The Georgia Lemon Law was established to help residents hold auto manufacturers accountable for motor vehicles that are defective. Article 28 of Georgia Code Title 10 states that the law “..intends to encourage manufacturers to take all steps necessary to correct nonconformities in new motor vehicles,” and “…to create a procedure for expeditious resolution of complaints and disputes concerning nonconforming new motor vehicles.”

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If you have ongoing problems with a new vehicle, there must have been at least 3 unsuccessful attempts by the manufacturer or an authorized service center to fix a warranty covered problem. In cases where the issue could be considered a serious safety defect, only 1 attempt at repair is needed. Alternately, if your vehicle is out of service for 30 or more days because of efforts to repair a problem, you may be entitled to have your vehicle classified as a lemon.

Georgia Lemon Law covers new vehicles that have been purchased or leased directly from a dealership, with the following exceptions: trucks with a gross weight over 12,000 pounds, motorcycles and golf carts. Only the chassis and self-propelled vehicle of a motor home or RV are eligible for Lemon Law claims.

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A new vehicle is among the most significant purchases that people make. When you buy a new vehicle, you expect it to be safe and reliable, and to perform according to the specifications supplied by the manufacturer.

Nearly every new vehicle sold in Georgia by a dealership is covered by a manufacturer’s warranty against defects in materials and manufacturing. This warranty is a legal contract between you and the manufacturer, and it affords you legal protections if something goes wrong with the vehicle. The Georgia Lemon Law is an enforcement mechanism for the warranty contract, in the event that a resolution cannot be reached with the vehicle manufacturer.

Georgia’s Lemon Law requires auto manufacturers to promptly repair defects in new vehicles, to provide a new replacement vehicle if repairs cannot be completed, or to provide a refund of the purchase price along with some additional fees, minus a standard depreciation adjustment. To help you understand the law and how you can exercise your rights, we have created this Georgia Lemon Law FAQ. If you still have questions about the law, please call us at 1-855-223-8344.

How Does the Georgia State Lemon Law Work?

When you register a vehicle in Georgia that you purchased or leased new from a dealership, you have the right to expect that the vehicle meets expected standards for safety and function. If the vehicle does not live up to those standards, the Georgia Lemon Law protects you and provides recourse to seek repairs or a replacement vehicle from the manufacturer.

Even though many consumers know they will need to deal with the dealership to resolve their problem, they feel unsure how to proceed if the dealer cannot rectify the situation. The Georgia Lemon Law recognizes that a vehicle is a major consumer purchase and offers a straightforward way for consumers to resolve problems with a vehicle by enforcing the manufacturer’s warranty.

Note that manufacturers often have their own programs to resolve issues with defective vehicles. You may be informed of these programs by a dealership. You can choose to participate in a manufacturer’s program, but it is a violation of Georgia law for anyone to say that you must participate in a manufacturer’s program.

Defects and Recalls

Vehicle defects that are the fault of the dealership or manufacturer are legally referred to as nonconformities. Nonconformities substantially impair your vehicle’s drivability, safety and value, and effectively limit your ability to utilize it for its intended purpose or resell it for a reasonable price. Such motor vehicle defects are typically significant issues, like transmission problems, structural flaws or a faulty fuel system.

Recalls count as defects under the Lemon Law in Georgia, but the manufacturer is still allowed a reasonable number of attempts to remedy the issue. Since the Georgia Lemon Law rights period only extends for 24 months or 24,000 miles, whichever comes first, after the consumer has taken possession of the vehicle, recalls issued after this period are not covered by the Lemon Law. Other acts and laws designed to protect Georgia consumers will hold manufacturers responsible if they do not address flaws that lead to a recall.

The Georgia Lemon Law states that you are entitled to have these nonconformities addressed, and you must allow the manufacturer to repair the nonconformities at a reasonably accessible repair facility. If, after a reasonable number of attempts, the nonconformity still poses a problem, the manufacturer must buy back the vehicle or provide you with a replacement vehicle of equal value.

Vehicles Covered

Only new vehicles purchased or leased directly from a dealership are covered under the Georgia Lemon Law. The coverage period begins when you take ownership of the vehicle and extends for 24 months or 24,000 miles, whichever comes first. Any mileage already on the vehicle does not count against you; for example, if you purchase a vehicle with 100 miles on it, Lemon Law protection will be in effect until the vehicle reaches 24,100 miles or 24 months from the day you take delivery, whichever comes first.

Cars, vans, SUVs and light trucks (less than 12,000 pounds gross vehicle weight rating) are all covered by the Lemon Law. The chassis and self-propelling components of motor homes and recreational vehicles are also covered.

What Isn’t Covered by the Georgia Lemon Law?

Vehicles purchased for resale are not eligible for Lemon Law claims. You must be the original owner of the vehicle, and you must purchase or lease it new from a manufacturer.

If you purchase more than 10 vehicles per year as part of a business fleet, those vehicles are not eligible. An exception to this rule exists only for limousine rental services.

Motorcycles, mopeds, ATVs, boats and trucks with a gross vehicle weight rating of more than 12,000 pounds are not eligible for Lemon Law claims in Georgia.

Only the self-propelled portion of a motor home or recreational vehicle and its chassis are eligible for Georgia Lemon Law claims. If a problem with the parts of an RV or motor home causes issues with other parts of the vehicle, the affected parts may be eligible for compensation if a lemon law claim is successful. For example, a faulty stove or leaking roof on an RV or motor home is not eligible for Lemon Law protection, but if a crack in the chassis causes damage to the living area, compensation could be extended to those parts of the living area damaged by the chassis.

Georgia Lemon Law Rights Period

The Lemon Law rights period in Georgia begins on the day you take delivery of a new vehicle. From that day, you have Lemon Law eligibility for 24 months or 24,000 miles, whichever comes first.

The 24,000-mile eligibility period does not include any mileage on the vehicle when you take delivery. For example, if your new car has 200 miles on the odometer when you purchase it, your Lemon Law protection would last for 24,200 miles to include the pre-existing mileage.

The Magnuson-Moss Warranty Act: The Federal Lemon Law

The Magnuson-Moss Warranty Act, established in 1975, forms the basis for state-level Lemon Law regulations. Manuson-Moss does not apply solely to vehicles; rather, it is a set of Federal guidelines that specify how manufacturers must structure and describe warranties. Manufacturers are not required to provide warranties, but if they do, they must be presented in clear and unambiguous language and provide actual consumer protection. The Magnuson-Moss Warranty Act is named for its co-sponsors, Senator Warren G. Magnuson (D-Washington) and Representative John E. Moss (D-California). Violations of the Act are handled by the Federal Trade Commission (FTC).

The Magnuson-Moss Warranty Act states three requirements that must be honored by a product’s manufacturer, warrantor, or seller.

• A written warranty must be labeled “full” or “limited” for consumers’ conspicuous notice upon viewing the warranty.
• A written warranty must clearly state the coverage offered in terms that are easily understandable.
• A written warranty must be available for consumers to access wherever the warrantied product can be purchased.

Understanding the Federal Lemon Law

The Federal Lemon Law applies to any consumer product with a warranty and a real cost to the consumer of more than $15. Magnuson-Moss can be used to file claims for any vehicle that is not covered by the Georgia Lemon Law, including motorcycles, mopeds, ATVs, boats, golf carts, forklifts, tractors and large trucks. If the vehicle came with a warranty, Magnuson-Moss can help you enforce it.

State limitations on Lemon Law claims do not apply at the Federal level. You can use the Federal Lemon Law on vehicles for business use as well as personal use, and there are no limits on the number of vehicles you can purchase each year. In most states, if your business operates a fleet of vehicles, the Federal Lemon Law may be your only option to enforce a warranty.

Federal Lemon Law also covers used vehicles if they are purchased from an authorized agent and if they come with a written warranty. You cannot use the Federal Lemon Law for vehicles bought in a private sale or auction, or for vehicles sold “As Is” by any entity, including a car dealership. Vehicles sold “As Is” will not come with any kind of warranty, making them potentially risky purchases.

The down side of the Federal Lemon Law is compensation, which is lower than what you can get at the state level. Most states, including Georgia, allow you to receive a refund of the purchase price of a vehicle, along with associated fees, minus standard depreciation. Under the Federal Lemon Law, your compensation is limited to the difference between the purchase price you paid and the actual value of the defective vehicle.

To help explain this, consider these two situations. A Georgia resident buys a new car for $30,000, experiences significant problems with it, then files a Lemon Law claim. That Georgia resident is eligible to receive the full value of the car, or $30,000, plus associated financing and closing fees and any repair costs, minus standard depreciation for the vehicle. The settlement could be more than $25,000, depending on the vehicle’s mileage when the Lemon Law claim was filed.

Another Georgia resident buys a large truck for $30,000. It is not covered by the Georgia Lemon Law, so a claim is filed under the Federal Lemon Law. The settlement is a refund based on an adjustment to the vehicle’s price, or what the resident should have paid had they known about the defect. For example, if the truck has a transmission problem, the Federal Lemon Law may offer a $5,000 settlement reflecting the diminished value of the vehicle.

If a vehicle is eligible for a Georgia Lemon Law claim, it will almost always provide a better settlement than a Federal Lemon Law claim under Magnuson-Moss. If a vehicle is ineligible for a state claim, Magnuson-Moss may provide the only opportunity to get some compensation for the defect.

Making a Georgia Lemon Law Claim

As soon as you suspect you are dealing with a lemon, or an authorized service agent begins to make the process of seeking a resolution challenging, you should seek legal guidance. Time may not be on your side. A dealership may be trying to push you into a manufacturer’s resolution program, which could leave you with less money, and less value in your vehicle, than you would have received if you had filed under the Georgia Lemon Law.

Remember that it is a violation of Georgia law for any representative of a vehicle manufacturer to tell you that you must participate in a manufacturer’s resolution program. You always have the right to file a Lemon Law claim if your vehicle is eligible.

Consulting a Georgia Lemon Law attorney is one of the wisest choices you can make while navigating the process of dealing with a faulty motor vehicle. Although the authorized service agent is supposed to make things right if they cannot fix the issue within a reasonable number of attempts, sometimes the service agent won’t behave appropriately and may put off properly repairing your vehicle or try to pressure you into bringing it in for repairs over and over again with nothing to show for it.

If you are like many consumers, going toe-to-toe with a manufacturer or their service agents is not something you feel comfortable doing. Trying to reach a resolution with a dealer can be time-consuming and frustrating. If you choose to file a Lemon Law claim on your own, be aware that you will be challenged by attorneys working for the manufacturer who are well-versed in Georgia’s laws. A Lemon Law lawyer will save you time and stress, and even the playing field by bringing their own expertise to bear on your behalf.

Act Quickly

When you realize you are having issues due to one or more nonconformities with your vehicle, you must reach out to the manufacturer or its authorized service agent within the Georgia Lemon Law rights period. A manufacturer is entitled to make a “reasonable” number of attempts to repair your vehicle before you can escalate your claim.

Under the Georgia Lemon law, an authorized service agent has three attempts to repair most significant defects. This can be reduced to one attempt, if the defect is considered a “serious safety defect.” You can contact the Georgia Attorney General’s Office at 404-458-3827 to determine whether a defect qualifies as a serious safety defect.

During the repair process, if your vehicle is undergoing service for more than 30 cumulative days, you may file a Lemon Law claim. You do not need to file a Final Attempt to Repair.

If the defect has not been repaired, you must provide the manufacturer with written notification of a “Final Attempt to Repair” through certified, registered or express mail. If you leased your vehicle, you must notify the leasing company that you intend to pursue a Lemon Law claim.

This Final Attempt to Repair allows the manufacturer one final attempt to adequately repair the vehicle before you pursue a refund or replacement.

Download the Georgia Final Repair Opportunity Notice.

Once the manufacturer has received your written notification, they will have ten days to guide you to a reasonably accessible repair facility, defined as one within 60 miles of your home in Georgia. After your vehicle is delivered to the facility, they will have ten days to fix the problem.

Be sure to keep track of paperwork throughout the process. You will want to collect your sales receipt, receipts from each attempt at repairing the defect, a copy of the notification letter you sent the manufacturer via registered or express mail, and any other documentation pertaining to the defect. Keep receipts for any costs associated with the defect as well, including any towing fees, rideshare fees, taxi fares or rental car expenses. These may be eligible for reimbursement if your Lemon Law claim is successful.

Compensation For Consumers

If you can prove that the vehicle you purchased is a “lemon” according to the Georgia Lemon Law statutes, compensation can be pursued for expenses you incurred as a result of purchasing the defective motor vehicle, which may include the following:

• The motor vehicle’s purchase price, adjusted for standard depreciation
• Local sales taxes
• Charges for repair services (excluding routine maintenance prescribed by the owner’s manual)
• Costs incurred by one or more nonconformities on the purchased motor vehicle
• Costs incurred by rental vehicles, rideshares, taxis or towing services related to the defect and service attempts

Georgia’s Lemon Law uses standard formulas to determine depreciation when a case is settled. For motor homes, the formula is (Purchase Price x Miles) ÷ 90,000. For all other covered vehicles, the formula is (Purchase Price x Miles) ÷ 120,000. Mileage is set at the time of the first repair visit for the defect.

Most consumers would prefer to avoid purchasing a lemon altogether. While sometimes defects are impossible to catch before purchasing a vehicle, there are steps you can take to lessen the odds that the car you select will be defective.

Tips to Avoid Purchasing a Lemon

One of the best ways to avoid buying a lemon is to pay close attention when test-driving a vehicle you are considering. Car shopping is exciting, and it’s easy to get caught up in the moment and overlook signs that a vehicle you are considering has major flaws. When a car salesperson accompanies you on the test drive, it can be even harder to spot potential issues because they may distract you, intentionally or unintentionally, from problems you would otherwise notice.

During your test drive, you’ll want to ensure you drive the car at various speeds and on highways and smaller roads. Driving the vehicle at higher speeds on the highway allows you to listen for suspicious noises that can signify alignment or transmission issues. Alternatively, operating a vehicle on smaller roads lets you see how it accelerates and brakes in stop-and-go traffic and if the engine stalls when idling at a red light or stop sign.

Spend some time online researching the vehicle and its service history. Look for reports from owners for the specific vehicle and trim package that you want to buy, as defects may only appear in certain years or on certain models. If you plan to use a vehicle for towing or hauling, check the vehicle’s rated capacities, then look for comments from owners about their experiences.

If you cannot find specific information about the vehicle you want to buy, check reports on the model and trim level from prior years. Keep in mind that your past experiences with a vehicle brand and reports of problems with some models may not apply to a new vehicle. There are often significant changes from model year to model year that can make a vehicle more reliable or introduce new problems. The more you can learn from current owners, the more likely you are to avoid a defective vehicle.

What Defects Are Covered Under the Lemon Law?

The Georgia Lemon Law applies to new vehicles purchased from a certified dealership or leased from a certified leasing company. The vehicle must be purchased or leased with the original manufacturer’s warranty in force, as the Lemon Law is a warranty enforcement tool. In Georgia, vehicle warranties do not transfer past the original owner, be that an individual or a leasing company. Vehicles must be for personal use or 1 of 10 or fewer vehicles purchased or leased yearly by a business other than a limousine rental service.

You must honor your responsibilities under the vehicle warranty. In general, this means that you follow all recommended maintenance with a manufacturer-authorized service center (typically at a dealership), that you have any needed repairs performed at a manufacturer-authorized service center, that you use the vehicle in accordance with the manufacturer’s guidelines and that you do not alter or modify the vehicle with third-party or non-original-equipment-manufacturer (OEM) parts.

If you meet these criteria, any defect that impacts the safe and expected operation of the vehicle may be eligible for a Lemon Law claim. Such defects can include transmission problems, engine problems, electrical system failures, stalling issues, recurring problems with brakes and tires or material or manufacturing defects in the vehicle’s frame or chassis.

Defects in safety equipment, including door latches, windows, air bags, seats, seatbelts and head rests are also eligible for Lemon Law claims, as these impact safety systems used in normal vehicle operations or in the event of an accident.

Georgia Lemon Laws: Impact on Manufacturers

While it may seem counter-intuitive, Lemon Laws actually benefit manufacturers as well as consumers. Before consumers make large purchases from manufacturers, they need to know that they can trust the manufacturer to deliver a quality product or make things right if the product is damaged when the consumer receives it. When consumers feel confident that a manufacturer will be held accountable for providing a working product, they will be more apt to spend their money.

The Lemon Law also helps manufacturers by establishing clear parameters for defining what makes a motor vehicle a lemon. “Lemon” is the term for a vehicle with one or more nonconformities that have not been repaired after a reasonable number of attempts; a defective vehicle. The guidelines for determining a reasonable number of attempts dictate that one of these situations must apply:

• A motor vehicle has not been drivable or has been receiving repairs because of one or more nonconformities for a cumulative 30 days
• A motor vehicle has been taken in for repair for the same nonconformity 3 times, or 1 time for a significant safety defect, and the problem has not been resolved

After either of these situations occur, you must provide the manufacturer with one last opportunity to rectify the flaw, known as a Final Repair Attempt, before you have reached the legal threshold for a “reasonable number of attempts.” You must inform the manufacturer of your issues by sending a statement detailing the problems with your vehicle and the attempted solutions by certified, registered or express mail.

These parameters keep consumers from being able to demand a refund or replacement vehicle without exploring other options for remedying the problem. Most manufacturers have their own programs to resolve problems with defective vehicles, and these programs may include an offer to buy back a defective vehicle or replace it with a similar vehicle. Consumers should weigh manufacturer offers carefully. You will lose the right to file a Lemon Law claim if you participate in a manufacturer’s program, and you may receive less compensation than what you are owed under the law.

Unless the manufacturer is offering to exchange your vehicle for the same model without defects, you should consider filing a Lemon Law claim, which can provide a broad refund of expenses associated with the vehicle. Remember that even if the manufacturer manages to repair the vehicle eventually, its service history will drag down the vehicle’s value if you try to trade it in or sell it in the future. Be aware that it is a violation of Georgia law for anyone to tell you that must take part in a manufacturer’s resolution program. You always have the right to proceed with a Lemon Law claim if your vehicle is eligible.

Impact on Consumers

In a perfect world, buyers would not need the Lemon Law because all new vehicles sold by dealerships would be in good working order. However, as many buyers have learned, not all new cars drive off the lot problem-free. Whether the vehicle’s issues are unknown by the dealer or the dealer is attempting to pass off a flawed vehicle as being in perfect condition, the outcome is the same for the buyer: a vehicle that does not perform as it should.

The Georgia Lemon Law benefits customers by offering them protection and ensuring they have recourse to pursue compensation or a replacement motor vehicle if they purchase or lease a new vehicle with one or more nonconformities. The Lemon Law also places a cap on the number of times a dealership is allowed to attempt to have the vehicle repaired at a designated repair facility. Limiting the repair attempts to a reasonable number protects the buyer from being caught in a back-and-forth with the dealer and prevents them from having their vehicle constantly out of commission for repair services.

When a leased vehicle has nonconformities, the manufacturer is obligated to rectify the situation. Lessees should not be forced to pay to repair rental vehicles. The Lemon Law allows lessees to avoid paying for repairs they should not be responsible for, and could enable them to seek reimbursement for the deposit and rental payments previously paid if the vehicle was not drivable for a set amount of time, or was not repaired within a set number of attempts.

What Is the Motor Vehicle Arbitration Panel?

In most cases, filing a Lemon Law claim in Georgia with the state Attorney General’s office leads to a resolution with the vehicle manufacturer. Occasionally, a Lemon Law claim may be deemed ineligible by the Georgia Attorney General. Vehicle owners can appeal this decision, but if that appeal is found to be “frivolous or in bad faith,” owners may be responsible for court costs associated with the appeal. If your Lemon Law filing with the Georgia Attorney General is denied, it is a good idea to speak to a Georgia Lemon Law attorney before you proceed with an appeal.

If your claim is accepted and the manufacturer opts for a hearing, your Lemon Law case will be heard by a Georgia Motor Vehicle Arbitration Panel. These arbitrators will weigh the merits of your case and make a decision that is binding. If the panel decides in your favor, the manufacturer must repurchase or exchange your vehicle. Both you, as the vehicle owner, and the manufacturer have the right to appeal a decision by the Georgia Motor Vehicle Arbitration Panel. Any appeal must be filed within 30 days of the arbitration panel’s decision to the Georgia Superior Court.

If an appeal is filed, there will be a formal hearing in front of the Georgia Superior Court at which the decision of the arbitration panel will be presented as evidence. If you find yourself facing a Lemon Law appeal, you are very strongly encouraged to speak with a Lemon Law attorney who can represent you.

What Is the Lemon Law Fee in Georgia?

Motor vehicle dealers collect a $3 Lemon Law Fee for every new vehicle sold or leased in Georgia. This fee funds State-Operated Arbitration, which allows consumers to file a Lemon Law claim for free. Any Georgia resident may file their own Lemon Law claim and appear before an Arbitration Board, which will determine whether the claim should be settled. All necessary forms and steps for filing are available from the Georgia Attorney General’s Office.

If you choose to file a claim on your own, be aware that must supply all needed documentation and follow the process exactly as specified for your claim to prevail. You will need to appear before the Arbitration Board, and the manufacturer will be represented by an attorney who has considerable experience with Georgia law and the arbitration process. With thousands of dollars at stake in a potential settlement, you may want to hire a Lemon Law Attorney to represent you.

If your Lemon Law claim is denied by the Arbitration Board, you have the right to appeal your case to a judge. This is a formal legal proceeding, and it is highly recommended that you work with an experienced Georgia Attorney.

Contact an Experienced Georgia Lemon Law Attorney Today

A Georgia Lemon Law attorney will help you navigate the intricacies of the Lemon Law, ensure that your claim is filed correctly and level the playing field against the experienced attorneys that manufacturers will hire to defend themselves. You will save time and money by working with a Lemon Law specialist and give yourself the best chance of a successful claim.

There is no charge for a Lemon Law consultation in Georgia. There is no charge for representation in your Lemon Law claim unless you win a settlement. Legal fees are deducted from your settlement, or due if you choose to take a replacement vehicle instead of a cash payout. In all Lemon Law cash reimbursement cases, there are no out-of-pocket costs for legal representation.