Imagine purchasing a new car, only to find yourself back at the dealership multiple times for the same unresolved issue. Unfortunately, this is a reality for many Californians. In fact, it is estimated that around 150,000 vehicles sold in the United States each year are “lemons” – vehicles with significant, unrepairable defects.

To safeguard consumers from the financial and emotional toll of purchasing defective vehicles, California has enacted robust Lemon Laws. These laws are designed to protect consumers who buy or lease new and used vehicles that fail to meet quality and performance standards. Understanding Lemon Laws is crucial for consumers to ensure they receive the protection and compensation they deserve when faced with a defective vehicle.

Understanding Lemon Laws

Lemon Laws are state-specific regulations designed to protect consumers who purchase or lease vehicles that fail to meet quality and performance standards. These laws provide legal remedies for consumers stuck with defective vehicles, commonly referred to as "lemons." The primary purpose of Lemon Laws is to ensure that manufacturers uphold their warranties and to prevent consumers from bearing the financial burden of a faulty vehicle. If a vehicle cannot be repaired after a reasonable number of attempts, the manufacturer must either replace the vehicle or refund the purchase price.

Scope

California’s Lemon Law covers a broad range of vehicles, ensuring that consumers are protected regardless of the type of vehicle they purchase or lease. The law applies to:

• New Vehicles:
  • Cars, trucks, and SUVs purchased or leased with a manufacturer’s warranty.
  • Demonstrator vehicles and dealer-owned vehicles with low mileage.
• Used Vehicles:
  • Pre-owned vehicles sold with the balance of the manufacturer’s original warranty.
  • Certified pre-owned vehicles that come with an extended warranty from the manufacturer.
• Motorcycles:
  • Both new and used motorcycles are covered if they come with a manufacturer’s warranty.
• Recreational Vehicles (RVs):
  • Motorhomes, travel trailers, and other RVs purchased with a manufacturer’s warranty.

Additional Coverage:

• Leased Vehicles: The law applies to both purchased and leased vehicles, offering protection to consumers who lease their vehicles.
• Business Vehicles: Small business owners with vehicles used primarily for business purposes may also be covered, provided they meet certain criteria regarding vehicle weight and the number of vehicles owned.

Criteria for a Lemon Law Claim

A vehicle is considered a "lemon" under California's Lemon Law if it has substantial defects that affect its use, value, or safety and if these defects persist despite reasonable repair attempts. Specifically, a vehicle qualifies as a lemon if:

• The defect or defects substantially impair the vehicle’s use, value, or safety.
• The vehicle is covered by the manufacturer's original warranty or an extended warranty provided by the manufacturer.

Common issues that may qualify a vehicle as a lemon include serious engine problems, brake failures, transmission issues, and significant electrical malfunctions. Minor cosmetic issues or defects that do not significantly impact the vehicle’s functionality or safety typically do not qualify under Lemon Law criteria.

Reasonable Repair Attempts

Lemon Law outlines specific criteria to determine if a vehicle meets the threshold for being considered a lemon based on the number and nature of repair attempts:

• Number of Attempts:
  • Four Attempts Rule: The manufacturer or its authorized repair facility has made at least four attempts to repair the same defect, but the problem persists.
  • Serious Safety Defect Rule: If the defect is one that could cause death or serious bodily injury, the vehicle may be considered a lemon after only two unsuccessful repair attempts.
• Duration Out of Service:
  • 30-Day Rule: The vehicle has been out of service for a cumulative total of 30 or more days due to repair attempts. These days do not need to be consecutive but must be related to the same or similar issues.
• First 18 Months or 18,000 Miles:
  • The defect must have occurred within the first 18 months of delivery to the buyer or lessee or within the first 18,000 miles on the odometer, whichever comes first.

Documentation of Repair Attempts

Maintaining detailed records of all repair attempts is crucial. This includes repair orders, work invoices, and any communication with the manufacturer or dealer regarding the defect.

Manufacturer’s Responsibility

Under California’s Lemon Law, if a vehicle qualifies as a lemon, the manufacturer has several responsibilities:

• Repair Obligation:
  • The manufacturer must make a reasonable number of attempts to repair the defect. This includes covering the costs of parts and labor under the vehicle’s warranty.
• Replacement or Refund:
  • Replacement: If the vehicle cannot be repaired after a reasonable number of attempts, the manufacturer must offer to replace the defective vehicle with a new one that is substantially identical.
  • Refund: Alternatively, the manufacturer must offer to refund the purchase price of the vehicle. This refund must include the down payment, monthly payments, registration fees, and other incidental expenses related to the defect, such as towing and rental car costs.
• Deduction for Usage:
  • The manufacturer is allowed to deduct an amount for the consumer's use of the vehicle before the first attempted repair of the defect. This deduction is calculated based on the mileage driven before the first repair attempt.

Legal Recourse

If the manufacturer fails to comply with these obligations, consumers have the right to seek legal recourse. An experienced Lemon Law attorney can help navigate the process and ensure that consumers receive the compensation or replacement they are entitled to under the law.

Consumer Rights and Compensation

Replacement or Refund

When a vehicle is deemed a lemon under California’s Lemon Law, consumers have two primary options for compensation: a replacement vehicle or a refund.

• Replacement Vehicle:
  • The manufacturer is required to provide a new vehicle that is substantially identical to the defective one. This replacement should include the same features and options as the original vehicle.
  • The replacement vehicle must come with a full warranty, just as if it were a new purchase.
• Refund:
  • If the consumer prefers, they can opt for a refund instead of a replacement. The refund includes the purchase price of the vehicle, including any down payment, monthly payments made, and any other charges related to the purchase.
  • The refund also covers collateral charges such as sales tax, registration fees, and other official fees.
  • The manufacturer is allowed to deduct an amount for the consumer’s use of the vehicle before the first repair attempt. This deduction is based on the mileage driven before the first attempt to fix the defect.

Incidental and Consequential Damages

In addition to a replacement or refund, consumers may be entitled to reimbursement for incidental and consequential damages resulting from the defective vehicle.

• Incidental Damages:
  • These are expenses directly related to the defects and repair attempts. Examples include:some text
    • Towing Costs: Reimbursement for towing the vehicle to and from the repair facility.
    • Rental Car Costs: Coverage for rental car expenses incurred while the vehicle was out of service.
    • Repair Costs: Any out-of-pocket expenses for repairs related to the defect, if not covered by the manufacturer.
• Consequential Damages:
  • These are additional costs that occur as a consequence of the vehicle's defects. Examples include:some text
    • Lost Wages: Compensation for time taken off work to deal with repairs or attend arbitration or court hearings.
    • Travel Expenses: Costs for alternative transportation if the vehicle is out of service for an extended period.

Documenting Expenses

To claim incidental and consequential damages, consumers must keep detailed records and receipts of all related expenses. This documentation is crucial for proving the costs incurred due to the defective vehicle.

Attorney Fees

Under California Lemon Law, if a consumer's Lemon Law claim is successful, the manufacturer is required to pay the consumer’s attorney fees. This provision encourages consumers to seek legal representation without worrying about the cost.

• No Upfront Costs:
  • Many Lemon Law attorneys work on a contingency basis, meaning they only get paid if the case is successful. This arrangement allows consumers to pursue their claims without any upfront legal fees.
• Full Compensation:
  • The manufacturer must cover all reasonable attorney fees and court costs, ensuring that the consumer is not financially burdened by seeking justice.

Benefits of Legal Representation:

• Expert Guidance: An experienced Lemon Law attorney can navigate the complexities of the law, handle all communications with the manufacturer, and build a strong case.
• Maximized Compensation: Attorneys can help ensure that consumers receive full compensation, including incidental and consequential damages, as well as coverage for legal fees.
• Peace of Mind: Legal representation provides peace of mind, knowing that a knowledgeable professional is advocating for the consumer's rights.

Drake Law Firm

If you believe your vehicle qualifies as a lemon under California law, don't hesitate to take action. Contact Drake Law Firm today for a free consultation to discuss your case and understand your rights. Our experienced attorneys are ready to guide you through the Lemon Law process and ensure you receive the compensation or replacement you deserve.

Contact Information:

• Phone: 1-844-513-7253
• Los Angeles Office: 19935 Ventura Blvd, 3rd Floor, Woodland Hills, CA 91364
• San Francisco Office: 50 California St, 15th Floor, San Francisco, CA 94111
• Stockton Office: 2291 W. March Lane St, Suite A115, Stockton, CA 95207
• Fresno Office: 5588 N. Palm Ave., Fresno, CA 93704
• Website: Drake Law Group

At Drake Law Firm, we are dedicated to achieving the best possible outcome for our clients. We understand the frustrations and challenges that come with owning a defective vehicle, and we are committed to providing compassionate support and expert legal representation. Let us handle the legal complexities so you can focus on moving forward. Contact us today to learn how we can assist you.