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New Mexico · Topic Updated May 26, 2026

Remedies Under the New Mexico Lemon Law

What you can recover in a New Mexico Motor Vehicle Quality Assurance Act claim — refund, replacement, UPA actual/treble damages, and stacked mandatory attorney fees.

A successful New Mexico claim produces a refund or replacement (the manufacturer’s choice) under the Motor Vehicle Quality Assurance Act, often amplified by UPA damages and always backed by stacked mandatory attorney fees. New Mexico’s remedy ceiling is higher than neighboring Arizona’s because both state statutes shift fees mandatorily.

The remedy menu

  1. Refund — full purchase price plus collateral charges, minus a reasonable allowance for use.
  2. Replacement — a comparable motor vehicle.
  3. UPA damages — actual damages or the $100 floor; up to 3× (treble) on willful conduct.
  4. Mandatory attorney fees — under § 57-16A-9, § 57-12-10(C), and Magnuson-Moss § 2310(d)(2).
  5. Incidental damages — towing, rental, out-of-pocket repairs.

The manufacturer’s option

Section 57-16A-3 gives the manufacturer the choice between refund and replacement — not the consumer. This puts New Mexico in the manufacturer-option tier with Oklahoma, South Carolina, and Mississippi, and unlike California, where the consumer elects.

Topics in this section

  • Refund (buyback) — Purchase price, collateral charges, and the reasonable-use deduction.
  • Replacement — Comparable-vehicle replacement and when it’s offered.
  • Cash-and-keep — Negotiated cash settlements where you keep the vehicle.
  • UPA damages — Actual or $100 floor, discretionary treble on willful conduct.
  • Attorney fees — The triple mandatory-character fee structure.

Why the fee structure drives recovery

In New Mexico, a prevailing consumer recovers attorney fees mandatorily under both the lemon law and the UPA. That means the practical recovery is the refund/replacement plus damages with the manufacturer paying the legal fees — preserving the consumer’s recovery rather than eroding it. See attorney fees.

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