Maine Lemon Law (2026): How to Qualify & Get a Refund

Maine's lemon law, codified at 10 M.R.S.A. § 1163, covers new motor vehicles within 3 years or 18,000 miles of delivery. A consumer qualifies for a refund or replacement when the same defect survives three repair attempts or the vehicle is out of service for 15 or more cumulative business days. The consumer chooses between the two remedies.

Maine's lemon law gives consumers strong protections when a new vehicle has a substantial defect that the manufacturer cannot fix. Codified at 10 M.R.S.A. §§ 1161 through 1169, the law requires manufacturers to either replace the vehicle or issue a full refund after a reasonable number of repair attempts. The Maine Attorney General's Office administers a free state-certified arbitration program that makes the process accessible to all consumers.

This guide covers every aspect of Maine's lemon law: which vehicles qualify, how the presumption works, what remedies you can pursue, and a step-by-step walkthrough of filing a claim.

What Vehicles Are Covered

Maine's lemon law covers motor vehicles purchased or leased in the state that are designed for passenger or property conveyance on public highways. Understanding which vehicles qualify is essential before pursuing a claim.

Covered Vehicle Types

• Passenger cars: Sedans, coupes, hatchbacks, and similar vehicles
• Trucks: Pickup trucks and similar vehicles under 8,500 pounds gross vehicle weight
• SUVs and crossovers: Sport utility vehicles and crossover vehicles
• Vans and minivans: Including passenger and cargo configurations
• Motorcycles: Street-legal motorcycles purchased with manufacturer warranties
• Leased vehicles: Vehicles leased by consumers for personal use

Vehicles Not Covered

• Vehicles used primarily for commercial purposes with a gross vehicle weight of 8,500 pounds or more
• Vehicles owned by governmental entities
• Vehicles owned by businesses or commercial enterprises that register 3 or more motor vehicles
• Off-road vehicles not designed for public highway use
• Boats, recreational vehicles (living quarters portion), and similar non-highway vehicles

Under 10 M.R.S.A. § 1161, the term "consumer" specifically excludes governmental entities and any business or commercial enterprise that registers three or more motor vehicles. This limitation ensures that the law primarily protects individual consumers rather than fleet purchasers or commercial operations.

Used Vehicle Coverage

While the lemon law primarily targets new vehicles, used vehicles may qualify in limited circumstances. If you purchased a used vehicle that is still within the original manufacturer's express warranty period and within 3 years of original delivery with fewer than 18,000 miles, the lemon law protections may still apply. Subsequent owners can also be eligible for state lemon law arbitration under these conditions.

Maine's Lemon Law Presumption

Under 10 M.R.S.A. § 1163(3), Maine law creates a presumption that a reasonable number of repair attempts have been made if certain conditions are met. When this presumption applies, the burden shifts to the manufacturer to prove the vehicle is not defective or that additional repair attempts would be successful.

The Lemon Law Presumption Applies When:

Important: Maine uses business days rather than calendar days for calculating time out of service. This is more favorable to consumers, as weekends and holidays do not count against the 15-day threshold. A business day is defined as any day during which service departments of authorized dealers are normally open for business. In practical terms, 15 business days equals roughly three calendar weeks.

What Qualifies as a "Substantial" Defect?

The defect must substantially impair the use, safety, or value of the motor vehicle. Examples of qualifying defects include:

• Engine problems causing stalling, loss of power, or failure to start
• Transmission defects affecting shifting or drivability
• Brake system malfunctions or failures
• Steering problems creating safety hazards
• Electrical system failures affecting critical vehicle functions
• Airbag or safety restraint system defects
• Persistent warning lights indicating serious mechanical issues
• Water leaks causing interior damage or mold

Minor issues such as cosmetic defects, minor squeaks and rattles, or problems that do not affect safety, use, or resale value typically do not qualify for lemon law relief.

How to File a Lemon Law Claim in Maine

Filing a lemon law claim in Maine follows a specific process. Here is a step-by-step walkthrough based on the Maine Attorney General's Lemon Law page.

Step 1: Document All Repair Attempts

Keep detailed records of every visit to the dealer for the same problem. Request a copy of the repair order each time. You will need to show that the vehicle was repaired at least 3 times for the same defect, or that it was out of service for 15 or more business days.

Step 2: Contact the Lemon Law Arbitration Program

Call the Maine Attorney General's Lemon Law Arbitration Program at (207) 626-8848 or email lemon.law@maine.gov to request an application and a Final Opportunity to Repair Notice form.

Program Contact Information:

Step 3: Send the Final Opportunity to Repair Notice

Under 10 M.R.S.A. § 1163(3-A), you must send written notice to the manufacturer by certified mail with return receipt requested. This letter informs the manufacturer that you want a refund or replacement and gives them one final chance to fix the vehicle. The manufacturer then has 7 business days to attempt the repair.

For serious brake or steering failures, this notice can be sent after just one repair attempt.

Step 4: Complete and Submit the Application

File your lemon law application after the manufacturer's 7-business-day final repair opportunity expires without resolution, and while the defect and your claim still fall within the 3-year or 18,000-mile coverage period. Include copies of all repair orders, your purchase or lease agreement, and the certified mail receipt from the Final Opportunity to Repair Notice.

Step 5: Attend the Arbitration Hearing

The state must schedule your hearing within 45 days of accepting your application. You do not need an attorney, though you may hire one. Bring all documentation, including repair records, photos, and correspondence with the manufacturer or dealer.

Step 6: Receive the Decision

If the arbitrator rules in your favor, you choose between a replacement vehicle or a full refund. The manufacturer is bound by the decision if you accept it. If you are not satisfied with the outcome, you retain the right to pursue your claim in court.

Notice Requirements

Maine's lemon law includes specific notice requirements that consumers must follow to preserve their rights. Under 10 M.R.S.A. § 1163(6), manufacturers may require written notification of a claim, but only if they have clearly and conspicuously disclosed this requirement to the consumer.

Manufacturer Notice Requirements

If a manufacturer requires written notice, they must:

• Clearly and conspicuously disclose this requirement in the warranty or owner's manual
• Include the name and address where consumers should send written notification
• Provide this information at the time the vehicle is delivered to the consumer

Consumer Notice Options

Under 10 M.R.S.A. § 1163(6-A), consumers may also satisfy any manufacturer notice requirement by notifying the authorized dealer in writing. When this occurs, the dealer acts as the manufacturer's agent and must immediately communicate the consumer's claim to the manufacturer.

Consumer Remedies: Refund vs. Replacement

When a vehicle qualifies as a lemon under Maine law, the consumer has the right to choose between two remedies: a full refund or a replacement vehicle.

Option 1: Vehicle Buyback (Refund)

Under 10 M.R.S.A. § 1163(2), the refund must include:

• Full purchase price: Or, if leased, all lease payments made to date
• Finance charges: Any paid finance charges on the purchased or leased vehicle
• Collateral charges: Including sales tax, registration fees, and similar government charges
• Incidental costs: Reasonable costs for towing, storage, and alternative transportation

Usage Deduction: The manufacturer may deduct a reasonable allowance for the consumer's use of the vehicle. Under 10 M.R.S.A. § 1161(4), this allowance is capped at the lesser of two amounts:

• One-third of the IRS standard mileage rate (the IRS standard business mileage rate, $0.76 per mile as of July 2026, up from $0.725 for the first half of the year and subject to change) multiplied by the total of: (a) miles reported at the time of the arbitration application, plus (b) any miles the consumer drove the vehicle beyond 20,000 miles, OR
• 10% of the purchase price of the vehicle

This cap is more favorable to consumers than many other states provide.

Option 2: Replacement Vehicle

Consumers may instead elect to receive a comparable replacement motor vehicle. However, Maine law specifically provides that the consumer may reject any offered replacement and receive a refund instead. This gives consumers significant leverage in negotiations with manufacturers.

Treatment of Liens and Security Interests

Refunds are made to the consumer and lienholder as their interests appear. If a consumer accepts a replacement vehicle, the secured party must consent to transferring the security interest to the replacement vehicle, provided it is comparable in value to the original.

State-Certified Arbitration Process

Maine offers a state-certified arbitration program administered by the Office of the Attorney General. Under 10 M.R.S.A. § 1165, consumers must first resort to either a manufacturer's informal dispute settlement procedure (if one exists that complies with federal regulations) or the state-certified arbitration before pursuing court remedies.

Benefits of State-Certified Arbitration

• Free to consumers: No filing fee for state-certified arbitration
• Faster resolution: Decision within 45 days of application acceptance
• Less formal: No attorney required, though consumers may hire one
• Binding on manufacturer: Decisions are binding on the manufacturer if consumer accepts
• Neutral arbitrators: Selected by the Department of the Attorney General

The $1 Arbitration Fund

Under 10 M.R.S.A. § 1169, authorized new car dealers collect a $1 lemon law arbitration program fee from the purchaser as part of each new motor vehicle sale agreement. This fee funds the state-certified arbitration program, keeping it free for consumers who file claims.

Manufacturer Dispute Settlement Procedures

If a manufacturer operates an informal dispute settlement procedure that meets 16 C.F.R. Part 703 requirements, the consumer must use that procedure first. The manufacturer's procedure must complete its duties within 40 days after receiving notice of the dispute, or the consumer may proceed directly to state-certified arbitration or court.

Appealing an Arbitration Decision

If the consumer is not satisfied with the arbitration outcome, they retain the right to pursue their claim in court. The arbitration decision is not binding on the consumer unless they choose to accept it.

Continuing Damages and Enhanced Penalties

Maine's lemon law provides additional financial consequences for manufacturers that fail to comply promptly with arbitration decisions.

$25 Per Day Continuing Damages

Under 10 M.R.S.A. § 1169, if a state-certified arbitration resulting in a refund or replacement is upheld by the court, the consumer may recover continuing damages of up to $25 per day. This applies for each day after the vehicle was returned to the manufacturer that the consumer was without use of the vehicle. The damages do not apply if the manufacturer provided a comparable loaner vehicle free of charge.

Double Award for Frivolous Appeals

If a manufacturer appeals an arbitration decision and loses, the prevailing consumer must be awarded reasonable attorney's fees and costs. If the court finds that the manufacturer's appeal had no reasonable basis or was frivolous, the court must double the total award to the consumer. This provision discourages manufacturers from using appeals as a delay tactic.

Attorney's Fees

Under 10 M.R.S.A. § 1167, courts may award reasonable attorney's fees and costs to consumers who successfully enforce their rights under the lemon law. This makes it easier for consumers to find attorneys willing to take lemon law cases on a contingency basis.

Federal Backstop: Magnuson-Moss Warranty Act

Maine's state law exists alongside the federal Magnuson-Moss Warranty Act (15 U.S.C. §§ 2301-2312), which provides an independent avenue for consumers whose warranties are not honored. Under Magnuson-Moss, if a manufacturer fails to fulfill its written warranty obligations within a reasonable time, the consumer may sue in federal court for damages, costs, and attorney's fees. Federal claims are not subject to Maine's 3-year or 18,000-mile thresholds, which can be important when defects are first discovered outside the state law window but clearly arose within it. Most Maine lemon law attorneys evaluate both state and federal claims together.

Manufacturer Defenses

Manufacturers may raise several affirmative defenses to avoid lemon law liability. Under 10 M.R.S.A. § 1164, these defenses are limited to specific circumstances.

Valid Affirmative Defenses

The burden of proving these defenses rests with the manufacturer. Consumers should maintain detailed records of all maintenance performed and avoid making significant modifications to the vehicle while pursuing a lemon law claim.

Title Branding and Disclosure

Maine has strong requirements for disclosing vehicles that have been returned under the lemon law. Under 10 M.R.S.A. § 1163(7) and (8), strict disclosure rules apply.

Resale Disclosure Requirements

A vehicle returned to a manufacturer under the lemon law may not be resold without clear and conspicuous written disclosure to any subsequent purchaser (whether consumer or dealer) of:

• That the vehicle was returned under Chapter 203-A
• That the vehicle did not conform to the manufacturer's express warranties
• The specific ways in which the vehicle failed to conform

Title Branding

Under 29-A M.R.S.A. § 670, vehicles subject to lemon law disclosure requirements must have their titles branded. Vehicles surrendered as a result of a settlement of state-certified arbitration must be affixed with a written disclosure stating the vehicle was the subject of a Maine Lemon Law settlement agreement when first offered for retail sale.

Unfair Trade Practices Connection

One of the strongest features of Maine's lemon law is its connection to the Maine Unfair Trade Practices Act (UTPA).

Under 10 M.R.S.A. § 1166, any violation of the lemon law constitutes prima facie evidence of an unfair or deceptive trade practice under Title 5, Chapter 10. This means consumers can pursue additional remedies under the UTPA, which provides:

• A six-year statute of limitations (much longer than the lemon law coverage period)
• Recovery of actual damages
• Reasonable attorney's fees and costs
• Potential injunctive relief

This connection is particularly valuable for consumers whose vehicles have passed the lemon law's 3-year or 18,000-mile threshold, as they may still have viable claims under the UTPA if the manufacturer violated the lemon law during the coverage period.

Electric Vehicle Considerations

Electric vehicles are covered under Maine's lemon law just like conventional vehicles. However, EVs present unique considerations due to their different technology.

Common EV Defects That May Qualify

• Battery pack failures or significant capacity degradation
• Charging system malfunctions (onboard charger, charge port)
• Range substantially below manufacturer specifications
• Electric motor or drivetrain problems
• Thermal management system failures
• Software issues affecting vehicle operation or safety
• Regenerative braking system malfunctions

EV-Specific Challenges

• Software updates: Manufacturers may claim over-the-air updates resolved issues
• Battery warranty: Separate battery warranties may complicate coverage analysis
• Dealer expertise: Limited EV service experience at some dealerships
• Documentation: Software and electrical issues may require specialized diagnostic records

Statute of Limitations

Understanding the time limits for filing a Maine lemon law claim is critical for protecting your rights.

Coverage Period

The lemon law presumption applies during the express warranty term, within 3 years following original delivery, or within the first 18,000 miles of operation, whichever occurs earliest. Under 10 M.R.S.A. § 1163(1), the manufacturer's repair obligation continues even after these periods expire, provided the consumer reported the nonconformity within the applicable timeframe.

Extended Periods

Under 10 M.R.S.A. § 1163(4), the warranty term, mileage limit, and out-of-service period are extended by any time during which repair services were unavailable due to war, invasion, strike, fire, flood, or other natural disaster.

UDAP Claims

Because violations of Maine's lemon law constitute prima facie unfair trade practices under 10 M.R.S.A. § 1166, consumers may also pursue claims under Maine's Unfair Trade Practices Act (5 M.R.S.A. § 205-A et seq.), which has a six-year statute of limitations.

More Maine Laws

• Maine Car Accident Laws