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New Mexico Lemon Law
How many miles can a car have on it and still be considered new?
Any vehicle that has been driven over 200 miles, has been used for company purposes, or has been used as a demonstrator, is defined as a used vehicle and cannot be sold as new.
Is there ever a time when a car can be previously owned but still be sold as new?
If the title has been changed from the manufacturers name to someone other than the car dealer, it’s a used vehicle, unless the dealer timely withdraws the title registration
What is bait and switch?
When a business offers to sell a car or service for a certain price and when you go in to buy it, the offer is altered or the car or service is of lesser value. For example, if a V6 model vehicle is advertised at $20,000 and when you go into the dealership they say that the advertised price is only for the 4-cylinder model then that is bait and switch.
Does a dealership have to sell a car at the advertised price?
Yes.
What is “spot delivery”?
Spot delivery is when a car dealer gives you the car to take home, but the financing is not yet finalized, meaning, a bank has not yet agreed to finance your car loan. The buyer is bound to the terms and conditions of the contract signed allowing the buyer to take the car home. However, if any of the terms and conditions change substantially at the closing of the deal, this is a new contract and the buyer is not bound to accept it. For example, if at closing, the dealer presents the buyer with a second contract with higher interest, increased down payment required, or purchase of service or other insurance not present in the original contract, this is a new deal and the buyer is not legally bound to accept it.
What happens if the auto dealer spot delivered a vehicle to you and after you’ve had the vehicle the car loan is not approved?
After the loan is rejected the sell is off and you have to return the vehicle. The dealer must refund any down payment and/or return your trade in.
If you signed a contract with a 7% finance rate and the dealer calls you and claims he could only get you approved for 15% A.P.R., do you have to accept this rate?
No. This is a new contract with substantially different terms that are unfavorable to you. You don’t have to accept the new terms. You are free to refuse or continue to negotiate the financing terms.
Does a dealer have to disclose in writing whether a vehicle has been in a wreck?
If a vehicle has sustained wreck damage and the cost of repair for the collision damage exceeds 6% of the sales price of the vehicle, then, yes, the dealer must provide a written affidavit to the purchaser that describes the vehicle and states whether there has been repair work done on the vehicle due to wreck damage. In addition, if the vehicle was repaired due to other forms of damage sustained, e.g., hail damage, or otherwise altered and the cost of repair exceeds 6% of the sales price of the vehicle, again, the dealer must provide a written affidavit to the purchaser that describes the vehicle and states whether there has been repair work done on the vehicle due to wreck damage.
Does a dealer have to disclose whether a vehicle is a salvage title vehicle?
Yes. It is illegal for a dealer to sell any vehicle that has been “totaled” by an insurance company and declared a “salvage”, unless the certificate of title indicates “Salvage” on it. In addition, any purchaser of a vehicle has the right to physically examine the certificate of title.
Can New Mexico car dealers sell vehicles with salvaged titles?
Yes, but this information must be disclosed and the title must be branded as salvaged.
Does a car dealer have to tell a buyer about any repair which a vehicle has undergone due to damage from a prior accident?
Yes.
Are all defects in new cars covered by the Lemon Law?
No, only major problems are covered.
When does New Mexico’s “Used Car Lemon Law” go into effect and what does it say?
January 1, 2004. New Mexico’s “Used Car Lemon Law” as it’s commonly known, provides for a statutory warranty for all used cars sold in the state. In short, the statute will require that all dealers provide a warranty for all used cars they sell, covering the first 500 miles or 15 days, whichever comes first.
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