Replacement Vehicle Under Maryland Lemon Law
How Maryland Lemon Law replacement works under § 14-1502(e) — comparable new vehicle, consumer's choice between refund and replacement.
Maryland Lemon Law (§ 14-1502(e)) gives the consumer the choice between refund and replacement. A replacement vehicle is a “comparable new motor vehicle” — same year, make, model, trim, and options.
What “comparable” means
A comparable replacement vehicle must have:
- Same year, make, model, trim.
- Same major options (drivetrain, transmission, infotainment, safety package, color where reasonable).
- New (not used / demo).
- Equal or better warranty — typically a fresh full manufacturer warranty.
Reasonable-use offset still applies
Under § 14-1502(e), the manufacturer is entitled to deduct for pre-defect use even on replacement.
When to choose replacement over refund
- Brand loyalty — consumer wants the same model.
- Long lead-time vehicles — replacement may be faster than re-buying.
- EV-specific — battery defects often replaced with new battery + vehicle.
- Lease-protected pricing — replacement preserves the original lease terms.
When refund is better
- Brand-confidence damage — consumer wants to switch brands.
- Discontinued model — comparable replacement may not exist.
- Model-year transition — manufacturer changes affect “comparable” definition.
- Settlement leverage — cash settlement often more flexible.
Sales tax credit
Maryland allows sales tax credit on the original vehicle to offset tax on the replacement. Confirm with the dealer and Maryland MVA.
Bottom line
Replacement vs. refund is the consumer’s choice under § 14-1502(e).
Related
Attorney Fees Under Maryland Lemon Law
Maryland's triple fee-recovery basis — § 14-1502 Lemon Law (discretionary) + § 13-408(b) CPA + Magnuson-Moss § 2310(d)(2).
Read → ArticleCash-and-Keep Settlements in Maryland Lemon Law Cases
How cash-and-keep settlements work in Maryland Lemon Law — diminished-value payments where consumer keeps the vehicle.
Read → ArticleCPA Damages — Maryland Deceptive-Practices Layer
How Maryland CPA actual damages and mandatory § 13-408(b) fees stack with the Maryland Lemon Law to maximize recovery.
Read → ArticleRefund (Buyback) Under Maryland Lemon Law
How Maryland Lemon Law refunds work under § 14-1502(e) — full purchase price + tax + fees + incidental, minus reasonable use offset.
Read →Think you've got a lemon?
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