Comprehensive Guide: Everything You Need To Know About California Lemon Law

Aug 19

Buying a vehicle is a significant investment, and when your new car starts to show persistent defects, it can be incredibly frustrating. Fortunately, California has strong consumer protection laws in place, known as the California Lemon Law, which helps vehicle owners who find themselves in this unfortunate situation. This guide provides a comprehensive overview of California's Lemon Law, explaining what it is, how it works, and what you need to do if you think your car qualifies as a lemon.

What Is the California Lemon Law?

The California Lemon Law, formally known as the Song-Beverly Consumer Warranty Act, is designed to protect consumers who purchase or lease new or used vehicles that turn out to be defective. If a vehicle has a substantial defect that the manufacturer or dealer cannot repair after a reasonable number of attempts, the Lemon Law requires the manufacturer to either replace the vehicle or refund the purchase price.

The law is meant to ensure that consumers don’t have to endure the burden of owning a vehicle that doesn’t meet the basic standards of reliability and safety. It applies to vehicles that are still under the manufacturer's warranty and covers a wide range of vehicles, including cars, trucks, SUVs, motorcycles, and even certain recreational vehicles and boats.

Key Criteria for a Lemon Law Claim

Significant Defect

To qualify for protection under the Lemon Law, the vehicle must have a substantial defect that impairs its use, safety, or value. This could be anything from a malfunctioning engine to defective brakes or electrical issues. However, minor issues like cosmetic flaws or simple wear and tear typically do not qualify as substantial defects.

Reasonable Repair Attempts

The manufacturer or dealer must have made a reasonable number of attempts to repair the defect. While the law does not specify an exact number of repair attempts required, the general guideline is:

Two repair attempts for a defect that could cause death or serious bodily injury if the vehicle is driven.
Four or more repair attempts for any other substantial defect.
If the vehicle has been out of service for repairs for a total of 30 days or more, it may also be considered a lemon.

Warranty Coverage

The defect must occur within the period covered by the manufacturer’s warranty. This means that if the problem arises after the warranty has expired, the Lemon Law may not apply. However, if the issue was reported during the warranty period and the manufacturer failed to repair it after several attempts, you may still have a valid claim.

Your Rights Under the California Lemon Law

Replacement or Refund

If your vehicle meets the criteria for a lemon, you are entitled to either a replacement vehicle or a refund. The manufacturer is required to provide a vehicle that is substantially identical to the one you purchased, free from defects, and with the same warranties as the original vehicle.

If you opt for a refund, the manufacturer must reimburse you for the full purchase price of the vehicle, including any down payment, monthly payments, registration fees, and incidental costs like towing and rental cars. However, the refund will be adjusted based on the mileage you’ve driven the car before the first repair attempt, often referred to as the “mileage offset.”

Incidental Costs

In addition to the vehicle's purchase price, you are entitled to recover any incidental costs that were directly related to the lemon. This includes expenses such as towing charges, rental car fees, and any other out-of-pocket expenses incurred while your vehicle was in the shop for repairs.

Attorney's Fees

One of the benefits of the California Lemon Law is that it allows you to recover attorney’s fees from the manufacturer if you win your case. This means that you can hire a Lemon Law attorney without worrying about upfront legal costs. Most Lemon Law attorneys work on a contingency basis, meaning they only get paid if you win your case.

Steps to Take If You Have a Lemon

Keep Detailed Records

Maintaining thorough records is crucial in a Lemon Law case. Keep all repair orders, receipts, and any correspondence with the dealer or manufacturer. Document each repair attempt, including the date, the nature of the defect, and the outcome of the repair.

Notify the Manufacturer

Before filing a Lemon Law claim, you must give the manufacturer one final opportunity to repair the vehicle. This usually involves sending a formal letter to the manufacturer outlining the defect and previous repair attempts. Make sure to send this letter via certified mail so that you have proof of delivery.

Consult a Lemon Law Attorney

Navigating a Lemon Law claim can be complex, and having an experienced attorney can significantly increase your chances of success. A Lemon Law attorney can help you understand your rights, gather the necessary evidence, and negotiate with the manufacturer on your behalf. Many attorneys offer free consultations and only charge if you win your case.

California’s Lemon Law provides strong protections for consumers who find themselves stuck with a defective vehicle. If you believe your car may be a lemon, it’s important to take action quickly and follow the necessary steps to protect your rights. By understanding how the Lemon Law works and working with an experienced attorney, you can secure the remedy you deserve, whether that’s a replacement vehicle or a full refund.