California's Lemon Law, officially known as the Song-Beverly Consumer Warranty Act, is designed to protect consumers who purchase or lease new vehicles that turn out to be defective. Under the Lemon Law, if a vehicle has a defect that substantially impairs its use, value, or safety, and the manufacturer or its authorized dealers are unable to repair it even after a reasonable number of attempts, the manufacturer is obligated to either replace the vehicle or refund the purchase price.
Determining if Your Car is a Lemon
The term 'substantial impairment' is central to determining whether a vehicle qualifies as a lemon under California law. While the statute does not explicitly define 'substantial impairment,' it generally refers to defects that significantly affect the vehicle's use, value or safety. For instance, issues such as engine or transmission problems that hinder the vehicle's operation; defects that decrease its resale value, or safety-related concerns such as malfunctioning brakes are typically considered under this definition.
Knowing What Voids a California Lemon Law Claim
Understanding what can void your California Lemon Law claim is crucial to protecting your rights as a consumer. Certain actions, such as making unauthorized modifications, aftermarket work, neglecting routine maintenance, misusing the vehicle, or failing to report defects promptly, can jeopardize your ability to seek compensation. Additionally, if your vehicle has been in an accident or sustained damage due to owner negligence, manufacturers may argue that the issues are not covered under the Lemon Law process.
Understanding what constitutes a substantial impairment is crucial for consumers seeking relief under the California Lemon Law, as it directly impacts their eligibility for remedies such as vehicle replacement or refund.
In this blog, we will explore what the 'substantially impaired' standard means under California’s Lemon Law, how courts interpret it, examples of qualifying defects, recent legal updates, and the steps consumers should take if they suspect their vehicle qualifies for a Lemon Law claim.
Defining 'Substantial Impairment'
California's Lemon Law, under the Song-Beverly Consumer Warranty Act, mandates that for a vehicle to be considered a 'lemon,' it must have a defect that 'substantially impairs the use, value, or safety' of the vehicle. This means that the defect isn't minor or superficial but significantly affects the vehicle's functionality, market value or safety.
Case Law Insights
The term 'substantial impairment' isn't explicitly defined within the statute, leading courts to interpret its meaning based on specific circumstances. In the case of Lundy v. Ford Motor Company, for instance, the court highlighted that not every impairment meets the threshold. The court emphasized that 'substantial' introduces a degree of severity, implying that trivial issues don't qualify under this standard. Similarly, in Schreidel v. American Honda Motor Co., the court found that issues leading the owner to lose confidence in the vehicle, such as persistent problems worsening over time, could be considered 'substantial impairments'. The jury determined that the value of the vehicle to the buyer was significantly affected due to these ongoing issues.
Key Considerations for Determining Substantial Impairment
Factors that courts may consider when determining substantial impairment include:
The nature and severity of the defect.
The cost and duration required for repairs.
The success or failure of past repair attempts.
The degree to which the vehicle can be used while repairs are attempted.
The inconvenience experienced by the buyer.
The availability and cost of alternative transportation during repairs.
These factors help determine whether a defect significantly affects the vehicle’s overall reliability and performance from the standpoint of a reasonable owner.
Criteria for Determining 'Substantial Impairment'
Under California's Lemon Law, a defect must substantially impair the vehicle's use, value, or safety to qualify for relief. Understanding these criteria is crucial for consumers seeking protection under the law.
➡️ Use
A defect that hinders the vehicle's functionality or the owner's ability to operate it as intended affects its use. For example, persistent engine stalling, transmission failures, or issues with the braking system can render a vehicle unreliable or inoperable, thereby substantially impairing its use.
➡️ Value
Defects that significantly reduce a vehicle's resale or market value are considered substantial impairments. For example, a vehicle with a history of unresolved mechanical issues or one that has been repurchased by the manufacturer under the Lemon Law (resulting in a branded title) often experiences a diminished resale value due to the stigma associated with its defect history.
➡️ Safety
When defects pose a risk of serious bodily injury or even death to the driver, passengers, or others, thereby compromising safety, they meet the substantial impairment threshold. Examples include malfunctioning airbags, defective steering mechanisms, or brake failures, all of which can lead to serious accidents if not addressed promptly.
Examples of Substantial vs. Minor Impairments
Understanding the distinction between substantial and minor impairments is crucial in determining whether a vehicle qualifies as a lemon under California's Lemon Law.
Substantial Impairments
These are defects that significantly affect the vehicle's use, value, or safety:
Engine or Transmission Failures: Issues such as engine stalling, hesitation, or complete transmission failure can render a vehicle inoperable or unreliable.
Brake System Malfunctions: Substantial defects such as pulsation upon braking, difficulty stopping, or grinding noises can compromise the vehicle's safety.
Electrical Issues Causing Safety Hazards: Failures in critical electrical components, such as malfunctioning airbags or headlights, can pose significant safety risks.
Minor (Non-Substantial) Impairments
These are issues that do not significantly impact the vehicle's use, value, or safety:
Cosmetic Defects: Minor issues such as paint imperfections or small dents that do not affect the vehicle's functionality or safety.
Non-Essential Accessory Malfunctions: Problems with features such as the radio, air conditioning, or interior lights that, while inconvenient, do not impair the vehicle's primary functions.
You can read more about spotting the tell-tale signs of a lemon vehicle, here.
Recent Changes to California's Lemon Law
California's Lemon Law has recently been updated, bringing significant changes that affect both new and used vehicle buyers. Effective January 1, 2025, these revisions are reshaping consumer protections, introducing key updates that impact how Lemon Law claims are handled. These changes include:
Legislative Amendments
A new law signed in September 2024 aims to address the increasing backlog of lemon law cases in California courts. The law introduces procedural changes intended to expedite the resolution process for defective vehicle claims. However, critics argue that these changes may weaken consumer protections by reducing the time frame to file claims and limiting potential rebates. Notably, the period during which consumers can invoke the Lemon Law has been shortened from the vehicle's entire warranty life to six years.
Supreme Court Ruling on Used Vehicles
In October 2024, the California Supreme Court ruled that the state's lemon law does not obligate manufacturers to honor warranties for used vehicles resold within the original warranty period. This decision means that consumers purchasing used cars with remaining manufacturer warranties may no longer be entitled to repairs or replacements under the Lemon Law. This decision has significant implications, as approximately 3.5 million used cars sold annually in California are affected. The court suggested that the Legislature could amend the law to include such protections for used car buyers if deemed necessary. But more recently, the legislature reformed the lemon law under Assembly Bill 1755 which it codified in Code of Civil Procedure section 871.20 et seq. which precludes the recovery under the lemon law for used vehicles.
These developments have created uncertainty among consumers regarding their rights when dealing with defective new or used vehicles. Lawmakers are considering further revisions to the Lemon Law to address these concerns and clarify consumer protections.
Steps to Take if You Suspect a Lemon
If your vehicle has a defect that significantly affects its reliability and overall performance, knowing what steps to take is essential to safeguard your rights under California's Lemon Law.
Here's what you need to do:
1. Documentation
Maintaining thorough and organized records is essential in building a strong Lemon Law case. Key documents to retain include:
Purchase or Lease Agreements: These establish your ownership or lease terms and the warranty coverage.
Warranty Information: Keep copies of all warranty documents to understand the coverage and duration.
Repair Orders and Service Records: For each repair attempt, obtain detailed records specifying the dates, reported issues, and actions taken.
Correspondence: Save all communications with the manufacturer or dealer, including emails, letters and phone call logs.
Comprehensive documentation serves as evidence of the defect and the efforts made to resolve it, which is vital for substantiating your claim under Lemon Law protection.
2. Legal Consultation
If you are stuck with a lemon, consulting with an experienced Lemon Law attorney can significantly enhance your chances of a favorable outcome. A California Lemon Law attorney can:
Evaluate Your Case: Assess whether your vehicle's issues qualify under the California Lemon Law.
Guide You Through the Process: Provide expert advice on the necessary steps and represent your interests in negotiations or litigation.
Counter Manufacturer Avoidance Tactics: Manufacturers often try to deny claims by blaming the defect on wear and tear, improper maintenance or driver misuse. An experienced Lemon Law attorney knows how to challenge these loopholes, ensuring the manufacturer takes responsibility.
While not mandatory, legal representation can be invaluable in navigating the complexities of Lemon Law claims.
3. Timely Action
Acting promptly is critical due to statutory time limits for filing Lemon Law claims. In California, the statute of limitations is typically four years from when you first experience the defect. However, recent legislative updates, such as Assembly Bill 1755 (AB 1755), have introduced specific timeframes:
Filing Deadline: A lawsuit must be filed within one year after the expiration of the applicable express warranty, but no later than six years after the vehicle's original delivery date.
Failure to adhere to these timeframes may result in losing your right to seek remedies under the Lemon Law.
By meticulously documenting your vehicle's issues, seeking legal counsel and acting within the prescribed time limits, you can effectively pursue a Lemon Law claim and protect your consumer rights.
Choose The Beck Law Office to Represent You
At The Beck Law Office, we specialize in helping California consumers navigate Lemon Law disputes and get the justice they deserve. As a dedicated California Lemon Law attorney, we bring over a decade of experience in successfully handling Lemon Law claims.
Personalized Approach
We have resolved hundreds of California Lemon Law cases, holding auto manufacturers accountable and ensuring our clients receive fair compensation. What sets us apart is our personalized approach. We pride ourselves on taking the time to understand your situation, keeping you informed throughout the process and fighting for the best possible outcome.
Whether your case requires negotiation or legal action, we have the experience and dedication to get you the results you deserve.
Contact Us Today
If you are dealing with a defective vehicle and believe you have a California Lemon Law claim, at The Beck Law Office, we are here to guide you through every step of the process, ensuring you understand your rights and options. We know how frustrating it is to deal with constant repairs and uncooperative manufacturers, and we are ready to fight on your behalf.
Contact us today for a free initial consultation, and let us help you get back on the road with confidence. We will work tirelessly to secure the compensation you rightfully deserve under California’s Lemon Law.
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