Your Rights Under Maryland's Lemon Law
If your new car spends more time in the repair shop than on the road, you know you have a problem.
In most cases, the manufacturer's warranty will cover necessary repairs. If the dealer can’t fix the issue, you may have a lemon.
Maryland’s Lemon Law applies to new or leased cars, light trucks, and motorcycles registered in Maryland that are less than 24 months old and have fewer than 18,000 miles. If repair attempts fail to fix a serious problem, the consumer may be entitled to a refund or replacement.
Is My Car a Lemon?
Maryland's lemon law applies only to cars, light trucks and motorcycles that:
- Are registered in Maryland, and
- Have been driven less than 18,000 miles and been owned less than 24 months.
(Even if you are not the original owner, the Lemon Law might apply to your vehicle if the original owner purchased it less than 24 months ago.)
The law provides that a dealer or manufacturer must correct a defect within 30 days after the consumer writes to the manufacturer by certified mail. If the manufacturer or dealer is unable to do so, the consumer is entitled to a refund or replacement vehicle under the Lemon Law if the car has:
- A brake or steering failure that was not corrected after the first repair attempt, and that causes the vehicle to fail Maryland's safety inspection; or
- Any one problem that substantially impairs the use and market value of the vehicle that was not corrected in four repair attempts; or
- Any number of problems that substantially impair the use and market value of the vehicle that have caused it to be out of service for a cumulative total of 30 or more days.
If you suspect your car is a lemon—for example, if the dealer has tried once or twice unsuccessfully to repair the problem and you believe the problem substantially impairs the use and market value of the vehicle—you should write to the manufacturer immediately. You do not need to wait until the dealer has made the four repair attempts, or until the car has been out of service for 30 days.
Guidance for Lemon Law Complaints
What Do I Do If My Car Hasn't Yet Met the Definition of a Lemon?
If your car does not yet qualify as a lemon, but is still covered by a warranty and is not working properly, you should take the following steps:
- Contact your dealer and ask to have the problems repaired under the warranty.
- If your dealer is not cooperating or seems to be unable to correct the problem, contact another dealer who sells the type of car you have purchased. A different dealer may be more successful in dealing with your problem.
- You should not be charged for this work. Keep copies of all receipts for work done on the vehicle.
- Immediately notify the manufacturer, in writing, of the problem and ask for assistance. Include the year, make, model and Vehicle Identification Number (VIN) of your car and enclose copies of repair orders from the dealer's attempts to repair your vehicle. Send the final letter by certified mail, return receipt requested.
- Sample Letter A: For Notifying the Manufacturer of On-going Problems (Vehicle Has Not Yet Met the Definition of a "Lemon")
[Your Name]
[Your Address]
[City, State ZIP Code]
[Phone Number]
[Date]
[Manufacturer’s Name]
[Manufacturer’s Address]
[City, State ZIP Code]
BY CERTIFIED MAIL – RETURN RECEIPT REQUESTED
Dear Sir or Madam,
I am writing to notify you of an ongoing problem with my [Year, Make, Model] vehicle, Vehicle Identification Number (VIN) [VIN]. The problem began on [Date] and has continued despite several repair attempts by [Dealer Name].
The vehicle has been returned for repairs on the following dates: [List of Dates]. Enclosed are copies of the repair orders.
As required by Md. Code Ann., Com. Law §14-1502, I am notifying you of this defect and requesting that you repair it within 30 days of receiving this letter. If you are unable to correct the issue, I intend to seek a replacement vehicle or a refund.
Sincerely,
[Your Signature]
[Your Name]
Enclosures: Copies of repair orders
- Send a copy of your letter to the Consumer Protection Division with a completed complaint form. (formulario de queja de la ley de limón)
- Once the manufacturer receives your letter, it has 30 days to fix the problem. The manufacturer can authorize the dealer to make the repair.
Keep copies of all correspondence with the dealer and manufacturer, and keep notes of phone calls, including dates of the calls.
What Do I Do If My Car is a Lemon and I Have Not Yet Notified the Manufacturer?
If your car is a lemon, you are entitled to a replacement vehicle or the manufacturer must refund the full purchase price minus an allowance for use, not to exceed 15 percent of the purchase price. How to notify the manufacturer:
- If you have not yet notified the manufacturer and you think your car meets the definition of a lemon, you should immediately notify the manufacturer by letter, sent via certified mail, return receipt requested. In your letter, you should:
- List the make, model, year and VIN of your vehicle.
- Include the name of the dealership from which your automobile was purchased and the date of purchase.
- Describe the problem you are having.
- Describe what you have done to address the problem and include copies of repair orders and dates of repair attempts.
-
Sample Letter B: Contacting the Manufacturer for the First Time if Your Vehicle is a "Lemon" Under the Lemon Law.
[Your Name]
[Your Address]
[City, State ZIP Code]
[Phone Number]
[Date]
[Manufacturer’s Name]
[Manufacturer’s Address]
[City, State ZIP Code]
BY CERTIFIED MAIL – RETURN RECEIPT REQUESTED
Dear Sir or Madam,
I am the owner of a [Year, Make, Model] with Vehicle Identification Number (VIN) [VIN]. I purchased this vehicle on [Date] from [Dealer Name]. Since purchase, the vehicle has had persistent problems that substantially impair its use and market value.
I have returned the vehicle for repairs on the following dates: [List of Dates]. The problem(s) remain unresolved. I am enclosing copies of the repair orders.
Because this vehicle qualifies as a “lemon” under Md. Code Ann., Com. Law §14-1502, I am requesting that you either repurchase or replace the vehicle.
Sincerely,
[Your Signature]
[Your Name]
Enclosures: Copies of repair orders
What the Manufacturer Must Do Once it is Notified About Your Car's Problem Contact your dealer for warranty repairs.
If your car is a lemon and the manufacturer is unable to correct the problem within 30 days of receiving your letter, the manufacturer must repurchase or replace your vehicle. If you previously contacted the manufacturer, you will want to send a follow-up letter by certified mail, return receipt requested, outlining your problem, the steps you have taken to resolve it and what action you want taken.
-
Sample Letter C: For Contacting the Manufacturer if Your Vehicle is a "Lemon" Under the Lemon Law and if you have already contacted manufacturer by letter at least once.
[Your Name]
[Your Address]
[City, State ZIP Code]
[Phone Number]
[Date]
[Manufacturer’s Name]
[Manufacturer’s Address]
[City, State ZIP Code]
BY CERTIFIED MAIL – RETURN RECEIPT REQUESTED
Dear Sir or Madam,
This is a follow-up to my certified letter dated [Previous Date] regarding my [Year, Make, Model], Vehicle Identification Number (VIN) [VIN]. Despite your receipt of that letter, the vehicle has not been repaired and continues to suffer from the same defect(s).
The vehicle has undergone attempted repairs on the following dates: [List of Dates]. Enclosed are updated copies of repair records.
Because this issue substantially impairs both the use and market value of my vehicle, and it qualifies as a “lemon” under Maryland law, I am again requesting that you repurchase or replace the vehicle pursuant to Md. Code Ann., Com. Law §14-1502.
Please respond within 14 days to arrange next steps.
Sincerely,
[Your Signature]
[Your Name]
Enclosures: Copies of repair orders and previous correspondence
The manufacturer can replace your vehicle with a comparable one that is acceptable to you, or buy it back, whichever you prefer. The repurchase price you are offered should cover the full purchase price including license fees, registration fees and other similar governmental charges. The manufacturer can subtract up to 15 percent of the purchase price for your use of the vehicle, and a reasonable allowance for damage not attributed to normal wear and tear.
Excise taxes are not refunded by the manufacturer. The Motor Vehicle Administration will return those to you or apply them against your next vehicle. If you have questions about excise taxes, you can call the Motor Vehicle Administration's customer service line at 800-950-1MVA.
If the manufacturer refuses to provide you with a replacement vehicle or refund, or if you need assistance in negotiating the appropriate refund price, you may file a complaint with the Consumer Protection Division, and we will contact the manufacturer to assist you in your negotiations.
What Is Arbitration?
All car manufacturers offer some form of complaint resolution procedure. If the manufacturer will not agree to repurchase or replace your car, it may offer to submit your dispute to arbitration. Arbitration is a process where people with a disagreement use a neutral third party, called an arbitrator, to review evidence from both sides and make a decision. This is an optional procedure; whether or not you use it is your choice. The decision of the arbitrator is binding only on the manufacturer, not the consumer. If you are not satisfied with the arbitrator's decision, you may still file a lawsuit against the manufacturer and take your case to court.
If you plan to submit your complaint to arbitration, here are some steps you should take to prepare:
- Arrange your records in chronological order. Prepare a brief outline summarizing the events. Submit copies of records about your car's problem and a copy of your warranty along with an arbitration application.
- Ask the arbitration program representative to send you copies of all materials submitted in advance by the manufacturer so you can anticipate and respond to its arguments.
- You may want to have an independent automotive expert examine your car. You can submit a written report of the expert's findings to the arbitrator. You will have to pay for the expert, but the report might help you make your case. You can ask the arbitrator to reimburse your expenses in obtaining the report, although you cannot be assured you will be compensated for this expense even if you prevail in the arbitration.
How to Take Your Lemon Law Complaint to Court
If you are not satisfied with the results of arbitration, or if you decide not to arbitrate, you have the right to file a lawsuit against the manufacturer of your vehicle. At this point, you should hire a lawyer if you do not already have one. The Maryland Bar Association or your county bar association can refer you to an attorney in your area. You must file your case within three years from the date the car was delivered to you.
Secret Warranties and Service Bulletins
When a part has a high failure rate, a car manufacturer will sometimes notify its dealers that it will pay for certain repairs even after the original warranty expires. However, manufacturers do not notify car owners about these secret warranties, sometimes called goodwill adjustments, service campaigns or other names. To find out about secret warranties or technical service bulletins that might apply to your vehicle, contact the Center for Auto Safety. Call (202) 328-7700 or send a letter with a self- addressed, stamped envelope to: Center for Auto Safety, Suite 410, 2001 S Street NW, Washington, DC 20009-1160. Be sure to list the make, model and year of your car and describe the specific problem you are experiencing. The National Highway Traffic Safety Administration also has information about recalls and technical service bulletins, which you can obtain by calling their hotline at 800-424-9393, or visiting
NHTSA's website.
How We Can Help
We hope this information will assist you in resolving the problems you are having with your new car. If at any point in the process you want our assistance, please contact the
Consumer Protection Division office nearest you.