Lemon Law

Most states, including California, have what is known as a "lemon law. This gives consumers the right to obtain a refund or replacement if they buy or lease a lemon, or defective vehicle, that is under warranty. The law applies to all vehicles—both new and used—that are bought or leased primarily for personal, family, or household purposes. Business vehicles weighing less than 10,000 pounds may also qualify for protection under the lemon law as long as you have fewer than five vehicles registered to your business.

If a vehicle has a material defect when purchased and the authorized dealer cannot repair it after a reasonable number of attempts, the manufacturer must promptly replace or repurchase the product, provided the product is covered by a manufacturer's or retail seller's warranty. Any defect that first arises during the warranty period can lead to a lemon law case.

A material defect is defined as a defect which "substantially impairs the use, value, or safety" of the vehicle. What constitutes a reasonable number of repair attempts is best determined on a case-by-case basis, although a common benchmark is four times or 30 days in the shop. The number of repair orders, the number of days in the shop, the age, and the mileage are factors that will influence whether your vehicle qualifies as a lemon.

If your vehicle is a lemon, you are entitled to have it repurchased or replaced. If you choose a replacement vehicle, you are entitled to receive one that is "substantially identical" to the vehicle being replaced. If you choose a repurchase, you are entitled to a refund of all monies invested in the lemon: down payment, monthly finance payments, and payoff of the finance contract. For either a replacement or a repurchase, you are entitled to recover expenses such as towing costs, rental car fees, and repair costs. The warrantor is responsible for all taxes and licensing fees, but may charge you for your usage of the lemon vehicle prior to the first repair attempt for the defect.

The attorneys at Mehlman TerBeek LLP have represented clients in lemon law cases against all the major manufacturers. 98% of civil cases settle out of court; our goal is to make that process as efficient as possible. If you have bought or leased a vehicle that you believe to be a lemon, call our office at 925-935-3575 to discuss your legal options.