Buying a new vehicle can be exciting, but it can also come with unexpected issues. When you purchase a car that has ongoing problems, it’s essential to know your rights and protections under the law. In Alaska, the AK Lemon Law is in place to protect consumers from defective new vehicles. This comprehensive guide will provide you with all the necessary details about the Alaska Lemon Law, so you know exactly what to expect and how to proceed if you find yourself in this situation.
Eligibility: Vehicles and Consumers Covered by the Alaska Lemon Law
The Alaska Lemon Law applies to new motor vehicles that meet specific criteria:
- The vehicle must be a self-propelled, motorized land vehicle with four or more wheels.
- It should be primarily used for personal, family, or household purposes.
- The vehicle must be required to be registered in Alaska.
- Tractors, farm vehicles, and off-road vehicles are excluded from coverage.
Used vehicles are not covered under the Alaska Lemon Law. Only the original purchaser of a new motor vehicle, not intended for resale, is eligible for protection. Lessees are not covered under this law.
Nonconformity: Defining the Issues Covered by the Alaska Lemon Law
A nonconformity is a defect or condition in a motor vehicle caused by the manufacturer, distributor, dealer, or repairing agent that significantly impairs the use or market value of the vehicle. A nonconformity that substantially impairs the use of a vehicle prevents it from being operated or makes it unsafe to operate. A nonconformity that substantially impairs market value refers to a defect that significantly decreases the dollar value of a vehicle compared to a similar vehicle without the nonconformity.
Warranty: Understanding the Manufacturer’s Express Written Warranty
An express warranty or warranty is a written guarantee provided by the manufacturer of a new motor vehicle. If a vehicle does not conform to the manufacturer’s express written warranty and the owner reports the nonconformity during the warranty term, the manufacturer, distributor, dealer, or repairing agent must make the necessary repairs to conform the vehicle to the express warranty.
Lemon Law Rights Period and Manufacturer’s Obligations
The Alaska Lemon Law does not define a specific rights period. However, if the manufacturer, distributor, dealer, or repairing agent is unable to conform the vehicle to the applicable manufacturer’s express written warranty after a reasonable number of attempts, the manufacturer must refund the full purchase price and, at the owner’s option, replace the motor vehicle.
Reasonable Number of Repair Attempts: Criteria and Presumptions
A reasonable number of repair attempts is presumed if, during the warranty term or within one year from the date of delivery of the motor vehicle to the original owner (whichever period ends first):
- The same nonconformity has been subject to repair three or more times by the manufacturer, distributor, dealer, or repairing agent, but the nonconformity continues to exist; or
- The vehicle is out of service for repair for a total of 30 or more business days.
Notice of Nonconformity and Final Opportunity to Repair
Before claiming a refund or replacement, the owner must provide written notice by certified mail to the manufacturer and its dealer or repairing agent within 60 days after the expiration of the warranty or the one-year period after delivery to the original owner, whichever period ends first. The manufacturer then has 30 days to make a final repair attempt upon receiving the required written notice.
Refunds, Replacements, and Reasonable Allowance
The refund consists of the full purchase price of the vehicle, less a reasonable allowance for the use of the motor vehicle from the time
If a vehicle is determined to be a “lemon” under Alaska’s Lemon Law, the manufacturer is required to provide a refund to the vehicle owner. The refund must include:
- The full purchase price of the vehicle, including any charges for transportation and installed options.
- Collateral charges such as taxes, license fees, and registration fees.
- Any incidental damages, including finance charges, directly attributed to the vehicle’s nonconformity.
The manufacturer is entitled to a reasonable offset for the owner’s use of the vehicle before the first report of the nonconformity.
In addition to the refund option, vehicle owners may choose to have the manufacturer replace the defective vehicle with a new, comparable vehicle. The replacement vehicle should be of the same make and model, or as close to it as possible, and should be in good working condition.
When calculating the refund amount, the manufacturer is entitled to deduct a reasonable allowance for the owner’s use of the vehicle before the first report of the nonconformity. The reasonable allowance is calculated by multiplying the purchase price by a fraction, the numerator of which is the number of miles the vehicle was driven before the first report of the nonconformity, and the denominator of which is 120,000 miles.
For example, if the purchase price of the vehicle was $30,000 and the vehicle was driven 10,000 miles before the first report of nonconformity, the reasonable allowance for use would be:
(10,000 miles / 120,000 miles) x $30,000 = $2,500
In this example, the manufacturer would deduct $2,500 from the refund amount due to the owner’s use of the vehicle before the first report of the nonconformity.
Resolution Process
If a vehicle owner believes their vehicle is a lemon, they should follow these steps:
- Notify the manufacturer, distributor, dealer, or repairing agent in writing of the nonconformity, as described in the “Notice of Nonconformity and Final Opportunity to Repair” section.
- Allow the manufacturer a reasonable opportunity to repair the vehicle.
- If the manufacturer is unable to repair the vehicle after a reasonable number of attempts, the owner may request a refund or replacement vehicle.
It is important to keep records of all communications, repair orders, and any relevant documents throughout the process. In some cases, the manufacturer may require the vehicle owner to participate in an informal dispute resolution process before providing a refund or replacement.