This chapter describes your protections under Maine law when you buy or lease a new vehicle.
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- Lemon Law and Manufacturer Arbitration Programs
Maine has a so-called “Lemon Law” that protects consumers when their vehicle has serious defects that arise during the express warranty period, which includes a state arbitration program. For more information about the Lemon Law, please see our Lemon Law guide.
Most manufacturers provide free arbitration programs for their customers. These programs are available even if your vehicle does not meet Lemon Law requirements. Unlike State-sponsored Lemon Law arbitration, through which a consumer can obtain either a replacement vehicle or a refund, manufacturer arbitration programs can order additional repairs. The warranty booklet that was provided to you with your vehicle will tell you more about your manufacturer’s arbitration program.
- Immediate Rejection and Revocation of Acceptance of Defective Vehicles
Vehicles are goods. Therefore, if you are sold a new or used vehicle and it quickly becomes apparent it is seriously defective, Maine law allows you to reject it within a reasonable time after delivery. Additionally, you may also be able to revoke your acceptance of the vehicle if it does not conform with the terms of the sale and the nonconformity substantially impairs its value. See our defective goods guide for more information about immediate rejection and revocation of acceptance of goods.
If the dealer refuses to accept your immediate rejection or revocation of acceptance, then you should consult an attorney before taking further action. Mediation through the Attorney General’s office or arbitration of your dispute pursuant to the Lemon Law arbitration may provide an inexpensive alternative to filing a lawsuit.
For many consumers, there may be significant practical problems with leaving a vehicle at the dealer so soon after acquiring it. Many consumers need their vehicle immediately, even in its nonconforming or defective condition, and may not have access to alternative transportation. Additionally, giving up possession of your vehicle means you cannot take it to another garage for repairs, which could be a cost-effective solution. Also, the dealer may start charging you a “storage” fee, though you should request that they waive any fees if the vehicle is nonconforming or defective. Further, if you have financed your car with a third-party lender such as your credit union or bank, they will have a security interest and you must make payments to avoid repossession, even though you are not using the vehicle.
- Warranties
The following warranty rights apply to consumers who lease or buy new vehicles.
Express Warranties
Most new vehicles are sold or leased with express warranties from the manufacturer. You may have rights to free repairs under an express warranty or, if the vehicle cannot be repaired, to a refund or replacement. Both federal and state law require manufacturers to comply with their warranty obligations. If they do not, you may have a legal claim against the manufacturer in which you can seek remedies such as damages, restitution, and attorneys’ fees. If you believe your vehicle’s defect is covered by an express warranty and the manufacturer is not honoring the warranty, you should consult with an attorney.
Implied Warranties
As discussed in our warranties guide, Maine law also provides an implied warranty of merchantability regardless of whether there is an express warranty. This implied warranty of merchantability applies to vehicles other than used vehicles. A used vehicle is a vehicle that either has been once registered or is not covered by a manufacturer’s new car warranty. With respect to consumer goods, the implied warranty cannot be disclaimed or limited. Both the manufacturer and the seller (i.e. the dealer) are responsible for honoring the warranty.
When you have a problem with your new vehicle, we recommend that you go to the dealer first. If the dealer fails to correct the problem after you have provided a reasonable opportunity to do so, contact the manufacturer’s area representative and arrange an appointment. Your warranty booklet or your dealer will provide you with contact information for the manufacturer.
The implied warranty requires that your vehicle and its component parts are fit for their ordinary use during their useful life.
A lawsuit based on an implied warranty claim must be brought within 4 years of delivery of the car.
- Loaner Vehicles
Many dealers have loaner vehicles that they allow customers to use while their vehicles are being inspected or repaired. If you do not have alternative transportation, you should ask whether a loaner vehicle is available. However, Maine law does not require dealers to offer loaner vehicles to their customers, even when a customer’s car is unavailable because of a defect that is covered by a warranty. Ultimately, the cost of alternative transportation may be something you can seek through a legal claim, but neither a manufacturer nor a dealer is required to provide that benefit to you up front.
- Service Contracts
The Federal Magnusson-Moss Warranty Act discussed in our defective goods guide applies to written express warranties on new cars.
Given that a new car buyer in Maine will receive the protection of a manufacturer’s express warranty, the implied warranty of merchantability, and the Magnusson Moss Warranty Act, should buyers also purchase Service Contracts, also known as extended warranties? Perhaps not. Service Contracts can be expensive and may merely duplicate coverage or protection you already have. They also typically state that their remedies do not apply if another warranty already covers the problem. A service contract may offer nothing more than very expensive peace of mind. You should consider carefully whether to buy or finance a service contract, particularly if it does not provide any meaningful benefits beyond existing warranty protections.
- Call for Help
If neither the dealer nor the manufacturer responds satisfactorily to your complaint about a defective car, here are some suggestions for further help.
Arbitration
If you purchased your vehicle within the past 3 years and it has been driven fewer than 18,000 miles, you may be eligible for Lemon Law arbitration. You should call the Attorney General’s Lemon Law Arbitration Program at 1-800-436-2131 to get more information about whether you are eligible and how to apply. If you are not eligible for this program you may want to contact the manufacturer to request that your complaint be considered for the manufacturer’s arbitration program. The address of your manufacturer’s arbitration program can be found in your warranty booklet.
Credit Problems
If you have a complaint about your vehicle loan, contact the Maine Bureau of Consumer Credit Protection at (207) 624-8527 or (800) 332-8529.
Attorney General Consumer Mediation Service
If you are interested in finding out whether your complaint is eligible for a free, voluntary, and non-binding mediation, contact the Attorney General’s Consumer Mediation Service. Contact us via our online complaint service; call us Monday – Thursday between 9 AM – 12 noon at 1-800-436-2131 or 207-626-8849; or write a letter addressed to the Consumer Mediation Service, Office of the Attorney General, 6 State House Station, Augusta, ME 04333-0006. For more information, see our guide on how to resolve a consumer complaint.
Dealer Complaints
If you have a complaint against a dealer in connection with an unfair sales practice or shoddy service, you may also notify the Secretary of State, which is the agency that licenses vehicle dealers in Maine, at (207) 624-9000, extension 52144.
Safety-Related Complaints
If you have a complaint that deals with a safety problem with your vehicle, you should contact the National Highway Traffic Safety Administration (NHTSA).
U. S. Department of Transportation
1200 New Jersey Avenue, SE
Washington, D.C. 20590
1-888-327-4236; TTY for Hard of Hearing, (888) 275-9171).
Recall notices, crash tests results, tire quality ratings, and safety publications from NHTSA are now available online (https://www.nhtsa.gov/). You can also report a safety problem online (https://www.nhtsa.gov/report-a-safety-problem).
“Secret” Warranties
Some manufacturers privately identify certain defects as eligible for “goodwill adjustments.” These are not publicized and are therefore referred to as “secret” warranties. A consumer might have to push a manufacturer or dealer before relief will be provided under such a policy. One way to find out if your vehicle might be covered by a “secret” warranty is to contact The Center For Auto Safety by phone at (202) 328-7700 or by email to contact@autosafety.org. Visit the Center for Auto Safety’s webpage (https://www.autosafety.org/secret-warranties/) to learn more.