South Dakota Lemon Law: Your Complete Legal Guide

What Vehicles Are Covered

South Dakota's lemon law covers vehicles intended primarily for use on public highways that meet certain criteria.

Covered Vehicle Types

• New or previously untitled motor vehicles: Self-propelled vehicles for highway use
• Passenger vehicles: Used substantially for personal, family, or household purposes
• Trucks and SUVs: Under the 15,000 lb. GVWR limit
• Vans and minivans: For personal use

Vehicles NOT Covered

• Motor homes (the law specifically excludes them)
• Motor vehicles with a manufacturer's gross vehicle weight rating of 15,000 pounds or more
• Vehicles purchased for purposes of resale
• Vehicles not used substantially for personal, family, or household purposes

Key Definitions

Consumer: The purchaser, other than for purposes of resale, of a new or previously untitled motor vehicle used in substantial part for personal, family, or household purposes, who is entitled by the terms of the warranty to enforce its obligations.

Lemon Law Rights Period: The period ending one year after the date of original delivery to a consumer or the first 12,000 miles of operation, whichever occurs first.

South Dakota's Lemon Law Presumption

Under SDCL § 32-6D-5, South Dakota law creates a presumption that reasonable attempts to correct a nonconforming condition have been made if certain conditions are met within 24 months of delivery or 24,000 miles, whichever occurs first.

The Lemon Law Presumption Applies When:

Condition	Requirement	Details
Repair Attempts (Same Problem)	4 or more attempts PLUS 1 final attempt	At least one attempt must occur during the lemon law rights period
Days Out of Service	30 or more cumulative calendar days	Including final repair attempt, with at least one repair during lemon law rights period
Lemon Law Rights Period	1 year or 12,000 miles	Nonconformity must first be reported during this period
Extended Repair Period	24 months or 24,000 miles	Time allowed for total repair attempts including final opportunity

Important: The 30-day out of service period does not include time when repair could not be performed because of conditions beyond the control of the manufacturer or dealers, such as war, invasion, strike, fire, flood, or other natural disaster.

What Qualifies as a "Nonconforming Condition"?

South Dakota defines a nonconforming condition as one that:

• Is not in conformity with the terms of any express warranty issued by the manufacturer
• Significantly impairs the use, value, or safety of the motor vehicle
• Occurs or arises solely in the course of ordinary use of the motor vehicle

The nonconformity must NOT arise from:

• Abuse, neglect, or modification not authorized by the manufacturer
• Any accident or other damage occurring after dealer delivery to the consumer

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under South Dakota law, the consumer has the right to choose between a replacement vehicle or a full refund.

Option 1: Replacement Vehicle

Under SDCL § 32-6D-3, the manufacturer must provide:

• A comparable new motor vehicle
• Refund of all collateral charges, including excise tax, license, registration fees, and similar government charges

Option 2: Full Refund

If the consumer chooses a refund, the manufacturer must return:

• Full contract price: Including undercoating, dealer preparation, and transportation charges
• Installed options: Cost of all options installed at time of purchase
• Extended warranties and service contracts: Nonrefundable portions
• Collateral charges: Excise tax, license, registration fees, and similar government charges
• Finance charges: All finance charges incurred AFTER the consumer first reported the nonconformity
• Incidental damages: Reasonable cost of alternative transportation during the period the consumer was without the vehicle due to the nonconforming condition

Usage Deduction: The manufacturer may offset the refund by a reasonable allowance for consumer's use, calculated as follows:

Usage Deduction = (Full Purchase Price × Miles Before First Report) ÷ 100,000

Note that South Dakota uses 100,000 miles as the denominator, which is more favorable to consumers than states using 120,000 miles.

Refunds are made to the consumer and any lienholders, as their interests may appear.

How to File a Lemon Law Claim in South Dakota

Filing a successful lemon law claim in South Dakota requires careful documentation and adherence to specific notice and procedural requirements.

Step 1: Document Everything

• Keep all repair orders and invoices
• Record the dates your vehicle was in the shop
• Document the symptoms you experienced
• Save all correspondence with the dealer and manufacturer
• Take photos or videos of defects when possible

Step 2: Report the Nonconformity

Deliver the motor vehicle to the manufacturer or its authorized dealer and give notice of the nonconforming condition during the lemon law rights period (1 year or 12,000 miles, whichever comes first).

Step 3: Allow Repair Attempts

Give the manufacturer or authorized dealer the opportunity to repair the nonconformity. The manufacturer's obligation to repair extends up to 24 months or 24,000 miles, whichever occurs first, as long as notice was given during the lemon law rights period.

Step 4: Provide Written Notice for Final Repair Opportunity

Before filing a lawsuit, you must give written notice by certified mail to the manufacturer demanding correction. This triggers the final repair opportunity process.

Step 5: Exhaust Informal Dispute Settlement Procedure (If Required)

If the manufacturer has established an informal dispute settlement procedure that complies with federal regulations, you must exhaust that remedy before filing suit.

Final Repair Opportunity

South Dakota's lemon law includes a unique "final repair opportunity" provision that gives manufacturers one last chance to fix the vehicle before legal action can proceed.

Notice Requirements

Under SDCL § 32-6D-6, consumers must send a "notice of nonconforming condition" by certified mail. This written statement must include:

• Description of the motor vehicle
• Description of the nonconforming condition
• All previous attempts to correct the condition, identifying who made each attempt and when

Manufacturer's Response

Within seven calendar days of receiving the notice, the manufacturer must notify the consumer of a reasonably accessible repair facility.

Final Repair Period

After the consumer delivers the vehicle to the authorized repair facility, the manufacturer has fourteen calendar days to attempt to correct the nonconforming condition and conform the vehicle to the express warranty.

If Final Repair Fails

If the manufacturer is unable to repair the vehicle within the final 14-day period, the consumer may bring a civil action against the manufacturer to enforce the provisions of the lemon law.

Manufacturer Defenses

Under SDCL § 32-6D-7, manufacturers have specific affirmative defenses available.

Defense	Manufacturer's Argument	Consumer's Counter
No significant impairment	Alleged nonconforming condition does not significantly impair use, market value, or safety	Document how defect affects daily use, resale value, or creates safety concerns
Abuse or neglect	Nonconforming condition resulted from consumer abuse or neglect	Provide maintenance records showing proper care and timely service
Unauthorized modification	Condition resulted from modification or alteration not authorized by manufacturer	Show defect existed before any modifications or is unrelated to modifications

Resale of Returned Vehicles

South Dakota has specific requirements for vehicles returned under the lemon law to protect subsequent purchasers.

Requirements for Reselling Lemon Buybacks

Under SDCL § 32-6D-9, if a motor vehicle has been returned under the lemon law (whether through legal action or informal dispute settlement), it may not be resold in South Dakota unless:

• Written disclosure: The manufacturer discloses in writing to the subsequent purchaser the fact that the vehicle was returned under the lemon law and the nature of the nonconformity
• Title branding: The manufacturer returns the title to the Department of Revenue advising of the return under the lemon law, and the department brands the title with the statement: "This vehicle was returned to the manufacturer because it did not conform to its warranty."

This title branding follows the vehicle permanently, appearing on all subsequent titles issued for that vehicle.

Dealer Protection

South Dakota's lemon law includes strong protections for motor vehicle dealers.

Under SDCL § 32-6D-10:

• Nothing in the lemon law imposes any liability upon a motor vehicle dealer or authorized dealer
• No cause of action is created against dealers by the lemon law
• Manufacturers may NOT charge back or require reimbursement from dealers for any costs, including refunds or vehicle replacements, arising out of the lemon law

Statute of Limitations

Under SDCL § 32-6D-11, any action brought under South Dakota's lemon law against the manufacturer must be commenced within three years following the date of original delivery of the motor vehicle to the consumer.

More South Dakota Laws

• South Dakota Sexting Laws
• South Dakota Statute of Limitations
• South Dakota Child Support Laws
• South Dakota Hit and Run Laws
• South Dakota Car Seat Laws
• South Dakota Dog Bite Laws
• South Dakota Whistleblower Laws
• South Dakota Recording Laws