Leased Vehicles and the North Dakota Lemon Law

Leased vehicles are expressly covered by North Dakota’s lemon law — a meaningful advantage. Section 51-07-18.1 addresses leased-vehicle refunds directly, so a lessee gets the same core protection as a buyer.

Leases are covered

Unlike some states that ignore leases (leaving lessees to federal law), North Dakota’s statute includes lease transactions and sets out how the refund is handled for a leased vehicle (§ 51-07-18.1). If your leased vehicle is a lemon, you can pursue the statutory remedy.

How the refund works on a lease

For a leased vehicle, the refund coordinates the lessee’s and the lessor’s interests:

• The lessee recovers amounts paid — typically the down payment/cap-cost reduction, monthly payments made, and collateral charges — less the capped use offset (10¢/mile or 10% of the price, whichever is less; only pre-report miles). See refund.
• The lessor is made whole on the financed balance, and the lease is terminated without an early-termination penalty to the lessee for the defect.

The exact allocation follows § 51-07-18.1; an attorney will run the lessee/lessor split.

What a lessee must show

The requirements are the same as for a purchase:

1. Covered vehicle within the warranty-or-one-year window from original delivery.
2. Substantial impairment of use and market value (§ 51-07-16).
3. The presumption — more than 3 attempts or 30 business days — after direct notice to the manufacturer.
4. Suit filed within the six-month deadline.

Don’t let the leasing company stall you

Your claim is against the manufacturer, not the leasing company. Keep making lease payments while the claim is pending (stopping can hurt your credit), and let the remedy sort out the money.

Bottom line

North Dakota expressly covers leased vehicles, with lease-specific refund rules at § 51-07-18.1 — a lessee recovers payments made, less the capped offset, and exits the lease. Get a free case review.

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