What Is Lemon Law?

Every year, 150,000 “lemons”, or defective vehicles, are sold in the state of California. Despite a manufacturer’s best intentions, mistakes are bound to happen. This makes it impossible for every factory-made vehicle to work perfectly when it arrives on the lot. Because of this, the state of California has instituted ‘lemon laws’ to protect consumers when they have the misfortune of leaving the lot with a lemon. California’s lemon laws state that if a manufacturer cannot repair a consumer good after a reasonable number of attempts, they must refund or replace it. Our team at Golden Lemon by Compass Law Group, LLP are experts in California lemon law and have the knowledge and skills to help you get the compensation you deserve.

California Lemon Laws Provide Protection to Consumers for Defective Products

If you’ve purchased or leased a vehicle in the state of California and have repeatedly found yourself in the repair shop for the same problems time and again, the state’s lemon laws are here to help. A car is a huge financial investment, so when it ends up costing you more in repairs than you originally spent, your frustrations and concerns are valid and there are actions you can take. As a California consumer, you have rights that allow you to file a lemon law claim with your vehicle’s manufacturer and demand a refund or replacement.

So how do California’s lemon laws work? California’s lemon law, the Song-Beverly Act, covers consumer goods that are purchased or leased for personal, family, or household use. It applies to most consumer goods with a warranty, covering everything from clothes to food to over-the-counter drugs. That includes vehicles like cars, trucks, and motorcycles. The general rule of thumb is that the product must be deemed irreparable after several attempts to fix it and it must not have sustained damage that led to malfunctions under the consumer’s care.

The only catch — to claim compensation through a lemon lawsuit, your vehicle must be under warranty. If your vehicle does not have a warranty, it will be difficult if not impossible to win a refund or replacement through a lemon law claim.

If you’d like to read the fine print yourself, you can find the Song-Beverly Act in the California Civil Code at the beginning of section 1790.

What Do the California Lemon Laws Do?

California’s lemon laws mandate that a consumer product’s manufacturer provide the following.

Offer adequate repair facilities in California so the consumer can access these facilities without difficulty or strain.
Ensure that repairs do not take longer than 30 days.
Only allow a set number of repair attempts to fix the defective good.
Offer the consumer a replacement or refund plus compensation for repairs, legal fees, etc. on a case-by-case basis

If you’ve had the misfortune of spending your hard-earned money on a lemon, you can rest assured that the state laws of California will protect your rights. When you team up with an experienced lemon lawyer who knows how to leverage those laws, you can count on getting the compensation you deserve.

What Does Lemon Law in California Cover?

California’s lemon law is quite wide in encompassing various types of consumer goods. However, there are exclusions and exceptions to that general rule. For example, to qualify for compensation under the lemon law, a consumer good must be under warranty and must not have been damaged as a result of the consumer’s own negligence. When it comes to vehicles, California’s lemon law covers the following.

Cars
Pickup Trucks, SUVs, & Vans
Chassis, chassis cab, and motorhome drivetrain
Boats and watercraft
Used vehicles
Dealer-owned vehicles and demonstrators
Vehicles purchased or leased for personal, family or household use
Many vehicles that are purchased or leased for business use

It is important to note that the California lemon law does not cover any of the following.

Vehicles that are not under warranty
Vehicles that are not registered under the California Vehicle Code, such as off-road vehicles
Vehicles that have been abused

What Counts as a “Lemon” Under the Lemon Car Law in California?

If you plan to file a lemon law claim or suit in the state of California, it’s important that you are certain your car is a lemon in order to avoid wasting time, money, and getting your hopes up. So what exactly counts as a lemon in California?

Vehicles that have an existing and active warranty.
Your car was purchased through a certified dealer or manufacturer. Lemon laws only cover consumer goods, which excludes any goods purchased through a private party.
Vehicles that cannot be fixed after a reasonable amount of attempted repairs. This means that the manufacturer or dealer of your vehicle has been given ample opportunity to repair your vehicle, but has failed to.
Vehicles with material defects, meaning the malfunction(s) significantly affect the vehicle’s safety and/or ability to function

If you have any doubts about whether your defective vehicle qualifies as a lemon, fill out our free 2-minute case evaluation form or give us a call to chat with an attorney about your claim. An attorney from Golden Lemon by Compass Law Group, LLP will be happy to assist you in determining if your vehicle qualifies as a lemon and can help you navigate filing your claim.

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How Does the California Lemon Law Work for a New Car vs an Old Car?

You may be wondering whether your car is eligible for a refund or replacement depending on whether it is new or used. Luckily, California lawmakers have already considered this and put laws in place to protect the buyers or newly-purchased vehicles regardless of whether they are new or used. That said, the lemon laws for new and used automobiles differ. Keep reading to learn about each one.

Lemon Law for New Cars in California

In order for a vehicle to be covered by California’s lemon law, it must be under warranty. When you purchase a new car, be sure to keep a record of your new car’s warranty information.

Additionally, as soon as it starts showing signs of malfunction, take it to an authorized manufacturer repair shop. Be sure to go into detail about each of the problems you are experiencing and ensure that each problem is on your service order. Keep all documents and records of each repair attempt.

Remember, the dealership is not on your side. They may feign friendliness, but at the end of the day, they work for the manufacturer. They might make excuses for your car’s issues or even try to blame you for them. If this happens, contact a lemon lawyer immediately.

Lemon Law for Used Cars in California

Many American consumers opt for a pre-owned vehicle for economic reasons. However, even certified pre-owned vehicles can be deemed a “lemon” and therefore California has specific laws to protect used car owners. However, there are special considerations to keep in mind.

As with new vehicles, used cars must also be under warranty to qualify for compensation in the state of California. This can be the car’s original warranty that came with the vehicle when it was new, or it can be an extended warranty for a pre-owned vehicle that has been certified. A certified pre-owned vehicle that you purchase from a dealer is an example of a vehicle covered under warranty.

There is a catch. Many used vehicles, even those purchased from reputable dealers, may have an expired warranty. Before closing on any used vehicle, be sure to request and review all warranty documents from the dealer. That way, you won’t walk off the lot and end up stuck with a lemon you can’t do anything about.

Further, it is important to know that privately sold vehicles purchased from an individual rather than a dealership are not covered by California’s lemon laws. Regardless of whether the vehicle still has a warranty, the Song-Beverly Act only covers consumer goods, excluding privately sold vehicles from coverage under this lemon law.

Compensation: How Much Might You Collect?

So your car is a lemon? You may be curious about how much compensation you could receive from the manufacturer. This amount varies on a case-by-case basis, but you could be entitled to as much as three times the total amount you paid for the vehicle in the first place. However, it is difficult to estimate an exact dollar amount for lemon law claims because each case is unique. That said, understanding the way compensation is calculated may provide some insight into how much compensation you could be entitled to. Typically, in California compensation comes in a few different ways as described below.

Refunds (Buybacks)

One option that is offered to successful lemon law claimants is a vehicle refund or buyback. In this case, all fees related to your purchase will be refunded. This includes everything from sales tax to license and registration fees to financing charges.

However, one drawback you may experience if you opt for a refund is that the manufacturer may deduct a limited amount of money from your refund to compensate for the time you drove the vehicle before the issues arose. This deduction is referred to as a “mileage offset” or “usage fee.” This fee can be calculated using the following formula.

Replacement Vehicles

If you enjoyed your car before the defect arose, you can also elect to receive a vehicle replacement from the manufacturer. The new vehicle must be substantially similar to your original one and the manufacturer must pay all taxes and fees associated with the sale. If you financed your lemon, you’ll most likely continue to pay off your loan as if you never received a new vehicle.

One important thing to consider is that your desired replacement vehicle may not be available. This is especially true if your car is older, as manufacturers sometimes discontinue models or run into supply chain issues. Just keep in mind that a replacement may not always be an option for every claimant. At Golden Lemon, our clients’ wants and needs are top of mind. If it is a replacement that you’re after, we’ll do everything in our power to get one for you.

Civil Penalties

On top of your refund or replacement, you may also be entitled to payments from civil penalties against the manufacturer. If valid, these penalties can be worth up to twice the worth of your refund or replacement.

Keep in mind that civil penalties are only applicable in cases where the manufacturer knowingly broke California’s lemon law. Proving this can be difficult, but not impossible. The earlier you reach out to a lemon law attorney, the higher your chances are of recovering civil penalties.

Attorney's Fees

If you know your car is a lemon, but you’re worried about affording lawyer fees, don’t sweat it. In the state of California, your vehicle’s manufacturer is required to cover your attorney’s fees in a successful lawsuit. At Golden Lemon by Compass Law Group, LLP, we believe that consumers should never have to pay for legal fees out-of-pocket. We work on a contingency basis, which means that you don’t have to pay us unless we win your case. Our livelihood depends on winning your case, so you can trust that we’ll fight hard for your rights.

Plus, when we win your case, the manufacturer will cover our fees on top of your compensatory refund or replacement. There really is no reason not to hire a lemon lawyer, and the longer you wait to file your claim the more you could be missing out on in compensation.

If you are curious about how much your lemon law claim could be worth, the best way to get an accurate estimate is to get in touch with a lemon lawyer.

Why Choose Us as Your California Lemon Law Firm?

At Golden Lemon by Compass Law Group, LLP, justice is our passion and we are dedicated to protecting consumer rights. We are aware that car companies will go to great lengths to avoid paying for their mistakes. However, we are not afraid to face even the biggest corporations when it comes to our clients. We understand better than anyone how frustrating and confusing it can be to try to navigate a lemon law claim. We are committed to our clients and that is why we operate on a contingency basis so that you won’t have to pay a penny unless we win– and even then, we will do our best to ensure that your legal fees are covered by the guilty manufacturer.