Lemon Law Demand Letter — New Mexico

LEMON LAW DEMAND LETTER

UNDER THE NEW MEXICO MOTOR VEHICLE QUALITY ASSURANCE ACT

SENT VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED
OVERNIGHT DELIVERY — SIGNATURE REQUIRED
AND FIRST-CLASS MAIL

Date: [__/__/____]

To Manufacturer:

[________________________________] (Manufacturer Name)
ATTN: Customer Relations / Legal Department
[________________________________] (Address)
[________________________________] (City, State, ZIP)

To Selling Dealer:

[________________________________] (Dealer Name)
ATTN: General Manager / Service Director
[________________________________] (Address)
[________________________________] (City, State, ZIP)

RE: NEW MEXICO MOTOR VEHICLE QUALITY ASSURANCE ACT — STATUTORY NOTICE
Consumer: [________________________________]
Vehicle: [____] (Year) [________________________________] (Make/Model/Trim)
VIN: [________________________________]
Date of Original Delivery: [__/__/____]
Current Odometer: [________________________________]

Dear Sir or Madam:

This firm represents [________________________________] ("Consumer") in connection with the above-referenced vehicle, which qualifies as a "lemon" under the New Mexico Motor Vehicle Quality Assurance Act, NMSA 1978, §§ 57-16A-1 through 57-16A-9, and the federal Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301 et seq.

This letter constitutes the written notification required under NMSA 1978, § 57-16A-4(B) and provides the manufacturer one final opportunity to cure the nonconformity before our client pursues arbitration and/or litigation.

I. NEW MEXICO LEMON LAW — STATUTORY FRAMEWORK

A. The Motor Vehicle Quality Assurance Act

New Mexico's lemon law is codified at NMSA 1978, §§ 57-16A-1 through 57-16A-9. The Act provides remedies to purchasers and lessees of new motor vehicles that fail to conform to the manufacturer's express warranty after a reasonable number of repair attempts.

B. Covered Vehicles — § 57-16A-2(E)

A "motor vehicle" under the Act means a self-propelled vehicle purchased or leased in New Mexico and designed primarily for transportation of persons or property on public highways. The Act excludes:

• Motor homes (the portion used for dwelling);
• Off-road vehicles;
• Motorcycles are addressed separately.

The vehicle at issue is a [____] [________________________________] that was purchased/leased new and registered in New Mexico.

C. Coverage Period — § 57-16A-3

The Act applies during the term of the manufacturer's express warranty or the first twelve (12) months or 12,000 miles following original delivery to the consumer, whichever comes first. This is one of the shorter coverage periods among state lemon laws — prompt action is essential.

D. Rebuttable Presumption of Nonconformity — § 57-16A-4(A)

A rebuttable presumption arises that a reasonable number of repair attempts have been undertaken if:

1. Four (4) or more repair attempts have been made for the same nonconformity without success; OR

2. The vehicle has been out of service for repair for thirty (30) or more business days (need not be consecutive) by reason of any nonconformity.

Both thresholds are measured within the coverage period.

E. Mandatory Written Notice to Manufacturer — § 57-16A-4(B)

The presumption does not apply unless the manufacturer has received prior direct written notification from the consumer (or the consumer's representative) of the nonconformity and has been given one additional opportunity to cure the defect. This letter satisfies that requirement.

F. Available Remedies — § 57-16A-3

If the manufacturer cannot conform the vehicle to the express warranty after a reasonable number of attempts, the manufacturer must, at the consumer's election:

• Replace the vehicle with a comparable new motor vehicle; OR
• Refund the full purchase price, including all collateral charges, less a reasonable allowance for use.

G. Mileage Offset Formula — § 57-16A-3(A)

The reasonable allowance for use is calculated as:

Purchase Price × (Miles Driven Prior to First Report of Nonconformity ÷ 100,000)

This formula is specific to New Mexico. Note that the denominator is 100,000 miles and the numerator is the mileage at which the consumer first reported the defect, not the mileage at the time of the demand.

H. Eighteen-Month Statute of Limitations — § 57-16A-6

Any action to enforce the Act must be commenced within eighteen (18) months following the date of original delivery of the vehicle, or within ninety (90) days following the final action of an informal dispute settlement panel, whichever is later.

I. Attorney Fees — § 57-16A-7

A consumer who prevails in an action brought under the Act is entitled to recover reasonable attorney fees and court costs from the manufacturer.

J. Informal Dispute Settlement — § 57-16A-5

If the manufacturer maintains an informal dispute settlement procedure that complies with 16 C.F.R. Part 703 (FTC Used Motor Vehicle Trade Regulation Rule), the consumer must first submit the dispute to that procedure before filing a civil action. However, the consumer is not bound by the outcome and may proceed to court if dissatisfied.

II. VEHICLE AND PURCHASE INFORMATION

III. WARRANTY INFORMATION

The defects at issue arose during the applicable warranty period and the statutory coverage period.

IV. DESCRIPTION OF NONCONFORMITY

The vehicle suffers from one or more nonconformities that substantially impair its use, market value, or safety as required under NMSA 1978, § 57-16A-2(G):

Primary Nonconformity

• Description: [________________________________]
• First Reported: [__/__/____] at [________________________________] miles
• Symptoms: [________________________________]
• Safety Impact: ☐ Yes — [________________________________] ☐ No
• Impairment of Use: [________________________________]
• Impairment of Value: [________________________________]

Additional Nonconformity (if applicable)

• Description: [________________________________]
• First Reported: [__/__/____] at [________________________________] miles
• Symptoms: [________________________________]

V. REPAIR HISTORY

Repair Attempt No. 1

Repair Attempt No. 2

Repair Attempt No. 3

Repair Attempt No. 4

(Attach additional repair attempt pages as needed.)

Repair History Summary

VI. LEMON LAW QUALIFICATION ANALYSIS

A. Statutory Presumption Satisfied

Our client's vehicle meets the rebuttable presumption under NMSA 1978, § 57-16A-4(A) because:

☐ Four-Repair Threshold Met. The same nonconformity has been subject to repair [____] times (≥ 4) without success. § 57-16A-4(A)(1).

☐ Thirty-Business-Day Threshold Met. The vehicle has been out of service for [____] business days (≥ 30) by reason of repair of one or more nonconformities. § 57-16A-4(A)(2).

B. Written Notice Provided

This letter satisfies the requirement of NMSA 1978, § 57-16A-4(B) that the manufacturer receive prior direct written notification and one additional opportunity to cure.

C. Federal Magnuson-Moss Warranty Act

In addition to the New Mexico claim, our client asserts claims under the Magnuson-Moss Warranty Act, 15 U.S.C. §§ 2301 et seq., which provides an independent basis for attorney fees and allows suit in federal court where the amount in controversy exceeds $50,000 or in a class action with 100+ named plaintiffs.

VII. ARBITRATION STATUS

Under NMSA 1978, § 57-16A-5, if the manufacturer maintains an informal dispute settlement procedure complying with 16 C.F.R. Part 703, the consumer must utilize that procedure before filing suit.

☐ Manufacturer has a qualifying arbitration program. Our client will submit this dispute to the program as required but reserves all rights to pursue litigation if the outcome is unsatisfactory. The 90-day post-arbitration filing period under § 57-16A-6 will apply.

☐ Manufacturer does not have a qualifying arbitration program in New Mexico. Arbitration is not a prerequisite to suit.

☐ Consumer has already completed arbitration. The final decision was issued on [__/__/____] and was ☐ accepted ☐ rejected by the consumer.

VIII. DEMAND FOR RELIEF

Pursuant to NMSA 1978, § 57-16A-3, we demand the following:

Option A — Repurchase / Refund (Consumer's Election)

☐ Our client elects a full refund calculated as follows:

Mileage Offset Calculation:

$[________________________________] (purchase price) × ([________________________________] (miles at first defect report) ÷ 100,000) = $[________________________________]

Option B — Replacement

☐ Our client elects a comparable new replacement vehicle of equal or greater value, plus payment of all incidental damages.

Additional Relief

1. Payoff of Outstanding Loan/Lease: The manufacturer must pay the remaining balance of $[________________________________] to the lienholder/lessor.
2. Attorney Fees and Court Costs: Recoverable under NMSA 1978, § 57-16A-7.
3. Incidental Damages: All costs caused by the nonconformity, including rental vehicles, towing, lodging, and lost wages.

IX. FINAL REPAIR OPPORTUNITY

This letter provides the manufacturer one final opportunity to cure the nonconformity as required by NMSA 1978, § 57-16A-4(B).

Please contact the undersigned within ten (10) business days to schedule the final repair attempt. If the nonconformity is not cured during this final attempt, our client will proceed to arbitration (if required) and/or litigation without further notice.

X. DOCUMENT PRESERVATION DEMAND

You are directed to immediately preserve all documents and electronically stored information related to this vehicle, including but not limited to:

• All repair orders, warranty claims, and parts orders for this VIN
• All Technical Service Bulletins (TSBs) and recalls related to the nonconformity
• All customer complaints and field reports for similar defects on this make/model
• All communications between the dealer and manufacturer regarding this vehicle
• All engineering analyses, test results, and internal memoranda
• The vehicle itself — do not destroy, sell, auction, or alter

Failure to preserve evidence may result in sanctions and adverse inference instructions in any subsequent proceeding.

XI. RESPONSE DEADLINE

Please respond in writing within fourteen (14) calendar days with:

1. Your position on whether the vehicle qualifies under the Act;
2. An offer for repurchase or replacement;
3. Scheduling of the final repair opportunity, if elected.

If we do not receive a satisfactory response, our client will:

☐ Submit this matter to the manufacturer's informal dispute settlement procedure;
☐ File suit in the appropriate New Mexico court;
☐ File a complaint with the New Mexico Attorney General — Consumer Protection Division (P.O. Box 1508, Santa Fe, NM 87504; 1-844-255-9210);
☐ File a complaint with the National Highway Traffic Safety Administration (NHTSA) at www.nhtsa.gov.

XII. CONCLUSION

Our client has provided ample opportunity to repair this vehicle. The nonconformity persists and substantially impairs the vehicle's use, value, and safety. Under New Mexico law, our client is entitled to a refund or replacement and will pursue all available remedies if this matter is not resolved promptly.

This letter is written without prejudice to all rights and remedies available under New Mexico and federal law, all of which are expressly reserved.

Respectfully submitted,

[________________________________] (Law Firm Name)

By: _________________________________
[________________________________] (Attorney Name)
New Mexico State Bar No. [________________________________]
[________________________________] (Address)
[________________________________] (City, NM ZIP)
[________________________________] (Telephone)
[________________________________] (Email)

Attorneys for [________________________________]

ENCLOSURES:

☐ Copies of all repair orders
☐ Copy of purchase/lease agreement
☐ Copy of manufacturer's warranty booklet
☐ Vehicle registration
☐ Photographs and/or video of the nonconformity
☐ Prior correspondence with manufacturer and dealer
☐ Authorization to represent

cc:
[________________________________] (Consumer/Client)
[________________________________] (Lienholder/Lessor, if applicable)
New Mexico Attorney General — Consumer Protection Division

NEW MEXICO LEMON LAW QUICK REFERENCE

NEW MEXICO-SPECIFIC NOTES

☐ Short Coverage Window. New Mexico provides only 12 months or 12,000 miles of coverage — one of the shorter periods among state lemon laws. Counsel must act quickly once a pattern of failed repairs emerges. Do not wait for the coverage period to lapse.

☐ Business Days, Not Calendar Days. The 30-day out-of-service threshold under § 57-16A-4(A)(2) counts business days, excluding weekends and holidays. Counsel should calculate carefully and document each business day the vehicle was unavailable to the consumer.

☐ Mileage Offset Uses First Report, Not Total Mileage. New Mexico's mileage offset formula measures miles driven before the consumer first reported the nonconformity, not total miles at time of refund. Early reporting minimizes the offset.

☐ One Final Repair Attempt Is Mandatory. The statute requires written notice to the manufacturer and one additional chance to cure before the presumption applies. Skipping this step can defeat the claim. This demand letter satisfies the notice requirement.

☐ Arbitration May Be Required. If the manufacturer sponsors an informal dispute settlement procedure that complies with FTC regulations (16 C.F.R. Part 703), the consumer must use it before suing. However, the consumer is not bound by the arbitration result and may still file suit within 90 days of the final decision.

☐ Eighteen-Month Filing Deadline. The statute of limitations runs from the date of original delivery — not from the date the defect is discovered or the last repair attempt. With a 12-month coverage period and an 18-month filing deadline, the window for litigation is extremely tight.

☐ NM Attorney General Involvement. Filing a complaint with the New Mexico Attorney General's Consumer Protection Division (1-844-255-9210) can create additional leverage. The AG has enforcement authority and can investigate patterns of manufacturer misconduct.

☐ Magnuson-Moss as Parallel Claim. Because New Mexico's Act has a short coverage period, practitioners often pair the state claim with a federal Magnuson-Moss Warranty Act claim, which may extend the available remedies and provides an independent basis for attorney fees.

☐ Lease Transactions. The Act covers leased vehicles. For leases, the refund must include all lease payments made plus the down payment and capitalized cost reduction, minus the mileage offset.

SOURCES AND REFERENCES

• NMSA 1978, §§ 57-16A-1 through 57-16A-9 — https://law.justia.com/codes/new-mexico/chapter-57/article-16a/
• New Mexico Attorney General — Consumer Protection — https://www.nmag.gov/consumer-protection.aspx
• Center for Auto Safety — NM Lemon Law Ranking — https://www.autosafety.org/lemon-laws/new-mexico/
• 15 U.S.C. §§ 2301–2312 (Magnuson-Moss Warranty Act)
• 16 C.F.R. Part 703 (FTC Informal Dispute Settlement Procedures)

This template is for informational purposes only and does not constitute legal advice. Lemon law claims are time-sensitive. Verify current requirements with a licensed New Mexico attorney before use.