Know your rights about defective vehicles.
Each state has its own set of laws regarding defective vehicles, more commonly known as lemon laws. These laws define a "lemon vehicle," what cars qualify under the law and go about receiving compensation, among other things. State lemon laws apply only to new vehicles. Anyone with questions about this law or any other consumer issues should contact the Nevada attorney general's office.
Reporting
To claim compensation under the lemon law, the buyer must notify the manufacturer---in writing---of any problems with the vehicle and any information regarding attempts to repair it such as repair records. The buyer must do so before the original warranty expires or within one year of the purchase date, whichever comes earlier. Most original warranties come with one year of coverage, but a person should always check with the dealer or manufacturer.
Lemon Definition
Under Nevada law, a person can pursue compensation if the problem has not been resolved after four repair attempts or the car has been out of commission for a cumulative total of at least 30 days due to repair within the previously stated time frames.
Dispute Settlement
If the manufacturer has a dispute settlement process in place, the buyer must use this avenue first for compensation or replacement before bringing legal action against the manufacturer. The buyer does not have to accept whatever offer results from these proceedings but cannot circumvent it. The dispute process must conform to title 16 of Code of Federal Regulations part 703. The Nevada attorney general's office could provide information regarding this. If the dealer does not have an approved mediation in place or the buyer does not accept the offer, she can then file legal action with the court and should consider seeking legal representation from an attorney experienced in this arena.
Repurchasing
If the manufacturer offers to repurchase the vehicle, the payout must cover a variety of fees. These include the full purchase price, sales taxes, license and registration fees and any other government charges. The manufacturer can deduct a certain amount for use of the vehicle. To determine this amount, the manufacturer can consider use before the first defect was reported and during any time the buyer used the vehicle in between repairs.
Replacement
If the manufacturer offers to replace the vehicle, state law dictates it must give the buyer an exact replacement with the same features. It can offer a similar vehicle if it cannot deliver an exact replacement within a reasonable amount of time.
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