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What To Know About The Alabama Lemon Law (2023)

The lemon law in Alabama dictates that a vehicle with a defect that “significantly impairs” the use, market value, or safety of the vehicle and makes it non-conforming with the manufacturer’s express warranty must be repaired to satisfactory condition within a reasonable number of attempts or days.

If the manufacturer cannot repair the vehicle, it must replace the vehicle with the same (or a similar enough) vehicle or accept a return of the vehicle for its original purchase price.

Alabama Lemon Law Rules for New Cars

woman hitches a ride next to broke down car

Alabama’s lemon law is specifically geared toward the newest vehicles.

This means it applies to all new vehicles sold at car lots.

Lemon Law Requirements for New Vehicles

The lemon law applies in Alabama if:

  • The issue(s) with the vehicle puts it out of service (is a major problem and not just a nuisance).
  • The issue(s) with the vehicle is covered by the vehicle’s warranty.
  • The issue(s) with the vehicle occurs within the lemon law rights period.
  • The vehicle came with the issue(s). (i.e. You didn’t drive it off the lot and immediately sideswipe a curb, jacking up the running board or suspension.)

If your car meets the definition of a “lemon” in Alabama, the car dealership/manufacturer is required to do one of the following things:

  • Repair the car within a reasonable number of attempts
  • Repair the car within a reasonable number of days
  • Replace the car with an identical or equivalent vehicle that is acceptable to you
  • Accept a return of the vehicle for a full refund (minus a “reasonable allowance” for the time the vehicle was used)

Repair the car within a reasonable number of attempts

What constitutes a reasonable number of attempts to repair a vehicle in Alabama is four (4), three attempts and one final attempt.

The exception to this is if the issue with the vehicle is a serious safety, in which case federal law reduces the number of failed repair attempts to two (2), one failed attempt plus one final attempt.

If the dealer/manufacturer cannot repair the vehicle after four attempts (one in the case of a serious safety defect), the manufacturer must allow you to return the car for an identical (or comparable) vehicle or refund.

Repair the car within a reasonable number of days

What constitutes a reasonable number of days in Alabama is 30.

If your vehicle is in the shop more than 30 days with any number of warranty-covered issues, it’s considered a lemon and the manufacturer must allow you to return the vehicle for an identical (or like) vehicle or refund.

These 30 days do not have to be consecutive. Instead, they are cumulative.

Any time your car is in the shop within the lemon law period counts toward your 30 days, even if they occur months apart.

Replace the car with a “substantially identical” vehicle

If the manufacturer cannot repair the vehicle within the allotted number of attempts or days, they must allow you to return it.

When you return the car, you may request a replacement vehicle.

This replacement vehicle must be similar enough to the original vehicle (same make, model, have the same features, etc.) and acceptable to you.

The manufacturer is responsible for any additional fees and taxes associated with the replacement.

Buy back the vehicle for a full refund

If you do not want a replacement vehicle after your first vehicle turns out to be a lemon, you may request a refund instead.

When refunding a lemon, dealers must refund the full buying price of the car (including all taxes and fees), finance charges accumulated after the first report of the issue with the vehicle to the manufacturer/authorized dealer, and incidental charges (such as rental car fees).

The manufacturer may, however, deduct a “reasonable allowance” for usage of the vehicle (up to the first report).

This usage allowance is calculated by a standard formula.

Alabama Lemon Law Rules for Used Cars

A used vehicle is covered by Alabama’s lemon law if the vehicle is still under the original manufacturer’s warranty and the issue(s) with the vehicle is reported within the lemon law period.

This means a used vehicle is covered by the lemon law if:

  • It is still under the express manufacturer’s warranty
  • The issue with the vehicle is reported within 12 months (1 year) after delivery to the original owner
  • The issue with the vehicle is reported within 12,000 miles

Whichever comes first.

You may also have to prove the issue was not caused by misuse by the original owner.

Alabama Lemon Law Time Limit

The lemon law coverage period in Alabama is to the expiration of the express manufacturer’s warranty, 12 months (1 year), or 12,000 miles, whichever of these comes first.

The issue(s) must be initially reported during this period.

All failed repair attempts or days spent in the shop must take place within the first 24 months (2 years) or 24,000 miles.

Any attempt at informal dispute resolution must also be initiated within this time period.

Consumers have 36 months (3 years) from the date of delivery to the original owner to bring any suit against a manufacturer in court.

How do I file a lemon law claim in Alabama?

Before filing a lemon law claim in Alabama, you must contact the manufacturer of the vehicle to try to get the issue resolved.

To do this, send a certified letter (after the third failed repair attempt or after a serious safety issue failure, like the braking system going out) to the address provided in your vehicle’s warranty paperwork or owner’s manual.

Include the following information:

  • Your name and contact information
  • Vehicle VIN number
  • Vehicle make, model and year
  • Dealership from which the vehicle was purchased
  • Date the vehicle was purchased
  • The issue(s) with the vehicle
  • A list of repair attempts with copies of work orders/receipts
  • A statement that you are giving the company a final attempt repair

Upon receipt, the manufacturer must provide you with the name of a reasonably accessible repair facility for their final attempt at repair within seven (7) days.

Once you take the vehicle to the repair facility, the facility/manufacturer has 14 days to repair the vehicle to satisfactory condition.

If the manufacturer fails to repair the vehicle to satisfactory condition, and refuses a replacement or refund, you must proceed with the manufacturer’s informal dispute settlement procedure (arbitration) as explained in your vehicle’s paperwork (if there is one).

Only after you have gone through informal dispute settlement with the manufacturer are you eligible to file a lawsuit through the state.

If you need help with any part of the lemon law process, contact (or file a complaint with) the Consumer Interest Division of the Alabama Attorney General’s Office.

General Lemon Law FAQ

To further your understanding of lemon laws, here are some frequently asked questions about how they pertain to vehicles.

What is a lemon law?

A lemon law is a law that protects consumers from defective products or “lemons,” generally by enforcement of a warranty.

What is a lemon car?

“Lemon car” meaning varies slightly from state to state, but, in general, if a new car has a defect the dealer or manufacturer cannot fix, that car is a lemon.

Defects in lemon cars typically affect the operation or safety of a vehicle, but not always.

Structural issues that affect that value of a car are also covered.

Is there a federal lemon law?

There is no federal lemon law specifically geared toward vehicles.

However, there is a federal warranty act called the Magnuson-Moss Warranty Act which protects consumers from false or misleading warranties and makes warranties easier to enforce.

Since cars sold by dealerships typically come with full warranties, the Magnuson-Moss Warranty Act applies to them.

This act serves as the basis for state-specific lemon laws.

What’s in the Magnuson-Moss Warranty Act (as it applies to vehicles)?

The Magnuson-Moss Warranty Act includes several key points that pertain to vehicle warranties.

These points are:

  • No product is required to have a warranty (and many used cars don’t).
  • The terms of a warranty must be fully disclosed in simple, understandable language.
  • Any ambiguity in the language of a warranty is held against the warrantor (in this case, the manufacturer or dealer).
  • Warrantors cannot require only branded parts be used with their products for a warranty to remain valid (Ford can’t require only Ford parts be used on your vehicle).
  • Service contracts must follow these same rules.

Basically, if you feel like you’ve been duped by a warranty, you may have a case under the Magnuson-Moss Act.

And if your vehicle comes with a “full warranty”:

  • A dealer/manufacturer must repair any defect for free within a reasonable amount of time/reasonable number of attempts

Or, if the dealer/manufacturer cannot repair the vehicle, they must:

  • Replace the vehicle with an exact-match vehicle or allow you to return the vehicle for a full refund (including all taxes and fees)

Does the federal lemon law cover used cars?

If the used cars come with warranties, it does.

The Magnuson-Moss Act is not directed toward products themselves, but the warranties which cover them.

So, if you bought a used car that came with both a defect AND a warranty that covers that defect, the dealer must either repair your vehicle (in a satisfactory manner).

If they fail to do so, you can seek restitution under the Magnuson-Moss Act.

You may be able to come to an agreement with the dealer through arbitration, but, more likely, you will have to take the matter to court.

Does the lemon law apply to leased vehicles?

Yes. In Alabama, the lemon law applies to leased vehicles that are new and under a manufacturer’s warranty.

Chucking A Lemon In Alabama

When you buy a new car, whether you really need one or are just looking for an upgrade, there’s nothing worse than getting it home only to discover it’s a non-functional dud.

But manufacturers shouldn’t be shipping dud cars to dealerships and dealerships shouldn’t be putting dud cars out on their lots.

That’s the point of lemon laws, to ensure new vehicles driven off of car lots are safe, functional, and free from major defects.

So, if you think you’ve gotten a lemon car in Alabama, you shouldn’t accept it and you shouldn’t delay.

You do have recourse, and the sooner you bring the issue to the dealer’s and manufacturer’s attention, the stronger your “lemon” claim will be.