Defective New Car? California Lemon Law Buyback Guide
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“blog_title”: “Defective New Car? California Lemon Law Buyback Guide”,
“blog_content”: “
Defective New Car? California Lemon Law Buyback Guide
What Is California’s Lemon Law?
California’s Lemon Law is part of the Song–Beverly Consumer Warranty Act. If a manufacturer or its authorized dealer cannot repair a warranty-covered nonconformity after a reasonable number of attempts, the buyer may be entitled to a repurchase (buyback) or a replacement, plus appropriate damages (see Civ. Code § 1793.2(d)(2); § 1794).
Which Vehicles Are Covered?
The law generally covers new motor vehicles purchased or leased in California for personal, family, or household use. Certain small business vehicles also qualify if they meet statutory criteria (for example, under 10,000 lbs. GVWR and five or fewer vehicles registered to the business). Demonstrators and vehicles sold with the manufacturer’s new-vehicle warranty may qualify as “new motor vehicles” (see Civ. Code § 1793.22(e)). Limited protections apply to certain active-duty military purchases made out of state (see Civ. Code § 1793.25).
What Counts as a \”Lemon\”?
A nonconformity is a defect covered by the express warranty that substantially impairs the vehicle’s use, value, or safety. The consumer must present the vehicle to the manufacturer or an authorized dealer for repair opportunities (see Civ. Code § 1793.22(a)–(e); § 1793.2).
The Lemon Law Presumption
There is a rebuttable presumption of a reasonable number of repair attempts if, within the first 18 months or 18,000 miles: (1) a defect likely to cause death or serious injury has had two or more repair attempts, or (2) a defect has had four or more repair attempts, or (3) the vehicle has been out of service for repair more than 30 cumulative days. Conditions apply and a qualified dispute program may affect the presumption. Not meeting the presumption does not bar a claim (see Civ. Code § 1793.22(b)–(c)).
Your Options: Buyback or Replacement
If your vehicle qualifies, you may choose repurchase or replacement. A repurchase typically refunds the price paid or payable for the vehicle, subject to a statutory use offset. A replacement provides a substantially identical vehicle with appropriate adjustments and credits (see Civ. Code § 1793.2(d)(2)).
Mileage/Use Deduction
For repurchases, the manufacturer may deduct a reasonable amount for use before the first repair attempt for the defect. The formula uses miles at the first attempt divided by 120,000, multiplied by the purchase price (see Civ. Code § 1793.2(d)(2)(C)).
What a Buyback May Include
Repurchase generally includes: the price paid or payable for the vehicle (including transportation and manufacturer-installed options), plus sales/use tax, license and registration fees, and reasonable incidental damages such as towing and rental car costs attributable to the defect. Consequential damages may be available in appropriate cases. Treatment of finance charges, negative equity, aftermarket add-ons, and third-party products depends on the facts and law (see Civ. Code § 1793.2(d)(2)(B)–(C); § 1794(b)).
Reasonable Number of Repair Attempts
What is reasonable depends on defect severity, safety, number of attempts, and days out of service. Safety-related defects typically require fewer attempts than cosmetic issues. Maintain thorough documentation: each visit’s dates, concern stated, work performed, and days out of service (see California Attorney General overview).
How to Start a Lemon Law Claim
- Gather documents: purchase/lease contract, warranty booklet, repair orders, and communications.
- Continue using an authorized dealer for warranty repairs; describe the concern consistently.
- Check whether a state-certified dispute program exists; using it can affect the presumption, but you are not required to accept an unfavorable decision (see Civ. Code § 1793.22(c)).
- Consult a California Lemon Law attorney early to assess eligibility and strategy.
Practical Tips
- Use the same plain description of the defect on every repair visit to show repetition.
- Politely request test drives with a technician to reproduce intermittent issues.
- Keep photos, videos, and a simple log of dates, mileage, and symptoms.
- Do not authorize non-warranty modifications that could muddy causation.
- Ask for printed repair orders every time, even if “no problem found.”
Arbitration and Dispute Programs
Some manufacturers operate dispute programs recognized under California law. They can be faster and informal. Whether to try one depends on your goals and the program’s compliance. An unfavorable decision is not binding unless you accept it; using a qualified program may affect the presumption (see Civ. Code § 1793.22(c)).
Fees and Attorney’s Fees
If you prevail, the manufacturer may be required to pay your reasonable attorney’s fees, costs, and expenses, helping level the playing field (see Civ. Code § 1794(d)).
After a Buyback: Branded Title and Disclosures
When a manufacturer reacquires a vehicle due to nonconformity, California requires clear disclosures before resale and title branding as a “Lemon Law Buyback.” There are labeling and dealer disclosure duties (see Civ. Code § 1793.23; Veh. Code § 11713.12; and CA DMV guidance).
Common Pitfalls to Avoid
- Skipping authorized warranty repairs or using non-authorized shops.
- Failing to obtain printed repair orders each visit.
- Inconsistent problem descriptions across visits.
- Vehicle modifications that invite causation disputes.
- Waiting too long; warranty periods and deadlines matter.
Practical Checklist
- Report issues promptly during the warranty term.
- Use an authorized dealer for all warranty work.
- Keep every repair order and track days out of service.
- Save photos/videos and a simple symptom log.
- Review your warranty for dispute program details.
- Consult counsel early to assess eligibility and options.
FAQ
Do I need to use the manufacturer’s arbitration before I can sue?
No, California law does not require you to accept an unfavorable arbitration decision. A qualified program can affect presumptions, but you retain your court rights.
Can a used car qualify?
Demonstrators and certain vehicles sold with the manufacturer’s new-vehicle warranty may qualify as “new motor vehicles” under the statute. Otherwise, used-car remedies may depend on other laws or warranties.
How is the mileage deduction calculated?
It is generally miles at the first repair attempt divided by 120,000, multiplied by the purchase price.
What if the dealer says “no problem found”?
Insist on a written repair order, document symptoms, and return when the problem recurs. Consistent documentation is key.
How long does a buyback take?
Timelines vary with defect severity, appointment availability, manufacturer response, and whether arbitration or litigation is used.
Need help now? Talk with a California lemon law attorney.
Sources: Civ. Code § 1793.2; § 1793.22; § 1794; § 1793.23; § 1793.25; Veh. Code § 11713.12; CA DMV; CA Attorney General.
Disclaimer (California): This post provides general information about California law and is not legal advice. Reading it does not create an attorney–client relationship. Outcomes depend on specific facts and current law; consult a qualified attorney about your situation.
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- Preserve documents, photos, and communications immediately.
- Avoid recorded statements to insurers without counsel.
- Track expenses, lost income, and impacts as they occur.