Understanding California's Lemon Law: After Warranty Rights

California's Lemon Law holds manufacturers accountable for defective vehicles. Typically, only vehicles covered by a warranty are eligible for a remedy under the Lemon Law. However, there are instances where owners of defective vehicles can file a Lemon Law claim even after their warranty has expired. If the defect in your vehicle was first noticed before the warranty expired, you may still be able to file a Lemon Law claim. This is because the Lemon Law states that if a car has a defect covered under warranty that the manufacturer can't repair after multiple attempts, the car's owner is entitled to have the car repurchased or replaced.

If the defect was found before the warranty ended

If you have a car with persistent repair problems in California, you can usually file a Lemon Law claim if the car is still under the manufacturer's original warranty. However, there are certain circumstances in which you may still be able to benefit from California's Lemon Law even if your car is no longer under warranty.

If the defect in your vehicle was found before your car's warranty ended, you may still have a valid Lemon Law claim in California. It is important to note that a Lemon Law claim arises only after multiple attempts have been made to repair the vehicle's defect. As long as the first attempt to repair the defect was made while the car was still under warranty, you may still have a valid Lemon Law claim, even if the warranty has expired by the time it becomes clear that the defect cannot be repaired.

To preserve your claim, it is crucial to keep careful records of all repair attempts. Car manufacturers will likely attempt to reject Lemon Law claims filed after the warranty has expired, so you will need to present detailed records showing that the repair attempts began before the warranty period ended. Obtain a record of each repair attempt, even if the repair shop cannot recreate the problem when you bring in your car for maintenance. These records are essential, regardless of whether your vehicle is still under warranty.

In addition to keeping comprehensive records, it is important to act promptly if you believe you have a Lemon Law claim. There is a four-year statute of limitations for filing a Lemon Law claim in California, which begins from the date the owner learned of the issue. Furthermore, allowing more time to pass after discovering the right to file a claim may make it more challenging to find the necessary evidence to support your case. Therefore, it is advisable to consult with an experienced California Lemon Law attorney as soon as you become aware of a defect in your vehicle.

Implied warranty of merchantability

The "Implied Warranty of Merchantability" is a crucial aspect of California's Lemon Law, offering protection to consumers who purchase vehicles that are not explicitly covered by the standard provisions of the law. This warranty comes into effect when a vehicle is bought without a manufacturer's warranty, which typically excludes it from the Repurchase and Replacement remedies provided by the California Lemon Law.

However, this implied warranty ensures that consumers are not left with a faulty vehicle, or what is colloquially known as a "lemon." It guarantees that the vehicle purchased is ""in safe condition and substantially free of defects." This means that if the dealer sells a vehicle that is unsafe or has significant mechanical issues, they may be in breach of this warranty, and the buyer may have the right to return the vehicle and receive a refund under California's Lemon Law.

The conditions for the Implied Warranty of Merchantability to apply are outlined in the California lemon law statute (California Civil Code Section 1792). It is imposed on all "consumer goods" sold at retail in the state. "Consumer goods" refer to vehicles used for personal purposes rather than commercial or business use, and the "sold at retail" requirement restricts the warranty to vehicles sold by car dealerships within the state, excluding private party sales.

Additionally, this implied warranty does not extend to vehicles sold on an "As Is" basis. An "As Is" sale indicates that the vehicle is being sold without any warranties, and the buyer assumes full responsibility for any issues after the purchase.

The Implied Warranty of Merchantability sets out specific criteria for the vehicle's condition:

• The vehicle's mechanical condition must be good enough to "pass without objection in the trade under the contract description."
• It must be fit for the ordinary purposes for which vehicles are used.
• It must be adequately contained, packaged, and labeled.
• It must fulfill any promises made on labels or signs posted on the vehicle during the sale.

In essence, these requirements mean that the vehicle should be capable of providing safe and basic transportation. Minor issues, such as a malfunctioning stereo or excessive wind noise, are not covered by this warranty. However, if the vehicle has defects that prevent its intended use, such as an inability to start or drive, non-functional brakes, frequent stalling, or an inability to reach highway speeds, then the dealership may have breached the implied warranty of merchantability.

The duration of the Implied Warranty of Merchantability is also specified in the California lemon law statute (California Civil Code Section 1791.1(c)). It typically lasts for the same period as any "express warranty" that came with the vehicle's sale. If there was no express warranty or its length was not stated, the implied warranty lasts for a maximum of one year.

Four-year statute of limitations

California's Lemon Law is subject to a four-year statute of limitations, which means that car owners or lessees have four years to file a claim against the dealership or manufacturer from the date they experience warrantable problems with their vehicle. This time limit is crucial, as any case brought after the four-year period will be dismissed by the court, regardless of the reason for the delay.

The four-year clock starts ticking once the consumer becomes aware of the vehicle defect, not from the date of purchase or first use. This means that if a defect is discovered after the warranty has expired, the statute of limitations may still allow for a Lemon Law claim to be made. However, it is important to note that the longer the delay, the harder it will be to prove that the problem was sufficiently material to warrant a replacement vehicle.

To successfully file a Lemon Law claim, it is essential to demonstrate that the vehicle is a ""lemon", meaning it has a serious defect that "substantially impairs" the use, value, or safety of the vehicle, and that the manufacturer has been unable to repair the defect after a reasonable number of attempts. Therefore, it is crucial to keep detailed records of all repair attempts and to consult with a qualified Lemon Law attorney as soon as a defect is discovered.

Vehicles covered by California Lemon Law

California's Lemon Law covers a range of vehicles, including new and used cars, SUVs, vans, pickup trucks, and the chassis, chassis cab, and drivetrain of a motor home. It also covers dealer-owned vehicles, demonstrators, and vehicles purchased or leased for personal, family, or household use. Many vehicles purchased or leased primarily for business use are also covered.

To be covered by the Lemon Law, the vehicle must meet certain criteria. Firstly, it must have an existing warranty, which can be the original warranty that came with the new vehicle or a new/extended warranty for a certified pre-owned vehicle. The law does not cover vehicles with expired warranties, nor those sold "as is" without a warranty. Additionally, the vehicle must be registered under the California Vehicle Code and not have been abused or misused.

In terms of repair attempts, the law applies when a "reasonable" number of repair attempts have been made, typically four or more times for the same problem or two or more times for a severe issue that could cause death or serious injury. The problem must have occurred within 18 months of delivery or 18,000 miles, whichever comes first, and it must reduce the use, value, or safety of the vehicle. If these criteria are met, the vehicle owner may be entitled to a replacement or a refund.

Arbitration

If you are considering arbitration, you must first notify the dealer or manufacturer that your vehicle is a lemon. If the manufacturer responds within seven business days, you must allow them to make one final repair attempt. If this attempt is unsuccessful, you can proceed with arbitration.

There are two types of arbitration programs available: the State Lemon Law Arbitration Program and the Manufacturer-Sponsored Arbitration Program. To qualify for the State Lemon Law Arbitration Program, your car must have been purchased less than two years ago or still have a manufacturer's warranty. If the arbitrator decides your car is a lemon, you will receive a full refund; if they decide it is not a lemon, you will not receive anything.

Through the Manufacturer-Sponsored Arbitration Program, the arbitrator can award you further repairs, a partial refund, or a full refund. If you are unsatisfied with the manufacturer's final decision, you can request state arbitration. However, it is important to note that manufacturer-sponsored arbitrators may not always be neutral parties, and their decision can be used against you in court.

The arbitration process can be risky if you are unfamiliar with it, and it is not always in the consumer's best interest. Therefore, it is recommended to consult with a lemon law attorney before proceeding.

Frequently asked questions