What Is the Lemon Law in North Carolina for Used Cars

North Carolina's lemon law, formally known as the New Motor Vehicles Warranties Act and codified as N.C.G.S. § 20-351 et seq., applies exclusively to new motor vehicles. The statute does not extend lemon law protections to used cars purchased from dealers or private sellers. Coverage under this statute is limited to new passenger cars, pickup trucks, motorcycles, and most vans sold during the manufacturer's warranty period of 24 months or 24,000 miles, whichever comes first.

What Protections Do Used Car Buyers Have in North Carolina?

Although North Carolina's state lemon law excludes used vehicles, multiple layers of protection remain available through federal statutes and state warranty law.

Magnuson-Moss Warranty Act

The Magnuson-Moss Warranty Act provides federal remedies when written warranties or service contracts fail to perform. This statute applies to used motor vehicles if dealers have provided express warranties. Buyers may recover damages, vehicle replacements, refunds, and attorney fees when warranties are breached.

FTC Used Car Rule

The FTC Used Car Rule mandates that every dealer selling used vehicles must display a Buyer's Guide on each vehicle before sale. This disclosure must identify whether the vehicle is offered with warranty coverage or sold "as is" without warranty, specify which systems and components are covered, indicate repair cost responsibility between dealer and buyer, and recommend independent pre-purchase inspections and vehicle history verification.

Implied Warranty of Merchantability

North Carolina recognizes an implied warranty of merchantability under the Uniform Commercial Code (N.C.G.S. § 25-2-314). This warranty applies to used vehicles sold by merchants and requires that vehicles be fit for ordinary purposes—safe, functional, and suitable for normal transportation. When substantial defects affect a vehicle's utility, dealers have breached this implied warranty.

Understanding "As Is" Sales in North Carolina

North Carolina permits dealers to sell used vehicles "as is," substantially limiting buyer recourse after purchase. When a vehicle is sold "as is," the buyer generally accepts the vehicle in its current condition, and dealers are not obligated to make repairs or provide refunds for defects discovered following the sale.

What "As Is" Means for Buyers

When purchasing a vehicle "as is," buyers accept all defects present at the time of purchase. Dealers disclaim responsibility for post-sale repairs and defect remediation. Buyers assume full liability for mechanical failures, structural damage, and other vehicle deficiencies that manifest after the transaction concludes.

Limited Dealer Disclosure Requirements

Despite "as is" designations, dealers must comply with federal and state disclosure obligations. Federal odometer laws require accurate mileage disclosure on vehicle titles regardless of sale terms. Title documentation must reflect any salvage, rebuilt, or total loss designation. Dealers must disclose prior use as rental or commercial vehicles when applicable.

Limited Exceptions to "As Is" Sales

Dealers cannot use "as is" language to shield themselves from fraud liability. Intentional concealment of known defects, material misrepresentations about vehicle condition or history, or false statements that induce purchase create legal liability despite contractual disclaimers. Odometer tampering or misrepresentation of mileage violates federal law and is actionable even in "as is" sales.

When dealers make express written warranties or provide specific written representations about vehicle condition, safety, or mechanical status, those warranties supersede "as is" language and remain enforceable. Oral representations contradicting "as is" designations may also create express warranties under North Carolina law. If dealers promise that certain repairs have been completed or that the vehicle is mechanically sound, buyers may pursue breach of warranty claims regardless of "as is" provisions.

Filing a Consumer Complaint

Consumers may file complaints regarding used-car sales, dealer fraud, and vehicle title and odometer issues with either of the following agencies. The Department of Justice Consumer Protection Division addresses general consumer complaints, including deceptive dealer practices and fraud. The DMV License & Theft Bureau handles dealer licensing violations, title disputes, and odometer fraud allegations.

North Carolina Department of Justice
Consumer Protection Division
9001 Mail Service Center, Raleigh, NC 27699-9001
Phone: (919) 716-6000
Official Website: Consumer Protection Division

North Carolina Division of Motor Vehicles
License & Theft Bureau
1515 North Church Street, Rocky Mount, NC 27804
Phone: (919) 715-7000
Official Website: North Carolina Division of Motor Vehicles