Georgia Lemon Law: What It Covers and How to File a Claim
Understand how Georgia's Lemon Law protects consumers through specific repair rules, documentation steps, and resolution options for defective vehicles.
Buying a new car is a significant investment, and discovering persistent defects can be frustrating. Georgia’s Lemon Law, officially the Motor Vehicle Warranty Rights Act, offers recourse for consumers who purchase or lease new vehicles with substantial issues that manufacturers fail to fix after a reasonable number of attempts. Understanding this law is crucial for navigating the claims process effectively.
Covered Vehicles and Defects
Georgia’s Lemon Law applies to new motor vehicles purchased, leased, or registered in the state, primarily for personal, family, or household use. This includes cars, light trucks, and demonstrator models sold with a manufacturer’s warranty as new. Businesses that buy or lease ten or fewer vehicles annually also qualify, excluding limousine services. The law generally does not cover vehicles titled as “used.”
Certain vehicles are excluded, such as motorcycles, mopeds, golf carts, trucks exceeding a 12,000-pound Gross Vehicle Weight rating, and non-self-propelled vehicles like trailers. While motor homes are covered, protection is limited to the chassis and components affecting it, not the living quarters unless defects originate in the coach or chassis.
To qualify for protection, a vehicle must have a “nonconformity”—a defect or condition covered by the manufacturer’s warranty that substantially impairs the vehicle’s use, market value, or safety. This includes “serious safety defects,” defined as life-threatening issues or malfunctions that significantly impede vehicle control or create a risk of fire or explosion, according to Georgia Code Section 10-1-782. Problems caused by consumer abuse, neglect, or unauthorized modifications are not covered.
The defect must arise and be reported to the manufacturer or its authorized dealer during the “Lemon Law rights period.” This period covers the first 24 months after the original delivery date or the first 24,000 miles of operation, whichever comes first.1FindLaw. Georgia Code § 10-1-782: Definitions This timeframe establishes eligibility for a claim and can be extended if repairs are delayed due to events like strikes or natural disasters.
Repair Attempt Threshold
Once a nonconformity is reported within the rights period, the manufacturer or dealer must be given a “reasonable number of attempts” to repair it. Georgia law, under Section 10-1-784, presumes the threshold is met if, within the 24-month/24,000-mile period:
A serious safety defect has not been corrected after one repair attempt.
The same non-safety-related nonconformity persists after three repair attempts.
The vehicle has been out of service for repairs for a cumulative total of 30 days (these days need not be consecutive).
If the rights period expires while the vehicle is undergoing repair, the period is extended until that specific repair attempt is completed. Meeting one of these conditions strongly suggests the vehicle qualifies as a lemon.
Notice and Documentation
After the manufacturer has had a reasonable number of attempts to fix the defect, the consumer must formally notify the manufacturer about the persistent problem. This notification, required by Section 10-1-784, serves as the manufacturer’s final opportunity to make the repair.
The notice must be sent by statutory overnight delivery or certified mail (return receipt requested) to the address specified by the manufacturer, usually found in the owner’s manual. It should identify the consumer, the vehicle (make, model, year, VIN), the specific defect, and state that previous repair attempts were unsuccessful. The Georgia Attorney General’s Consumer Protection Division offers a template form, though its use isn’t mandatory.2Georgia Attorney General’s Consumer Protection Division. Final Repair Opportunity Notice Form For motor homes, notice must go to all relevant manufacturers (chassis and coach).
Maintaining thorough documentation is critical, as the consumer bears the burden of proof. Keep copies of all repair orders, which should detail the reported problem, dates and mileage in and out, diagnosis, and work performed (parts and labor), as specified in Section 10-1-783. A log tracking repair visits, days out of service, and communications with the dealer or manufacturer is also advisable. Retain the original purchase or lease agreement, warranty documents, and records of all correspondence.
Formal Dispute Process
If the final repair attempt fails, the law outlines a dispute resolution process, typically starting with arbitration. If the manufacturer has an informal dispute settlement mechanism (IDSM) certified by the Georgia Attorney General under state rules and federal regulations (16 C.F.R. Part 703), the consumer generally must use this program first, provided this requirement was disclosed in the warranty materials.3Cornell Legal Information Institute. 16 CFR Part 703 – Informal Dispute Settlement Procedures
A claim must usually be filed with the certified IDSM within one year after the Lemon Law rights period expires (Section 10-1-785). These programs typically have 40 days to issue a decision. If they fail to meet this deadline, the consumer can proceed to the next step.
Whether required to use a manufacturer program or not, consumers can pursue state-operated arbitration administered by the Georgia Attorney General’s Consumer Protection Division.4Georgia Attorney General’s Consumer Protection Division. Georgia Lemon Law Application Packet An application must be filed within one year after the rights period ends or 60 days after the manufacturer’s IDSM process concludes, whichever is later (Section 10-1-786).5Justia Law. Georgia Code § 10-1-786: Request for Arbitration; Eligibility; Timing If the application is deemed eligible, the manufacturer must participate.
The state arbitration hearing is typically held within 40 days of eligibility determination, at a location convenient for the consumer. Lessees must notify their leasing company if their dispute is eligible. The arbitrator’s decision is binding on the manufacturer if the consumer accepts it (Section 10-1-787). The consumer can reject the decision. Generally, consumers must complete these arbitration steps before filing a lawsuit under the Lemon Law (Section 10-1-788).
Available Remedies
If a vehicle is deemed a lemon through arbitration or court action, the consumer is entitled to choose between a repurchase or a replacement vehicle, according to Section 10-1-784.6Justia Law. Georgia Code § 10-1-784: Opportunity to Repair; Repurchase or Replacement
Choosing repurchase means the manufacturer must refund the vehicle’s purchase price, including any trade-in allowance, plus “collateral charges” (like sales tax, title fees, and factory-installed options) and “incidental costs” (reasonable expenses related to repairs, such as towing and alternative transportation). The manufacturer may deduct a “reasonable offset for use,” calculated based on the mileage driven before the first repair attempt for the qualifying defect, using a formula specified in the law (Section 10-1-782 and 10-1-784). The refund is paid to the consumer and any lienholder.
Opting for a replacement means the manufacturer must provide a new vehicle identical or reasonably equivalent to the original vehicle at the time of purchase. The manufacturer must also cover incidental costs and any charges associated with the replacement transaction. No deduction for vehicle use is applied when a replacement is provided.
For leased vehicles, the remedies are similar. Repurchase involves the manufacturer paying the lessee for lease payments made (plus incidental costs, less the use offset) and paying the lessor an amount to terminate the lease (Section 10-1-784(c)). Replacement involves providing an equivalent new vehicle under the original lease terms, with the manufacturer covering transaction costs and the lessee’s incidental expenses.
