California’s Lemon Law Controversy: What You Need to Know About the Recent Changes and Fixes

For more than 50 years, California’s lemon law has protected consumers from being stuck with defective vehicles. It guarantees car buyers a refund or replacement if their new car has persistent issues that the manufacturer can’t fix under warranty.

However, recent changes to the law have sparked backlash from consumer advocates. In response, lawmakers have introduced follow-up measures aimed at clarifying confusing provisions and addressing concerns about fairness to car buyers.

If you own a faulty vehicle in California, these updates now directly affect your lemon law rights. Let’s go over what’s changed, why it matters, and what you need to know moving forward.

What Has Changed with the California Lemon Law?

In September 2024, Governor Gavin Newsom signed Assembly Bill 1755 (AB 1755) in an attempt to streamline the lemon law process and speed up refunds and replacements for defective cars.

But instead of making things easier, the new law added hurdles and traps for unwary consumers trying to get their vehicles repaired or replaced. California’s lemon law was once regarded as one of the strongest consumer protection statutes in the country. Now, critics are calling the changes the “auto industry protection statute.”

Some of the most debated changes from AB 1755 California lemon law include:

Shortened Claim Period

Consumers now have only one year after their warranty expires to file a California lemon law claim. This is precarious because warranties expire by mileage as well as time. For example, on average, Californians drive more than 12,000 miles per year. For heavy drivers, this means you may have less than two years from the vehicle’s original delivery date to bring a lemon law claim.

More Burden On The Car Owner for Repair Attempts

Car owners must provide more documentation and meet stricter proof requirements to show their vehicle qualifies as a lemon.

Standard Used Cars Are No Longer Covered

During the legislative debates, the auto industry claimed the new law would still cover used vehicles. They did this knowing the California Supreme Court was about to invalidate 30 years of precedent that protected cars sold with the remainder of the manufacturer’s written warranty.

How did this happen? Lawmakers relied on outdated definitions in the bill, while the Court simultaneously redefined which vehicles qualify. The result is that most standard used cars with only the balance of the original factory warranty are now excluded.

Why Lawmakers Scrambled to Fix the Bill

Assembly Bill 1755 sparked public outrage right from the start. Consumer groups blasted it as a loophole-filled attempt to weaken protections, arguing that the real goal wasn’t to help buyers get their cars fixed faster - it was to make it harder for consumers to bring lemon law claims.

The numbers backed up those concerns. Four automakers - General Motors (GM), Ford, Nissan, and Stellantis - account for more than 70% of all lemon law cases in California. GM alone was responsible for nearly one-third of these lawsuits between 2018 and 2021.

These automakers helped shape the bill in backroom negotiations, while other manufacturers (like Tesla and Toyota) were left out. Judges frustrated with the high volume of lemon law cases also supported the measure.

The way the bill was passed only added to the controversy. Lawmakers fast-tracked it in just a few days using a maneuver called “gut-and-amend.” This meant there were no public hearings, no consumer input, and no real debate before the vote.

By early 2025, many legislators admitted they regretted their decision, saying they were pressured to vote for the law without fully understanding its consequences. That regret led to follow-up “clean-up” legislation aimed at clarifying confusing provisions and restoring some balance for consumers.

The Proposed Amendments

The controversy surrounding AB 1755 created a deep divide in the auto industry.

• GM, Ford, Stellantis, and Nissan - the companies with the most lemon lawsuits - supported the new law.
• Tesla, Toyota, Volkswagen, and other foreign automakers - who face fewer lawsuits - opposed it, calling the bill unfairly negotiated behind closed doors.

To address concerns, Governor Newsom and lawmakers passed Senate Bill 26 (SB 26) in April 2025.

Under SB 26, manufacturers are given the option to elect to follow the new procedures under AB 1755. If they do, those rules bind them for five years. If they don’t opt in, they continue under the old Lemon Law procedures.

In practice, this means that some car companies have adopted the new rules, while others continue to use the prior framework. This can create inconsistency for consumers depending on the manufacturer of their vehicle.

How These Changes Affect Consumers

Even with SB 26 in place, many of AB 1755’s updates still apply. Here’s what California car buyers should know in 2025.

Act Fast

The time to file a California lemon law claim for your new motor vehicle is now shorter. If your car has ongoing defects, don’t delay - waiting too long could mean losing your right to a refund or replacement. Use your vehicle identification number to track your car’s warranty coverage and recall history.

It doesn’t sound fair, but even if the manufacturer refuses to honor a valid warranty, the lemon law may not help you at all. This means the manufacturer can refuse warranty repair and use the new law to shield itself from liability.

Know Your Warranty

Be especially cautious if you’re buying used. A recent court ruling by the California Supreme Court declared that standard used cars with only the balance of a factory warranty are not covered.

Today, lemon law protection is largely limited to new cars and manufacturer-certified pre-owned vehicles sold with a new CPO warranty. Vehicles purchased from third-party dealers or sold “as is” usually won’t qualify.

Pre-Lawsuit Notice Requirements

Before taking any action, you should contact an experienced lemon law lawyer. The manufacturers want you to believe that you now must formally notify the manufacturer in writing and give them 30 days to respond before you can sue. This step is NOT true; call an attorney to learn your rights first.

Pay Attention to the Brand of Your Car

For the first time, lemon law rights in California may depend on your car’s brand. Under SB 26, some automakers have opted into the new system, while others remain under the older rules.

This creates a two-tier structure where the claims process - and your legal options - vary depending on which manufacturer you’re dealing with. Before buying, it’s smart to confirm which system applies.

Why Hiring a California Lemon Law Lawyer is More Important than Ever

Given the stricter timelines and complex legal requirements under the new lemon law, hiring a lemon law attorney for your claim is non-negotiable. Automakers have more leverage now, and many of them have teams of lawyers working to minimize payouts. Moreover, the new lemon law is more confusing, very poorly written, and filled with legal traps and minefields for the consumer.

Without legal representation, you could end up with less compensation than you deserve - or no refund at all.

Lemon law in California requires automakers to pay your legal fees if you win. So you can hire a lemon law attorney at no cost to you. Furthermore, if a defective car has caused serious bodily harm, your lawyer may also pursue further legal action beyond a standard lemon law claim.

Have Questions About the New Lemon Law?

Do you have more questions about these legal changes? The team at CLINE, APC is here to help. The owner and president has dedicated his career to helping consumers fight the auto industry. We understand that these new California lemon law rules can be confusing, especially for first-time car buyers.

If you have questions about how the changes affect your rights, how to file a claim, or whether your car qualifies as a lemon, we’re happy to provide answers and guidance. We can also help you understand how California’s vehicle code impacts your claim. Contact us today to discuss your case.