Consumer Issues

California Lemon Law: Qualifying, Refunds, and Replacements

“Lemon law” is the everyday name for the vehicle provisions of the Song-Beverly Consumer Warranty Act, one of the statutes covered in California consumer rights: laws, complaints, and remedies. The law does not turn on how bad a car feels to drive. It turns on three things: whether the vehicle fits the statutory definition, whether the defect substantially impairs its use, value, or safety, and whether the manufacturer has already had enough repair attempts.

Which vehicles the lemon law covers

The definition that matters sits in Cal. Civ. Code § 1793.22(e)(2). A “new motor vehicle” is one bought or used primarily for personal, family, or household purposes. The definition also reaches business vehicles, but narrowly: a vehicle with a gross vehicle weight under 10,000 pounds bought or used primarily for business by an entity that has no more than five motor vehicles registered in California. A partnership, LLC, or corporation with a large fleet falls outside the statute.

Three categories often assumed to be excluded are actually inside it. Dealer-owned vehicles and demonstrators sold with a manufacturer’s new car warranty count. So does the chassis, chassis cab, and propulsion portion of a motor home, though the part built for human habitation does not. Motorcycles and vehicles not registered under the Vehicle Code because they are used exclusively off-highway are excluded. Vehicles sold used with a dealer warranty follow a narrower route, described in California lemon law for a used car.

Leases are covered on the same terms. Cal. Civ. Code § 1793.2(d)(2)(D) states that a buyer of a new motor vehicle includes a lessee of one.

The defect itself has to clear a threshold. Section 1793.22(e)(1) defines a “nonconformity” as one that substantially impairs the use, value, or safety of the vehicle to the buyer or lessee. A rattle that never affects how the car drives or what it is worth is not a nonconformity. A recurring stall, a brake fault, or an electrical failure that keeps the car off the road generally is.

The repair history that creates the presumption

California does not leave “a reasonable number of attempts” to argument alone. It supplies a presumption. Under Cal. Civ. Code § 1793.22(b), a reasonable number of attempts is presumed if any one of the following happens within 18 months of delivery to the buyer or 18,000 miles on the odometer, whichever comes first:

  • The same nonconformity creates a condition likely to cause death or serious bodily injury if the vehicle is driven, and it has been subject to repair two or more times.
  • The same nonconformity has been subject to repair four or more times.
  • The vehicle has been out of service for repair of nonconformities for a cumulative total of more than 30 calendar days since delivery.

The 30-day count is cumulative across visits, not consecutive. It extends only when repairs cannot be performed for reasons beyond the manufacturer’s control.

The presumption is rebuttable and affects the burden of proof. Section 1793.22(b) states it may be asserted in any civil action, including an action in small claims court, or in other formal or informal proceedings. ## Replacement or restitution: what the manufacturer owes Once the repair threshold is met, Cal. Civ. Code § 1793.2(d)(2) gives the manufacturer two options and gives the buyer the choice between them. The manufacturer must promptly replace the vehicle or promptly make restitution. The buyer is free to elect restitution instead of replacement, and the statute says in no event may the manufacturer require the buyer to accept a replacement vehicle. A replacement has to be a new motor vehicle substantially identical to the one being replaced, carrying all the express and implied warranties that normally accompany that model. On top of the vehicle, the manufacturer pays sales or use tax, license fees, registration fees, and other official fees connected with the replacement, plus incidental damages including reasonable repair, towing, and rental car costs actually incurred. Restitution is measured by the actual price paid or payable. That includes transportation charges and manufacturer-installed options, and it includes collateral charges such as sales or use tax, license fees, and registration fees. It excludes items a dealer or the buyer installed that did not come from the manufacturer. Incidental damages are added on the same terms as with a replacement. A separate timing rule sits earlier in the same statute. Under Cal. Civ. Code § 1793.2(b), unless the buyer agrees in writing otherwise, goods must be serviced or repaired to conform to the warranty within 30 days, extended by delays beyond the manufacturer’s control. ## How the mileage offset is calculated A buyer who drove the vehicle before the defect surfaced does not get that use for free. Cal. Civ. Code § 1793.2(d)(2)(C) sets the arithmetic for the amount attributable to the buyer’s use of a replaced vehicle. Take the actual price paid or payable, including transportation and manufacturer-installed options, and multiply it by a fraction: the numerator is the miles the vehicle traveled before the buyer first delivered it for correction of the problem, and the denominator is 120,000. On a $40,000 vehicle first brought in for the defect at 6,000 miles, the offset under Section 1793.2(d)(2)(C) is $40,000 multiplied by 6,000/120,000, or $2,000. Miles driven after that first repair visit do not increase the deduction, which is why the date of the first repair order matters more than the odometer reading on the day the buyback closes. The general rule for consumer goods in Section 1793.2(d)(1) works the same way in concept: the refund equals the purchase price less the amount directly attributable to use before the buyer discovered the nonconformity. ## Notifying the manufacturer, arbitration, and suing Two of the three presumption triggers carry a notice condition. Under Cal. Civ. Code § 1793.22(b), the buyer must have directly notified the manufacturer of the need for repair at least once for the two-repair safety trigger and the four-repair trigger. That obligation applies only if the manufacturer clearly and conspicuously disclosed the requirement in the warranty or owner’s manual, and notice goes to the address the manufacturer specified there.

Many manufacturers run an arbitration program. Section 1793.22(c) says that if a qualified third-party dispute resolution process exists and the buyer received timely written notice of it, the presumption cannot be asserted until the buyer has first used that process. A qualified process, defined in Cal. Civ. Code § 1793.22(d), has to meet the Federal Trade Commission’s minimum requirements for informal dispute settlement procedures in Part 703 of Title 16 of the Code of Federal Regulations as they read on January 1, 1987, issue decisions binding on the manufacturer if the buyer accepts them, require the manufacturer to perform within 30 days of acceptance, and maintain certification by the Department of Consumer Affairs under Business and Professions Code Section 472 and following.
  1. Collect every repair order

    Each visit generates a repair order showing the date in, the date out, the complaint as reported, and what the technician did. These documents establish both the repair count and the cumulative days out of service that Cal. Civ. Code § 1793.22(b) measures. Repair orders that describe the complaint vaguely are weaker evidence that the same nonconformity recurred.

  2. Send written notice to the manufacturer

    The notice goes to the address in the warranty or owner’s manual, not to the dealer. It identifies the vehicle, describes the defect, and lists the repair visits by date.

  3. Use the certified arbitration program if one applies

    Where a qualified process exists and notice of it was timely, Section 1793.22(c) requires the buyer to go through it before relying on the presumption. That subdivision also extends any applicable limitations period by the number of days between filing the complaint with the process and its decision.

  4. File suit if the dispute is unresolved

    A buyer who is dissatisfied with the arbitrator’s decision, or whose manufacturer fails to perform it, may assert the presumption in an action to enforce the replace-or-restitute duty. The arbitration findings are admissible in that action without further foundation.

The remedies for a court case are set by Cal. Civ. Code § 1794. Subdivision (a) lets a damaged buyer sue for damages and other legal and equitable relief. Subdivision (c) allows a civil penalty of up to two times actual damages where the buyer establishes the failure to comply was willful, though not for a claim based solely on breach of an implied warranty. Subdivision (d) requires the court to award a prevailing buyer costs and expenses, including attorney’s fees based on actual time expended. That fee-shifting provision is why lemon law firms take these cases without charging the owner directly. Federal law runs alongside the state statute. 15 U.S.C. § 2310, part of the Magnuson-Moss Warranty Act, gives a consumer damaged by a warrantor’s failure to comply a right to sue and to recover expenses including attorneys’ fees based on actual time expended, and it permits a warrantor to require resort to an informal dispute settlement procedure first. ## What happens to a lemon law buyback vehicle A repurchased vehicle does not quietly return to the used market. Cal. Civ. Code § 1793.23(c) requires a manufacturer that reacquires a vehicle, or helps a dealer or lienholder reacquire one, to retitle it in the manufacturer’s name before any resale, lease, or transfer, request that the Department of Motor Vehicles inscribe the ownership certificate with the notation “Lemon Law Buyback,” and affix a decal to the vehicle. The disclosure follows the car. Under Section 1793.23(f), anyone selling, leasing, or transferring a vehicle whose ownership certificate carries the “Lemon Law Buyback” notation must give the transferee a signed disclosure statement reading: “THIS VEHICLE WAS REPURCHASED BY ITS MANUFACTURER DUE TO A DEFECT IN THE VEHICLE PURSUANT TO CONSUMER WARRANTY LAWS. THE TITLE TO THIS VEHICLE HAS BEEN PERMANENTLY BRANDED WITH THE NOTATION ‘LEMON LAW BUYBACK’.” Manufacturers and dealers reselling a reacquired vehicle also owe the separate written notice described in Section 1793.23(d) and (e).

Frequently asked questions

Does the defect have to appear more than once to qualify?

The presumption in Cal. Civ. Code § 1793.22(b) counts repeat repairs for the same nonconformity, but its third trigger does not. A vehicle out of service for repair of nonconformities for a cumulative total of more than 30 calendar days meets the standard even if the visits addressed different problems.

What if the manufacturer offers a cash settlement instead of a buyback?

Nothing in the statute prevents a buyer and a manufacturer from settling on other terms. What Cal. Civ. Code § 1793.2(d)(2) establishes is a floor: if the repair threshold is met, the manufacturer’s obligation is replacement or restitution, and the buyer, not the manufacturer, picks between them.

Is a leased vehicle treated differently from a purchased one?

No. Under Cal. Civ. Code § 1793.2(d)(2)(D), read with Civil Code Section 1795.4, a lessee of a new motor vehicle has the rights the statute gives a buyer. The restitution figures are drawn from the lease documents rather than a purchase contract.

Does an extended service contract bring an older car back under the lemon law?

The vehicle provisions run against the manufacturer’s express warranty on a new motor vehicle as defined in Cal. Civ. Code § 1793.22(e)(2). A separately purchased service contract is a different product governed by other parts of the Song-Beverly Act. Used vehicles sold with a dealer warranty are addressed in California lemon law for a used car.

Can a lemon law case be filed in small claims court?

Section 1793.22(b) expressly allows the presumption to be asserted in an action in small claims court. Whether that court can hear the case depends on the amount claimed, since small claims has a dollar limit that most vehicle buyback claims exceed. Attorney’s fees under Cal. Civ. Code § 1794(d) are also unavailable in small claims because parties there appear without attorneys.

Sources

See also: unfair competition law claims under section 17200. See also: how a California mechanics lien works. See also: the California lemon law process from repairs to buyback.
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