The Lemon Law in North Carolina

North Carolina's New Motor Vehicles Warranties Act covers new motor vehicles sold or leased in North Carolina, except house trailers and vehicles weighing more than 10,000 pounds. Replacement or refund rights apply to a defect (nonconformity) that substantially impairs the vehicle's value and occurs within 24 months or 24,000 miles after original delivery, if the manufacturer cannot fix it after a reasonable number of attempts. A reasonable number of attempts is presumed if the same defect was presented for repair four or more times and still exists, or the vehicle was out of service for a total of 20 or more business days during any 12-month period of the warranty. For the presumption to apply, the consumer generally must notify the manufacturer directly in writing and give it up to 15 calendar days to fix the problem (if the manufacturer disclosed this requirement). At the consumer's option, the manufacturer must replace the vehicle with a comparable new one or take it back and refund the contract price, collateral charges and certain other costs, minus an allowance for use. A consumer must give written notice of intent to sue at least 10 days before filing, and damages can be trebled if the manufacturer unreasonably refused to comply.

1) Report the problem to the manufacturer, its agent or an authorized dealer during the warranty period (at least one year, or the warranty term if longer). 2) Written notice and final repair chance: for the presumption that the manufacturer had a reasonable number of repair attempts, the consumer must notify the manufacturer directly in writing of the defect and allow it a reasonable period, not more than 15 calendar days, to fix it. The manufacturer must clearly disclose this requirement, with the address for the notice, in the warranty or owner's manual; if it does not, the notice is not required. 3) Arbitration: North Carolina's lemon law does not set up a state-run arbitration program. A manufacturer may require the consumer to use its informal dispute settlement procedure before suing, but only if that procedure substantially complies with the federal Magnuson-Moss Warranty Act and rules, and the requirement is stated clearly in the written warranty and warranty instructions. 4) Before suing: the consumer must give the manufacturer written notice of intent to sue at least 10 days before filing. The lemon law sections do not state a separate deadline to file the lawsuit.

The Attorney General's guide to buying a used car says that while most used car dealers sell their cars "as is," some are willing to provide limited warranties, and suggests checking whether any warranty is guaranteed by the dealer or by an outside party. The same guide states there is no three-day right to cancel or other cooling-off period for a used car purchase. The state lemon law applies to new motor vehicles.