Lemon Law Basics: Georgia Lemon Laws
Understanding Georgia Lemon Law
Who is covered under Georgia Lemon Law?
Georgia lemon law covers new vehicles that are leased or purchased in
Georgia or which have been registered in Georgia. Motorcycles, vehicles
over 10,000 pounds Gross Vehicle Weight, and used vehicles are excluded
from coverage under Georgia lemon law. To qualify, a consumer must be
either an individual or a small business, which is defined as a company
which has a net profit after taxes of less than $100,000 and which owns
fewer than three new vehicles.
What defects are covered by Georgia lemon law?
Georgia lemon law covers serious mechanical defects that cause nonconformity
with the vehicle's warranty. Nonconformities must be reported within a
Lemon Rights period, which lasts for one year or 12,000 miles after the
purchase of the vehicle. Serious mechanical defects are problems that
make the vehicle less valuable than comparable vehicles, which make the
vehicle unsafe to drive, or which cause it to be unreliable.
When can I file a claim under Georgia lemon law?
Before you can file a claim under Georgia lemon law, the manufacturer
must have a reasonable chance to repair the nonconformity. Georgia lemon
law defines a reasonable chance as one unsuccessful attempt to repair
a problem with the braking or steering systems, or one unsuccessful attempt
to repair another serious nonconformity within the lemon rights period
and a second unsuccessful attempt within 2 years or 24,000 miles, whichever
comes first. Nonconformities that are not life threatening must have one
unsuccessful attempt to repair within the Lemon Rights period, and two
within 2 years or 24,000 miles. Georgia lemon law also applies if the
vehicle has been out of commission for repairs for 15 days within the
Lemon Rights period or 30 days within 2 years or 24,000 miles.
After the manufacturer has had a reasonable chance to repair the vehicle,
the customer must give notice in writing of intent to invoke Georgia lemon
law. After receiving notice, the manufacturer can make a final attempt
to repair the vehicle. If the vehicle is not successfully repaired within
14 days, the consumer must send a letter by certified mail, asking for
a refund or replacement. The manufacturer must comply within 30 days.
What settlement options are available to me?
If the manufacturer has a certified settlement board in place, the consumer
must attempt to receive compensation through that board first in order
to use the protection of the Georgia lemon law. If a successful settlement
cannot be reached, the customer must then go to the Georgia New Motor
Vehicle Arbitration Panel. Only if that settlement is also unsatisfactory
can the consumer bring the case to a higher court.
What remedies are available under Georgia lemon law?
If a vehicle is found to fall under Georgia lemon law, the manufacturer
must repurchase the vehicle or provide a replacement vehicle. A repurchase
is made up of three elements - the purchase price, collateral costs, and
incidental costs. Purchase price includes the sale price and a reasonable
value for any trade in. Collateral charges include tax, tags, installed
options and service charges, etc. Incidental charges include expenses
that were caused by the nonconformity like towing fees, repair costs,
and alternative transportation.
This value is offset by a reasonable fee for use of the vehicle. Georgia
lemon law specifies that the offset calculated by dividing the number
of miles on the vehicle when the case went to settlement by 100,000 and
multiplying the result by the full purchase price.
The owner receives all three elements of the refund, minus the offset.
If the vehicle was leased, the lessor must refund the lessee for any payments
including down payments, balloon payments, and a reasonable value for
a trade in.
If the option is taken to replace the vehicle, the new vehicle must be
comparable to the old. The manufacturer must pay the consumer for collateral
and incidental charges, minus the reasonable offset.
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