|
For the Public
Motor Vehicles - What Are Your Rights? This pamphlet is based on NH law in effect at the time of publication. It is issued as a public service for general information only. It is not a substitute for specific legal advice. This public information pamphlet discusses the legal rights of new or used vehicle owners in New Hampshire. MARCH 2000 Purchase of New Vehicle
I just purchased a car that does not run as well as I thought it would. May I return the car to the dealer and cancel the purchase?
Under New Hampshire law there is no general right of cancellation (commonly known as a "cooling off period") associated with the purchase of a car. If you want a period of time in which to cancel the purchase, you should make sure to add a cancellation provision to the written purchase contract.
I signed an agreement to purchase a car and left a deposit. I have now changed my mind and wish to cancel the agreement. Can I get my deposit back?
There is no general right to a refund of a deposit paid for the purchase of a used or new car. You should think about this question before signing the purchase contract. If you think you may want to get a deposit refunded and the contract does not expressly state that the deposit is refundable, you should ask the seller to add a provision in the agreement granting you the right to a refund in the event of a cancellation of the contract.
Warranties
What is a warranty? What warranties come with my vehicle?
When you buy a new car or other vehicle under 9,000 pounds gross weight, certain warranties come with the car. The manufacturer, distributor and dealer for the car are responsible for repairing the car when something goes wrong with anything covered by the warranties.
A warranty is a guarantee or promise that the car will meet certain standards and if it does not the dealer, manufacturer, or distributor will fix it. These warranties may be "express" or "implied." Many cars, especially new cars, come with an express written warranty that gives you the right to have certain parts of the car repaired or replaced if they are defective for a certain period of time. An express warranty may also be given orally, but you should always try to get any promise from the seller in writing, because it may be hard to enforce otherwise. You may also have certain implied warranties. An implied warranty is a promise that is not explicitly written or spoken, but which exists because it can be inferred from the facts and circumstances. For example, the implied warranty of merchantability implies that the car will be fit for the ordinary purposes for which a car would normally be used. The implied warranty of fitness for a particular purpose might apply if you told a sales person at a car dealership that you intended to use a small truck for delivery of cordwood and the dealer, knowing this, sells you the truck. A court would find there was an implied warranty that the truck could be used for this purpose. If your vehicle has a written warranty, check its language carefully. It is common practice for dealers to give an express warranty that then "disclaims" all implied warranties. This means that the buyer can only bring a warranty claim based on the express warranty language; their implied warranty rights have been extinguished. Insurance
My car was damaged in an accident, when can the insurance company consider my car a total loss?
When the cost of repairing a vehicle approaches or exceeds its actual cash value, a "total loss" is usually declared. In New Hampshire, the standard for determining the actual cash value of a vehicle is the National Automobile Dealers Association (NADA) Official Used Car Guide. The insurance company has the right to decide whether to repair, replace or pay you the cash value of your vehicle even if their payment is less than the money your remaining loan payments on the vehicle.
Can the insurance company repair my car after an accident with used parts?
Yes. The insurance company may have your car repaired with parts of like kind and quality, which would include used parts.
Do I have the right to choose the repair facility to repair my vehicle after it has been involved in an accident?
Yes, although many insurance companies will suggest body shops or repair facilities, the final decision is yours.
Will my comprehensive coverage provide payment to me if my belongings are stolen from my car?
Generally, the loss will be covered only if the belongings are considered "automobile equipment." If the property is not automobile equipment, the loss may be covered under your homeowner or tenant's policy.
How long does an insurance company have to settle my claim?
The company must acknowledge receipt of your claim report within 10 working days and keep you informed at least every 30 days as to the status of the claim. There is no specific time limit in which the company must settle your claim. Since each claim is different, the length of time to settle may vary. Once an amount is agreed upon payment must be made within 5 working days.
Repairs
What can I do to be sure that the repair shop does only the work that I specifically request?
An automobile repair shop cannot charge you for repair work that you did not authorize. If you need to have repairs done you should:
Be sure you know exactly which repairs you want. State law (RSA 358-D) requires that if you ask the repair shop for a written estimate in advance, the repair shop must give you a written estimate describing in detail the work to be performed, the estimated price for all parts and labor, and the estimated completion date. A written estimate is not required if the shop does not agree to perform the service or repair work. The repair shop may charge you a reasonable amount for preparing the estimate. If it is impractical for an estimate to be made in writing, the estimate and the authorization for the work may be oral. Tell the shop clearly and specifically which repairs you want. If you want the repairs done which are listed in the shop's written estimate, you should sign a written authorization or, if this is not practical, you may orally authorize the work. If you request it in advance, the repair shop must return any parts it replaces while doing the repair work, unless the parts have to be returned to the manufacturer or distributor because the work is being done under a warranty or exchange agreement. Do not assume that a repair shop knows the extent of repairs you are willing to pay for. You should never authorize a repair shop to "do whatever is necessary to get it running right." State law requires all repair shops to post a conspicuous sign advising customers of their right to request a written estimate.
What can I do if a repair shop charges me more than the estimated price for a repair?
A repair shop may not charge you for any service or repair work that is more than 10% of the price authorized in advance, even if the total repair bill exceeds that amount. When the repair shop completes the work, it must set out all charges in a written invoice that describes the work done by the shop, identifies all work done by subcontractors, itemizes all parts and their cost, and states the number of hours charged for labor and the hourly labor charge. The invoice must also state the terms and conditions of any guarantee that applies to the work and whether any used, rebuilt, or reconditioned parts were used.
If your repair shop violates any provision of the law relative to regulation of motor vehicle repair facilities, you may file a private lawsuit for damages or a complaint with the Consumer Protection Bureau. The repair shop won't give me my car back until I pay their bill, which is well above the estimate. What can I do?
Under these circumstances, the repair shop has what is called a "lien" on your vehicle until the bill is paid. This means that they are legally entitled to withhold your vehicle until the bill is paid or a court orders the shop to return your car. If you must pay the bill to get your car back, doing so does not waive any of your rights to challenge the bill by bringing a private lawsuit or by filing a complaint with the Consumer Protection Bureau.
I had my car fixed three months ago, and now I am having the same problem. What can I do?
Automobile repairs must be made in a workmanlike manner. Some repair shops guarantee replacement of defective parts for a certain period of time. Any such guarantee should be set forth in writing as part of the repair contract. The Consumer Protection Bureau will mediate individual complaints regarding ineffective automobile repairs, but the Bureau cannot represent you individually. If a pattern or practice of ineffective repairs is established against a particular repair shop, the Bureau may bring a lawsuit against the repair shop.
Lemon Law
I think my car is a lemon. Would I qualify for a refund or replacement under the Lemon Law?
Under the New Hampshire Lemon Law (RSA 357-D) you have certain rights in addition to the rights you have under your car's warranties. If you qualify under the Lemon Law, you may get a refund or replacement for a defective car. The law applies to motorcycles, passenger vehicles or light trucks as long as the manufacturer's warranty has not run out.
The manufacturer or distributor is responsible for replacing the car or refunding the full purchase price to the car owner less a reasonable allowance for use prior to the first repair attempt if all of the following are true: you find and report a defect within the express warranty period. You must report the defect to the manufacturer, the distributor, or an authorized dealer. For your own records, you should make a written record of your report; the defect substantially impairs the use, value or safety of the car; the defect must be caused by the manufacturer or its authorized service agent; the manufacturer or dealer had made a reasonable number of attempts to fix the defect and, you have not stopped making payments on the vehicle.
The Lemon Law presumes that the manufacturer or dealer has made a "reasonable" number of attempts to fix the defect if during the warranty period, there are 3 or more attempts by a manufacturer, distributor, or authorized dealer to repair a defect covered by the warranty and the defect still exists, or the car is not working because of the needed repairs for a cumulative total of 30 business days or more. This means that you can have a refund or replacement only if the defect and the attempts to repair it occur within the allowed time period. In addition, the defect must be serious enough to make a significant difference in your ability to use the car or in its value or safety. An example of a serious defect would be if the seat belts were defective or if the roof leaked. An insubstantial defect would be a cosmetic problem which did not significantly interfere with the use or value of the car, such as a minor paint defect, a small tear in the upholstery or a small, annoying rattle. How do I bring a Lemon Law claim?
You can bring a Lemon Law Claim through the manufacturer's dispute settlement procedure or New Hampshire's New Motor Vehicle Arbitration Board. The standards for a successful claim under the manufacturer's internal program may be different from the standards already described above for a claim to the Board, so you should carefully review each of these types of claims to decide which will be likely to give you a better result. Once you decide which type of claim to make, you are bound by the result.
You must file your claim with the New Motor Vehicle Arbitration Board within one year from the expiration of the warranty or the final repair attempt, whichever occurs later. Within forty days of the claim filing, the manufacturer is given one final opportunity to correct the defect. If the manufacturer loses and does not appeal the decision, it has thirty days to either replace the vehicle or refund your purchase price, whichever you choose. If you would like to use an internal settlement procedure, contact AUTOCAP, AUTOLINE or the Better Business Bureau of New Hampshire. This procedure is not required by the law. If you believe that the Lemon Law gives you the right to a refund or replacement of your vehicle, you may consult a private attorney or bring your claim to the motor vehicle board or the manufacturer on your own. The Consumer Protection Bureau is not authorized to enforce the Lemon Law. Used Cars
I want to buy a used car. How can I be sure it is safe?
You have the right to have a safety inspection made of any used motor vehicle before you buy it from a dealer who sells used motor vehicles. You do not have such a right with a private sale. If you request it, the dealer must perform an inspection. If the vehicle does not meet state inspection standards, the dealer must give you in writing a list of all the reasons why the vehicle failed the inspection. The dealer must also give you the date of the inspection and the name of the person who performed the inspection. You may be charged a reasonable amount for the inspection. If you wish, you may still buy the used motor vehicle with the defects uncorrected, but you will not be able to get an inspection sticker until someone has repaired the defects and the car has been re-inspected.
If dealer sells an unsafe used motor vehicle or conceals a defect discovered during an inspection, the dealer is guilty of an unfair or deceptive trade practice. If you prove that the dealer knowingly concealed the defect, you may receive your damages, a penalty to the dealer of an amount not less than double your damages and not greater than triple your damages, costs and attorney's fees. You may report violations of this law to the Consumer Protection Bureau. You also have the right to sue the dealer yourself under New Hampshire's Unfair Trade Practices Act, RSA 358-A:10 or to be part of a class action under RSA 358-A:10-a. Consult an attorney if you are considering any lawsuit against a new or used car seller. If you need a referral to a lawyer, call the Lawyer Referral Service of the NH Bar Association at 603-229-0002. Repossession
My car was repossessed. What are my legal rights?
Review your automobile financing agreement to determine what repossession rights the bank or other financing company has and what procedures it must follow to repossess the car. If you believe the repossession violates any provision of the financing agreement, you may file suit yourself or you may file a complaint with the Consumer Protection Bureau. If the vehicle was wrongfully repossessed, the Bureau can attempt to mediate the complaint, but will not represent you in the dispute. If you voluntarily gave up your car to the bank or finance company, in most cases you will still have to pay the difference between the amount owed on the car and the amount they obtain from their resale of the car. Any repossession, even a voluntary repossession, may affect your credit rating.
General Procedure for Complaints NUMBERS TO KNOW NH Attorney General's Office
Consumer Protection & Antitrust Bureau
33 Capitol Street
Concord NH 03301
603-271-3658
http://doj.nh.gov AUTOCAP (Automotive Consumer Action Program)
A 3rd party mediation program sponsored by NADA.
Contact NH Automobile Dealers Association at(603) 224-2369 or go to
http://www.nhada.com AUTOLINE
A 3rd party arbitration program sponsored by the Council of Better Business Bureaus
1-800-955-5100 or http://www.nhbar.com Better Business Bureau of NH
410 South Main Street, Suite 3
Concord NH 03301
603-224-1991
http://www.concord.bbb.org Lawyer Referral Service of the NH Bar Association
2 Pillsbury Street
Suite 300
Concord NH 03301
603-229-0002
/for-the-public/lawyer-referral-services.asp New Motor Vehicle Arbitration Board
10 Hazen Drive
Concord NH 03301
603-271-6383
FirstGov For Consumers
Consumer information from the federal government
http://www.consumer.gov/
|
