Vermont Lemon Law rules at a glance
The Vermont New Motor Vehicle Arbitration (Lemon Law) is 9 V.S.A. §§ 4170–4181.
| Rule | What Vermont law says | Source |
|---|---|---|
| Statute | 9 V.S.A. §§ 4170–4181 | 9 V.S.A. § 4170 |
| Vehicles covered | Passenger motor vehicles purchased, leased or registered in Vermont and still under the manufacturer’s express warranty; Leases of 2 or more years; Covered components of recreation vehicles | |
| Not covered | Motorcycles, motor-driven cycles and snowmobiles; Tractors and road-building equipment; The living portion of recreation vehicles; Trucks over 12,000 lbs GVWR; Government entities and businesses that register or lease 3 or more vehicles | |
| Protection window | The term of the manufacturer’s express warranty | 9 V.S.A. § 4172(c), (g) |
| Three Repairs Test | The same defect, shown on written repair orders, was repaired at least 3 times, with the first repair during the warranty, and continues | § 4172(g)(1), (h) |
| 30 Days Out of Service Test | Out of service for repair a cumulative total of 30 or more calendar days during the express warranty | § 4172(g)(2) |
| Written notice | After a reasonable number of repairs or 30 days out of service, notify the manufacturer and any lessor in writing, on the forms the manufacturer must give you at delivery, and elect the Vermont Motor Vehicle Arbitration Board or the manufacturer’s program. Your choice rules out the other. | 9 V.S.A. § 4173(a) |
| Dispute program first? | You choose the state Vermont Motor Vehicle Arbitration Board or the manufacturer’s program. The hearing is held within 45 days; the manufacturer gets a final repair chance completed at least 5 days before it. | |
| Deadline | Start a proceeding within 1 year after the express warranty term expires | 9 V.S.A. § 4179(a) |
| Usage deduction | full purchase price × miles before the first repair attempt ÷ 100,000 | 9 V.S.A. § 4172(e)(1)(B) |
Three repairs or 30 days in Vermont
Vermont presumes a reasonable number of attempts when, during the term of the express warranty:
Three Repairs Test
The same defect, shown on written repair orders, was repaired at least 3 times, with the first repair during the warranty, and continues.
§ 4172(g)(1), (h)30 Days Out of Service Test
Out of service for repair a cumulative total of 30 or more calendar days during the express warranty.
§ 4172(g)(2)Repairs count only if a written examination or repair order shows them, and only 3 at the same dealer unless you have good cause to use another. Only the first of the 3 repairs must fall within the warranty.
Notice to the manufacturer in Vermont
After a reasonable number of repairs or 30 days out of service, notify the manufacturer and any lessor in writing, on the forms the manufacturer must give you at delivery, and elect the Vermont Motor Vehicle Arbitration Board or the manufacturer’s program. Your choice rules out the other.
Dispute program first. You choose the state Vermont Motor Vehicle Arbitration Board or the manufacturer’s program. The hearing is held within 45 days; the manufacturer gets a final repair chance completed at least 5 days before it.
You cannot use the chapter if you have stopped making loan or lease payments (§ 4173(b)).
Vermont’s deadline: 1 year after the warranty
Start a proceeding within 1 year after the express warranty term expires (9 V.S.A. § 4179(a)).
| Event | Date | Effect |
|---|---|---|
| Vehicle delivered | Mar 15, 2025 | The protection window starts |
| Protection window ends | March 15, 2028 | Repairs after this date do not count toward the tests |
| Start by | March 15, 2029 | Start a proceeding within 1 year after the express warranty term expires |
If the final repair works but the problem returns, you can ask to restart arbitration within 1 year after the warranty ends.
How to file a Vermont lemon law claim
- Get a written repair order every visitA dealer may not refuse one, and it must itemize all work.
- Send the manufacturer’s notice formElect the state board or the manufacturer’s program; the choice is final.
- Allow the final repairIt must be finished at least 5 days before the hearing, or the right to it is waived.
- Bring the car to the hearingBoard members may inspect or test-drive it.
- Collect your refund or replacementWithin 30 days of the decision; 10% more if the manufacturer is late.
Refund, replacement and the Vermont deduction for use
| Remedy | What it includes |
|---|---|
| Replacement | A new vehicle from the same manufacturer of comparable worth, with all options and accessories, at your option within 30 days of the board’s order. |
| Refund | The full purchase price, trade-in and down payment credits, finance, credit and registration charges and incidental and consequential damages, less the allowance for use. Vermont purchase and use tax is refunded by the state on a claim filed within 90 days. |
How the Vermont deduction for use is calculated
full purchase price × miles before the first repair attempt ÷ 100,000 (9 V.S.A. § 4172(e)(1)(B)).
| Step | Math | Amount |
|---|---|---|
| Purchase price | — | $36,000.00 |
| Deduction for use | 6,000 miles before the first report × $36,000 ÷ 100,000 | −$2,160.00 |
| Refund before taxes, fees and other charges | Those are added under the rules above | $33,840.00 |
How the Vermont Motor Vehicle Arbitration Board works
| Rule | What the law says |
|---|---|
| Cost to you | No filing fee or costs |
| Members | 5 members appointed by the Governor, including 3 with no ties to the motor vehicle business |
| Hearing | Within 45 days of your notice, extendable by up to 30 days for good cause |
| Decision | Within 30 days after the hearing |
| Late payment | An extra 10% of the award if the manufacturer misses the order date |
| If the manufacturer does not comply | An unfair or deceptive act under Vermont’s consumer protection law |
Getting your Vermont purchase and use tax back
When a manufacturer refunds all or part of the price, the State of Vermont refunds the purchase and use tax in proportion. You must file a claim with the Commissioner of Motor Vehicles within 90 days of the order’s effective date (§ 4172(e)(1)(B)).
The refund deducts only miles driven before the first repair attempt: on a $40,000 car first repaired at 4,000 miles, that is $1,600.00.
Second owners and leases in Vermont
A person to whom the vehicle is transferred during the express warranty is a consumer. The chapter applies only while the manufacturer’s express warranty is in effect.
Anyone who gets the vehicle while the express warranty is in effect is a consumer. Leases must be for 2 years or more. Businesses that register or lease 3 or more vehicles, and government entities, are not covered.
To test your own dates and repair visits, check your Vermont repair history with the checker.
Vermont Lemon Law FAQs
What qualifies as a lemon in Vermont?
A passenger vehicle with a defect that substantially impairs its use, market value or safety, after 3 repairs on written repair orders (the first during the warranty) or 30 days out of service during the warranty.
Is Vermont lemon law arbitration free?
Yes. There is no filing fee or cost for the consumer, before the state board or a manufacturer program.
How long do I have to file a lemon law claim in Vermont?
Within 1 year after the express warranty term expires (9 V.S.A. § 4179).
Does the Vermont lemon law cover motorcycles?
No. Motorcycles, motor-driven cycles and snowmobiles are excluded.
How is the Vermont lemon law refund calculated?
The full price with trade-in and down payment credits, finance and registration charges and damages, minus price × miles before the first repair ÷ 100,000. The state refunds the purchase and use tax.
Sources
Checked on October 13, 2026. We re-verify Vermont rules when the legislature, the courts or the agency change them. Read how we check every rule in our editorial policy.