Leased Vehicle Lemon Law in Georgia

Georgia Lemon Law covers new leased passenger vehicles, SUVs, vans, and trucks under 10,000 pounds, as well as the motorized portions of RVs and demonstrators that are leased as new motor vehicles with a manufacturer's warranties. In order to be considered a "lemon," the vehicle must meet the following requirements: Does not conform to the manufacturer's express warranty Has substantial defects affecting the use, safety or value of the vehicle Has manufacturer's defects that occurred during the first year from the delivery date or 12,000 miles on the odometer (whichever comes first) Has been taken in for repair during the first year from the delivery date or 12,000 miles on the odometer (whichever comes first), and has been taken in for subsequent repairs within 24 months or 24,000 miles of the date of the first repair attempt Has been taken in one time for a serious defect in the brakes or steering system, two times for another life-threatening defect, or the vehicle has been out of service for a total of 30 calendar days (15 of them within one year or 12,000 miles) or taken in three times for the same defect After the dealer has tried to repair the vehicle the required number of times, you have notified the manufacturer via certified mail and the manufacturer has had the opportunity to make a final repair attempt The vehicle is leased by the original lessee The vehicle is used primarily for personal, family, or household purposes; or, the vehicle is owned or leased by a business that owns or leases only one or two vehicles, has ten or fewer employees, and has an annual net income of $100,000 or less

Under Georgia Lemon Law, you must notify the manufacturer of the problem with your vehicle after you have met the requirements for repair attempts, and give the manufacturer the opportunity to fix it one last time. (sample notification letter)

If the problem is still not fixed, you must ask the leasing company to choose whether to get a refund or a replacement vehicle. The letter must be sent via certified mail, with a return receipt requested.

The leasing company must respond with their preference within 30 days of receiving your letter. Whether or not they respond, you must send a 30-Day Demand Letter to the manufacturer. (sample notification letter). If the leasing company has specified a preference as to replacement or refund, you must abide by their wishes.

If you are requesting a refund, the refund will consist of:

• Your down payment or any initial balloon payment
• The amount allowed for any trade-in
• Incidental costs associated with the repair of the vehicle, such as towing, alternate transportation, or repair charges

Sample Letter to Leasing Company

[Your name]
[Your address]
[Your telephone number]
[Date]

[Name of leasing company]
[Leasing company's address]

Dear Leasing Company:

I am the lessee of a vehicle that I am asserting to be defective. I am hereby requesting that you, the lessor, elect whether the manufacturer should repurchase or replace the vehicle, pursuant to Georgia's Motor Vehicle Warranty Rights Act, O.C.G.A. Section 10-1-784(a)(2). Please respond to me with your election within thirty (30) days.

Vehicle make:
Vehicle model:
Vehicle year:
VIN:
Name and address of dealer from whom vehicle was leased:
Date of vehicle delivery:
Current odometer reading:
Nature of the defect:
Date of request for final repair attempt:
Date of final repair (if applicable):
Name of final repair facility (if applicable):

The defect continues to exist.

Sincerely,
[Your name]

Before you are eligible to file a Lemon Law claim in court, you must also participate in your vehicle manufacturer's state-certified dispute resolution process through the Better Business Bureau Auto Line (800-955-5100). If your vehicle manufacturer does not have a state-certified program, you must submit your dispute to the Governor's Office of Consumer Affairs for a state-operated arbitration hearing. If you are offered a resolution through the BBB Auto Line, you have the choice whether to accept or reject it. If you reject it, you must then participate in the state-operated arbitration hearing. It is critical to note that, if you go through the certified program or the Office of Consumer Affairs program, you must give up your rights under Georgia's Uniform Commercial Code and commit to only pursuing your rights under Georgia Lemon Law.

If you are going through the BBB Auto Line, a hearing will be scheduled. Generally, your dispute will be decided within 40 days. The program has the authority to award you a refund or replacement vehicle, or it may determine that your vehicle doesn't have a defect and that you are not entitled to relief. It can also give the manufacturer another chance to repair the problem or require the manufacturer to give you an extended warranty.

After your hearing, you will receive a letter within seven to ten days that outlines the decision. The manufacturer is bound by the decision, but you have the opportunity to accept or reject it. You usually have to notify the program of your decision within 14 days via certified letter with a return receipt requested. If you do not notify the program of your decision, the assumption is that you have rejected the decision. If you reject the decision, you must go through state-operated arbitration, and submit a completed application to the Governor's Office of Consumer Affairs within 60 days of the date of your rejection. You only have the right to go through the state-operated arbitration hearing if the defect continues to exist.

Once you submit your application to the Governor's Office of Consumer Affairs, it will decide whether or not you have met the requirements for arbitration. If so, it will forward your application to the state arbitration panel.

Wherever you are in the Lemon Law claim process, it is generally in your best interest to have an attorney represent you. After all, vehicle manufacturers have teams of lawyers that do nothing but fight Lemon Law claims. As you consider your options, imagine the difference between going up against a team of lawyers on your own, versus having a Lemon Law attorney speak on your behalf. Also keep in mind that being represented by a Lemon Law attorney won't cost you a dime if you go to court; the law says that the car manufacturer has to pay your attorney's fees in successful Lemon Law claims.

The Arbitration Hearing

Once your case has been accepted for state arbitration and the hearing has been scheduled, you will receive a video explaining how the arbitration hearing is conducted.

A panel of three arbitrators who are trained and experienced in dealing with Lemon Law claims will preside over your hearing. Both you and a representative from the manufacturer speak before the panel. You will speak first. The attorneys for the manufacturer can question you; when the attorneys for the manufacturer speak, you can question them. You can bring and question witnesses. You should bring your vehicle to the hearing unless it is inoperable or unsafe to drive.

While the arbitration hearing is less formal than an actual court proceeding, you need to come prepared to present your case. You will need the records that outline all of the work done on your car and all of the diagnosed problems; an odometer reading; copies of correspondence with the dealer and/or manufacturer; statements from mechanics or other experts; statements from witnesses; appraisals or estimates of the resale value of the vehicle with its defects; proof that the manufacturer has had the opportunity for one final attempt at repair; and a variety of financial records. It is also important that you have your records in chronological order and ready to present to the panel in an organized fashion.

You must prove to the arbitration panel that the claims you are making are true, and that the defect negatively impacts the use, market value, or safety of the vehicle. It is absolutely vital that you bring proof of each and every point you plan on making. A "he-said-she-said" argument will never result in a ruling in your favor.

At the end of the hearing, the panel will reach a decision outlining whether or not your vehicle meets the standards for a refund or replacement. If so, you get to decide whether you want a replace or a refund, which can include:

• The purchase price (the amount you agreed to pay before taxes were added and any trade-in value or down payment subtracted)
• Collateral charges (including, but not limited to, sales tax and other government charges, dealer charges, dealer-installed items, extended warranty, and all interest you paid on the vehicle loan)
• Incidental costs associated with repairing the vehicle, such as towing, alternate transportation, and repair charges
• Expert witness costs
• Attorney's fees

The amount of the refund may be reduced by a deduction for your use of the vehicle, which is calculated by multiplying the purchase price by the mileage at the time you sent the 30-Day Demand Letter and dividing that amount by 100,000.

If the decision is not in your favor, you can appeal. First, you have to reject the decision by certified mail with a return receipt requested within 30 days of the date you received the decision. If you do so, you have an additional 40 days to request a trial. If the decision is in your favor, the manufacturer may file an appeal with the court.