Maryland Lemon Law Statute
Maryland Lemon Law Overview
The Maryland Lemon Law protects consumers who purchase or lease a new vehicle and experience ongoing mechanical issues that affect the vehicle’s use, safety, or value. If a qualifying vehicle cannot be repaired after a reasonable number of attempts, the manufacturer is required to either replace the vehicle or provide a refund.
Definitions
Consumer
A consumer includes anyone who buys or leases a new motor vehicle for personal use, anyone to whom the vehicle is transferred during the warranty period, and anyone else who has the legal right to enforce the warranty.
Dealer
A person or entity licensed to sell new motor vehicles.
Manufacturer, Factory Branch, or Distributor
Any company involved in producing or assembling vehicles or distributing them to dealerships.
Manufacturer’s Warranty Period
The coverage period lasts until the vehicle has been driven 18,000 miles or for 24 months from the date of delivery—whichever comes first.
Motor Vehicle
A privately registered vehicle, such as a car, motorcycle, or light-duty truck. It does not include motor homes or off-road vehicles.
Warranty
The set of promises made by the manufacturer or seller regarding the condition and performance of the vehicle.
Requirements for Lemon Law Coverage
If a vehicle develops a defect or condition during the warranty period that affects its use, safety, or value, the consumer must report it in writing to the manufacturer. Once notified, the manufacturer must be given a chance to fix the issue.
The manufacturer or its authorized dealer must complete the repair at no cost to the consumer. If the issue is not resolved within 30 days of the manufacturer receiving notice, further action may be taken.
Remedy If the Vehicle Cannot Be Fixed
If the issue persists despite reasonable repair attempts, the manufacturer must do one of the following at the consumer’s choice:
- Replace the vehicle with a comparable model
- Accept the return of the vehicle and issue a full refund, including registration and licensing fees, minus:
- A usage deduction (not more than 15% of the purchase price)
- Charges for any damage beyond normal wear and tear
Refunds are to be issued to both the consumer and the vehicle’s lienholder, if applicable.
When a Reasonable Number of Repair Attempts Has Been Made
A “reasonable number” of repair attempts is presumed when:
- The same issue has been repaired four or more times and continues to exist
- The vehicle has been out of service for a cumulative total of 30 or more days
- A serious defect in the braking or steering system has been repaired once but not resolved, even after notice to the manufacturer
Warranty Period Extensions
If repair services are delayed due to war, strikes, natural disasters, or similar circumstances, the warranty and applicable time periods are extended.
Dealer Notification
If a vehicle is returned to the same dealer for the same repair four times or is out of service for a total of 20 days, the dealer must notify the manufacturer within seven days. Failure to notify does not affect the consumer’s rights.
Returned Vehicle Disclosure
If a vehicle is returned due to a defect, the manufacturer must inform any dealer receiving the vehicle. If the vehicle is then offered for resale, the dealer must disclose to the buyer that it was returned, what the issue was, and the vehicle’s condition at the time of transfer.
Buyers must sign a disclosure form before purchase, and the seller must send a copy of the signed form to the appropriate state authority.
No Waiver of Rights
Consumers cannot waive their rights under this law in any purchase agreement. These protections also apply to subsequent owners during the original warranty period.
Informal Dispute Resolution
If a manufacturer offers a qualifying informal dispute resolution program, the consumer may use it before pursuing other remedies. However, participating in such a program does not prevent the consumer from taking legal action later.
Legal Time Limits and Attorney Fees
Consumers have three years from the date the vehicle was delivered to file a claim. Courts may award reasonable attorney’s fees to a successful claimant.