Hawaii lemon law explained and checked.

What the law is called and who runs it

Hawaiʻi’s lemon law is chapter 481I of the Hawaiʻi Revised Statutes, titled Motor Vehicle Express Warranty Enforcement. The Department of Commerce and Consumer Affairs (DCCA) runs the arbitration side: its Regulated Industries Complaints Office administers what it calls the State Certified Arbitration Program, or SCAP, which helps consumers with new vehicles (cars and motorcycles) that keep failing under the manufacturer’s warranty. Under the program a consumer may be awarded a refund or a replacement if the vehicle is found to be a lemon.

The rights period

Section 481I-2 defines the lemon law rights period as the term of the manufacturer’s express warranty, the period ending two years after the original delivery to a consumer, or the first 24,000 miles of operation, whichever occurs first. The period is extended by any time repair services are not available because of war, invasion, strike, fire, flood or other natural disaster. The consumer must report the nonconformity in writing to the manufacturer, its agent, distributor or authorized dealer during the period.

What counts as a covered vehicle and a defect

A motor vehicle is a self-propelled vehicle designed for people or property on public roads and used primarily for personal, family or household purposes. It includes motorcycles (but not motor scooters), dealer demonstrators, an individually registered vehicle also used for business, and a vehicle owned or leased by a business that buys or leases no more than one vehicle a year for household or personal use as well as business use. It excludes mopeds, motor scooters and vehicles over 10,000 pounds gross vehicle weight rating. A nonconformity is a defect that fails the express warranty and substantially impairs the use, market value or safety of the vehicle, and it excludes problems caused by accident, abuse, neglect or modification by anyone other than the manufacturer or its agents.

The three presumptions

Section 481I-3(d) presumes a reasonable number of repair attempts if, during the rights period, any one of these happens:

• the same nonconformity has been examined or repaired at least three times by the manufacturer, its agents, distributors or authorized dealers and still exists;
• a nonconformity likely to cause death or serious bodily injury if the vehicle is driven has been examined or repaired at least once and persists; or
• the vehicle is out of service for repairs for a cumulative 30 or more business days.

The statute adds that the presumptions do not apply unless the manufacturer has received a written report of the nonconformity from the consumer and had a reasonable opportunity to repair it. The consumer must notify the manufacturer in writing only if the dealer gave the written notice of the arbitration program and consumer rights that section 481I-3(g) requires at the time of purchase. Dealers must notify the manufacturer on a second notice of the problem or once the vehicle has been out of service more than 20 business days.

What you can get: refund or replacement and the offset

If the manufacturer cannot conform the vehicle after a reasonable number of documented attempts, it must provide a replacement vehicle or accept the vehicle back and refund the full purchase price, including charges such as undercoating, dealer preparation, transportation and installed options, and all collateral and incidental charges, less a reasonable offset for your use. The statute defines the offset: one percent of the purchase price for every thousand miles of use, counted up to the earliest of the third repair attempt of the same problem, the first repair attempt of a life-threatening defect, or the thirtieth cumulative business day out of service. A further offset can apply for damage beyond normal wear unrelated to the defect.

Arbitration, fees and the deadline to sue

Under section 481I-4, the arbitration program is funded by a $200 filing fee paid by the manufacturer and a $50 fee paid by the consumer; a final decision in the consumer’s favor includes the return of the $50. Section 481I-3(i) says a decision should be rendered within 45 days after the procedure is invoked. If the consumer chooses nonbinding arbitration, either side may demand a trial de novo within 30 days of service of the award, and the party demanding it that does not improve its position by at least 25 percent can be ordered to pay the costs of trial and attorney’s fees. The prevailing party in arbitration may be allowed reasonable attorney’s fees. Section 481I-3(j) requires any court action to begin within one year after the rights period ends, so the practical deadline is one year plus the rights period.

A worked example (hypothetical)

A car is delivered on March 1, 2026 for $30,000. The rights period ends March 1, 2028 (or earlier if the odometer reaches 24,000 miles), and an action must be filed by March 1, 2029 on the two-year reading. The same transmission fault is repaired three times, and the owner had driven 6,000 miles at the third attempt. The offset is 1 percent of $30,000 for each thousand miles: $300 times six, or $1,800. The refund is the price and the collateral and incidental charges, less $1,800. No real person is described.

What this page does not cover

This tool screens answers against chapter 481I as published on the DCCA website. It does not decide whether your vehicle qualifies as a covered vehicle or a substantial impairment, calculate collateral or incidental charges, handle leases, or tell you whether to choose arbitration or court. It assumes the rights period is two years from delivery and warns when mileage may end it sooner. For a real claim, use the DCCA program and consider a lawyer.

Sources

Read November 2, 2026. Figures are copied from the pages below on that date; agencies change them, so confirm on the official page before you pay or file.

• Hawaiʻi Revised Statutes chapter 481I (DCCA copy, amended 1115): the definitions, rights period, presumptions, refund and offset, arbitration fees and the one-year deadline.
• DCCA RICO, Hawaiʻi’s Lemon Law: what the State Certified Arbitration Program is and who it helps.
• DCCA RICO, Manufacturer Information: the pointer to HRS chapter 481I and Hawaiʻi Administrative Rules chapter 181, and the $200 manufacturer filing fee.