New Mexico (“NM”) lemon laws are stated under Motor Vehicle Quality Assurance Act (“Act”). The Act is enumerated in NM Statutes, Chapter 57, Article 16A (Motor Vehicle Quality Assurance). Under Section 57-16A-3, nonconformity of a vehicle to the manufacturer’s express warranties is a defect or condition that substantially affects the market value, and use of the vehicle. The period within which the buyer should notify the nonconformity and the manufacturer should repair the vehicle is either within the term expressed in the warranty or one years of vehicle’s operation from the date of delivery, whichever happens earlier.
If the manufacturer is not able to repair the motor vehicle after reasonable attempts, the manufacture will have to replace the vehicle with a new comparable vehicle or repurchase and refund the price of the vehicle to the buyer. When refunding, the manufacturer should pay the full purchase price which include all charges, fees, and allowances relating to a vehicle trade after deducting an amount attributable to the use of vehicle by the buyer before discovering the nonconformity.
N.M. Stat. Ann. § 57-16A-3 reads in part:
“§ 57-16A-3. Conformation to express warranties
A. If a new motor vehicle does not conform to all applicable express warranties and the consumer reports the nonconformity to the manufacturer, its agent or its authorized dealer during the term of such express warranties or during the period of one year following the date of original delivery of the motor vehicle to a consumer, whichever is the earlier date, the manufacturer, its agent or its authorized dealer shall make such repairs as are necessary to conform the vehicle to such express warranties.
B. If the manufacturer or its agent or authorized dealer, after a reasonable number of attempts, is unable to conform the new motor vehicle to any applicable express warranty by repairing or correcting any defect or condition which substantially impairs the use and market value of the motor vehicle to the consumer, the manufacturer shall replace the motor vehicle with a comparable motor vehicle or accept return of the vehicle from the consumer and refund to the consumer the full purchase price including all collateral charges, less a reasonable allowance for the consumer’s use of the vehicle. The subtraction of a reasonable allowance for use shall apply when either a replacement or refund of the new motor vehicle occurs. As used in this subsection, a reasonable allowance for use shall be that amount directly attributable to use by the consumer prior to his first report of the nonconformity to the manufacturer, agent or dealer and during any subsequent period when the vehicle is not out of service by reason of repair. Refunds shall be made to consumers or lien holders as their interests may appear.”