Hawaii Lemon Laws

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Lemon Law Basics: Hawaii Lemon Laws

Understanding Hawaii Lemon Law

Who is covered under Hawaii lemon law?
Hawaii lemon law covers people who lease or purchase a vehicle primarily intended to transport people or possessions on public roads. The vehicles can be used for either personal use or a combination of personal or business use, so long as it is registered to an individual or to a company that purchases or leases no more than one new vehicle a year. Used cars are also included but motorcycles, scooters, mopeds, and vehicles over 10,000 pounds gross vehicle weight are not covered.

What kinds of problems are covered by Hawaii lemon law?
Hawaii lemon law affects mechanical defects that cause the vehicle to not conform to its warranty. The nonconformity must be serious enough to cause the vehicle to be unreliable, unfit for normal use, or unsafe or must have a detrimental effect on the retail value. The nonconformity cannot be caused by abuse, neglect, or modification by anyone but the manufacturer or its agents and dealers.

When can I file under Hawaii lemon law?
Hawaii lemon law establishes a lemon rights period that extends for either the warranty period of the vehicle, the first two years after purchase, or the first 24,000 miles, whichever comes first. The nonconformity must first be reported during this period.

Before Hawaii lemon law goes into effect, the manufacturer must be notified and must have a reasonable chance to repair the nonconformity. A reasonable chance is defined as either three unsuccessful attempts to repair the defect, one unsuccessful chance to repair a life-threatening nonconformity, or thirty business days that the vehicle is out of commission for repairs. A business day is any day on which the dealer's repair shop is normally open.

A claim under Hawaii lemon law must be filed within one year of the expiration of the lemon rights period.

What are the remedies under Hawaii lemon law?
If a vehicle's nonconformity cannot be repaired, Hawaii lemon law states that the manufacturer must either repurchase the vehicle or provide an equivalent replacement vehicle. A repurchase must include all costs incurred by the consumer, including the full purchase price plus a reasonable amount for any trade in, charges for dealer preparation, service contracts, tax, tags, registration, etc. Reasonable charges can also be included for expenses directly caused by the nonconformity such as towing and replacement transportation. Loss of income, personal injury, and loss of use charges are not covered by Hawaii lemon law.

The repurchase price that the manufacturer must pay may be offset by a reasonable amount for the use the consumer received from the vehicle. Hawaii lemon law specifies that the offset be calculated as one percent of the purchase price for every 1,000 miles driven by the consumer up until the manufacturer's final attempt to repair the nonconformity. An offset for damage to the vehicle not caused by normal wear and tear may also be included.

If a replacement vehicle is provided, Hawaii lemon law says it must be new and equivalent to the original vehicle. It must have the same features as the original, including installed options, rust proofing, service contracts, and undercoating. The manufacturer must pay all taxes and other collateral charges incurred by the new vehicle, and an offset for use of the original vehicle also applies.