is only binding on the manufacturer, not the consumer. If you are dissatisfied with the arbitrator's decision, you may still file a lawsuit against the manufacturer and take your case to court.
If you intend to submit your complaint to arbitration, the following steps should be taken to prepare:
- Sort your documents chronologically. Prepare a summary of the events. Along with an arbitration application, submit copies of your car's problem records and a copy of your warranty.
- Request that the representative of the arbitration program send you copies of all materials submitted in advance by the manufacturer so that you can anticipate and respond to its arguments.
- You might want to have an independent automotive expert inspect your vehicle. You can provide the arbitrator with a written report of the expert's findings. You must pay for the expert, but the report may assist you in making your case. You can ask the arbitrator to reimburse your expenses in obtaining the report, but even if you win the arbitration, there is no guarantee you will be compensated for this expense.
