How the California Lemon Law Protects You
If you discover your vehicle has an unfixable flaw, you may have a lemon.
Here’s how California lemon law protects you.
If you purchase or lease a vehicle in California and discover it has problems that negatively affect its safety or your ability to drive, the California Lemon Law may help you settle the matter with the manufacturer.
In some cases, you may need to hire an attorney to resolve the issue in a satisfactory way.
Today, we’re taking a closer look at California lemon law so you have a better understanding of your rights as a consumer.
California Lemon Law
You have probably heard of someone saying they bought a lemon when referring to their new car purchase. It had either a major defect that couldn’t be repaired or it was always in the shop for any number of minor defects that kept recurring and needing repair. If this happens to you, is there any way to get satisfaction from the dealer?
In the past, car buyers had only the manufacturer’s warranty to protect them. Dealers tried to fix problems and manufacturers supported them while the car was under that warranty. But after the warranty expired, the car buyer was on his or her own and had to pay for repairs.
But more recently, new car warranty laws have been passed to protect the consumer, and one of the reasons was to address and limit the negative impact to car buyers who bought a “lemon.” The laws have become known as “lemon laws.”
All states have a lemon law, but they differ in how they address accountability, specifying that the remedies should be handled by either the car buyer, the dealer, or the manufacturer.
The lemon law states that if a car, deemed a “lemon,” cannot be fixed, the consumer must be compensated, either with a new car or with a cash refund.
California Law and Vehicle Nonconformance
California’s lemon law is known as the Tanner Consumer Protection Act. It covers new and used cars that are sold or leased in California and come with a manufacturer’s warranty.
The law defines a car lemon as a car that does not conform to the express warranties of the manufacturer after a reasonable number of attempted repairs.
A car is in “nonconformance” if the defect impairs its use, value, or safety. While not specifying the actual number of repairs needed, the law presumes a car to be a lemon if, within 18 months, the following actions have taken place and the car has not been repaired.
A car can be deemed a lemon if, after two or more attempts have been made to fixe a problem likely to cause serious injury or death if the car is driven.
It can also be deemed a lemon if four or more attempts have been made to fix a recurring problem or the car has been out of service for more than 30 days (total not consecutive) while attempting to repair any number of problems.
The remedy required is for the manufacturer to replace the car or reimburse the car buyer in an amount equal to the purchase price paid by the buyer – less any amount attributed to the buyer’s use of the car before the discovery of the defect.
If you think you purchased a “lemon,” you must first notify the manufacturer of the defect. If you are not offered a satisfactory settlement, you will likely be required to go to arbitration before you can file a lawsuit against the manufacturer in court.
Arbitration Process
Going to arbitration is a free process conducted out of court. It is a non-judicial process in which a single arbitrator (or a panel) analyzes both sides of the dispute and reaches a decision about what award, if any, should be given to you.
In most states, arbitration decisions are binding upon the manufacturer and if you accept the arbitrator’s ruling, the manufacturer cannot appeal, and the case is over.
On the other hand, the arbitrator decision, should it go against you, is appealable. If you don’t like the decision, you can go ahead and sue the manufacturer in court. For the best possible results, consider hiring an experienced consumer law attorney or California lemon law attorney.
Protection for Used Car Owners
What if you bought a used car?
If you purchased a used, pre-owned, or certified vehicle that’s still covered by the manufacturer’s warranty, you may be protected by California lemon law.
They cover cars purchased that have logged a certain number of miles. Or they cover only cars that have been sold once. Or they extend protection only if the used car would have been covered by the original warranty.
Challenging Unfair Warranties
You may feel that the manufacturer’s warranty is grossly unfair. Under consumer protection laws, you have the right to challenge it. The Magnuson-Moss Warranty Act is a federal law that protects you as the buyer of a product that costs more than $25 and comes with a written warranty. The Act allows you as a consumer to bring action and recover any attorney fees incurred during the lawsuit.
If you feel that the terms of the warranty are grossly unfair, you should consult an attorney to decide on the best course of action under this law.
Recalls and “Secret” Warranties
Some repairs, usually related to occupant safety, are so important that the car manufacturers are forced to publicize them and send notices directly to the car owners. These are known as “recalls” and, although they can cause negative publicity for the manufacturer, the defect should be taken care of as soon as possible. The manufacturer pays for the repair.
Sometimes, and no doubt partially because of this negative publicity, manufacturers will notice a design defect in existing vehicles on the market and send the notice to dealerships only. The manufacturer tells the dealer to do the repairs at no cost to the car owner.
This practice has been called secret warranties. The problem with it is that not all dealers follow the manufacturer’s directive. They wait until the car owner comes in and complains about the defect. Some states, including California, require that car owners be notified of these “secret warranties.”
Resources
If you want to check a vehicle’s history, try the National Motor Vehicle Title Information System (NMVTIS). Ask your used car licensed dealer to show you the NMVTIS report on your car of interest.
Find out if a vehicle has been repaired or if it has a safety recall by checking the National Highway Traffic Safety Administration and the Center for Auto Safety websites.
To find out if the repair shop you are considering is registered (as it should be) with the state, check the California Bureau of Automotive Repair (CBAR). You can find out if any disciplinary action has been taken against the repair shop.
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