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Alabama Lemon Law
“Lemon laws” enacted across the United States help protect consumers who purchase defective vehicles and compensate them for their losses. Additionally, a powerful federal law known as the Magnuson-Moss Warranty Act provides protection for consumers who purchase cars that are having problems under the manufacturer’s warranty. Some lemons may eventually be recalled by the manufacturer, if the problems are systemic.
Alabama’s lemon law protects consumers falling into one of two categories: purchasers of a new or previously untitled vehicle used in substantial part for personal or household purposes, or any other person entitled to enforce the vehicle’s warranty.
Alabama’s lemon law does not cover consumers who lease vehicles.
The lemon law covers vehicles intended primarily for use and operation on public highways. The law covers used vehicles as well. Alabama’s lemon law does not cover motorhomes or any vehicle with a gross vehicle weight rating of 5 tons or more.
The Alabama lemon law covers nonconforming conditions. The law defines a “nonconforming condition” as a vehicle condition that significantly impairs the use, value or safety of a vehicle. It must also occur in the course of the ordinary use of the vehicle, and not occur as a result of abuse, neglect, modification or alteration of the vehicle not authorized by the manufacturer. The nonconforming condition must also not occur as a result of any accident or other damage to the vehicle happening after the delivery of the vehicle to the consumer.
The lemon law requires the manufacturer to repair the nonconforming vehicle so it conforms to the vehicle’s warranty. The consumer must deliver the vehicle to the manufacturer or its authorized agent and give the manufacturer notice of the nonconforming condition during the lemon law coverage period.
Alabama’s lemon law defines the “lemon law coverage period” as one year after the date of the vehicle’s original delivery to a consumer or the first 12,000 miles of operation, whichever comes first.
The Alabama lemon law allows manufacturers a “reasonable attempt to repair” the nonconformity before the law’s provisions for repurchase or replacement take effect. The law defines a “reasonable attempt to repair” as three attempts to fix the same problem without success.
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After this, if the nonconformity remains, or if the vehicle is out of service for more than 30 working days, the manufacturer must repurchase or replace the vehicle.
Before pursuing a claim in civil court, the consumer must give notice of a nonconforming condition by certified mail to the manufacturer and demand repair of the condition. If the consumer has already allowed three or more previous attempts, the manufacturer is given a final opportunity to fix the problem. Within seven calendar days of receiving the certified notice, the manufacturer must notify the consumer of a reasonably accessible repair facility. After the consumer delivers the vehicle to said facility, the manufacturer has 14 calendar days to fix the problem.
A manufacturer repurchasing a vehicle per the strictures of the Alabama lemon law must pay the vehicle’s full contract price. This includes charges for undercoating, dealer preparation and transportation charges. They must also pay the nonrefundable portions of extended warranties and service contracts. The manufacturer must further pay all collateral charges, including sales tax, license and registration fees, and similar government charges. Additionally, they must pay all finance charges incurred by the consumer after the first report of the nonconforming condition, and any incidental damages including reasonable costs for alternative transportation.
The Alabama lemon law says the manufacturer can withhold a reasonable allowance for the consumer’s use of the vehicle, calculated from the number of miles traveled before the first report of a nonconforming condition.
When replacing a vehicle under the Alabama lemon law, the manufacturer must provide a new vehicle that is comparable to the vehicle that is being replaced. The reasonable allowance for use does not apply to a replacement.
Alabama’s lemon law requires consumers to resort first to a manufacturer’s informal dispute settlement procedure, i.e. arbitration, before seeking to file a lemon law claim in civil court. However, arbitration has several pitfalls and rarely ends well for the consumer.
For more information on arbitration and other frequently asked lemon law questions, click here.
Alabama consumers with warrantied vehicle problems would be well served to contact a law firm for a consultation on what their next step should be, whether it be going through with arbitration or proceeding to trial. In court, consumers are guaranteed the ability to gather evidence under the state’s civil discovery rules, and to be represented by a qualified lawyer who can guide them through the often complex legal process.
By pursuing a claim under the Magnuson-Moss Warranty Act, Alabama consumers can hire lawyers who will represent them without the vehicle owner having to pay any attorneys’ fees directly out of their pocket. This is because the federal Act provides that the vehicle manufacturer shall pay the claimants’ reasonable attorneys’ fees if the claimant prevails against the manufacturer.
Ross said those who win in court or settle beforehand can use their awarded funds for any purpose they like.
Those still making payments on their lemon vehicle must continue to do so throughout their lemon law claim, until the vehicle is paid off. Falling behind on their loan payments could negatively affect their lemon law claim. Fortunately, they can use funds awarded through their lemon law claim to pay off whatever remains of their auto loan. Once freed from these burdensome payments, the client can look for a new, functioning vehicle.
If the client purchased their vehicle outright or paid it off by the time their Alabama lemon law claim resolves, they can use awarded funds as a down payment on a new vehicle. They could instead use those funds to buy a less expensive vehicle outright. However the client uses their money is entirely up to them.
The Alabama lemon law covers used vehicles, but those vehicles’ defects must occur within one year of the vehicle’s original delivery to a consumer or within its first 12,000 miles of operation, whichever occurs first. Most used vehicles are sold long after either of these stipulations, so often the Alabama lemon law can’t help them. Contact a qualified lemon law attorney and find out what the law can do for your specific case.
You may qualify for compensation, but not if you don’t act quickly. Statutes of limitation affect how long you have to file a claim, so contact the offices of Allen Stewart P.C. today. Lemon law lawyers with combined decades of experience can help you find the best path forward.
This information brought to you by Allen Stewart P.C.