North Carolina lemon law: when your car is a lemon and how to claim
In North Carolina, a new car counts as a lemon after 4 repairs for the same problem or 20 business days in the shop within the first 24 months or 24,000 miles. First, send the manufacturer a written notice: the free letter below does it.
Checked against official sources: Oct 22, 2026
Your next 4 steps in North Carolina
Keep every repair order
Get a written repair order at every visit, with the date, mileage and days in the shop. In North Carolina, a car is presumed a lemon after 4 repairs for the same problem or 20 business days in the shop.
Send the manufacturer a written notice
Notify the manufacturer directly in writing about the defect and give it a reasonable time, up to 15 calendar days, to fix it. Write your notice letter ↓
Let the manufacturer make its final repair attempt
Notify the manufacturer directly in writing about the defect and give it a reasonable time, up to 15 calendar days, to fix it.
Ask for a refund or replacement, use arbitration, or call a lawyer
If your manufacturer has a dispute program that meets the state’s rules (check your warranty booklet), you may have to use it first. See the Arbitration section below.
When a car is a lemon in North Carolina
Your vehicle is presumed a lemon if the same defect has been presented for repair 4 or more times and is still there, or the vehicle has been out of service during or while waiting for repair for a total of 20 or more business days during any 12-month period of the warranty. The defect must substantially impair the vehicle's value and must have first occurred within 24 months or 24,000 miles of delivery. For the 20-day test, the statute also requires that you notified the manufacturer directly in writing and gave it a reasonable time, up to 15 calendar days, to fix the problem (this applies only if the warranty or owner's manual told you about it and gave the address). The NC Department of Justice advises giving this written notice in every case, so it is safest to do it whichever test you rely on. You can also prove your case in other ways if neither test is met.
Period: The defect must first occur within 24 months or 24,000 miles of original delivery, whichever comes first
Is your car a lemon in North Carolina? A quick check
Notice to the manufacturer
Notify the manufacturer directly in writing about the defect and give it a reasonable time, up to 15 calendar days, to fix it. The statute makes this a condition of the 20-business-day test, and only if the warranty or owner's manual clearly tells you about it and gives the address; the NC Department of Justice tells all owners to do it, so send it in any case. Before you sue, you must also give the manufacturer written notice of your intent to sue at least 10 days before filing (§ 20-351.7).
Arbitration
Maybe — check your warranty booklet for an arbitration program (e.g. BBB AUTO LINE). There is no state-run arbitration. A manufacturer may require you to use its own dispute program before suing, but only if the program meets federal (Magnuson-Moss) rules and the requirement is stated clearly in the written warranty.
What you can get
At your choice: a comparable new vehicle, or a refund of the full contract price (including undercoating, dealer prep, transportation and installed options, plus non-refundable parts of extended warranties and service contracts), collateral charges (sales tax, license and registration fees), finance charges after you first reported the defect, and incidental and consequential damages. The use allowance is: miles driven up to the 3rd repair attempt or 20th business day out of service (whichever comes first) x purchase price / 120,000. Lessees get back lease payments and up-front lease costs, and the lease ends without penalty. Damages are tripled if the manufacturer unreasonably refused to comply.
Attorney fees: Possibly. The court may order the manufacturer to pay a winning consumer's reasonable attorney's fee if it finds the manufacturer unreasonably failed or refused to fully resolve the matter. The reverse also applies: a consumer who knew or should have known the lawsuit was frivolous and malicious can be ordered to pay the manufacturer's fee (§ 20-351.8).
Free lemon law notice letter
Most states require you to tell the manufacturer in writing and give it a last chance to fix the car. Fill this in, download the letter, sign it and mail it to the manufacturer. Keep a copy.
Send it by certified mail with return receipt so you have proof, and keep the receipt.
Who to contact
- Office
- North Carolina Department of Justice, Consumer Protection Division
- Phone
- 877-566-7226
What the law covers
- New vehicles
- Yes
- Used vehicles
- No
- Leased vehicles
- Yes
- Which vehicles
- New motor vehicles sold or leased in North Carolina, including passenger cars, pickup trucks, motorcycles and most vans. House trailers and vehicles weighing more than 10,000 pounds are excluded. A vehicle counts as new if a certificate of origin was never given to a consumer, or the manufacturer or dealer says in writing it is sold as new.
- Who can claim
- The buyer (not for resale), a lessee who leases from a lender, lessor, manufacturer or dealer, and anyone else the express warranty lets enforce it.
Used cars in North Carolina
North Carolina's lemon law covers new vehicles only, and the Attorney General's guide describes it as applying to new vehicles bought in North Carolina.
Good to know
- Every new-vehicle express warranty must last at least 1 year or 12,000 miles (§ 20-351.2).
- A manufacturer or dealer reselling a returned vehicle must tell the next buyer it was returned and what the defect was (§ 20-351.3(d)).
- The Attorney General can also sue a manufacturer that violates the lemon law (§ 20-351.6).
Questions about North Carolina's lemon law
How many repair attempts make a car a lemon in North Carolina?
Your vehicle is presumed a lemon if the same defect has been presented for repair 4 or more times and is still there, or the vehicle has been out of service during or while waiting for repair for a total of 20 or more business days during any 12-month period of the warranty. The defect must substantially impair the vehicle's value and must have first occurred within 24 months or 24,000 miles of delivery. For the 20-day test, the statute also requires that you notified the manufacturer directly in writing and gave it a reasonable time, up to 15 calendar days, to fix the problem (this applies only if the warranty or owner's manual told you about it and gave the address). The NC Department of Justice advises giving this written notice in every case, so it is safest to do it whichever test you rely on. You can also prove your case in other ways if neither test is met.
How long does North Carolina's lemon law cover a car?
The defect must first occur within 24 months or 24,000 miles of original delivery, whichever comes first
Do I have to notify the manufacturer in North Carolina?
Notify the manufacturer directly in writing about the defect and give it a reasonable time, up to 15 calendar days, to fix it. The statute makes this a condition of the 20-business-day test, and only if the warranty or owner's manual clearly tells you about it and gives the address; the NC Department of Justice tells all owners to do it, so send it in any case. Before you sue, you must also give the manufacturer written notice of your intent to sue at least 10 days before filing (§ 20-351.7).
Do I have to go to arbitration in North Carolina?
There is no state-run arbitration. A manufacturer may require you to use its own dispute program before suing, but only if the program meets federal (Magnuson-Moss) rules and the requirement is stated clearly in the written warranty.
What can I get under North Carolina's lemon law?
At your choice: a comparable new vehicle, or a refund of the full contract price (including undercoating, dealer prep, transportation and installed options, plus non-refundable parts of extended warranties and service contracts), collateral charges (sales tax, license and registration fees), finance charges after you first reported the defect, and incidental and consequential damages. The use allowance is: miles driven up to the 3rd repair attempt or 20th business day out of service (whichever comes first) x purchase price / 120,000. Lessees get back lease payments and up-front lease costs, and the lease ends without penalty. Damages are tripled if the manufacturer unreasonably refused to comply.
Does North Carolina's lemon law cover used cars?
North Carolina's lemon law covers new vehicles only, and the Attorney General's guide describes it as applying to new vehicles bought in North Carolina.
Car not covered, or the period has passed? Federal warranty law may still help, and small claims court can handle smaller repair bills.
Federal warranty lawSources
- N.C. Gen. Stat. Chapter 20, Article 15A - New Motor Vehicles Warranties Act
- N.C. Gen. Stat. § 20-351.5 Presumption
- NC Department of Justice - Lemon Law
Last checked: Oct 22, 2026.
Law: New Motor Vehicles Warranties Act (North Carolina Lemon Law), N.C. Gen. Stat. §§ 20-351 to 20-351.10