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Thursday, September 17, 2009

North Carolina Lemon Law a great tool for consumers with problem vehicles

By Jim Johnson

The North Carolina lemon law was created to protect consumers who purchase defective vehicles. Due to the fact that manufacturers often denied any problems with the vehicles, consumers were left to do battle with multi-million dollar companies. The North Carolina Legislature created the lemon law, which gives a private remedy against motor vehicle manufacturers for motor vehicles failing to conform to express warranty.

The North Carolina Lemon Law applies to cars that were purchased or leased in North Carolina. The lemon law covers new cars, which ironically are cars that are sold as new. The types of cars the lemon law covers are new passenger cars, pick-ups and motorcycles purchased in North Carolina. The lemon law covers most vans as well.

The North Carolina Lemon Law, also known as the New Motor Vehicles Warranties Act requires manufacturers to repair defects that affect the use, value, or safety of a new motor vehicle within the first 24 months or 24,000 miles of ownership. Under the Lemon law, it is presumed that a reasonable number of attempts have been undertaken and the motor vehicle is a lemon and cannot conform to the applicable express warranties if:

The same problem or issue has been attempted to be repaired by the car manufacturer or a dealer greater than four (4) occasion and the problem continues to exist; or

The vehicle was out of service to the consumer during or while awaiting repair of the nonconformity or a series of nonconformities for a cumulative total of 20 or more business days during any 12-month period of the warranty. For the presumption to be effective, the North Carolina Lemon Law requires written notice of the non conformity be provided to the manufacturer before the lemon law can be triggered. It is very important that you follow the written notice requirements of the law.

There are two ways a car owner can be compensated under the lemon law. In fact, the car owner gets to make a choice whether they wish to have a full refund or if they would rather get a replacement car. The law requires the carmaker to replace the car with a similar new car or take the car back and issue the owner a refund.

The refund to the consumer shall be reduced by a reasonable allowance for the consumer's use of the vehicle. A reasonable allowance for use is that amount directly attributable to use by the consumer prior to his first report of the nonconformity to the manufacturer, its agent, or its authorized dealer, and during any subsequent period when the vehicle is not out of service because of repair. "Reasonable allowance" is presumed to be the cash price or the lease price, as the case may be, of the vehicle multiplied by a fraction having as its denominator 100,000 miles and its numerator the number of miles attributed to the consumer.

Although the North Carolina lemon law is fairly straight forward, consumers should hire a lemon law attorney. Under the lemon law, the manufacturer must pay the attorney fees if the vehicle is a lemon. In addition, there are notice requirements and some hidden pitfalls that may trip up a consumer. You should not delay in getting an attorney to help you. - 21392

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