What to Do When You Buy a Defective Car in South Carolina
South Carolina's lemon law protects you if you buy a new car that has serious defects you cannot fix
South Carolina's lemon law is a state law that lets you return or get your money back for a new vehicle with defects that the dealer cannot repair after a reasonable number of attempts. The law covers new cars, trucks, and vans purchased or leased in South Carolina. It does not cover used vehicles, motorcycles, or vehicles bought "as-is" from private sellers.
The law is called the Motor Vehicle Warranty Act, and it sets out specific conditions you must meet to use it. You do not need a lawyer to file a claim, though some people hire one. The process starts with the manufacturer — not the dealer — and moves to arbitration or court if the manufacturer refuses to help.
Key Takeaways
- You must report the defect to the manufacturer in writing within a set timeframe, usually while the vehicle is still under the original manufacturer's warranty.
- The manufacturer gets at least three repair attempts to fix the same defect before you can invoke the lemon law.
- If the manufacturer will not repair or replace the vehicle, you can file a claim with the South Carolina Department of Consumer Affairs or pursue arbitration.
- You may recover the full purchase price, a replacement vehicle, or a refund minus a mileage deduction, depending on how the case resolves.
What counts as a defect under South Carolina law
A defect is any condition that substantially impairs the use, value, or safety of the vehicle and exists within one year from the date of purchase or delivery, whichever comes first. Common examples include engine problems, transmission failure, brake defects, electrical system failures, and structural rust that affects safety.
The defect must be something the manufacturer is responsible for — not damage you caused, normal wear and tear, or a problem caused by how you maintained the vehicle. If the dealer can prove the defect resulted from misuse or lack of maintenance, the lemon law does not apply.
Minor cosmetic issues, such as a small dent or paint chip, do not count as defects under this law. The problem must be serious enough to affect how the car works or how safe it is to drive.
How many repair attempts you need before invoking the law
The manufacturer must have a reasonable opportunity to repair the defect. In South Carolina, this typically means at least three repair attempts for the same defect, or one repair attempt if the defect creates a safety hazard. If the vehicle is out of service for repair for a total of 30 days or more during the warranty period, you may also have grounds for a claim even if three repairs have not occurred.
You must give the manufacturer written notice of the defect and a chance to repair it. Keep records of every repair visit — the date, the mileage, what was wrong, and what the dealer did or did not fix. These records are essential if you later file a claim.
If the same defect comes back after a repair, that counts as a separate repair attempt. For example, if the transmission is repaired three times and fails again each time, you have met the threshold.
How to notify the manufacturer and start the process
Send written notice to the manufacturer's customer service department. Include your name, address, phone number, the vehicle identification number (VIN), the current mileage, a description of the defect, and the dates of all repair attempts. Send it by certified mail so you have proof of delivery. You can find the manufacturer's address on your warranty documents or on the company's website.
The manufacturer then has a set time — usually 30 days — to repair the vehicle at no cost to you. If they refuse or cannot fix the problem, you can move forward with a claim. Keep copies of everything you send and every response you receive.
If the manufacturer does not respond or repair the vehicle within the timeframe, you have the right to file a complaint with the South Carolina Department of Consumer Affairs or pursue arbitration if your warranty documents require it.
Filing a claim with the South Carolina Department of Consumer Affairs
You can file a complaint with the South Carolina Department of Consumer Affairs if the manufacturer will not repair or replace your vehicle. The department investigates complaints and can pressure the manufacturer to comply with the lemon law. You do not pay a fee to file.
To file, contact the department by phone, mail, or online through their website. You will need to provide your name, contact information, the vehicle details, copies of your repair records, and copies of your written notice to the manufacturer. The department will review your case and may schedule a hearing.
The process can take several weeks or months. During this time, you may still be making payments on a car you cannot safely drive. Some people choose to pursue arbitration instead if their warranty documents include an arbitration clause, because arbitration is often faster.
Arbitration as an alternative to filing with the state
Many vehicle warranties include an arbitration clause, which means you agree to resolve disputes through arbitration rather than court. Arbitration is a private process where a neutral third party hears both sides and makes a binding decision. It is often faster than going through the state or filing a lawsuit.
Check your warranty documents to see if arbitration is required. If it is, you must usually go through arbitration before you can file a lawsuit. The arbitrator can order the manufacturer to repair, replace, or refund your vehicle, just as a court can.
You may be able to have an attorney represent you in arbitration, though it is not required. Some manufacturers pay the arbitration costs; others require you to pay a fee upfront, though you may recover it if you win.
What you can recover if you win
If the manufacturer is found to have violated the lemon law, you can recover the full purchase price of the vehicle, a replacement vehicle of comparable value, or a refund. The amount may be reduced by a mileage deduction — typically a set amount per mile driven — to account for the use you got from the car before the defect became apparent.
You may also recover costs you paid for repairs related to the defect, towing, rental cars while the vehicle was being repaired, and in some cases attorney fees if you hired a lawyer. The exact amount depends on the terms of your warranty and the details of your case.
If you choose a refund, you must return the vehicle to the manufacturer in the condition it was in when you bought it, minus normal wear and tear. If you choose a replacement, you receive a new vehicle of the same make and model or a comparable substitute.
Frequently Asked Questions
Does the lemon law cover used cars?
No. South Carolina's Motor Vehicle Warranty Act covers only new vehicles purchased or leased from a dealer. Used cars sold by private sellers or dealers are not covered, even if they are relatively new model years.
What if I bought the car "as-is"?
If you signed paperwork saying you bought the car "as-is," the lemon law may not apply. However, if the vehicle was sold with a manufacturer's warranty, you may still have rights under the law. Review your purchase agreement and warranty documents, or contact the Department of Consumer Affairs for guidance on your specific situation.
Can I still drive the car while my claim is being processed?
That depends on the nature of the defect. If the defect makes the car unsafe to drive, you should not drive it. If it is safe but has other problems, you can continue to use it, though you may be required to keep paying the loan or lease while your claim is pending. Document all continued repairs and mileage.
Do I need a lawyer to file a lemon law claim?
No. You can file a complaint with the Department of Consumer Affairs or pursue arbitration on your own. However, if the manufacturer disputes your claim or the case becomes complicated, a lawyer who specializes in consumer law can help. Some lawyers work on contingency, meaning they take a percentage of what you recover instead of charging upfront fees.
What if the manufacturer says the defect is my fault?
The manufacturer must prove that you caused the defect through misuse or failure to maintain the vehicle. If they claim this, ask for written documentation of how you caused the problem. If you believe their claim is wrong, you can dispute it during the complaint or arbitration process. Keep all maintenance records to show you cared for the vehicle properly.