Purchasing a vehicle is a significant investment, and when that vehicle turns out to be defective, California’s Lemon Law, known as the Song-Beverly Consumer Warranty Act, is in place to protect consumers. This law is designed to ensure that buyers of new, used and leased vehicles under warranty are not stuck with a motor vehicle with recurring issues impairing their safety, value or use.
While the state's Lemon Law offers robust protections, consumers can unintentionally waive their rights by making avoidable mistakes that may lead to losing a valid Lemon Law claim. For this reason, vehicle owners must be proactive and informed about when the Lemon Law applies from the moment they purchase a vehicle. Many claims are lost on technicalities, but by knowing your rights early and taking a few essential steps, you can avoid these costly errors and secure the compensation you are entitled to under the law.
In this blog, we will cover some critical considerations to help you safeguard your Lemon Law rights and avoid costly mistakes that could undermine your California Lemon Law claim.
The Importance of Understanding Your Rights
Knowing your rights under the California Lemon Law is crucial for several reasons. Firstly, it empowers you to recognize when a vehicle might be considered a lemon. Secondly, it helps you understand the steps you need to take to preserve your legal rights. And finally, this knowledge can prevent you from inadvertently waiving your claims or accepting unfavorable settlements.
1. Common Misconceptions About the Lemon Law
Many consumers misunderstand key aspects of California’s Lemon Law, which can lead to missed opportunities or the unintentional waiving of rights. Here are some of the most common misconceptions:
❌ Only New Cars Are Covered
One of the most prevalent myths is that the Lemon Law only applies to new vehicles. While it is true that the focus is often on new vehicles, California’s Lemon Law also covers leased and used vehicles if they are still under the manufacturer’s original warranty or if they come with an extended warranty. This means that if you purchase a used vehicle and it repeatedly experiences defects, you may still be entitled to protections under the Lemon Law. You can read more about it in our Lemon Law for Used Cars in California blog.
❌ You Must Have a Major Defect for a Claim
Many people believe that only serious, life-threatening defects qualify for a Lemon Law claim. However, in reality, any substantial defect that impairs the vehicle’s use, safety or value can be considered under the Lemon Law. Even a seemingly small issue, like an electrical problem that keeps recurring, may qualify if the car company or dealership is unable to fix it after several attempts. Read more about it in What Qualifies as a Lemon Car in California.
❌ You Can’t File a Claim After a Certain Number of Miles
Another misconception is that once your car has passed a certain number of miles, it is no longer eligible for Lemon Law protection. However, as long as the defect occurs within the warranty period (which can vary by manufacturer), it doesn’t matter how many miles are on the car when you file your claim. It is important to be aware of your vehicle’s warranty coverage to understand how long you are protected.
❌ You Must Give the Dealer Unlimited Chances to Fix the Car
Some consumers believe they need to give the dealer an unlimited number of opportunities to repair their defective vehicle. Under California’s Lemon Law, this isn’t the case. Suppose the dealer or car manufacturer has made a reasonable number of repair attempts (usually two or more for the same issue) and the problem persists. In that case, you may be eligible for a Lemon Law claim. Additionally, if the vehicle has been out of service for an extended period (typically 30 days or more), it may also qualify.
❌ The Manufacturer Will Automatically Buy Back the Vehicle
There's a misconception that once you file a Lemon Law claim, the manufacturer will quickly buy back the vehicle or replace it. In practice, manufacturers often resist these claims, offering low settlements or delaying the process. Consumers need to be prepared to negotiate or pursue legal action to get the full relief they deserve. This is why having all the necessary documentation, understanding what a buyback is and seeking legal representation is so important.
❌ Lemon Law Claims Are Too Expensive and Time-Consuming
Many consumers shy away from filing a claim because they believe it’s too costly or time-consuming. However, under California’s Lemon Law, if you win your case, the manufacturer is required to cover your attorney’s fees. This means you don’t have to bear the financial burden of pursuing your claim. While the process can take time, it is worth it to resolve issues with a defective vehicle and receive fair compensation.
By understanding the realities of California’s Lemon Law, you can avoid falling into these common traps and ensure you are fully prepared to assert your rights if you find yourself with a defective car.
2. Understand the Basics of California Lemon Law
To protect your rights as a car buyer, it is crucial to understand the fundamentals of California’s Lemon Law. Here’s what you need to know:
➡️ What Qualifies as a 'Lemon' Under the Law?
Under California's Lemon Law, a vehicle qualifies as a lemon if it has significant defects that impair its use, safety or value, and the manufacturer or authorized dealer cannot repair the problem after a reasonable number of attempts. Typically, a reasonable number of attempts is considered:
Two or more repair attempts for a serious safety defect, such as brakes or steering issues.
Four or more attempts for the same non-safety-related defect, such as issues with the electrical system or air conditioning.
If the vehicle has been out of service for 30 or more cumulative days, whether for one or multiple issues, this also qualifies as a lemon.
➡️ Defective Vehicle Definition
For a car to be deemed a lemon, the problem must be substantial. It’s not enough for the vehicle to have minor inconveniences; the defect must either:
Compromise the vehicle’s safety, such as faulty airbags or brake failure.
Hinder its functionality, like engine stalling or transmission issues.
Significantly reduce its value, meaning you are stuck with a car that no longer meets the standards expected for its make and model.
➡️ Applies to Both New and Used Vehicles Under Warranty
California’s Lemon Law extends to both new and used vehicles, as long as they are still covered under the manufacturer’s original warranty or an extended warranty. This means that if you buy a used car, you are still entitled to protection if the vehicle’s issues fall under the Lemon Law’s criteria during the warranty period.
➡️ General Timeline and Expectations
The timing of your Lemon Law claim is important. If you believe your car qualifies as a lemon, it is crucial to act quickly. Typically, you need to start the claim process within four years of discovering the defect or when you should have reasonably discovered it.
California’s Lemon Law does not require you to wait indefinitely for the dealership to resolve the issue. Once you have made a reasonable number of repair attempts, or if your vehicle has been out of service for a long period, you can pursue a claim to seek either a refund or replacement of the defective vehicle.
➡️ Keep in Mind the Mileage
To qualify under California law, the vehicle’s defect must occur within the warranty period, whether it's the manufacturer’s original warranty or an extended one. Most new car warranties cover the vehicle for three years or 36,000 miles, though this can vary by manufacturer. For used cars, the key is that the defect arises within the coverage period, regardless of how many miles you have driven or how long you have owned the vehicle.
➡️ Lemon Law Remedies
If a vehicle is determined to be a lemon, the consumer is typically entitled to one of the following remedies:
Buyback: The manufacturer repurchases the defective vehicle, including the refund of the purchase price, taxes, fees, and incidental costs like towing and rental fees.
Replacement: The manufacturer must provide the consumer with a comparable replacement vehicle.
Repair Cost Reimbursement: Compensation for the cost of repairs that were unsuccessfully attempted to resolve the vehicle’s defects.
Refund of Incidental Expenses: Reimbursement for costs related to the vehicle defect, such as towing, rental cars, and other out-of-pocket expenses.
Attorney’s Fees Covered: If you win your case, the manufacturer is required to pay your attorney’s fees, meaning no out-of-pocket legal costs for you.
Cancellation of Financing: In a buyback case, the manufacturer may also cancel any remaining loan balance or lease obligations.
Understanding these basics will help you determine whether your vehicle is eligible for Lemon Law protection and ensure that you take the right steps to secure your rights.
3. Protecting Yourself from Unintentional Waivers
Understanding your Lemon Law rights is crucial, but it's equally important to know how to protect those rights. Unintentional actions can sometimes jeopardize your ability to pursue a Lemon Law claim. Here are some key areas to focus on:
✅ Documentation is Key
Maintaining meticulous records is paramount when dealing with potential Lemon Law issues as it serves as irrefutable evidence to support your claim. Key aspects of effective documentation include:
Sales and Purchase Documents: Retain all paperwork from your vehicle purchase.
Purchase Contract and Financing Agreements: These outline the terms of your purchase or lease and confirm ownership.
Warranty: Keep the manufacturer’s original warranty and any extended warranties or service contracts, which will determine coverage for repairs.
Repair Orders and Service Records: Every repair attempt must be documented.
Record Every Visit: Ensure the date, reported issue and repairs are clearly listed in the service order.
Request Copies: Always ask for a service report after each repair, detailing what was done and whether the problem was resolved.
Communication Records: Keep track of all communications with the dealership or manufacturer.
Written Complaints and Responses: Retain emails or letters documenting reported issues and responses.
Phone Call Logs: Note dates, people spoken to and conversation details to track communication.
✅ Always Use an Authorized Dealer for Repairs
When dealing with potential Lemon Law claims, it is crucial to have your vehicle serviced at an authorized dealership. This is one of the key steps to ensure your rights are protected.
Why Use an Authorized Dealership?
Having repairs performed by an authorized dealer is important because it ensures that the manufacturer is directly involved in the repair process. Repairs by unauthorized mechanics may not only fail to resolve the issue correctly but can also invalidate your Lemon Law claim, as car manufacturers often require their authorized dealers to handle repairs under warranty.
Ensure Accurate Problem Descriptions
When you take your vehicle in for repairs, make sure the dealership accurately documents the problem in the service order. This documentation is vital for building a Lemon Law case, as it shows the specific issues you reported and how the dealer addressed them. If the problem is not described correctly, it can weaken your claim later.
Best Practices for Interacting with the Dealer
Review Repair Orders: Before leaving the repair shop, thoroughly review the paperwork to ensure that the reported issue is described in detail and that the repair attempt is properly documented.
Request Copies: Always ask for a copy of the service order or repair report to keep in your records.
✅ Beware of Arbitration Clauses
When purchasing a vehicle, it is important to be aware of arbitration clauses that may be hidden in your sales or warranty contract.
What Are Arbitration Clauses and How Do They Impact Your Rights?
An arbitration clause is a provision in a contract that requires you to resolve disputes through arbitration rather than going to court. If your vehicle has significant defects, this clause may prevent you from filing a Lemon Law lawsuit in court and instead require you to go through arbitration, where a neutral third party decides the outcome.
Mandatory Arbitration Agreements
Some vehicle purchase or warranty contracts include mandatory arbitration agreements, meaning you must use arbitration to settle any disputes about defects or warranty issues. This can limit your right to sue the manufacturer or dealership in court and potentially reduce the compensation you might receive. Arbitration tends to favor the manufacturer, as it can be a faster and less costly process for them.
What To Do If Your Contract Includes an Arbitration Clause
If you discover that your contract includes an arbitration clause, it is essential to carefully review the terms and understand how it might impact your ability to pursue a Lemon Law claim. Before agreeing to arbitration, consult with an experienced attorney to determine whether arbitration is the best route or if other options are available. In some cases, you may be able to negotiate the removal of the arbitration clause before completing the purchase.
✅ Avoid Accepting Quick Settlement Offers
When dealing with a defective vehicle, it may be tempting to accept a quick settlement offer from the manufacturer. However, settling too soon can come with significant risks.
Risks of Accepting a Settlement Too Soon
Early settlement offers are often less than what you are entitled to under the Lemon Law. Manufacturers may offer a quick resolution to avoid the cost and effort of a full Lemon Law claim. However, accepting these offers could mean settling for less compensation than you deserve, potentially leaving you with ongoing vehicle issues or costs that aren’t fully covered.
What to Look for in a Settlement Offer?
Before considering any settlement, make sure that the offer addresses all of your losses:
Repair Costs: Ensure the settlement covers all repairs that were attempted but didn’t resolve the issue.
Attorney’s Fees: Under the Lemon Law, you are entitled to have your legal costs paid by the manufacturer if you win, so check that these are included.
Vehicle Replacement or Buyback: The settlement should include a full replacement or buyback of the defective vehicle if necessary.
Consult a Law Firm Before Accepting Any Settlement
Before accepting any settlement in California, it is crucial to consult with a California Lemon Law attorney. An experienced attorney can help evaluate your legal claim, whether the offer is fair and whether it adequately compensates you for your losses. They can also negotiate on your behalf to ensure you receive the best possible outcome.
The Beck Law Office: Your Advocate for California Lemon Law Rights
When dealing with the stress of a defective vehicle, it’s essential to have a knowledgeable and experienced legal team on your side. We at The Beck Law Office have become a trusted partner to hundreds of California residents, helping them navigate the complexities of the state's Lemon Laws. With our extensive experience in handling claims against a wide range of vehicle manufacturers, our legal team is well-equipped to deal with major automakers, including Ford, General Motors, Honda and many others.
Our expertise spans decades of successfully managing legal cases against both domestic and foreign manufacturers, giving us the insight needed to handle the most complex lemon law claims. Our deep knowledge of the California Lemon Law ensures that your rights are fully protected, and we work tirelessly to get you the compensation you deserve.
Contact us today with confidence for a free consultation.
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