California Lemon Law: Does It Cover Automobiles?

The California Lemon Law applies to all types of consumer goods, including automobiles. The law holds manufacturers accountable for defective vehicles and requires them to provide a refund or replacement if issues persist after a reasonable number of repair attempts. This law covers both new and used vehicles, as long as they are still under warranty. The law also sets specific standards for used car dealers, such as requiring a minimum warranty for buy here, pay here dealers. While the California Lemon Law treats all consumer goods similarly, it does contain special rules for specific product types, including automobiles. For instance, it gives buyers of defective cars the right to demand a repurchase instead of a replacement.

What is the Lemon Law in California?

The California Lemon Law is a set of consumer protection laws that apply to various consumer goods, including vehicles. The law holds manufacturers responsible for defective products and mandates that they provide either a refund or a replacement if a defect cannot be repaired within a reasonable number of attempts. This law covers both new and used vehicles under warranty, protecting consumers who have purchased cars that are not working as they should.

The California Lemon Law covers most new vehicles and some used vehicles that are still covered by the manufacturer's warranty. This includes:

• Cars, pickup trucks, vans, and SUVs
• The chassis, chassis cab, and drivetrain of a motorhome
• Leased vehicles, pre-owned vehicles, and financed vehicles
• Demonstrators and dealer-owned vehicles
• Vehicles purchased or leased for personal, family, or household use
• Vehicles purchased or leased for business use, as long as the business has no more than five vehicles registered

The California Lemon Law does not cover vehicles that are not registered under the California Vehicle Code, such as off-road vehicles, or vehicles that have been abused. It also does not apply to private sales, even if the vehicle is still under warranty.

For a vehicle to be considered a lemon, it must meet certain requirements, including:

• An existing warranty: The vehicle must have been purchased with an express and active warranty.
• Purchase from a dealer or manufacturer: The law covers "consumer goods," not private party sales.
• Reasonable repair attempts: The manufacturer or dealer must have been given a reasonable number of opportunities to repair the vehicle.
• Material defect: The problem must substantially affect the vehicle's ability to function and cannot be a result of regular wear and tear or improper maintenance.

What to Do if You Believe You Have a Lemon

If you suspect that your vehicle is a lemon, you should gather all records of the dealer's repair attempts and contact an experienced California Lemon Law attorney. It is important to note that there is a statute of limitations for filing a claim under the California Lemon Law, typically within four years of discovering the defect.

Does the Lemon Law apply to used vehicles?

The California Lemon Law applies to both new and used vehicles, as long as they are still covered by a dealer or manufacturer's warranty. The law does not distinguish between new and used car purchases. As long as the vehicle meets the definition of a lemon, you can and should pursue compensation.

From 2013 onwards, the laws of California were amended to require that even "buy here, pay here" used car dealers must offer at least a 30-day or 1,000-mile warranty that covers the essential components of the car. However, most dealers that are not "buy here, pay here" will provide a better warranty, particularly if the vehicle is Certified Pre-Owned.

The California Lemon Law covers the following types of used vehicles:

• Cars, trucks, RV trailers, SUVs, and watercraft of any kind.
• Vehicles purchased or leased for personal, family, or household purposes.
• Vehicles purchased for commercial purposes, as long as the business has no more than five vehicles registered under its name and the vehicle's gross weight is below 10,000 pounds.

In Michigan, the Lemon Law generally does not apply to used vehicles. However, it may apply to a used vehicle if it is still covered by a manufacturer's express warranty at the time of purchase or lease, and the problem is reported to the manufacturer or its authorized dealer within one year from the date it was delivered to the original buyer.

What counts as a repair attempt?

The California Lemon Law defines a repair attempt as any time a consumer presents a vehicle to an authorized dealer for repair. This is true even if the dealer is unable to duplicate the problem or claims there is no issue with the vehicle. For example, if you take your car to an authorized dealer four times for a steering issue, and they claim to be unable to replicate the problem three of those four times, all four visits still count as repair attempts. You attempted to have the defect repaired four times, and that is what matters.

The number of repair attempts that are considered "reasonable" depends on the type of defect. For a serious issue that affects the safety of the vehicle and the welfare of the passengers, the manufacturer only gets one or two attempts to fix the car before they have met the "reasonableness" standard. This would apply if the defect was in the brake system, the steering system, the transmission, engine, or any other essential function of the car. If they are unable to get the vehicle in safe, working order after a couple of attempts, the Lemon Law requires them to compensate the owner.

If there is the possibility of death or severe bodily injury due to a recurring defect in the vehicle, then two or more repair attempts are considered reasonable before compensation is required. If four or more repair attempts have been made but the same non-life-threatening issue continues to recur and has not been fixed, then the reasonableness standard has been met and compensation is required.

In addition to the number of repair attempts, the "reasonable opportunity to repair" stipulation also takes into account the cumulative number of days the car is out of commission. In general, a cumulative total of thirty or more days in a repair facility is considered a reasonable opportunity to repair the vehicle. The car doesn't have to be in the shop for the same defect to qualify as a lemon. A car can be a lemon if it's brought in for multiple defects that require continuous repair, even if the dealership successfully fixes each one.

What is arbitration?

Arbitration is a form of private dispute resolution, where both parties agree to submit their case to a qualified, impartial arbitrator outside of court. The arbitrator, usually a retired judge or attorney, will render a decision at the end of the arbitration hearing, and this decision is final and binding.

In the context of California's Lemon Law, arbitration is a free and relatively simple way of resolving warranty problems. Both the consumer and the manufacturer agree to allow a neutral third party (the arbitrator) to decide whether a reasonable number of repair attempts have been made to fix a defective vehicle. The arbitrator's decision is made on a case-by-case basis and can include outcomes such as an additional repair attempt, replacement of the vehicle, or a refund.

One of the advantages of arbitration is that it is faster and less complicated than going to court. Decisions are typically made within 40 days of the program receiving the application. Additionally, if the consumer accepts the arbitrator's decision, the manufacturer must also accept it. If the consumer rejects the decision, they still have the option to sue in court.

It is important to note that arbitration has been criticised for being pro-business rather than pro-consumer, and arbitrators are not required to apply the law. Therefore, consumers are generally advised to consult with an attorney before agreeing to arbitration.

What should I do if I believe I have purchased a lemon?

If you believe you have purchased a lemon, there are several steps you should take to protect your rights and seek compensation under California's Lemon Law. Here is a detailed guide on what to do:

Keep Detailed Records:

Whenever you take your vehicle for repairs, ensure you get written documentation from the mechanic outlining the repairs that need to be done. Keep records of the defects, the number of repair attempts, and the outcomes of each attempt. It is also advisable to make a comprehensive list of all the defects and send it to the manufacturer, so they are aware of all the issues.

Notify the Manufacturer:

Write a letter to the manufacturer to document your claim under the California Lemon Law. Have this letter notarized and send it via certified mail with a return receipt requested to the manufacturer's address provided in your car's owner's manual. Keep a copy of the letter for your records. This letter should be carefully drafted as its contents may have legal consequences.

Avoid Arbitration:

The manufacturer may suggest or push for arbitration, but it is generally recommended to avoid this route. Arbitration is a private procedure that is often seen as pro-business rather than pro-consumer. The arbitrator's decision may be used against you in court if you decide to pursue legal action later on.

Contact an Experienced Lemon Law Attorney:

Consulting with a qualified and experienced attorney who specializes in Lemon Law cases is highly advisable. They can guide you through the complexities of the law, protect your rights, and improve your chances of a successful claim. Most attorneys work on a contingency fee basis, so you won't incur any costs until you receive compensation.

Act Promptly:

While California's Lemon Law provides a statute of limitations of four years from the date of the breach of warranty to file a lawsuit, it is important not to delay taking action. The sooner you initiate the process, the stronger your case may be, and the faster you can resolve the issue.

Know Your Rights:

Educate yourself about your rights as a consumer under California's Lemon Law. The law is designed to protect consumers from defective products and provides for monetary compensation and other remedies. You have the right to seek a refund, replacement, or repurchase of your vehicle, as well as reimbursement for related expenses.

Frequently asked questions