Lemon Law for California

California’s automobile lemon law is best known for its new-car protections. But there are parts that apply to used autos.
For example, a new vehicle returned to a dealer because it is a lemon can be sold as a used vehicle. But the buyer must be given a written notice that it’s a “lemon law buyback.”
The notice has to list the vehicle’s problems and the work done on it. And the dealer must provide a one-year warranty against these problems.
No fair putting this information in extra-small print. The law specifies it must appear on a white sheet of paper in black type that is at least 10 points in size.
The law further requires that the “lemon car buyback” designation follow the vehicle through all future transfers of ownership.
Think of it as the “scarlet letter” for vehicles.

The dealer must perform a complete inspection of the vehicle and must provide consumers with a copy of the inspection report. Dealers are prohibited from advertising a vehicle as “certified” if:

• Odometer does not indicate the actual mileage of the vehicle.

• The vehicle was purchased under state or federal warranty law (repurchased by the manufacturer or dealer).

• The vehicle was damaged by accident, fire, or flood unless repaired to safe operational condition prior to sale.

• The title was branded as a Lemon Law Buyback, manufacturer repurchase, salvage, junk, non-repairable, flood, or similar designation.

• The vehicle has frame damage or was sold “as is.”

• The seller failed to provide the buyer with a complete inspection report of all components inspected.

Important: Inquire as to why the vehicle cannot be certified.

The California lemon law has certain requirements to prevent lemon laundering or recycling of lemon vehicles. According to the California law, the manufacturer must:

• Tell the buyer that the vehicle was repurcased due to the lemon law;
• Put a “lemon law buyback” decal on the lemon vehicle; Brand the title with the words “lemon law buyback“;
• Have the new buyer sign a disclosure form showing that the consumer was informed that the vehicle was a lemon law buyback;and
• Provide a one-year warranty for the defects that caused the manufacturer to buy back the lemon vehicle in the first place.

So, you feel that your vehicle has been subject to an “unreasonable” number of repair attempts, the vehicle has not lived up to your expectations of the “new car experience”, and you want to take these people on – good for you! Now do something about it!

It is always a good idea to write a letter to the manufacturer and tell them of your dissatisfaction with the vehicle, that it hasn’t lived up to the expectations of the new vehicle ownership “promise”, and that it  has been subjected to repeated warranty repair visits. Your warranty book has the address to write to the manufacturer. Your letter should include your name, the vehicle’s VIN # (vehicle identification number), and a short paragraph key-pointing your dissatisfaction. You should also request that their response to you be in writing. (maintains a physical record of written communications).

This is also a good juncture to call an experienced California lemon law attorney for a review of your vehicle’s repair history.  Top attorneys will provide a free case review and evaluation to those who request it.

You must learn to “navigate the waters” to your best advantage. You need to be fully aware that automobile manufacturer’s are always out to protect their best interests, not yours. I am not suggesting they are not there to help, but their idea of “help” in a lemon law situation is often nothing more than “working” the customer to come back in for another repair attempt to fix the vehicle’s un-repaired issue(s), or “buying off” the customer by offering “solutions” such as the refund of a few monthly car payments, and extended warranty, and the like. These are often the very same situations where the customer qualifies for a lemon law buyback, but unknowingly signs an agreement or release for far, far less than their actual entitlement.

Some consumers think that arbitration is way to “state their case”. It can be. You can actually “win”. You can also spend 2-3 months of your time and “lose”. Arbitration if one route that you can take, but I will give you one guess whom is funding the arbitration hearing – and it’s not you. Great as long as you know, going in, that the arbitrators are typically not attorneys, judges, or able to practice law. Great as long as you know that if you are denied at arbitration, that all the hearing information can be later used against you in a court trial by the manufacturer if they think it helps their case. Great as long as you know one of the most common “decisions” is to award the automobile manufacturer, through it’s dealer, another attempt at repairs. Arbitration is a tool, but not the ultimate tool.

If you are “lucky” enough to work with a manufacturer’s representative or agent, I highly suggest you keep everything in writing. Verbal communications are just that – verbal. The last thing you want to end up with is “he said – I said”. Hard to prove and often proves frustrating. It’s better when speaking to a factory representative/agent to politely say “please send me a fax or mail me what you are telling me (or proposing), so I can properly review it, and respond back to you in writing”.

California is one of a few states that feature in its lemon law what is known as the “fee shifting” provision. In California, the attorney’s fees and costs in a lemon law case are “shifted” to the automobile manufacturer to pay, making legal representation not only practical, but often necessary to fully protect the customers legal rights and legal entitlement. I suggest you consult with an experienced California lemon law attorney regarding your vehicle situation.

The Greek people do not have the franchise on myths or mythology.  California consumers have their own set of unique myths when it comes to automobile dealerships and/or their selling/servicing dealer.
Here are some of the most common myths, so you can understand them, and adjust your thinking:

1.  “My Car Dealership should Help me”. 
Huge misconception. Yes, they want you to be happy to buy another car or buy service, but they are not the party that facilitates the lemon law buyback. The automobile manufacturer does. I hear horror stories of people threatening their car dealer with lines like “this car is a lemon, you have to take it back and give me my money back”, or “I’ll sue you” Hilarious. The car dealer is simply the franchisee of the automobile manufacturer. They don’t have to do anything for you. They just sell and repair the cars. The ultimate responsibility for a lemon law claim rests with the automobile manufacturer. Oh, sure, the dealer will be more than happy to trade you out of your present “lemon” vehicle and make a ton of money off you, and you lose your equity (or worse yet ‘buy’ negative equity into the next contract). They are simply helping themselves to another sale, not helping you at all, and that is not “lemon law”. No, they have no duty to help you in a lemon law case. If they choose to “get in the middle” on your behalf, then watch out for future repair visits coming back with wording on the Repair Order Invoice of “no problem found” or “cannot duplicate customers concern”. The Service Department talks with the Sales Department. They see opportunity to sell another car instead of fixing yours. Yes, it happens more than we want to think. Most consumers are best served to never mention “lemon law” or “buyback” to their dealer or dealer’s service department personnel. This topic belongs with the manufacturer. An experienced lemon law attorney can best advise you on this.

2.  Alternate transportation (AKA: loan car)
Here is another huge misconception. Consumers think that they automatically get a loan car if their car breaks down or goes in for service. WRONG! Your new vehicle limited warranty does not have a provision for alternate transportation/reimbursement/loan cars. Some dealers have a loan car system in place (courtesy car). This is a bonus if your dealer offers this. But no, the manufacturer nor the dealer have a duty to provide you with alternate transportation. Some customers purchase a “Service Contract” that provides for rental car reimbursement. This is different, and is not a factory warranty provision issue.

3.  “My salesperson is of no help to me”
They were there to make the commission off the sale of the car to you. That’s it. They have nothing to do with the California Lemon Law process.

4.  “My dealer told me that I’m getting a buyback”
WHAT buyback? If you complained to your dealer, unless and until you have a written “settlement and full release” document from the automobile manufacturer, you have nothing more than conversation. The only “buyback” is with a written settlement agreement by the manufacturer or their appointed agent, signed by them AND you. The potentially worse part of this “offer” is that when the automobile  manufacturer makes a “settlement and full release” document, they do NOT have to follow the California Lemon Law statute, as it’s “between you and them and goodwill”. I would strongly encourage you to consult with an experienced California Lemon Law attorney prior to signing any kind of legal document or “settlement” from an automobile manufacturer.

YES. A used car can qualify under the Lemon Law as long as it was sold with a written warranty and the vehicle was purchased primarily for personal, family, or household purposes. Sometimes a used vehicle is sold with two warranties, one from the dealer and one from the manufacturer.

If the vehicle was sold “as-is” or “with all faults” the Lemon Law probably will not apply, unless the vehicle was a former “lemon law buyback” and this was not properly disclosed to the purchaser.

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