Maine Lemon Laws

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Who is covered under Maine lemon law?
The Maine lemon law covers all vehicles with a gross vehicle weight less than 8,500 pounds that are sold or leased in the state. Government agencies and companies that own more than three vehicles are not covered under Maine lemon law.

What is covered under Maine lemon law?
Maine lemon law states that manufacturers have the responsibility to repair any serious defect that prevents the vehicle from conforming to its warranty, as long as the defect was not caused by abuse, neglect, or modification. The nonconformity must be reported within the express warranty period, the first two years of ownership, or the first 18,000 miles, whichever comes first.

Maine lemon law also states that if the nonconformity persists after the manufacturer has had a reasonable chance to repair the defect, the manufacturer must repurchase or replace the vehicle. A reasonable chance to repair the vehicle is considered to be three or more unsuccessful attempts to repair the same problem or 15 cumulative business days when the car is out of commission for repairs.

What is the process for filing a claim under Maine lemon law?
The consumer must notify the manufacturer in writing of intent to file a claim under Maine lemon law, after the manufacturer has had a reasonable chance to repair the nonconformity. After receiving this written notification, the manufacturer has seven business days to complete a final attempt to repair the nonconformity.

The consumer must then file a Maine lemon law claim with the state's informal arbitration board. The claim must be filed within two years of receiving the vehicle or within the express warranty period, whichever comes first.

What settlements can I expect under Maine lemon law?
According to Maine lemon law, if an owned vehicle is repurchased, the manufacturer must pay all costs related to ownership of the vehicle including the full purchase price, collateral charges such as tax, tags, and registration fees, and incidental costs like towing, storage, and alternative transportation that were incurred as a result of the nonconformity. This sum is offset by a reasonable sum for the consumer's usage of the vehicle, which cannot be more than 10% of the vehicle's purchase price or a third of the per-mileage rate allowed by the IRS for business use of a personal vehicle, whichever amount is less.

Under Maine lemon law, if a leased vehicle is repurchased, the manufacturer must pay an amount that includes all lease payments made to date, finance charges, tax, tags, and registration fees, and incidental costs. This amount is offset by a sum for the consumer's usage of the vehicle, as stated above.

If the vehicle is replaced, Maine lemon law states that the new vehicle must be comparable to the old in value and model. No usage offset applies. Any party which is using the vehicle as security must accept the new vehicle in its place.