Lemon Law Basics: Deleware Lemon Laws
Understanding Delaware Lemon Law
What is covered under Delaware lemon law?
Delaware lemon law applies to new and used passenger vehicles that were
sold or leased in the state of Delaware. Motorcycles and the living areas
of motor homes are not covered by Delaware lemon law.
What kinds of problems are covered by Delaware lemon law?
In order to qualify for coverage under Delaware lemon law, the vehicle
must have a serious defect that causes nonconformity to the vehicle's
warranty. The nonconformity must affect the use, safety, or value of the
vehicle. This nonconformity cannot be caused by neglect, abuse, or modification
to the vehicle by anyone other than the manufacturer or its agents and
dealers. The nonconformity must be reported to the manufacturer within
either the warranty period or one year after purchase of the vehicle,
whichever comes first.
How can I file under Delaware lemon law?
Before a claim can be made under Delaware lemon law, the manufacturer
must receive notice of the nonconformity in writing and have a reasonable
chance to repair it. A reasonable chance is considered to have passed
after four unsuccessful attempts to repair the problem or when the vehicle
has been out of commission for thirty calendar days and the nonconformity
still exists. If the manufacturer has an approved settlement process in
place, the consumer must go through that process in order to qualify for
remedies under Delaware lemon law.
What are the remedies offered under Delaware lemon law?
If the vehicle is found to fall under Delaware lemon law, the manufacturer
must offer either a refund of the purchase price or a replacement vehicle.
A refund must include the full purchase price including credits and trade
ins, all taxes, dealer preparation fees, and registration fees, minus
a reasonable offset for use of the vehicle. The maximum offset is calculated
by dividing the number of miles driven before the nonconformity was reported
by 100,000 and multiplying the result by the full purchase price. An amount
for any damages not caused by normal wear and tear or the nonconformity
is also subtracted from the refund amount.
If a replacement vehicle is offered, it must be new and comparable to
the original vehicle. No offset may be applied. The manufacturer must
also refund incidental costs and pay all taxes and fees for the new vehicle.
If the original vehicle was financed by the manufacturer, the financing
for the new vehicle must not create a greater financial burden than the
old agreement.
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