Lemon Law
Used Car Lemon Law
New Car Lemon Law
Used Car Lemon Law
The Motor Vehicle Quality Assurance Act, more commonly known as the “Lemon
Law,” was amended to include used motor vehicle sales beginning on January
1, 2004. The “Used Car Lemon Law” applies to all used motor vehicles
sold to any consumer by any New Mexico dealership.
Key points of the “Used Car Lemon Law” are as follows:
- Used motor vehicles can no longer be sold “AS IS.”
- All used motor vehicle dealers are required by law to provide at
least a 15-day/500-mile warranty on all used motor vehicles sold
to consumers.
- The 15-day/500-mile warranty period ends after the 15th day, or after
500 miles, whichever occurs first. In regards to time, the
warranty period begins the day after you take possession of the
vehicle and ends at midnight on the 15th calendar day after you took
possession of the vehicle. Any day on which the vehicle fails to operate properly
is excluded from the 15-day warranty period. In regards to miles, any miles
driven to or from the dealership in connection with any repair, servicing or testing
of the vehicle are excluded from the 500-mile warranty period.
- If a problem that significantly limits the use of the vehicle occurs within the
15-day/500-mile warranty period, you need to inform the dealer within 30 days after
the problem occurred.
- If a problem that significantly limits the use of the vehicle occurs, you have to
give the vehicle to the dealership you bought it from before any attempts to repair
the vehicle are made. If you have the vehicle serviced by anyone but the dealership
before the dealership has the opportunity to repair the problem, the dealership
is no longer obligated to you under the “Used Car Lemon Law” for that
problem.
- If a used motor vehicle experiences a problem that significantly limits the use
of that vehicle during the 15-day/500-mile warranty period, the dealer shall have
the first opportunity to make a reasonable attempt to repair the vehicle. The
dealer can charge up to $25.00 for each of the first two repairs required to bring
the vehicle back into compliance with the law.
- If the contract you entered into with the dealership does not include the “Used
Car Lemon Law” disclosure in writing as required by law, you can cancel the
contract, return the vehicle and get your money back. If you traded in your
vehicle, you are entitled to get your trade in back as well.
- If a problem arises in the 15-day/500-mile warranty period and the dealer refuses
to honor the warranty as provided by the law, you can cancel the contract, return
the vehicle and get your money back. If you traded in your vehicle, you are
entitled to get your trade in back as well.
- If you have given the dealer a reasonable opportunity to repair the vehicle and
the dealer is not able to repair the vehicle, you may cancel the contract, return
the vehicle and get your money back. If you traded in your vehicle, you are
entitled to get your trade in back as well.
- If a used motor vehicle has been previously repurchased by an automobile manufacturer
under the Motor Vehicle Quality Assurance Act’s “New Car Lemon Law,”
written notice informing you that it was a “New Car Lemon Law” buyback
must be given by the dealership to you before the sale is completed.
- Generally, the “Used Car Lemon Law” only applies to cars, pickup trucks,
vans, or motorcycles, which have a gross weight under 10,000 pounds and which are
sold by a dealer to a consumer for personal use.
- The “Used Car Lemon Law” does not cover damage caused
by the consumer to the vehicle, if the damage can be shown to be the result of:
(1) off-road use; (2) racing; (3) towing; (4) abuse; (5) misuse; (6) neglect; (7)
failure to perform routine maintenance; or (8) failure to maintain adequate oil,
coolant or other required fluids or lubricants.
A dealership can sell a used motor vehicle which has certain defects or mechanical
problems, but only if those defects are disclosed to you, orally and
in writing, before the sale is completed. Therefore,
you may waive the 15-day/500-mile warranty, but only for the defects disclosed to
you and only if all of the following conditions are met:
- The dealer fully and accurately discloses to you that the used motor vehicle has
particular defect(s).
- You agree to purchase the vehicle after full disclosure of the
particular defect(s)
- Before the sale is completed, you sign and date a written disclosure statementthatdiscloses
the particular defect(s).
To ensure that you are protected by the “Used Car Lemon Law,” it is
best to keep track of the mileage and date(s) when any problem(s) occur and the
date that you contacted the dealer to notify them of the problem.
New Car Lemon Law
The “New Car Lemon Law” provided by the Motor Vehicle Quality Assurance
Act, applies to all new and demonstrator vehicles sold by any New Mexico dealership
to any consumer. The “New Car Lemon Law” requires automobile manufacturers
and their dealerships to repair any and all defects that substantially impair the
use and market value of the vehicle purchased for a period of one-year
after you took possession of the vehicle or when the manufacturer’s warranty
expires, whichever occurs first.
If, during the one-year period after you take possession of the vehicle or during
the manufacturer’s warranty period, the same problem has been repaired four
or more times or the vehicle has been in possession of the dealership
a cumulative total of thirty or more business days due to that problem and the same
problem is still present, the vehicle may be eligible for replacement or repurchase
under the “New Car Lemon Law.”