Alaska Lemon Law Guide: What to Know and How to File a Claim

Juan Herrera, Vice President, Dispute Resolution Programs, BBB National Programs

Purchasing a new vehicle is a major investment, and for Alaskans, it’s also essential for navigating the unique demands of northern terrain and weather. But what happens when your vehicle begins to show serious problems right off the lot? 

Fortunately, Alaska’s Lemon Law helps protect new car buyers from defective vehicles that can’t be properly repaired. If your car has been out of service for repairs or you’ve returned to the dealership multiple times for the same issue, you may be eligible for relief. 

In this article, we’ll break down the essentials of Alaska’s Lemon Law: 
  • What vehicles and consumers are covered 
  • How to know if your car qualifies as a lemon 
  • What your options are under the law 
 

What Is the Alaska Lemon Law? 

Alaska’s Lemon Law offers protection for buyers of new passenger vehicles when a defect significantly affects the vehicle’s use, safety, or market value, and the problem cannot be resolved after a reasonable number of attempts. 

It covers self-propelled motor vehicles with four or more wheels, normally used for personal, family, or household purposes, and the vehicle is required to be registered in Alaska. It does not apply to used vehicles, off-road vehicles, tractors, or farm equipment. 

Who Is Covered Under the Law? 

The law applies to the original purchaser of a new vehicle for personal use, not for resale. Ownership must be transferred to the individual. Leased vehicles are not covered, and neither are commercial purchases. 

When Does the Lemon Law Apply? 

To qualify, the defect must: 
  • Occur during the manufacturer’s express warranty period or within one year of the vehicle’s delivery to the original owner, whichever comes first. 
  • Remain unresolved after a reasonable number of repair attempts. 

What Is a “Reasonable Number of Repair Attempts”?

The law presumes a reasonable number of attempts if: 
  • The same problem was repaired three or more times but still persists, or 
  • The vehicle has been out of service for 30 or more business days due to repair attempts. 

Before you can request a refund or replacement, you must provide certified written notice to the manufacturer and the dealer within 60 days of the end of the warranty period or the one-year mark (whichever ends first). The manufacturer then has 30 days to make a final repair attempt. 
 

What Happens If Your Car Qualifies? 

If the issue isn’t resolved, the manufacturer must offer you a choice: 
  • Full refund (minus a reasonable allowance for use), or 
  • Replacement vehicle of comparable value. 

The refund must include: 
  • Purchase price, 
  • Original registration, transportation, dealer fees, and installed options, 
  • Minus an allowance for mileage/use and any owner-caused damage or neglect. 
 

How BBB AUTO LINE Can Help 

If you believe your vehicle may qualify under Alaska’s Lemon Law, BBB AUTO LINE offers a no-cost, independent dispute resolution program that can help you avoid the hassle of going to court. 

We can help you: 
  • Understand your eligibility 
  • File a claim against the manufacturer 
  • Resolve your complaint efficiently through mediation and arbitration 
 

Things to Keep in Mind: 

  • Timing matters: You must report the defect during the warranty period or within one year of delivery. 
  • Written notice is required. Before requesting a refund or replacement, send a certified letter with a clear description of the problem and repair history. 
  • Alaska does not provide for attorney’s fees, and any claim should be filed within four years of discovering the defect. 
  • Returned vehicles cannot be resold in Alaska without full disclosure to the next buyer. 
 

Ready to Take Action? 

Don’t let a defective vehicle leave you stranded. If your manufacturer participates in the program, file a claim today.