North Carolina · Lemon law · Updated Oct 2026
New Motor Vehicles Warranties Act (North Carolina Lemon Law) (N.C. Gen. Stat. §§ 20-351 to 20-351.10) protects buyers of new vehicles that can't be fixed. Here is what counts as a lemon in North Carolina, the notice you must send and what you can get back.
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
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).
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.
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).
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.
Most states require you to tell the manufacturer in writing and give it a last chance to fix the car. 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). Fill this in, copy the letter, sign it and send it by certified mail with return receipt. Keep a copy. Nothing you type here is sent to us; the letter is made in your browser.
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.
The defect must first occur within 24 months or 24,000 miles of original delivery, whichever comes first
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).
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.
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.
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 law