2025 California Lemon Law Updates

A drone view over the freeway cypress in Oakland, California during sunset with the downtown in the background - Lemon Law Attorney in Oakland, California

If you use a car to commute to work or school, a malfunctioning vehicle can significantly interfere with your daily routine—and even your livelihood. Fortunately, there are laws in place to protect consumers who unintentionally buy defective cars. 

Recent changes to these consumer protection laws have made it increasingly difficult for consumers to seek help, underscoring the importance of hiring an experienced California lemon law lawyer to obtain compensation for auto manufacturers’ mistakes. 

In the following guide, we will explain California lemon law’s key mechanisms and how the latest legislative changes have impacted them. If you own a vehicle that’s been in the mechanic’s garage more than yours, here’s what you need to know.

What is California Lemon Law?

The Song-Beverly Consumer Warranty Act, also known as California Lemon Law, is consumer protection legislation that holds car manufacturers responsible for producing vehicles with defects that compromise their drivability, safety, or overall value. Also known as “lemons,” these are automobiles that are fundamentally flawed beyond repair. 

To qualify as a lemon, your vehicle must meet the following requirements:

  • The manufacturer or dealer has made four or more unsuccessful attempts to fix the same issue.
  • Defects that could foreseeably lead to death or serious injury are unsuccessfully resolved after two repair attempts. 
  • Your vehicle has been in the shop for warranty-related repairs for more than 30 cumulative days.

Once these conditions have been met, the automaker must either repurchase or replace your vehicle. However, due to recent amendments to the lemon law in California, it is now more challenging for consumers to obtain a replacement or refund for their faulty vehicles. 

Key Changes

Here’s what changed:

Deadline Restrictions

California lemon law amendments have introduced stricter timeframes for consumer claims, requiring action within one year following warranty expiration and no more than six years from the delivery date. 

This significant change narrows the window for legal recourse, potentially excluding consumers who discover persistent vehicle defects late in their ownership. Vehicle owners now face more pressure to identify and document issues promptly, as delays could result in the forfeiture of California lemon law protection.

Vehicle Ownership or Control

The latest lemon law revisions require consumers to maintain possession of their vehicles for at least 30 days after submitting pre-suit notice—and potentially 30 additional days if the manufacturer offers a replacement or repurchase. 

This new requirement complicates the claims process for consumers, extending their ownership of unreliable or dangerous vehicles.

Advance Notice Before Legal Action

Under the 2025 California lemon law amendments, consumers must take an extra step to provide formal notification to manufacturers before pursuing civil penalty claims. This mandatory notice period allows manufacturers to offer a resolution before facing potential litigation, delaying consumers’ access to court remedies and giving manufacturers additional time to prepare defenses or settlement offers.

No Compensation for Negative Equity

The updated law excludes negative equity from reimbursement calculations, meaning consumers won’t recover any portion of previous loan balances rolled into their lemon vehicle purchase. This change can significantly reduce the total compensation amount for consumers who trade in vehicles with outstanding loans that exceed their trade-in value. 

This provision represents a substantial financial penalty for many California consumers, as they will remain responsible for previous loan balances even after successfully proving their case under California lemon law.

What’s Next?

A new bill, SB 26, gives auto manufacturers the option to adopt these changes. If they do so, they can benefit from streamlined procedures aimed at simplifying and reducing the costs associated with lemon law claims. 

Meanwhile, consumers will need to learn how to navigate different rules, whether the manufacturer has opted in or not.

Please visit the Department of Consumer Affairs’ website for more information on the new lemon law procedures.

What Prompted These Changes?

Woman looks under the hood of her lemon car on the side of the road in California

California’s lemon law reforms resulted from skyrocketing cases. With courts overwhelmed, systematic changes were necessary to preserve resources and prevent exploitation. 

Consumer advocacy groups strongly oppose these modifications, warning that stricter procedures create substantial barriers for legitimate claimants dealing with defective vehicles, especially those lacking legal expertise or resources to navigate the increasingly complex process. 

They also contend that these amendments undermine the original intent of lemon law in California by adding procedural hurdles when consumers have already been dealing with repeated vehicle repairs and are at their most vulnerable.

How Consumers Can Protect Themselves

Despite these challenges, California vehicle owners can continue personally advocating for their rights by taking the following steps throughout their vehicle ownership.

Document Everything

Keep records of every repair visit, including:

  • Detailed descriptions of problem
  • Dates of service
  • Work performed
  • Communications with dealership staff
  • Unusual driving experiences or warning indicators in between service appointments

Pay Attention to Critical Deadlines

  • Report problems immediately when they occur
  • Schedule repair appointments promptly
  • Be vigilant about warranty expiration dates
  • Take action within the new six-year limitation period to ensure your claim is valid

Research Vehicle History

  • Before purchasing any vehicle, always research its maintenance records, recall history, and warranty terms. Pay special attention to patterns of recurring problems reported by owners of the same make and model.

Seek Legal Guidance

  • Consult with a California lemon law lawyer at the first sign of persistent vehicle problems. Early legal intervention can significantly improve your position in light of the new lemon law amendments.

Why Hiring a Lemon Law Lawyer is Important

Lemon Law Attorneys in California review legal documents

Unlike these lemon law amendments, an experienced California lemon law attorney prioritizes consumers’ interests over those of automobile manufacturers. 

Don’t let a lemon compromise your safety and livelihood. If you’re experiencing recurring vehicle problems, Golden Lemon by Compass Law Group, LLP is here to help. Our resourceful team specializes in California lemon law claims, so our job is to stay informed on the changing legal landscape and help our clients navigate it successfully.

 At Golden Lemon, we’re driven to get you back on the road with confidence. Our experienced team has successfully handled thousands of lemon law claims, and we’re ready to put our expertise to work for you. Get started by filling out our 2-minute case evaluation form and scheduling a free consultation.

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