Vermont Lemon Law (VT)

Qualifying Criteria in Vermont

Under Vermont's lemon law, your vehicle may qualify as a lemon if it meets the following criteria:

• Vehicle type: New and certain used motor vehicles purchased or leased in Vermont
• Defect type: A nonconformity that substantially impairs the use, market value, or safety of the vehicle and is covered under the manufacturer's warranty
• Coverage period: The defect must occur within 3 years of delivery or 36,000 miles, whichever comes first
• Repair attempts: The manufacturer or authorized dealer must have attempted to repair the same defect at least 3 times, or the vehicle must have been out of service for a cumulative total of 30 or more days

Manufacturer Obligations

Must repair the nonconformity. If unable, must replace or refund. Vermont's Motor Vehicle Arbitration Board adjudicates disputes.

Available Remedies

If your vehicle qualifies as a lemon under Vermont law, you are entitled to:

• Replacement vehicle
• Full refund minus reasonable use allowance

The "reasonable use allowance" deduction is typically calculated based on the mileage you accumulated before the first repair attempt, proportional to the vehicle's expected lifetime mileage. This ensures the manufacturer is not paying for use you already received from the vehicle.

Step-by-Step Filing Process in Vermont

Follow these steps if you believe your vehicle qualifies as a lemon under Vermont law:

1. 1 Report the defect to the dealer or manufacturer
2. 2 Allow at least 3 repair attempts for the same defect or 30+ calendar days out of service
3. 3 Notify the manufacturer in writing by certified mail
4. 4 File with the Vermont Motor Vehicle Arbitration Board
5. 5 Attend the hearing (decision binds manufacturer, not consumer)
6. 6 File suit if the consumer rejects the arbitration award

Arbitration in Vermont

Consumer must file with the Vermont Motor Vehicle Arbitration Board. The state-run program is free and the decision is binding on the manufacturer but not the consumer.

Important: In Vermont, arbitration is a required step before you can file a lawsuit. This means you must exhaust the arbitration process first. The arbitration decision may or may not be binding depending on the specific program. If you are not satisfied with the outcome, you typically have the right to appeal or file a civil action in court.

Filing Deadline

Within the warranty period or 3 years/36,000 miles from delivery.

Missing the filing deadline can forfeit your rights under the lemon law. Keep detailed records of every repair visit, including dates, mileage, descriptions of the problem, and copies of all repair orders and receipts. This documentation will be critical for your claim.

Additional Notes

Vermont has a generous 3-year/36,000-mile coverage period and a state-run arbitration board. Also has a used car lemon law: dealers must provide a warranty (varies by mileage). The state board's decisions bind the manufacturer but the consumer can still reject and go to court.