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Motor Home Lemon Law Lemon law motorhomes

 free in the usa:
TELEPHONE ACCESSIBLE
INFORMATION
The Attorney General’s Office offers a number of
informational tapes on the Lemon Law. Callers
with touch-tone phones can hear the tapes 24
hours a day.
Statewide
Toll-free 1-(800) 541-8898
Local King County
587-4240
Tape 170 A General Overview Of The
Lemon Law
Tape 171 Vehicles Covered By The Law
Tape 172 What is a Lemon?
Tape 173 Records You Need For A
Lemon Law Claim
Tape 174 What Should You Do If You
Have A Lemon?
Tape 175 Filling Out The Request For
Arbitration Form
Tape 176 How Arbitration Requests Are
Processed
Tape 177 After You’ve Been Accepted
For Arbitration
Tape 178 The Arbitration Hearing
Tape 179 Do You Want A Replacement
Vehicle Or A Refund?
Tape 180 The Arbitration Decision
Tape 181 Special Information On Leased
Vehicles
Tape 183 Video Information “Lemon
Law: A Guide to Arbitration”
Tape 184 Motor Homes - Special
Requirements

What Is The Lemon Law

Motor The Washington State Motor Vehicle “Lemon
Law” is designed to help new vehicle owners

who have substantial continuing problems with

warranty repairs. The law allows the owner to

request an arbitration hearing through the Lemon

Law Administration of the Attorney General’s

Office.There will be no charge for the arbitration

process.Which Vehicles Are Eligible?

The law covers most classes of motor vehicles

including “demonstrators” which have an

original retail purchase or lease in Washington

and are originally registered in the state (Note: a

military exception may apply to the registration

requirement). An owner can request an arbitration

under Lemon Law at any time within 30 months

of the vehicle’s

original retail delivery date.
You do not have to be the original owner to

request arbitration. Later owners of a vehicle

may request an arbitration if: the vehicle was

purchased within two years of delivery to the

original retail consumer and within the first

24,000 miles of operation; the vehicle meets the

other eligibility requirements; and the Request

For Arbitration is received by the Lemon Law

Administration within 30 months of the original

retail delivery date.

What Is A “Lemon”?
Your motor home may qualify as a “lemon” if

it has one or more substantial defects that have

been subject to a “reasonable number of attempts”

to diagnose or repair the problem(s) under the

manufacturer’s warranty. The Lemon Law does

not cover defects in the portions of a motor home

used as dwelling, office, or commercial space,

or vehicles purchased or leased by a business as

part of a fleet of 10 or more.

A reasonable number of attempts for

motor homes means:

(1) a ‘serious safety defect’

• has been subject to diagnosis or repair

one or more

times during the period of coverage
plus a final attempt to repair, and
• the defect continues to exist;

A
malfunction that impairs the driver's ability

to control or operate the vehicle, or creates

a risk of fire or explosion;

"serious safety defect" is a life-threatening
OR

(2) a ‘nonconformity’

• has been subject to diagnosis or repair

three or more

times, at least one of the times
plus a final attempt to repair the vehicle,
and

• the nonconformity continues to exist;

A
"nonconformity" is a defect that

At the hearing, the arbitrator will
decide whether a consumer’s claim meets the

requirements under the law and can distribute

liability for repurchase or replacement between

the motor home’s final stage, chassis and

component manufacturers.

Home
Lemon Law
What Is The Lemon Law?
The Washington State Motor Vehicle “Lemon
Law” is designed to help new vehicle owners
who have substantial continuing problems with
warranty repairs. The law allows the owner to
request an arbitration hearing through the Lemon
Law Administration of the Attorney General’s
Office.
There will be no charge for the arbitration
process. At the hearing, the arbitrator will
decide whether a consumer’s claim meets the
requirements under the law and can distribute
liability for repurchase or replacement between
the motor home’s final stage, chassis and
component manufacturers.
Which Vehicles Are Eligible?
The law covers most classes of motor vehicles
including “demonstrators” which have an
original retail purchase or lease in Washington
and are originally registered in the state (Note: a
military exception may apply to the registration
requirement). An owner can request an arbitration
under Lemon Law at any time within 30 months
of the vehicle’s original retail delivery date.
You do not have to be the original owner to
request arbitration. Later owners of a vehicle
may request an arbitration if: the vehicle was
purchased within two years of delivery to the
original retail consumer and within the first
24,000 miles of operation; the vehicle meets the
other eligibility requirements; and the Request
For Arbitration is received by the Lemon Law
Administration within 30 months of the original
retail delivery date.
What Is A “Lemon”?
Your motor home may qualify as a “lemon” if
it has one or more substantial defects that have
been subject to a “reasonable number of attempts”
to diagnose or repair the problem(s) under the
manufacturer’s warranty. The Lemon Law does
not cover defects in the portions of a motor home
used as dwelling, office, or commercial space,
or vehicles purchased or leased by a business as
part of a fleet of 10 or more.
A reasonable number of attempts for
motor homes means:
(1) a ‘serious safety defect’
• has been subject to diagnosis or repair
one or more times during the period of coverage
of the applicable motor home manufacturer’s
written warranty,
• plus a final attempt to repair, and
• the defect continues to exist;
A "serious safety defect" is a life-threatening
malfunction that impairs the driver's ability
to control or operate the vehicle, or creates
a risk of fire or explosion;
OR
(2) a ‘nonconformity’
• has been subject to diagnosis or repair
three or more times, at least one of the times
during the period of the applicable manufacturer’s
written warranty,
• plus a final attempt to repair the vehicle,
and
• the nonconformity continues to exist;
A "nonconformity" is a defect tha
"substantially impairs" the use, value or
safety of the motor vehicle so as to make the
vehicle unreliable, unsafe or diminished in
resale value for comparable vehicles;
OR
(3) the motor home has been out of service by
reason of diagnosis or repair of one or more
nonconformities,
• for a cumulative total of sixty calendar
days aggregating days out-of-service for all
the motor home’s contributing manufacturers,
and
• the motor home’s contributing
manufacturers have had at least one
opportunity to coordinate and complete
inspection and repairs after receiving final
repair notices from the consumer.
Required Notices To Motor
Home Manufacturers For
Final Repair
The consumer must send written notice to each
manufacturer contributing to the building of
the motor home (see your written warranties)
of the need to repair problems and allow
the motor home manufacturers a final repair
attempt. Motor home ‘manufacturers’ include
the first stage/chassis builder, the final stage
manufacturer and component manufacturers
if they provide warranties directly to you (e.g.
transmission or engine). Defects in the living
space are not covered by the Lemon Law. To
locate the manufacturers’ addresses look in your
owner’s manuals and warranty descriptions,
ask the dealership, or contact the Lemon Law
Administration.
The final repair notice can be sent after at
least one attempt to repair a serious safety
defect or after three attempts to repair a
nonconformity (in which case the motor home
manufacturers have a maximum cumulative total
of thirty days to complete repairs), OR where
the motor home has been out of service by
reason of diagnosis or repair for one or more
nonconformities (including serious safety
defects) for a cumulative total of thirty or
more days, aggregating days for all motor
home manufacturers (in which case the
manufacturers’ inspection and repairs must be
completed either within ten days or before the
vehicle is out of service for sixty cumulative
days, whichever is longer). Repair time periods
start when the motor home is delivered to the
designated repair facility and may be extended
if the consumer agrees in writing.
The motor home manufacturer(s) has fifteen
days from receipt of the consumer’s final repair
notice to respond and inform the consumer of
the location of the facility where the vehicle will
be repaired. If a motor home manufacturer
fails to respond to the consumer or perform
the repairs within the time period prescribed,
that motor home manufacturer is not entitled
to a final repair attempt.
If the vehicle is unsafe to drive due to a serious
safety defect or if the designated repair facility
is more than one hundred miles from the motor
home location, the motor home manufacturer(s)
is responsible for the cost of transporting the
vehicle to and from the repair facility.
Are All Problems With A
Vehicle Covered Under
The Lemon Law?
NO. The law does not cover problems caused by
owner abuse or negligence, or any unauthorized
modifications or alterations made to the
vehicle.
Lemon Law applies only to the self-propelled
vehicle and chassis portions of a motor home.
The law covers only defects which “substantially
impair” the use, value, or safety of the motor
vehicle (see What You Must Prove At The
Hearing).
What Is The Warranty Period?
To determine whether you have a claim under
Lemon Law you will have to determine whether at
least one attempt to diagnose or repair each defect
occurred under the manufacturer’s warranty and
within the “warranty period.” It is important to
understand that, for purposes of arbitration, the
“warranty period” may be different from the
actual manufacturer’s warranty. The law requires
that the manufacturer’s warranty cover at least
1 year or 12,000 miles (whichever occurs first).
An extended service contract is not an express
manufacturer’s warranty.
When determining whether an attempt to
diagnose or repair a defect meets the requirements
for eligibility, the “warranty period” covers a
diagnosis or repair occurring within 2 years from
the original delivery date and 24,000 miles of
operation of the vehicle.
The following are examples of how to determine
whether a diagnosis or repair attempt occurred
during the warranty period.
1. If the manufacturer provides the minimum
warranty of one year or 12,000 miles (whichever
occurs first), an eligible defect must have
been:
• diagnosed or repaired at least once under
the manufacturer’s warranty within 12 months
and 12,000 miles
OR
• out-of -service for a total of 60 or more
cumulative calendar days due to diagnosis or
repair of one or more defects that are covered
by the manufacturer’s warranty;
2. If the manufacturer provided a longer
warranty (e.g. five years or 50,000 miles) an
eligible defect must have been:
• diagnosed or repaired at least once under
the manufacturer’s warranty and within two years
and 24,000 miles.
OR
• out-of -service for a total of 60 or more
cumulative calendar days due to diagnosis or
repair of one or more defects that are covered
by the manufacturer’s warranty.
Records Needed For A Request For
Arbitration
You must submit copies of your purchase or
lease agreement and title/registration documents.
If you are a subsequent owner, you should also
submit a title history for the vehicle and/or the
original owner’s documents. You must submit
copies of your vehicle’s repair orders when you
request an arbitration. If you did not receive
repair orders or did not keep your copies, see
How To Obtain Documents.
Each time you take your vehicle to a dealership
for warranty services, you have the right to
receive a fully itemized and legible repair
order or written statement from the dealer.
Among other requirements, the repair order or
statement must identify the problem(s) you are
experiencing with your vehicle, diagnosis, work
done, the in and out mileage on the vehicle, and
the dates the vehicle was in the repair shop.
You are entitled to receive a copy of any report
or computer reading regarding inspection,
diagnosis, or test-drive of your vehicle from the
dealer or manufacturer upon request. In addition,
you are entitled to copies of any technical service
bulletins regarding the year, make and model
of your vehicle. Technical service bulletins are
sent to service departments by the manufacturer.
Service bulletins describe particular problems
which are occurring in certain vehicles and how
to diagnose and repair them.
 

How To Obtain Documents
If you are missing documents needed for
arbitration, you should submit a written request
to the source (e.g. dealer, manufacturer, etc.),
asking for copies of the documents. Keep a copy
of your request letter.
If you do not receive the documents after
requesting them, indicate this on the Request
For Arbitration form and submit a copy of your
written document request.
If You Have A “Lemon,” What Should
You Do?
1. Gather all your documents, records, and repair
reports and organize them. Evaluate how your
vehicle qualifies as a “lemon” based on your
records.
2. Write a second letter to each manufacturer
that contributed components of the motor
home which are warranted directly to you --
your earlier letter asking for the final repair
is not the same as this notice asking for
repurchase or replacement. You must request
the repurchase or replacement of your vehicle.
To locate the manufacturers’ addresses look in
your owner’s manuals and warranty descriptions,
ask the dealership, or contact the Lemon Law
Administration.
The written request to the manufacturers
should include:
• Make, Model, Year, and Vehicle
Identification Number (VIN);
• An explanation of the problem(s);
• Name(s) of dealership(s) where diagnosis/
repair attempts have been made, including dates
of attempts;
• You must request replacement or
repurchase of the motor home.
You should send the letter to the manufacturers
by certified mail with a return receipts requested.
This will verify the date that the manufacturers
received your letter. KEEP A COPY OF YOUR
LETTERS AND YOUR RETURN RECEIPTS
IN YOUR RECORDS.
3. The manufacturers should be allowed 40 days
to respond in most instances (see Note below).
If the manufacturers do not respond or if the
responses are unsatisfactory, you can submit
the Request For Arbitration form to the Lemon
Law Administration in the Attorney General’s
Office.
Note: A Request For Arbitration Form must
be received by the Lemon Law Administration
within 30 months of the vehicles’ original retail
delivery date whether or not the 40 day response
period has expired.
4. Call or write the Attorney General’s Office
for a Request For Arbitration form (see the
address and telephone number under Lemon Law
Administration Contact Information).
Note: The Lemon Law does not allow a consumer
to stop making loan or lease payments while
pursuing a Lemon Law claim.
Submitting Your Request For
Arbitration
Completing The Form
First, carefully read the instructions for filling
out the form. When you submit the Request For
Arbitration form you must include copies of all
designated documents, records, and itemized
repair orders. Fill the form out completely; add
further explanation or additional information
if you believe it relates directly to your claim.
All registered owners of the vehicle must sign
the form.
Information Needed To Complete
The Request For Arbitration Form
When completing the form, clearly describe each
defect, when each attempt to diagnose or repair
occurred, the mileage on your motor home at the
time of each attempt, the dealer who made the
repairs, and the number of days your motor home
was out-of-service due to diagnosis or repair.
You must send in copies of the repair orders for
all diagnosis or repair attempts related to the
defect(s) in your claim. If you cannot provide
the documents, you must explain the reason why
they are missing on the Request For Arbitration
form (see Records You Need For A Lemon Law
Claim).
Keep a copy of the Request For Arbitration for
your files and mail the original form to the Lemon
Law Administration. If you are approaching the
30 month deadline for filing your Request For
Arbitration, send the form and documents by
certified mail (return receipt requested), deliver
it in person or submit it by FAX (the address
information is on the form).
Scheduling Of The Hearing
On the Request For Arbitration form you
are asked to state a preferred time for the
hearing. IT IS VERY IMPORTANT TO
CONSIDER THIS CAREFULLY. IT IS VERY
DIFFICULT (AND PROBABLY WILL NOT
BE POSSIBLE) TO MAKE CHANGES AT
A LATER TIME.
Arbitration hearing dates can be requested for
weekdays, Saturdays, and evenings at locations
around the state. The Arbitration Board will
try to accommodate your schedule, but cannot
guarantee to schedule your hearing when
requested or when it will be most convenient
for you.
Do You Need An Attorney?
It is not necessary for you to have an attorney;
however, you may choose to be represented
by counsel. Please indicate on the Request For
Arbitration form if you will be represented
by an attorney. The manufacturers may also
be represented by an attorney. “Reasonable”
attorney costs will be refunded to you in an award
only if one or more of the manufacturers is also
represented by counsel.
You should read the section What Is An
Arbitration Hearing? before making your
decision as to whether you will be represented
by an attorney.
If you decide you want to be represented by an
attorney, it is advisable to consult with one as
early as possible.
After You Request An Arbitration
The Lemon Law Administration will screen your
arbitration request for:
• a completed form;
• copies of all the designated documents;
• filing of the Request For Arbitration
within 30 months of the vehicle’s original retail
delivery date;
• written request for the final repair to the
manufacturers;
• written requests to the manufacturers to
repurchase or replace the vehicle.
If the Lemon Law Administration rejects your
Request For Arbitration, a written explanation
will be mailed to you with further directions.
If your Request For Arbitration is complete, it
will be forwarded to the Arbitration Board for
review and scheduling.
The Arbitration Board
The Arbitration Board is a private company
that has been selected by competitive public bid
to provide arbitration services for the Lemon
Law program. The Arbitration Board and the
arbitrators are not associated with any automobile
dealer or manufacturer and are independent
of the Attorney General’s Office. Lemon Law
arbitrators are attorneys specifically trained in
arbitration procedures.
The Arbitration Board will review your
application for additional legal issues which
could disqualify a claim.
When the Arbitration Board accepts your Request
For Arbitration, you will be sent a notice of
acceptance followed by an arbitration hearing
date. You will receive the formal notice of the
scheduled date, time, and location of your hearing
at least 10 days before the hearing date. Your
arbitration hearing must be held within 45 days
of the Board’s acceptance of your Request For
Arbitration.
If the Board rejects your Request For Arbitration
for disqualifying legal issues, you will be sent a
written explanation and further directions.
The Manufacturer’s Statement
After your Request For Arbitration is accepted,
the manufacturers should each send you a copy
of a “Manufacturer’s Statement,” which will state
the reasons why the manufacturer believes that it
should not be required to replace or repurchase
the vehicle. The manufacturers must send you this
statement within 10 days of being notified that
your claim has been accepted for arbitration.
The statement is useful when you prepare your
presentation, testimony, and evidence for the
hearing. You should be prepared to respond to the
specific points that the manufacturer raises.
Manufacturer’s Right To View The
Vehicle
After a claim has been accepted for arbitration, a
manufacturer has the right to request a ‘viewing’
of the vehicle for inspection purposes. The
request must be made in the “Manufacturer’s
Statement. ”
You must be present while the manufacturer
views the vehicle, unless you request otherwise
in writing. The manufacturer and you should try
to make arrangements for a mutually convenient
time, date, and location to view the vehicle.
During this ‘view’, the manufacturer can drive
the vehicle or conduct tests with diagnostic
equipment, but cannot make any repairs.
What If Your Claim Is Resolved
Before The Hearing?
The manufacturers may contact you to try to
settle your claim. The Lemon Law creates
incentives for you and the manufacturers to reach
a settlement agreement rather than proceeding on
to a hearing. It is wise to get complete settlement
terms in writing from the manufacturers before
withdrawing from the arbitration process. If you
do reach a settlement, notify the Arbitration Board
immediately. You must complete and return a
Settlement/Withdrawal form which is provided
by the Arbitration Board.
If you withdraw from arbitration before your
hearing, you may re-file for arbitration again
within the 30 month time limit. However, if it is
your second withdrawal, you will not be allowed
to re-file for arbitration on the same grounds
regardless of when the withdrawal occurred
The
Arbitration
Process
What Is An Arbitration Hearing?
Arbitration hearings are much less complicated
than court trials—there are no formal rules of
evidence or court procedures, and the hearings are
designed to be as easy as possible for participants.
You will be given the opportunity to explain
your claim and present documents, witnesses
or other evidence to help prove your claim. The
manufacturer will have the same opportunity to
present their side of the dispute.
Arbitrators are like judges in that they listen to
each side and then issue a decision.
The Lemon Law Administration has prepared a
video which explains the arbitration process in
detail. “The Lemon Law: A Guide to Arbitration”
can be viewed from the Lemon Law web pages.
A copy (VHS or DVD) will be sent to you after
you submit a Request for Arbitration. After
acceptance for arbitration, you will receive
complete information from the Arbitration Board
on arbitration procedures and how to prepare for
an arbitration hearing.
Who Will Attend The Arbitration
Hearing?
Hearings usually will be attended by you and any
witnesses, the manufacturers’ representatives,
any manufacturer witnesses, and the arbitrator.
All hearings are open to the public. In most
instances, an impartial automotive expert
technician will be assigned to assist the arbitrator.
The expert may examine the vehicle and give
an opinion about the nature of the problem(s)
and the effect on the vehicle, and the condition
of the vehicle. The expert’s function is not to
provide testimony for either side in the dispute.
You should provide technical testimony from a
qualified independent mechanic to add substantial
support to your claim.
What You Must Prove At The
Arbitration Hearing
At the hearing you must establish that your
vehicle is eligible (see Which Vehicles Are
Eligible ?) and that the manufacturers received
your written request for the final repair and the
written request for repurchase or replacement
of the vehicle.
The arbitrator will ask you which of the
categories your claim is based upon (see What
Is A Lemon?):
• 1 attempt to diagnose or repair plus a
final attempt for a “serious safety defect;”
• 3 attempts to diagnose or repair plus a
final attempt for a “nonconformity;” or
• 60 or more cumulative days out-ofservice
for diagnosis or repair of one or more
nonconformities and serious safety defects.
A reasonable number of attempts for motor
homes means:
(1) a ‘serious safety defect’
• has been subject to diagnosis or repair
one or more times during the period of coverage
of the applicable motor home manufacturer’s
written warranty,
• plus a final attempt to repair, and
• the defect continues to exist;
OR
(2) a ‘nonconformity’
• has been subject to diagnosis or repair
three or more times, at least one of the times
during the period of the applicable manufacturer’s
written warranty,
• plus a final attempt to repair the vehicle,
and
• the nonconformity continues to exist;
OR
(3) the motor home has been out of service by
reason of diagnosis or repair of one or more
nonconformities
• for a cumulative total of sixty calendar
days aggregating days out-of-service for all
the motor home’s contributing manufacturers,
and
• the motor home’s contributing
manufacturers have had at least one
opportunity to coordinate and complete
inspection and repairs after receiving final
repair notices from the consumer.
Your claim may be based on one or more
defects and cover multiple categories. Plan your
presentation to show how your vehicle meets all
the requirements and definitions of a category as
described in the law. Presenting problems which
do not fit in those categories will not help your
case and may confuse the important issues.
For each nonconformity or serious safety defect
you must be prepared to prove to the arbitrator
that:
• the defect meets the definition of a serious
safety defect, or nonconformity (see What Is A
Lemon?);
• the required minimum number of
diagnostic or repair attempts have been made to
the vehicle, with at least one attempt occurring
under the manufacturer’s written warranty and
within the Lemon Law warranty period;
• the defect continues to exist (except for
a claim based only on 60 or more days out-ofservice).
If you are claiming 60 days for a motor home
or more cumulative days out-of- service due to
diagnosis or repair of one or more nonconformities
and serious safety defects, you must be prepared
to show that:
• each defect meets (or did meet) the
definition of a nonconformity or serious safety
defect;
• at least one of the attempts to diagnose
or repair occurred under the appropriate
manufacturer’s warranty and within the Lemon
Law warranty period (see What Is The Warranty
Period?).
Replacement Or Repurchase?
Under the law, if your vehicle is determined to be
a “lemon” by the arbitrator, you will be awarded
your choice of repurchase or replacement of the
vehicle. At the arbitration hearing you will have
to make a final decision whether you want the
vehicle replaced or repurchased.
NOTE: You will be sent a financial information
form which you should complete and bring
with you to the hearing along with supporting
documents. You must be prepared to present
verification of all financial information at the
hearing necessary to complete the calculation
of an award. Failure to provide this information
can result in a reduced award.
Replacement:
If you are awarded a replacement vehicle, the
new vehicle must be “identical or reasonably
equivalent” to your vehicle as it existed at the
time of original purchase or lease including any
service contract, undercoating, rustproofing,
other factory/dealer options; the manufacturer
is also responsible for any sales tax, license,
registration fees and refunding to you any
incidental costs awarded by the arbitrator. Before
receiving the new vehicle you will be obligated
to pay the manufacturer(s) an “offset for use”
based on the total attributable use mileage and
original “purchase price” regardless of whether
you are the original or a subsequent owner. You
should contact your lender early in the process
about how they would deal with your existing
loan or lease and a replacement vehicle.
Repurchase:
If you are awarded a repurchase of your vehicle,
the arbitrator will determine your refund based
on the following:
• if you purchased the vehicle, you will be
refunded the cash price of the vehicle in the sales
agreement (minus any manufacturer rebate) - if
you have a loan balance, the lender will be paid
from your refund;
• if you leased the vehicle, you will be
refunded the total of all lease payments that you
made, including inception and security deposit
payments (not including any manufacturer
rebate) - the manufacturer will be responsible
for any remaining lease obligations.
NOTE: if you are a second or subsequent owner, a
repurchase award will be based on your purchase
price - not the original owner’s purchase price.
The following types of items are also included
in a refund of either leased or purchased
vehicles:
• “collateral charges” - sales or lease related
charges including sales and use tax, finance
charges, initial and monthly lease payments,
dealer preparation and transportation charges,
prorated license, registration and title fees,
prorated insurance costs, nonrefundable portions
of credit life and disability insurance, service
contracts, undercoating, rustproofing and other
factory or dealer installed options;
• “incidental costs” - reasonable expenses
paid by you related to repairs including costs of
towing and obtaining alternate transportation.
• legal fees - if the manufacturer was
represented by counsel, the arbitrator will also
award reasonable costs and attorney’s fees which
you may have incurred in connection with the
arbitration process.
Your refund will be the total of the award less an
“offset for use” and less any lienholder interests
in the vehicle. If your vehicle is leased, your
refund will be the award total less an “offset for
use” and the manufacturer(s) will be responsible
for paying off your lease obligation.
The arbitration board may allocate liability
among the manufacturers that contributed to
building the motor home. This will determine
which manufacturers are responsible for
compliance with an arbitration award and
what financial portion each manufacturer
must contribute to compliance.

 

 

 
Offset For Use
When a manufacturer(s) replaces or repurchases
a vehicle, they have a right under Lemon Law
to be reimbursed for use of the vehicle which is
called the “offset for use.”
A motor home’s reasonable offset for use will
be computed by multiplying the number of
miles attributable to use by the consumer times
the purchase price (in the instance of a lease,
“purchase price” is the vehicle’s capitalized cost
if disclosed in the lease or if not disclosed then
the manufacturer’s suggested retail price), and
dividing the product by ninety thousand. The
offset total may be increased or decreased by
the arbitrator up to one-third where wear and
tear (as opposed to actual damage e.g. collision)
to the dwelling portion is significantly less or
greater could be reasonably expected.
The base calculation for the “offset for use” is
computed by multiplying the number of miles
directly attributable to use times the “purchase
price” and dividing by 90,000. The final “offset
for use” is determined by the condition of the
motor home.
Example: Based on a purchase price of $45,000
and 10,000 miles attributable to a consumer’s use,
the base “reasonable offset for use” would be:
($45,000) x (10,000 miles) = $5,000
90,000
The final “offset for use” would be $5,000 but
could be as low as $3,335 (minus a third) or as
high as $6,665 (plus a third) if the arbitrator finds
the wear and tear from use of the motor home
to be significantly less or greater than could
be reasonably expected for the accumulated
mileage.
NOTE: if you are a second or subsequent owner:
a repurchase offset is based on your purchase
price and a replacement offset is based on the
original purchase price of the vehicle (as you
will receive a new vehicle for the used vehicle
you purchased).
IMPORTANT: Be certain that you understand
how your “offset for use” will be calculated. If
you are awarded a replacement vehicle, you must
pay the “offset for use” before receiving the new
vehicle. This may affect your decision whether to
choose repurchase rather than a replacement.
If you are awarded a repurchase, the “offset for
use” will be deducted from your refund before any
existing loan obligations are paid. It is possible
in situations of large loan balances and high
mileage that a refund will not be enough to pay
off the loan; the remaining balance would still be
your responsibility. Similarly, if you have a lease
with low payments and you have put substantial
mileage on the vehicle, your ‘offset’ could be
larger than your refund.
The Arbitration Decision
The Board must issue the arbitration decision
within 60 days from the date the Board receives
your Request For Arbitration. You will receive a
copy of the decision and a form asking whether
you accept or reject the decision. You have 60
days from the date you receive the decision to
accept or reject it.
If the arbitration decision is in your favor and
you accept it, then the manufacturer(s) must:
• comply within 40 days of receiving notice
of your acceptance from the Board; or
• appeal to superior court within 30 days
of receiving your acceptance.
If you disagree with the decision, you can pursue
your claims against the manufacturer(s) by filing
an appeal in superior court (at your own expense)
where you would be allowed a new hearing of
the dispute at a trial. If you decide to appeal, the
appeal must be filed in superior court within 120
days of rejecting the arbitration decision.
Compliance And Consumer
Requirements When Returning A
Vehicle
The Attorney General’s Office will contact you
to confirm whether the manufacturer(s) has
complied. If the manufacturer(s) has not complied
or appealed, the Attorney General’s Office may
fine them.
If an arbitration decision awards repurchase or
replacement of a defective vehicle, compliance
with the decision occurs at a time, place and in
a manner that is mutually agreeable to the you
and the manufacturer(s).
You must return the vehicle free of damage; a
consumer is not responsible for problems related
to ‘wear and tear’ from ordinary and expected use
of the motor home other than that considered in
the “offset for use” calculation or damage related
to defects covered by the warranty. If the vehicle
has been damaged due to fire, theft, vandalism, or
collision (e.g. a dented fender from an accident
or a broken/cracked windshield), the consumer
has the option of having the vehicle repaired
or transferring any insurance claim/insurance
settlement to the manufacturer.
When returning a vehicle to the manufacturer(s),
you cannot remove any equipment or options from
the vehicle that were included in the purchase or
lease. If you added features after buying or leasing
the vehicle (e.g. car telephone or a canopy),
those items may be removed while avoiding
further damage, but you are not required to return
the vehicle to original condition. You should
contact the manufacturer(s) regarding added
items to determine whether the manufacturer(s)
would negotiate purchase of the add-ons rather
than having you remove them from the motor
home.
  

 

 

 

       
       
       

 

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