Maryland Lemon Law: How It Works & How to File a Claim

Do You Have a Lemon? Here’s What You Need to Know

Have you purchased a new car in Maryland that keeps breaking down no matter how many times you take it to the dealer for repairs? If so, you may have legal rights under Maryland’s Automotive Warranty Enforcement Act, commonly known as the Maryland Lemon Law (Md. Code, Com. Law § 14-1501 to § 14-1504).

This law is designed to protect consumers who unknowingly purchase defective vehicles that fail to function properly despite multiple repair attempts. If your car qualifies as a lemon, you may be entitled to a full refund or a replacement vehicle at no cost to you.

In this guide, we’ll explain how Maryland Lemon Law works, who qualifies, how to file a claim, and what compensation you can receive. If your vehicle has serious defects that affect its use, safety, or value, keep reading—this information could help you get the relief you deserve.

What is the Maryland Lemon Law?

The Maryland Lemon Law protects consumers who purchase new vehicles that turn out to have major defects. This law applies to cars that experience persistent mechanical or safety issues that the manufacturer or dealer fails to repair within a reasonable number of attempts.

If your vehicle qualifies under the Automotive Warranty Enforcement Act, you may be eligible for:

• A full refund of the purchase price (with a small deduction for mileage usage).
• A replacement vehicle of comparable value.

To qualify, the defect must be substantial, meaning it significantly impairs the use, safety, or market value of the vehicle.

Does Your Car Qualify Under Maryland Lemon Law?

Not all defective vehicles are considered lemons under Maryland law. To qualify, your vehicle must meet specific eligibility criteria.

What Types of Vehicles Are Covered?

• New cars, light trucks, and motorcycles purchased or leased in Maryland.
• Vehicles registered in Maryland even if bought elsewhere.
• Self-propelled motorhomes, but only the chassis and drivetrain components.
• Excluded vehicles: Used cars, commercial trucks over 10,000 lbs, and off-road vehicles.

What is the Time and Mileage Limit?

• 24 months from the original delivery date, OR
• 18,000 miles driven – whichever occurs first.

If the issue arises outside this timeframe, Maryland Lemon Law does not apply. However, other legal options may still be available.

What Defects Are Covered?

• The vehicle’s use (e.g., stalling or failure to start).
• The safety of the driver or passengers (e.g., brake or steering failure).
• The market value of the car (e.g., transmission issues or electrical malfunctions).
• What’s NOT Covered? Minor defects that don’t affect use, safety, or value (e.g., radio malfunctions, cosmetic paint issues).
• Problems caused by owner misuse, neglect, or unauthorized modifications.

How Many Repair Attempts Are Required?

Maryland law states that a manufacturer must be given a reasonable number of attempts to fix the defect. According to Md. Code, Com. Law § 14-1502, your car qualifies as a lemon if:

• Four or more repair attempts have been made for the same defect.
• One unsuccessful repair attempt for a serious safety issue that could cause injury or death.
• The car has been out of service for at least 30 cumulative days due to repairs.

If your vehicle meets any of these conditions, Maryland Lemon Law applies, and you may be eligible for a refund or replacement.

How to File a Maryland Lemon Law Claim

If your car meets the eligibility criteria, here’s how to start the Lemon Law claims process in Maryland.

Step 1: Gather All Necessary Documents

To build a strong case, you’ll need to provide evidence that your car is a lemon. Here are the documents you need:

• Purchase or lease agreement (proof of ownership).
• Repair records (dates of service, work performed, and mileage).
• Warranty information (proving the car is under manufacturer warranty).
• Written correspondence with the dealer or manufacturer.

Step 2: Send a Final Repair Notice to the Manufacturer

Before filing a claim, Maryland law requires you to send a final written notice to the manufacturer, according to the Maryland Attorney General’s Office.

• This notice must be sent via certified mail, return receipt requested.
• The manufacturer has 30 days to attempt a final repair.
• If the defect is not fixed within this period, you may demand a refund or replacement vehicle.

Step 3: Decide Between Arbitration or Filing a Lawsuit

If the manufacturer refuses to offer a refund or replacement, you have two options:

• Arbitration (Dispute Resolution) – Some manufacturers provide state-certified arbitration programs. This is an optional process that allows you to settle your claim without going to court.
• Filing a Lawsuit – If arbitration doesn’t work (or you choose to skip it), you have the right to sue the manufacturer for a refund or replacement.

What is Arbitration, and Should You Choose It?

Arbitration is a dispute resolution process where an independent panel reviews your case and issues a decision.

• If the manufacturer offers arbitration, they must inform you in writing.
• The process is free and usually faster than a lawsuit.
• If you win, the manufacturer must comply with the decision.

Potential Downsides

• Some consumers point out that arbitration may favor manufacturers, as some programs are funded by them but Maryland requires manufacturers to offer state-certified arbitration programs to maintain impartiality and mitigate this risk.
• Decisions are not always binding, meaning you could still end up in court.
• If you lose in arbitration, you can still file a lawsuit within three years from the date the vehicle was delivered.However, you should start the claims process as early as possible to avoid missing deadlines.

When Should You File a Lawsuit?

If arbitration fails, you can sue the manufacturer in court. Hiring a Lemon Law attorney can greatly improve your chances of winning.

Possible Outcomes: What Can You Get from a Successful Lemon Law Claim?

If you win your Lemon Law case, you may receive:

• A full refund – The manufacturer must buy back the defective vehicle. The refund includes:
  • The original purchase price (minus a deduction for mileage).
  • Any financing costs, taxes, and registration fees.

• A replacement vehicle – You may choose to receive a new vehicle of the same model and value.
• Reimbursement of legal fees – Under Maryland law, the manufacturer must pay your attorney’s fees if you win.

Mileage Deduction: How Much Will Be Taken from Your Refund?

Maryland allows the manufacturer to deduct an “allowance for use” based on miles driven before the first repair attempt. This is calculated using:

(Miles driven before the first repair) ÷ 100,000 × purchase price

Example: If you paid $40,000 for your car and it had 5,000 miles before the first repair, the deduction would be:

(5,000 ÷ 100,000) × $40,000 = $2,000

Your refund would be $38,000, plus taxes and fees.

How Long Does It Take to Settle a Maryland Lemon Law Claim?

The timeline varies, but most cases are resolved in:

• 2 to 6 months if settled through arbitration.
• 6 months to over a year if taken to court.

Factors that affect the length of your claim include:

• How quickly you file paperwork.
• Whether the manufacturer disputes the claim.
• The court’s schedule if you file a lawsuit.

To speed up the process, keep detailed records and hire a Lemon Law attorney early.

How to Strengthen Your Lemon Law Claim

Here’s how to maximize your chances of winning:

• Document everything – Keep repair orders, receipts, and written complaints.
• Be persistent – Follow up on repairs and insist on written responses.
• Send written notices – Always notify the manufacturer by certified mail.
• Meet all deadlines – Don’t miss the three-year filing window.
• Consult a lawyer – A Maryland Lemon Law attorney can handle negotiations and legal proceedings.

Do You Need a Lawyer for a Maryland Lemon Law Claim?

While you can file a claim on your own, having a lawyer improves your chances of winning. An experienced Lemon Law attorney can:

• Handle negotiations with the manufacturer.
• Ensure all legal deadlines are met.
• Fight for the maximum compensation.

How Are Maryland Lemon Law Attorneys Paid?

• You pay nothing upfront – Lemon Law attorneys work on a contingency basis.
• If you win, the manufacturer pays your legal fees.
• If you go through arbitration, your lawyer may still get paid if you win.However, Maryland’s Lemon Law only guarantees legal fee reimbursement if a consumer wins in court. Some arbitration programs may not cover attorney’s fees.

Additional information:
Maryland Lemon Law Information