The Alabama Lemon Law

Alabama Lemon Law Summary

Alabama’s Lemon Law offers protection for buyers of 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. Specifically, it applies to new passenger vehicles bought for personal, family, or household use. The law does not cover used vehicles, motor homes, or vehicles with a manufacturer’s gross vehicle weight rating of 10,000 pounds or more.

If a vehicle has a nonconforming condition (a defect that impairs its use, value, or safety) the manufacturer must repair the issue, and in some cases, replace or refund the vehicle.

Who is covered?

You're covered if you are:
  • The original purchaser (not for resale) of a new or previously untitled vehicle used primarily for personal, family, or household purposes.
  • Someone entitled to enforce the manufacturer’s express warranty.

Important to note: Alabama’s law does not clearly extend coverage to lessees, and it excludes commercial vehicles.

When does the lemon law apply?

To qualify, the problem must be reported during the lemon law rights period, which ends one year after the vehicle is delivered or after 12,000 miles of operation- whichever comes first. Even if repairs take place after that period, the vehicle may still be covered if the first notice of the defect was made during that window.
 
  • Deadline to File: You must bring a claim within three years of original delivery.
  • Dispute Resolution: Before filing a lawsuit, you must use the manufacturer’s dispute resolution program if it complies with federal regulations.
  • Dealer Liability: The law applies only to manufacturers. Dealers cannot be held liable or added to the lawsuit.
  • Resale Restrictions: Returned lemons cannot be resold in Alabama unless the buyer is notified in writing and the vehicle title is branded accordingly.

What is considered a “lemon” in Alabama?

A vehicle may be presumed to be a lemon if, within 24 months or 24,000 miles of delivery, one of the following occurs:
  • The same defect reported within the lemon law rights period has been subject to three or more repairs, including a final repair attempt, and the issue still exists.
  • The vehicle has been out of service for 30 cumulative calendar days due to repair attempts for defects reported within the lemon law rights period.  

What happens if my car qualifies?

If the manufacturer cannot fix the issue after a reasonable number of attempts, you have the right to a refund or replacement.

Refunds include:
  • The full contract price, including dealer fees and nonrefundable portions of warranties and service contracts
  • Sales tax, license, and registration fees
  • Finance charges and the cost of alternative transportation
  • Minus a reasonable use allowance, calculated using the number of miles before the first report of the issue

Replacements:
  • Must be a comparable new vehicle
  • Are not subject to a deduction for usage

How can BBB AUTO LINE help?

If you have an unresolved dispute involving a defect that is covered by the manufacturer’s original warranty, BBB AUTO LINE may be able to assist you. BBB AUTO LINE is an out-of-court mediation and arbitration dispute resolution process in which many automobile manufacturers participate.

File a Complaint

Are you having problems with your auto warranty?  Let BBB AUTO LINE help you resolve your warranty dispute without a lawyer and at no cost to you.

Please gather the following information: 

  • Owner’s (or Lessee's) name and address 
  • Vehicle identification number (VIN) 
  • Make, model and year 
  • Description of the problem 
  • Current mileage