The California Lemon Law is one of the most consumer-friendly lemon laws in the nation. The California Lemon Law was designed to protect consumers who purchase or lease new or used vehicles in California with a manufacturer’s warranty where the vehicle has been subject to repeated repairs for the same issue.
IS MY VEHICLE A “LEMON”?
The California Lemon law applies to new and used vehicles purchased or leased in the State of California that are sold with a manufacturer’s written warranty. If your vehicle has repeat problems that substantially impair the use, value OR safety of the vehicle that the dealer is unable to repair the problems after a reasonable number of repair attempts, or days out of service, then your vehicle may be a “lemon” entitling you to a refund or a replacement vehicle, or cash compensation.
Some of the most common vehicle defects that give rise to damages under the California Lemon Law include, but are not limited to, the following:
- Transmission failures
- Transmission shuddering conditions
- Grinding noises coming from the transmission
- Transmission shifting problems
- Engine failures
- Hesitation conditions
- Stalling conditions
- No-Start conditions
- Steering and suspension defects
- Electrical problems
- Air conditioner failures
- Infotainment system failures
- Lane departure system malfunctions
- Air bag defects
- Engine Oil Leaks
- Transmission Fluid Leaks
- Coolant Leaks
- Water Leaks
- Paint defects
- Power steering loss
- Suspension noise
- Alignment defects and pulling conditions
- Sudden and uncontrolled acceleration
- Suspension and brake vibrations and suspension noise
- Mold and mildew smells
WHAT AM I ENTITLED TO RECOVER IF I HAVE A “LEMON”?
If your vehicle is determined to be a “lemon,” you are entitled to have the manufacturer repurchase or replace your defective vehicle. Even if your vehicle does not meet the technical requirements to be considered a “lemon” you may still be entitled to cash compensation.
- If the Manufacturer repurchases your vehicle, you are entitled to recover:
- Down payment and monthly payments made to date;
- Collateral charges, such as tax, title and licensing fees;
- Incidental and consequential expenses, such as out-of-pocket tow and rental expenses, out-of-pocket repair expenses (not including maintenance items such as oil changes, replacement tires, tire rotations, etc.);
- Payment of your loan or lease balance; and
- Payment of your attorneys’ fees and costs.
- If the Manufacturer replaces your vehicle, you are entitled to:
- A vehicle that is substantially similar to your vehicle that includes any factory or dealer options that came with the original vehicle;
- Incidental and consequential expenses, such as out-of-pocket tow and rental expenses, out-of-pocket repair expenses (not including maintenance items such as oil changes, replacement tires, tire rotations, etc.);
- The manufacturer is responsible for any sales tax, license and registration fees for the replacement vehicle. However, you will be responsible for any price difference between the original vehicle and replacement vehicle;
- The balance of your finance or lease term will remain the same as your current vehicle as long as your lender agrees to a substitution of collateral. If not, or if you elect a replacement vehicle that is more than your current vehicle, you will need to refinance; and
- Payment of your attorneys’ fees and costs.
- Cash Compensation:
If your vehicle does not meet the technical requirements to be considered a “lemon” under the California Lemon Law, you may be entitled to receive cash compensation for the vehicle’s diminished value as a result of its defects as an alternative to a refund or replacement vehicle. If you receive cash compensation, you will keep your vehicle and receive a sum of money for the problems you experienced with it and you will remain responsible for any balance on your loan or lease obligation. Your warranty will remain in effect until it expires. You may also be able to recover damages that you incurred as a consequence of the manufacturer’s breach of warranty, such as alternate transportation costs. Finally, like the California Lemon Law, you may recover attorneys’ fees and costs.
- The vehicle is subject to at least two repair attempts for a defect that can cause death or serious bodily injury; OR,
- The vehicle is subject to repair at least four time for the same defect; OR,
- The vehicle is at the dealership for repair a total of 30 or more days for repair.
IS THE MANUFACTURER ALLOWED TO TAKE ANY DEDUCTIONS?
If the Manufacturer repurchases or replaces your vehicle the Manufacturer is allowed to deduct an offset for the time that you drive the vehicle prior to your first documented repair. The mileage offset is calculated by taking the mileage at the first documented repair for the issue that caused the vehicle to be a “lemon,” divided by 120,000 and then multiplied by the cash price of the vehicle.
For instance, if your first documented repair for a transmission issue was at 3,000 miles and you paid $40,000 for your vehicle, then the amount the Manufacturer would be able to deduct would be $1,000, calculated as follows:
3,000 miles/120,000 x $40,000 = $1,000
CALIFORNIA LEMON LAW PRESUMPTION:
In California, a vehicle is assumed to be a “lemon” if, during the first 18 months or 18,000 miles of ownership (whichever comes first), the vehicle has a defect or defects that substantially impairs the use, value OR safety of the vehicle and any of the following occurs:
CAN I STILL HAVE A CASE EVEN IF I DO NOT MEET THE CALIFORNIA LEMON LAW PRESUMPTION?
Yes! Often consumers incorrectly assume that they do not have a valid lemon law claim because they do not meet the criteria for the California Lemon Law presumption. The Lemon Law provides consumers with remedies for repeated repairs for problems that arise in the vehicle during the manufacturer’s warranty period. If your vehicle has been subject to repeated repair attempts for problems that started outside of 18 months or 18,000 miles, but during the terms of the manufacturer’s written warranty, then you may still have a valid lemon law claim and still may be entitled to receive a refund, replacement vehicle or cash compensation.
DO I NEED TO HIRE A LAWYER TO GET THE MANUFACTURER TO REPURCHASE OR REPLACE MY VEHICLE?
Although a consumer may file his or her own claim directly against the automobile manufacturer, we believe that our experience and expertise in this area will ensure that you receive the greatest compensation to which you are entitled.
Since 1995, Krohn & Moss, Ltd. Consumer Law Center® has successfully helped over 45,000 consumers nationwide to settle their lemon law disputes against automobile manufacturers, including nearly 10,000 lemon law cases in California alone. Less than 3 percent of these cases ever went to trial. We also have an A+ rating with the Better Business Bureau. Further, since the lemon law provides that the automobile manufacturer must pay for your attorneys’ fees and costs, we will seek payment for our fees from them. This way, you can receive compensation for your “lemon” vehicle at no cost to you!
DO I HAVE TO PAY ANYTHING TO HAVE YOUR FIRM REPRESENT ME?
The California Lemon Law contains a fee-shifting provision for the payment of attorneys’ fees and costs by the manufacturer, so that you, the consumer, do not have to pay anything to have one of our experienced and knowledgeable attorneys represent you in a claim against the automobile manufacturer.
WHAT DOCUMENTS DO I NEED TO SEE IF I HAVE A VALID LEMON LAW CLAIM?
Your repair records are the most important documents needed to determine if you have a Lemon Law claim. When you take your vehicle to the dealership for repair, it is extremely important that you ask the dealership for a receipt, called a “repair order.” You should read the repair order and make sure that it is accurate before leaving the dealership. Sometimes, dealerships will omit details of concerns you raised. Therefore, it is important that you ask the dealership to accurately record your complaint on the repair record, including the date that you drop off your vehicle and the date that you pick up the vehicle. Never leave the dealership without a copy of the repair order and make sure that you keep your repair records so that you will have this valuable evidence to help prove that your vehicle is a “lemon.”
HOW LONG DOES IT GENERALLY TAKE TO GET COMPENSATED?
The length of time to reach a settlement in a California Lemon Law case depends on many factors including the nature of the problems you have experienced and whether a lawsuit needs to be filed. While most cases will settle prior to a trial, the length of time to get to trial varies from County to County and even from Judge to Judge. No matter how long a case takes to be resolved, you control whether your lemon law case will settle. Quite simply, settlement is always your decision. A lawyer may recommend a settlement and counsel you on your rights, but a lawyer may never decide when to accept an offer of settlement. Only you – the consumer – have the right to say when enough is enough from a compensation standpoint. We strive to recover the maximum amount of compensation for our clients as quickly as possible and we have extensive experience working with all automobile manufacturers and their attorneys. With this experience, we are usually able to resolve California Lemon Law cases quicker and many of our clients’ cases get resolved without ever having to file a lawsuit in Court.
CONTACT KROHN & MOSS, LTD. CONSUMER LAW CENTER® FOR A FREE CASE REVIEW
If you believe you may have a “lemon” vehicle contact our office for a FREE CASE REVIEW. We will use our experience handling thousands of Lemon Law claims to provide you with an assessment of your case. We will also advise you of your rights and remedies and will answer all of your questions. As consumer advocates, our goal is to get you the recovery that you deserve and we won’t get paid a dime unless we do!