Understanding Maryland Lemon Law
The Maryland lemon law provides relief to consumers making one of the largest purchases they will ever make: cars.
The law protects consumers who unknowingly purchase defective vehicles.
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The law covers vehicles registered in Maryland as a passenger vehicle, motorcycle, truck with a ¾ ton or less manufacturer’s rated capacity or “multipurpose vehicle.” Maryland law defines multipurpose vehicle as any vehicle designed for carrying persons which is constructed on a truck chassis or with special features for occasional off-road operation. Three wheeled vehicles also fall under this designation, as do other vehicles of unique design that fall under no other definition.
The Maryland lemon law covers new and used vehicles, but not motor homes or vehicles part of a fleet purchase or lease of five or more vehicles.
Maryland’s lemon law covers vehicle purchasers and those leasing vehicles. The law also covers anyone to whom a new motor vehicle is transferred during the duration of the vehicle’s warranty. It further covers anyone else entitled to enforce the warranty.
The Maryland lemon law defines the “warranty period” as the earlier of the vehicle’s first 18,000 miles of operation, or 24 months after the vehicle’s original delivery to the consumer.
The lemon law covers “nonconformities.” A nonconformity is defined as any defect or condition that substantially impairs the use and market value of the vehicle. The law does not cover any problem arising from abuse, neglect, or unauthorized modifications to the vehicle.
The consumer must report any and all nonconformities to the manufacturer during the warranty period. They must do so via written notice sent by certified mail to the manufacturer, factory branch or lessor. The consumer must allow the manufacturer to attempt to repair the problem, and the manufacturer must do so at no charge to the consumer. The manufacturer has 30 days within receipt of the consumer’s written notification to fix the problem.
Maryland’s lemon law allows manufacturers a “reasonable number of repair attempts” to fix the nonconformity. The lemon law defines a reasonable number as four or more times for the same problem without success. 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. The lemon law also says a manufacturer has only one attempt to repair a problem with the vehicle’s brakes or steering before they must repurchase or replace the vehicle.
If the manufacturer is unable to repair the nonconformity, the Maryland lemon law requires them to repurchase or replace the vehicle. The manufacturer must repay the full purchase price, as well as all license and registration fees. The manufacturer can withhold a reasonable allowance for use not to exceed 15% of the purchase price. The manufacturer can also withhold an allowance for damage not attributable to normal wear and not including damage resulting from a nonconformity.
When replacing a vehicle under the Maryland lemon law, the manufacturer must provide a comparable vehicle acceptable to the consumer. Maryland’s Motor Vehicle Administration will allow a credit to the consumer against the excise tax imposed for the replacement vehicle in the amount of the excise taxes originally paid for the returned vehicle.
Maryland’s lemon law does not require a consumer to first seek “informal dispute settlement,” i.e. arbitration, before pursuing a lemon law claim. A consumer who has resorted to arbitration does not give up their right to seek remedies available by law.
For more information on arbitration and other frequently asked lemon law questions, click here.
By pursuing a claim under the Magnuson-Moss Warranty Act, Maryland 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.
Lemonlawusa.org encourages vehicle owners with a lemon to hire a lemon law attorney. You can bet the car manufacturers have legal counsel at the ready to help defend against lemon law claims both in arbitration and in court.
Clients who prevail in court against their lemon vehicle’s manufacturer or settle with them outside of court can use the awarded money for any purpose they choose.
If they financed their vehicle and haven’t yet paid off their loan by the time they begin their lemon law claim, they must continue making their payments throughout the span of their lemon law claim. Missing payments could adversely affect their lemon law claim. However, once their lemon law claim resolves, they can use funds awarded to pay off what remains of their auto loan and start looking for a new, functional vehicle.
Clients who bought their vehicle outright or paid their loan off by the time their lemon law claim resolves can use their awarded money on a down payment for a new vehicle, or to buy a less expensive vehicle outright. The decision belongs to the client; its their money to spend or not spend as they choose.
The Maryland lemon law covers used vehicles, but their problems must occur within the lemon law’s coverage period of within 18,000 miles of operation or within 24 months following the date of the vehicle’s delivery to the consumer. Most used vehicles are resold well outside these parameters. A qualified lemon law attorney will know whether your vehicle falls within these bounds.
Whether they prevail in court or settle outside of it, clients can use the money they’re awarded for any use they choose. However statutes of limitation mean clients must act quickly and contact the office of Allen Stewart P.C. today. Their lemon law attorneys have combined decades of experience in taking on automotive manufacturers on behalf of wronged consumers.
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