New Hampshire Lemon Law Guide: Your Rights Under New Hampshire Lemon Law

What Is the New Hampshire Lemon Law?

The New Hampshire Lemon Law, officially known as the New Motor Vehicle Arbitration Law and codified under New Hampshire Revised Statutes Annotated (RSA) 357-D, is a consumer protection statute designed to help buyers and lessees of defective new vehicles. When a consumer purchases or leases a new vehicle that suffers from a substantial defect—one that impairs its use, market value, or safety—and the manufacturer is unable to repair it after a reasonable number of attempts, the law provides a mechanism for relief.

Under RSA 357-D, manufacturers are legally obligated to honor their express warranties. If they fail to do so, consumers have the right to seek a replacement vehicle or a full refund. The law establishes the New Motor Vehicle Arbitration Board (MVAB), which is administratively attached to the New Hampshire Division of Motor Vehicles (DMV), to provide an efficient, informal, and cost-effective process for resolving warranty disputes without the need for prolonged litigation.

Consumers seeking assistance or more information about their rights can contact the New Hampshire Department of Justice's Consumer Protection and Antitrust Bureau, which oversees unfair and deceptive business practices in the state, or the MVAB directly.

Which Vehicles Qualify Under the New Motor Vehicle Arbitration Law?

To seek relief under the New Hampshire Lemon Law, the vehicle in question must meet specific eligibility criteria outlined in RSA 357-D:2.

New vs. Used Vehicle Coverage

The New Hampshire Lemon Law primarily covers new motor vehicles. The statute defines a "new motor vehicle" as a passenger motor vehicle that is still under the manufacturer's express warranty. Unfortunately, used vehicles are generally not covered under this specific statute unless they were purchased with relatively low mileage and are still covered by the original manufacturer's warranty. Consumers who purchase defective used cars without an active manufacturer warranty must rely on other legal avenues, such as the federal Magnuson-Moss Warranty Act or the state's general Consumer Protection Act (RSA 358-A).

Leased Vehicle Coverage

Leased vehicles are fully protected under the New Hampshire Lemon Law, provided the lease agreement is for a term of two or more years. Lessees have the same rights as purchasers to demand a refund or replacement if their leased vehicle turns out to be a lemon.

Mileage and Time Limitations

The protections of the New Hampshire Lemon Law apply during the term of the manufacturer's express warranty. To qualify, the consumer must report the nonconformity to the manufacturer, its agent, or an authorized dealer during this warranty period. Furthermore, the law provides a one-year time limit after the expiration of the express warranty for consumers to invoke their lemon law protections and file a claim.

Vehicle Types Covered

The statute covers a broad range of vehicles purchased or leased in New Hampshire, including:

• Passenger vehicles and station wagons with a gross vehicle weight (GVW) not exceeding 11,000 pounds.
• Other 4-wheel motor vehicles with a GVW not exceeding 11,000 pounds.
• Motorcycles.
• Off-highway recreational vehicles (OHRVs) and snowmobiles.

Tractors, mopeds, government vehicles, and vehicles with a GVW exceeding 11,000 pounds are explicitly excluded from coverage.

What Qualifies as a "Lemon" in New Hampshire?

Not every car with a mechanical issue is considered a lemon. Under RSA 357-D, a vehicle must meet specific statutory thresholds to trigger the law's protections. The law creates a "presumption" that a reasonable number of repair attempts have been made if certain conditions are met during the express warranty term.

The "Presumption" Threshold: Number of Repair Attempts

A vehicle is presumed to be a lemon if the same nonconformity has been subject to repair at least three times by the manufacturer, its agent, or an authorized dealer, and the defect continues to exist.

Days Out of Service Threshold

Alternatively, a vehicle qualifies as a lemon if it is out of service by reason of repair for one or more nonconformities for a cumulative total of 30 or more business days during the warranty term. A "business day" is defined as any day the service departments of authorized dealers are normally open. The 30-day period can be extended if repair services are unavailable due to natural disasters, strikes, or war, provided the manufacturer supplies a free loaner vehicle during the extension.

Substantial Impairment Standard

The defect or condition—referred to as a "nonconformity"—must substantially impair the use, market value, or safety of the motor vehicle. Minor annoyances, cosmetic flaws, or issues that do not significantly affect the vehicle's operation or value do not qualify. Furthermore, the defect cannot be the result of abuse, neglect, or unauthorized modifications or alterations made by the consumer.

The New Hampshire Lemon Law Claims Process

Navigating the lemon law claims process requires strict adherence to statutory procedures and timelines.

Required Steps and Manufacturer Notification

The first step is to report the defect to the manufacturer or its authorized dealer during the warranty period and allow them a reasonable opportunity to repair it. If the vehicle meets the threshold of three unsuccessful repair attempts or 30 days out of service, the consumer can proceed with a claim.

Documentation Requirements

Thorough documentation is critical. Consumers must obtain and retain written repair orders for every service visit. Under New Hampshire law, dealers and manufacturers cannot refuse to provide a written repair order and must provide a fully itemized statement detailing the complaint and all work performed. Consumers should also keep copies of the purchase or lease contract, warranty documents, and any correspondence with the manufacturer.

Arbitration Requirements

New Hampshire offers a state-run arbitration program through the New Motor Vehicle Arbitration Board (MVAB). Consumers can file a complaint with the MVAB by submitting the required forms and a $50 filing fee. The Board, which consists of consumer representatives, dealers, and mechanics, will hold a hearing within 40 days of receiving the complaint.

It is important to note that if a consumer elects to use the manufacturer's own dispute settlement mechanism (often run by the Better Business Bureau Auto Line or similar entities), they cannot subsequently file a complaint under the state-run MVAB program.

Timeline Expectations

Once a claim is filed with the MVAB, the process is designed to be swift. If the Board rules in favor of the consumer, the manufacturer has 30 days from the effective date of the order to provide a replacement vehicle or issue a refund.

Remedies and Compensation Under New Hampshire Law

If a vehicle is determined to be a lemon, RSA 357-D provides specific remedies to make the consumer whole. The consumer has the option to choose between a replacement vehicle or a refund.

Vehicle Replacement

If the consumer opts for a replacement, the manufacturer must provide a new motor vehicle from the same manufacturer, of comparable worth, and of the same make and model with all options and accessories. Appropriate adjustments are allowed for any model year differences.

Repurchase and Refund

If the consumer chooses a refund, the manufacturer must return the full purchase price as indicated in the contract. This includes all credits and allowances for trade-ins, down payments, license fees, finance charges, credit charges, registration fees, and similar charges.

Mileage Offset Formula: The manufacturer is allowed to deduct a "reasonable allowance for use." In New Hampshire, this offset is calculated using a specific statutory formula: the full purchase price of the vehicle is multiplied by a fraction. The numerator is the number of miles the vehicle traveled prior to the first repair attempt. The denominator is 100,000 for standard passenger vehicles (or 20,000 for motorcycles/OHRVs under 250cc, and 40,000 for those over 250cc).

Incidental Damages

Consumers are also entitled to recover incidental and consequential damages resulting from the vehicle's nonconformity, such as towing costs, rental car fees, or alternative transportation expenses incurred while the vehicle was out of service.

Attorney's Fees and Civil Penalties

Under RSA 357-D:10, if a consumer brings an action in court for a breach of an express warranty and prevails, the court may award the consumer costs and reasonable attorney's fees. Furthermore, New Hampshire is one of the states that can impose civil penalties for unfair and deceptive acts under the Consumer Protection Act (RSA 358-A) if a manufacturer willfully violates the lemon law, potentially resulting in double or treble damages.

When to Hire a New Hampshire Lemon Law Attorney

While the state-run arbitration process is designed to be accessible to consumers without legal representation, hiring a qualified New Hampshire lemon law attorney is often highly beneficial.

Complexity of Claims

Lemon law cases can become legally and technically complex, especially when manufacturers dispute whether a defect "substantially impairs" the vehicle or argue that the issue was caused by consumer abuse. An attorney understands the nuances of RSA 357-D and the federal Magnuson-Moss Warranty Act and can effectively counter these defenses.

Manufacturer Resistance Patterns

Automakers have vast legal resources and teams of lawyers dedicated to minimizing their financial liability. They may attempt to delay the process, offer lowball settlements, or push consumers into unfavorable manufacturer-run arbitration programs. An experienced attorney levels the playing field and ensures the consumer's rights are fiercely protected.

Fee Structure

Most lemon law attorneys work on a contingency basis or utilize fee-shifting provisions. Because RSA 357-D allows for the recovery of attorney's fees from the manufacturer if the consumer wins, many lawyers will take a case with no upfront out-of-pocket costs to the consumer. The manufacturer pays the legal bills, meaning the consumer keeps their full refund or replacement.

What to Look for in an Attorney

When seeking representation, look for an attorney who specializes specifically in consumer protection and lemon law, rather than a general practitioner. They should have a proven track record of litigating against major automakers and a deep understanding of New Hampshire's specific statutory requirements and MVAB procedures.

Frequently Asked Questions About New Hampshire Lemon Law

How many repair attempts are required under the NH Lemon Law? Under RSA 357-D, a vehicle is presumed to be a lemon if the manufacturer or dealer has attempted to repair the exact same substantial defect at least three times during the express warranty period, and the problem still exists.

Does the New Hampshire Lemon Law cover used cars? Generally, no. The New Hampshire Lemon Law specifically applies to new motor vehicles. However, if you purchase a used vehicle that is still covered under the manufacturer's original express warranty, it may qualify. Otherwise, used car buyers must look to other consumer protection laws.

What if my car is in the shop for a long time but for different problems? You may still qualify. The law states that if your vehicle is out of service for repairs of one or more nonconformities for a cumulative total of 30 or more business days during the warranty term, it meets the threshold for a lemon law claim, regardless of whether it's the same defect or multiple different ones.

Can I stop making my car payments while my lemon law claim is pending? No. You must continue making all financing or lease payments while your claim is being processed. If you stop making payments, you may be disqualified from using the New Motor Vehicle Arbitration Law and risk having the vehicle repossessed.

How is the mileage deduction calculated if I get a refund? The manufacturer can deduct a reasonable allowance for your use of the vehicle before the defect occurred. This is calculated by taking the vehicle's purchase price, multiplying it by the mileage on the odometer at the time of the first repair attempt, and dividing that number by 100,000.