New Mexico Used Car Lemon Law

New Mexico's used car Lemon Law provides consumers in the state of New Mexico some protection when they are purchasing a used car

It's happened to almost all of us: you drive by a used car lot and spot a car you think you just can't live without. But it is used, after all, and you're concerned that it's been through more than just the car wash. How can you tell whether it's a "peach" of a deal, or a "lemon?"

New Mexicans now have more protection than ever when buying a used car from a dealer in the State of New Mexico from Used Car Dealers than ever before. In 2003, the state Legislature amended The New Mexico Motor Vehicle Quality Assurance Act was amended by the state Legislature in 2003 to include cover the sale of used motor vehicles. These new amendments went into affect on January 1, 2004 and created what is now called commonly referred to as the "Used Car Lemon Law." Here are some commonly asked questions about the new law.

What used motor vehicles are covered by the Used Car Lemon Law?

Used motor vehicles covered by the Used Car Lemon Law are defined as self-propelled passenger vehicles that have been sold, bargained for, or exchanged and put into bona fide consumer use, or a motor vehicle whose title has been transferred after the first consumer purchase.

This includes automobiles, pickup trucks, motorcycles, and vans used for personal, family or household purposes, which are sold and registered in the State of New Mexico.

Who qualifies as a used motor vehicle dealer?

According to the law, Any person or business that sells or offers for sale, four or more used vehicles to consumers for use as transportation within twelve calendar months and is doing business within the state of New Mexico, but not necessarily located with in the state, qualifies as a Used Motor Vehicle Dealer.

What vehicles does the Used Car Lemon Law not cover?

Non-passenger vehicles, company vehicles or any vehicle that is not for personal use, vehicles with a gross weight that exceeds 10,000 pounds, any vehicle that is not self-propelled, ATVs, dirt bikes, any off-road vehicle, golf carts, tractors, skid steers, lawn mowers, tongue pull and gooseneck trailers, travel trailers, vehicles sold at auction yards, casual sales (person to person sales), and or company or government vehicles sold to employees or the public.

What protection does the Used Car Lemon Law provide for consumers?

It provides a promise that the goods sold are fit for the ordinary purpose for which they are intended. Under the law, every used motor vehicle covered by the law and offered for sale by a dealer will carry with it an implied warranty for 15 days or 500 miles, which ever comes first. During this warranty period, the vehicles is to be in reasonably safe condition and substantially free of defects that could impair its reasonable use as transportation on public roads.

What if the car has defects that the dealer was aware of?

Any defects meeting these conditions and that the dealer is aware of, or reasonably should have been aware of, must be properly disclosed at the time of sale. If not, or the you can attempt to return the vehicle for a full refund of all monies and property and the purchase agreement can be rescindedvoided.

What if the car has defects that the dealer was not aware of?

If any defects occur during the warranty period that were not disclosed and the Dealer did not or should not necessarily have been aware of the defects, then the Dealer has two attempts to repair and bring the vehicle up to the minimum standards required by the Used Car Lemon Law. You are only obligated to pay a maximum of $25.00 or one-half the cost of repairs, whichever is less. If, after two attempts, the Dealer is unable to remedy the defects, then you have the option to rescind the contract and return the vehicle to the Dealer. The Dealer must accept the vehicle back and return all monies and property to you. The consumer is only obligated to pay a maximum of $25.00 or one-half the cost of repairs, whichever is less, for the first two repairs. If you decide to keep the car after the first two repair attempts, then you are liable for all subsequent repairs that are needed.

What is proper disclosuere of defects?

If the dealer is aware of any defect(s)s that would make the vehicle unsafe or impair its mechanical operation they must be disclosed properly and accurately. The dealer must fully and accurately disclose any defect(s) to the consumer. If you agree to purchase the vehicle after disclosuere of the defect(s), a conspicuous statement must be printed, signed, and dated on the first page of the sales agreement in at least ten-point bold face type in the language in which the presentation was made. The statement must include a description of the problems with the vehicle the dealer has disclosed and you must an acknowledge that you have agreed to buy the vehicle on those terms.

What can void the 15-day/500 mile warranty?

Damage that results from off-road use, racing, towing, abuse, misuse, neglect, failure to perform regular maintenance, and failure to maintain adequate oil, coolant, and other required fluids or lubricants. Also, if you notice a defect within the warranty period that was not disclosed and take the vehicle to be repaired by your own mechanic instead of, and not the Dealer, the warranty could become void and the dealer isn't required to reimburse you.

When does the implied warranty period begin and when does it end?

The warranty period begins when you takes possession of the vehicle and it ends on midnight of the 15th calendar day after taking possession or when the odometer shows more than 500 miles passed the miles written on the odometer disclosure statement of the contract, whichever comes first.

Are there any days or miles that are excluded when calculating the warranty period?

When calculating days covered by the warranty period, days in which the vehicle fails to operate properly or days that the vehicle is in the Dealers possession for service are excluded. When calculating miles covered by the warranty period, miles driven to or from the Dealership in connection with any repair, servicing, or testing of the vehicle are also excluded.

What parts are covered under the Used Car Lemon Law?

The parts covered by the Used Car Lemon Law are those that substantially impair the vehicle's safety or reasonable use as transportation on public roads.

What do I do if I think my vehicle has defects that were unknown to the dealer?

If, with in the 15-day/500 mile warranty period, a breach of the warranty occurs because of mechanical problems - that which significantly interfere with the reasonable and safe operation and use of the vehicle, you must notify the Dealer within the 30-day statutory period from the day that the vehicle failed to operate properly.

What if I am having problems resolving an issue with the dealership where I purchased my car?

Visit New Mexico's Attorney General web site for moreinformation about New Mexico's Lemon Law at www.ago.state.nm.us or contact the New Mexico Consumer Protection Division by calling this toll free number: (800) 678-1508.

Additional Lemon Law Resources