South Carolina Lemon Law: Notice, Buyback, and Arbitration

South Carolina’s lemon law, formally the Enforcement of Motor Vehicle Express Warranties Act, requires a manufacturer to replace or buy back a new vehicle when the same defect survives repeated repair attempts. The presumption that you have a lemon kicks in after three unsuccessful repairs of the same problem, or after the vehicle spends 30 or more cumulative days out of service. The defect has to show up within the first 12 months or 12,000 miles, whichever comes first, and before you can demand a refund or replacement you must give the manufacturer one final written chance to fix it.

Who and What the Law Covers

The statute covers new motor vehicles sold and registered in South Carolina: passenger cars, light trucks with a gross vehicle weight of 11,000 pounds or less, and motorcycles, including three-wheel motorcycles.¹ Off-road vehicles are excluded. For recreational vehicles, only the living quarters portion is outside the law; the motorized chassis can still qualify.

Used vehicles are not covered. If your problem is with a used vehicle, you can file a general consumer complaint with the South Carolina Department of Consumer Affairs, but the lemon law’s replacement and refund remedies are off the table.²

A “consumer” under the statute is anyone who buys or leases a new vehicle for personal, family, or household use, plus anyone else entitled to enforce the manufacturer’s warranty. That means someone who buys the vehicle secondhand while the original warranty is still active can also bring a claim.¹ Dealer demonstrators can qualify too, as long as the original title has not yet been issued.

What Makes a Vehicle a Lemon

Two conditions have to be met. The defect must appear within the first 12 months of purchase or the first 12,000 miles, whichever comes first.³ And the manufacturer must fail to fix it after a reasonable number of attempts.

Section 56-28-50(A) presumes a reasonable number of attempts has occurred in either of two situations:

The same defect has been repaired three or more times during the express warranty term and still exists.
The vehicle has been out of service for a cumulative total of 30 or more calendar days for warranty repairs. The days do not need to run back-to-back.⁴

On top of that, the defect must substantially impair the vehicle’s use, market value, or safety.⁵ A recurring transmission failure or brake problem clears that bar. A rattling dashboard or a paint blemish does not.

Problems caused by owner abuse, neglect, or unauthorized modification are not covered.⁶ If you added aftermarket parts and the engine started failing, expect the manufacturer to argue you voided the claim. Keep the vehicle stock and follow the maintenance schedule while any defect is unresolved.

The Certified-Mail Notice You Cannot Skip

Before demanding a refund or replacement, you must give the manufacturer one final chance to repair the vehicle. The statute requires written notice sent by certified mail with return receipt requested. The letter should describe the defect and state that you are providing a final repair opportunity under South Carolina’s lemon law.

Once the manufacturer receives your notice, it has 10 business days to direct you to a franchised dealer’s repair facility. After you deliver the vehicle, the manufacturer has another 10 business days to complete the repair. If the vehicle still is not fixed at the end of that window, the manufacturer has to move to a replacement or refund under Section 56-28-40.⁴

Skipping this step is one of the fastest ways to lose a lemon law claim. Without proof of certified mail and a documented final opportunity, a court can dismiss the case outright.

Keep Every Repair Order

Every visit to the shop should produce a repair order, and you should keep all of them. Each order should show the VIN, the date, the problem you reported, and what the dealer actually did. Organize them by date. When it comes time to prove three same-defect repairs or 30 out-of-service days, those papers are your evidence. Verbal promises from a service advisor mean nothing without documentation.

Buyback or Replacement

When the final repair attempt fails, the manufacturer must either replace the vehicle with a comparable new one or buy it back. The choice belongs to the manufacturer, not to you.⁵

A buyback covers the full purchase price plus finance charges, sales tax, registration fees, and similar government charges. The manufacturer then subtracts a mileage-based offset for the use you got from the vehicle before the defect appeared.⁵

The offset formula is simple. Multiply the full purchase price by a fraction: miles driven before you first reported the defect over 120,000.⁴ On a $36,000 vehicle with 6,000 miles at first complaint, the offset is $36,000 × (6,000 ÷ 120,000), or $1,800. The refund before adding back taxes and fees would be $34,200. The earlier you report the problem, the smaller the deduction.

A replacement has to be a comparable new vehicle, meaning similar make, model, and features. If the only available replacement is a higher trim, the manufacturer absorbs the difference. You would only owe extra if you asked for an upgrade beyond what is comparable.

Arbitration Before Court

If the manufacturer runs an informal dispute settlement program that complies with the federal rules in 16 CFR Part 703, you generally have to go through it before pursuing a refund or replacement. The alternative is the state arbitration board, which the Department of Consumer Affairs is authorized to establish under Section 56-28-90.⁷ One route or the other must be exhausted first.

The arbitrator’s decision is binding on the manufacturer if you accept it. If you reject the outcome, you can still file a lawsuit.⁸

Suing the Manufacturer

When arbitration fails or the manufacturer has no qualifying program, you can take the case to state court. A consumer who prevails may recover attorney fees based on actual time spent, litigation costs, and other expenses tied to the defect, on top of the refund or replacement.⁴ The award is at the court’s discretion, but because fees can shift to the manufacturer, many lemon law attorneys take these cases on contingency.

You have three years from the date the vehicle was originally delivered to file suit.⁴ That clock runs from delivery, not from when the defect appeared or when the last repair failed. Three years sounds generous, but it starts the moment you drive off the lot.

When the State Law Does Not Fit

If you fall outside the state lemon law, whether because the vehicle is used, exceeds the weight limit, or you missed the 12-month/12,000-mile reporting window, the federal Magnuson-Moss Warranty Act may still help. It lets consumers sue any warrantor who fails to honor a written or implied warranty and covers a much broader range of products and transactions than state lemon laws.⁹

You can file a Magnuson-Moss claim in state or federal court.¹⁰ Prevailing consumers can recover attorney fees, and the Act bars a manufacturer that offers a written warranty from disclaiming implied warranties, which makes “as-is” disclaimers on warranted products unenforceable.

Where to Get Help

The South Carolina Department of Consumer Affairs handles lemon law questions and complaints. Call (800) 922-1594 toll-free within South Carolina or (803) 734-4200, email scdca@scconsumer.gov, or file a complaint online.² The department can walk you through the process and help you gauge whether your situation qualifies. It does not represent consumers in court; for that, hire a private attorney who handles lemon law cases.

1
South Carolina Legislature. South Carolina Code 56-28-10 – Definitions
2
South Carolina Department of Consumer Affairs. Lemon Law
3
South Carolina Legislature. South Carolina Code 56-28-30 – Nonconformity With Express Warranties; Notice Required; Repairs Required
4
South Carolina Legislature. South Carolina Code 56-28 – Enforcement of Motor Vehicle Express Warranties
5
South Carolina Legislature. South Carolina Code 56-28-40 – Replacement of Motor Vehicle; Refund of Purchase Price
6
South Carolina Department of Consumer Affairs. FAQ
7
South Carolina Legislature. South Carolina Code 56-28-60 – Informal Dispute Settlement Procedures
8
eCFR. 16 CFR Part 703 – Informal Dispute Settlement Procedures
9
Federal Trade Commission. Businessperson’s Guide to Federal Warranty Law
10
Office of the Law Revision Counsel. 15 USC 2310