Everything You Need to Know About California Lemon Law Claims

Lemon law claims are becoming more common across the United States as auto sales rise and vehicles grow more complex.

In a nutshell, a lemon law claim arises when a consumer is sold a defective product (usually a vehicle) that is covered by a manufacturer’s warranty. The claim requires the warrantor to provide a refund (buyback) or replace it with one that works.

In California, this protection generally applies to new vehicles. However, it can also extend to certain manufacturer-certified pre-owned (CPO) vehicles sold through same-brand dealers.

If you’re looking at this guide, you’re probably wondering:“How do I file a lemon law claim?”

As much as we’d like to say lemon law claims are this straightforward, they rarely are. Many factors affect whether a claim qualifies, and plenty of obstacles can stand between you and fair compensation.

Auto manufacturers, in particular, have access to some of the best legal teams money can buy. These teams have built long, profitable careers out of countering lemon law claims and using every nuanced legal tactic available to limit settlements.

Before we go any further, we cannot stress enough the importance of hiring a specialized lemon law attorney. Without one, consumers are easy prey for the seasoned legal teams of big automakers.

In addition to working with a lemon law lawyer, it helps to understand how California lemon law claims work. The more details you can provide to your attorney, the stronger your position will be to achieve the best possible outcome.

The good news is that the main points are more or less straightforward. So, without further ado, let’s dive into everything you need to know about a lemon law claim in California.

Chapter 1: What Qualifies as a Lemon Law Claim in California?

A version of the lemon law exists in all 50 states. However, the details vary from state to state, mainly the legal requirements for a successful claim. For example, in many states, the lemon law does not apply to used vehicles. Other states, like California, extend lemon law protections to certain certified pre-owned cars sold with a manufacturer-backed warranty.

Now, the first time you realize that your car has a problem (while still under warranty) may not automatically qualify it as a lemon, no matter what state you are in. When you discover your new, leased, or eligible CPO vehicle has a defect, the manufacturer typically has several opportunities to remedy the problem.

To establish a valid lemon law claim, the most common elements in California usually include, but are not limited to:

• The vehicle has a defect, covered by the warranty, which substantially impairs its use, value, or safety to a reasonable person in your situation.
• The manufacturer, through its authorized repair facility, was given at least two or more opportunities to repair the defect, or
• The vehicle has been out of service for repairs for more than 30 cumulative days.
• The substantial defect was not the result of unreasonable or unauthorized use by the consumer.

At the first sign of a problem, your course of action should be to schedule an appointment with an authorized repair facility. Inform your service advisor about the issue so the repair attempts are properly documented.

Does your vehicle meet the qualifications of the California lemon law? Call us. Not the manufacturer or warrantor. If your vehicle meets the criteria of a lemon, your communication with the manufacturer or warrantor is over. Leave it to your lemon law lawyer to get you full compensation.

Chapter 2: How to Avoid Four Common Lemon Law Rip-Offs?

A large part of understanding how to file a lemon law claim comes down to avoiding traps.

As mentioned earlier, automakers hire highly experienced legal teams whose job is to minimize payouts on lemon claims. These defense lawyers are well paid for one simple goal: to pay as little as possible for your claim. Unfortunately, this is just the world we live in.

There are a handful of common ways warrantors will try to compromise your lemon law claim with some rip-off tactics right off the bat. In this chapter, we want to go over some of the big ones and how to avoid falling prey.

Before we dive in, it’s vitally important to always remember this:the manufacturer/warrantor is NOT your friend in a lemon law claim.

They will likely try to convince you to do things that will “make everything easier and quicker.” Don’t take the bait. Translated, this means “easier and cheaper” for them. The manufacturer’s number one goal in this process is to avoid compensating you for a lemon. Moreover, some of these tactics will make matters hopeless - even if you get a lemon lawyer in California after the fact.

Here are some of the most important things you can do to avoid getting ripped off.

• NEVER sign your rights away before talking to a lemon law attorney.

This is THE single biggest mistake that can ruin your lemon law claim. Too often, we’ve had consumers come to us with extensive repair histories, clear proof of manufacturer negligence, and strong cases - only to find out we cannot help them.

Why? Because they made the crucial error of signing away their warranty and California lemon law rights.

A common (and devious) tactic by automakers is to offer the consumer a warranty extension or a temporary reimbursement (like covering a few monthly payments) when problems persist. This is often accompanied by a settlement and release agreement tied to the vehicle’s repair history.

What many don’t realize is that this is a release of the right to pursue a California lemon law claim or anything related to breach of warranty for ongoing issues. Of course, this is all buried in the fine print.

So, if you’re having recurring issues with your vehicle - whether it be a car, motorcycle, boat, RV, etc. - NEVER sign ANY settlements or release documents without having a lemon lawyer in California review them first.

• NEVER accept arbitration - no matter how much manufacturers push for it.

Manufacturers have all sorts of tricks and rhetoric to make arbitration seem like a better option than taking a lemon law claim to court. Under no circumstances is this true.

Arbitration is when you take your case in front of one single arbitrator or a panel of arbitrators to determine the legitimacy of your claim. These arbitration clauses can make it impossible for consumers to sue the warrantor in court. Consumers are far less likely to win their cases in private arbitration, and even when they do win, they tend to get far less money than they would in court.

One of the most unsavory tricks manufacturers have up their sleeves is to bring in “independent” arbitrators. These are almost always sponsored by the manufacturer. When this happens, they almost always rule in favor of the manufacturer - no matter how strong your case may be.

There is a reason the warrantor wants you to go to arbitration. Because it’s good for them and bad for you.

“Arbitration is one of the central ways in which corporate America has rigged the system against middle-class families and working people.”

• U.S. Representative Rosa DeLauro, Third District of Connecticut

Now, opting for arbitration and having your lemon law claim struck down may not be the end of the line. If the arbitration is non-binding on you, the consumer, you can still take your case to court.

However, you will undoubtedly be in a bit of a hole, as the warrantor will be able to use the negative arbitration decision against you with the judge. Therefore, the judge will have a mountain of evidence in favor of the warrantor/manufacturer.

**The bottom line:

Do not fall into any of the manufacturer’s ploy to take the claim to arbitration. ALWAYS tell them you want to speak to a lemon lawyer instead.

• NEVER skip over lemon law clauses in purchase orders.

Depending on what manufacturer you buy from, you may end up stuck with arbitration.

Tesla currently has arbitration clauses in its purchase agreements. However, with Tesla, buyers have 30 days from signing the contract to opt out of the forced arbitration provision and file a lemon law claim in California.

Suppose Tesla is not notified of the “opt-out” within this 30-day timeframe. In that case, the consumer is not able to use our court system. The very court system enshrined as a right in our State and Federal Constitutions, the very courts we, the taxpayers, fund. A binding private arbitration proceeding (of which no two are the same, and there are essentially no rules) is the only option at this point.

The clause looks like this:

The good news is you can opt out of this within 30 days of the signing date.

It is absolutely vital that you do this, no matter how excited you are that you just purchased a new vehicle. Tesla is not known for being consumer-friendly when it comes to lemons; failing to opt out of this clause can potentially cause major headaches down the road.

• NEVER sign an out-of-court lemon law agreement that puts ANY attorney fees on you - or allows the attorney to be paid more out of a cash settlement.

Under the federal and California lemon law, consumers have the right to recover attorneys’ fees, costs, and expenses from the manufacturer.

Now, the vast majority of lemon law claims are settled out of court with the help of a specialized attorney. For this reason, DO NOT EVER sign any out-of-court agreement that puts you on the hook for attorney fees. Your lemon lawyer in California will be able to recoup them from the manufacturer as part of the settlement.

There are a couple of scenarios in which the defense attorneys try to charge consumers for their fees, including (but not limited to):__

• The manufacturer refuses to pay all the attorney fees or comply with the final decision, and the defense lawyer demands you cover the difference. If you have a legitimate lemon law claim, this is likely a situation where you would need to go to court to receive full compensation.
• The manufacturer attempts to pay a small cash settlement, which is not enough to cover your compensation and your incurred costs, including expenses and attorney fees. In this scenario, the defense team refuses to pay your lawyer for any of the fees, costs, and expenses incurred on your behalf to secure the cash payment.

This is why you should always go the extra mile in choosing a reputable lemon law lawyer.

Generally, a good attorney won’t take your case unless they think they can win - but that’s not a guarantee of victory.

If a case goes to court, it’s impossible to have a timeline for how long it will take - or how much work will be involved once the lawsuit is filed. Resolving a case in court after a trial may take longer than it would out of court, before a trial. As a result, both you and the attorney may share the risk of litigation.

**So, the bottom line is this:

If you are one of the rare instances in which your lemon law claim requires resolving your matter with a jury trial, NEVER, EVER agree to pay your attorney fees up front, or a percentage paid from your buyback judgment.

Is the manufacturer or warrantor trying to get you to agree to something “quick and easy” or sign a paper with a bunch of fine print? Don’t. Tell them you’re not agreeing to anything without consulting your lemon law attorney. Talk with us. We’ll make sure you don’t back yourself into a corner.

Chapter 3: Misconceptions about California Lemon Law Claims

California lemon law is a bit different than the lemon law in other states. While the rules aren’t overly complex, there are misconceptions out there that, unfortunately, lead to many consumers leaving money on the table.

In this chapter, we want to debunk some of the biggest myths and misconceptions consumers tend to have about the lemon law in California.

• Misconception #1: You cannot have a valid lemon law claim if the vehicle has more than 18K miles on it or it’s more than 18 months past the delivery date.

Time and mileage limits are arguably one of the biggest misconceptions about lemon law as a whole.

When you do research online about California lemon law, you may read that your claim may only be valid if the defective vehicle has less than 18,000 miles accrued on the odometer, or it’s been less than 18 months since the purchase date.

This is not true. The 18 months / 18,000 miles standard is merely a lemon law presumption - meaning your case is presumed to be a lemon if it meets those figures. Falling outside them doesn’t automatically disqualify you. It just means the case may take more evidence to prove.

What really matters is whether your vehicle is still under a manufacturer-backed warranty. For most new cars, bumper-to-bumper coverage extends 3 years or 36,000 miles, while powertrain coverage may last longer. California lemon law protections generally apply during these warranty periods, as long as the defect substantially impairs use, value, or safety.

• Misconception #2: Used or leased cars do not apply.

Used and leased vehicles often cause consumers a great deal of confusion when it comes to the California lemon law. Here’s what you need to know:

How does the lemon law apply to leased cars?

With leased vehicles, you have the exact same rights as you would with a purchased lemon. If your leased vehicle meets the California lemon law qualifications, you can pursue a claim in the same manner; the only difference is that your refund will look a little different.

When you purchase a vehicle that is deemed a lemon, the manufacturer typically must compensate you for the down payment, any and all monthly payments made, and all official costs (registration, taxes, etc.) - minus the mileage offset. With a leased vehicle, the manufacturer must reimburse you for the same as a purchase and buy out the remainder of the lease.

How does the lemon law apply to certified-used cars?

This is where California law has narrowed in recent years. Lemon law protection now generally applies to:

• New vehicles covered under the manufacturer’s warranty.
• Manufacturer-certified pre-owned (CPO) vehicles sold through same-brand dealerships, where a new manufacturer warranty is issued at the time of sale.

By contrast, standard used vehicles that are simply resold with some remaining factory warranty or only a short dealer warranty typically do not qualify for a lemon law buyback.

If you purchase a used vehicle “as is,” it is even less likely to qualify, since you accept responsibility for post-sale issues. Dealers must disclose “as is” sales in writing on the buyer’s guide displayed on the vehicle.

• The used vehicle is still covered under the original manufacturer’s warranty.
• The used vehicle is covered under the dealership warranty.

The dealership warranty doesn’t generally last as long as the original manufacturer warranty. In most cases, used vehicles are sold at dealerships with a warranty that lasts one to three months - or before 1,000 miles accrue on the odometer.

If you bought the used vehicle “as is”, it may be unlikely you will be eligible for any benefits under California lemon law. Buying a vehicle “as is” means you take full responsibility for any issues once you drive it off the lot.

When you purchase a used vehicle from a dealer, they are legally obligated to specify whether or not it is being sold “as is” in the buyer’s guide. This must be displayed on the vehicle.

• Misconception #3: The vehicle must be in perfect condition.

This is a surprisingly common myth we run into. As long as the defective vehicle is covered under the warranty and the substantial defect was not a result of driver abuse, you still qualify.

Your vehicle can have some dings and still be deemed a legitimate lemon (so long as the dings didn’t have an impact on the defect).

For example, a dent in the back bumper will not void a lemon law claim for a faulty engine.

• Misconception #4: Lemon law will not cover the vehicle if the warranty has expired.

This is another area where things can get a bit tricky - and stresses the importance of two crucial factors in lemon law claims:__

• Keep detailed documentation
• Get your vehicle inspected as soon as you notice something is off.

Automakers are known to drag their feet with lemon law claims. Some believe this is done to waste time, hoping that the warranty will expire. In truth, manufacturers likely do this to see if the consumer will simply give up.

If your vehicle starts acting up near the end of the warranty, the most important thing is to report the defect while it is still covered.

When you report the issue to the manufacturer and they begin the repair process, you need to have ALL the documentation. The repair order should list out:

• The date/time you brought the vehicle in (most important)
• Year, make, model, and VIN
• Mileage
• The nonconformity (the issue)
• Name + ID number of the employee you dealt with.

As long as the paperwork proves the issue occurred - and you gave the warrantor an opportunity to repair - during the warranty period, it is not your fault if the warrantor is unable or unwilling to repair the defect.

Do you have questions about the validity of your lemon law claim? Ask us. We’ll sort through your entire scenario and give you the unsugarcoated facts.

Chapter 4: Potentially Fatal Mistakes to Avoid When Pursuing a Lemon Law Claim

The vast majority of consumers experiencing a lemon are doing so for the first time.

We discussed several common scams that consumers encounter when initiating the lemon law process. Now we want to discuss some seemingly small, lesser-known mistakes that can potentially doom your claim altogether.

• #1: Being Rude to Repair or Manufacturer Staff

This one isn’t necessarily fatal, but it’s not going to do you any favors whatsoever.

We get it. You’re frustrated, angry, and fed up with the fact that you spent a pile of your hard-earned money to buy a defective vehicle. If you purchased a new vehicle, you probably did so to avoid the risks tied to buying used. To add insult to injury, the repair staff can’t seem to fix it. It’s easy to get emotional - especially if the problem is putting you at risk.

Unloading on a staff member might seem like a satisfying thing to do, but please, please don’t. Here’s why:

In any civil legal action - in which some sort of compensation is involved - there are three major factors that influence your ability to prevail:

• Facts/evidence
• The law
• Your likeability

If your case ends up going before a jury of your peers, number three can be the most important. In a perfect world, only the facts and the law should matter. But this is simply a reality of our judicial system - that’s just the way it is.

Our goal, if in court, is to convince the jury to order a company to buy back your defective vehicle. If you come off as rude, jurors may view you as unreasonable. Additionally, manufacturers know this dynamic all too well and will use it to their advantage in court.

So, no matter how bad things get with the repairs, NEVER take out your frustrations on the staff. You’re only hurting your chances by losing your cool, regardless of how justified your anger may be.

• #2: Being too specific in your complaint.

The early stages of a lemon law claim are the most crucial, specifically when it comes to approaching the manufacturer. It might seem like a good idea to get as granular as possible in your complaint - especially if you know a thing or two about cars.

However, you always want to avoid creating disconnects between the complaint and the repair attempts. In the eyes of California lemon law, two unsuccessful repair attempts on the same part of a vehicle will likely legitimize your lemon law claim.

For instance, if you tell them it’s a problem with the engine the first time, then an issue with the transmission the second time, that could be argued as two separate issues. This can potentially extend the lemon law process.

This is why you always want to describe the symptoms you are experiencing and never what you think is the root cause of the defect. For example, say there’s a weird noise coming from an area of the car or a smell coming from the front of the vehicle.

Your role here is simply to describe the symptoms, not diagnose. Remember, when you go to the doctor, you explain your symptoms and the doctor provides the diagnosis. The same is true with auto problems.

• #3: Waiting too long to file your claim

To echo a previous section in this piece, timeliness is critical to a lemon law claim.

In California, lemon law claims generally must be filed within one year after the manufacturer’s warranty expires and no later than six years from the vehicle’s original delivery date. This filing window can close quickly, so acting as soon as problems arise is essential.

Not only is driving a defective vehicle dangerous for yourself and other drivers, but waiting too long could bar you from pursuing your claim altogether.

• #4: Bringing your vehicle to a mechanic that’s not certified by the manufacturer.

If your vehicle is making a weird sound, going to your trusted family mechanic may seem like the logical next step. This is a HUGE fatal mistake that many unsuspecting consumers make.

Taking the vehicle to a non-manufacturer-certified repair facility can (and likely will) void your warranty - and subsequently, your lemon law claim. As a result, you’ll get stuck with the repair costs AND the lemon.

As long as your vehicle is covered under warranty, the manufacturer or dealership is where you need to go for repairs. They will point you in the direction of a certified mechanic.

• #5: Not getting ALL repair records from a certified technician.

The repair records are the lifeblood of your lemon law claim. These are going to be the official documents that determine whether or not your vehicle is truly a lemon - an oral history will not cut it here.

A repair invoice (from the manufacturer-certified technician) needs to clearly define all the details of your vehicle’s issue, including:

• The “non-conforming condition” (the defective symptoms)
• How the facility attempted to fix it
• The outcome of the attempt
• Costs involved (if applicable)
• Dates the vehicle was in service
• All vehicle information (VIN, mileage, etc.)

The manner in which these invoices are generated is regulated by the California Bureau of Automotive Repair.

Now, perhaps the most crucial aspect of a repair invoice is the indication that the order has been closed. This should be made clear in the document when you pick up your vehicle. This means the repair has been officially “attempted.”

If a repair order is not closed correctly, the warrantor will claim all subsequent attempts will fall under that first, open repair attempt. So even if you brought your defective vehicle into the facility four or more times, the warrantor would claim only one repair attempt.

This is where you REALLY need to pay attention to details. Truth be told, we’ve seen manufacturer repair facilities try this trick from time to time, whether it’s a mistake or not. It happens more than you think, more often with RV repair facilities.

Are you experiencing problems with your newly purchased vehicle for the first time? Do you have a suspicion that something is not right? Talk to us first. There are so many things you can do to ruin a lemon law claim in the beginning. We’ll tell you exactly what to do.

Chapter 5: Questions to Ask a Lemon Law Firm About Representation

Lemon law lawyers are easy to find, but trustworthy ones can be tough to come by. To reiterate, the vast majority of consumers with a lemon are experiencing the process for the first time.

Unfortunately, some attorneys use this to their own advantage. On the flip side, some trustworthy lemon law lawyers might not be a good fit for your needs.

The key to avoiding a bad outcome with an attorney is to ask the right questions.

Here are some of the major ones to keep in mind as you search for legal help.

• Do you have experience with this manufacturer?

This is a big one. Each manufacturer has a slightly different way of dealing with lemon law claims - some are more difficult than others.

For instance, cases against GM brands (Chevy, GMC, Buick, Cadillac), Ford, and Chrysler can be especially challenging if you’ve chosen the wrong attorney. Claims involving Kia and Hyundai may also be complex, as they’re typically strongest when the vehicles are two years old or newer.

If the attorney has experience dealing with your automaker, ask them how they managed previous cases.

• What’s the process of getting a lemon law buyback/replacement from this manufacturer?
• What are some of the biggest challenges in dealing with this manufacturer?
• How do you overcome them?

When you seek out a lemon law lawyer, experience with your particular vehicle manufacturer is going to be key. You need legal assistance that understands their tactics, warranty agreements, special clauses, etc.

• What are your top priorities as a lemon law firm?

You might get several answers to this simple question. Regardless of how the attorney phrases it, the answers should revolve around three factors:

• Speedy buyback/resolutions
• Consumer justice
• Getting every single penny you are owed from the manufacturer.

Auto manufacturers are among the biggest conglomerates in the country. No matter how you look at it, seeking justice for a lemon is a David versus Goliath scenario. The lemon law attorney you hire should exhibit an evident passion for standing up to industry giants and fighting for the everyday person.

• Do I have to pay any out-of-pocket costs or retainer fees?

This is another big one - and the answer will either be a good indicator of a trustworthy attorney, or a massive red flag to head for the door.

If a consumer has a legitimate lemon law claim, a trustworthy lawyer will understand that the consumer is in this predicament due to no fault of their own. Therefore, they shouldn’t charge you ANY out-of-pocket costs or retainer fees to take the case.

This is for two reasons:

• They won’t take a case unless they think they can win.
• They know they should get paid by the manufacturer when they win.

The answer to this question confirms their top priority of providing speedy buybacks/resolutions to cases - as they don’t expect to get paid until the matter is settled.

• What’s the timeline to resolve a case?

Truth be told, there is no concrete answer to this. Lemon law cases all come with their own unique set of details, obstacles, and circumstances. No attorney can give you a guaranteed timeline to resolve a case. If they promise an end date in the initial consultation, this is a big red flag.

However, they should give you a hopeful goal of resolving the case in roughly 30 days. One of the biggest marks of a trustworthy attorney - lemon law or not - is that they are cautiously optimistic. Additionally, they make it clear that the case is not over until the consumer has their money and the defective vehicle is back where it belongs, with the warrantor and off the street.

• How can I make things run smoothly?

This is a question that every lawyer wants to hear - and will immediately get you on his/her good side. The lemon law lawyer will likely explain:

• All the documentation you need to gather.
• How to prepare for a claim.
• The importance of responding to their messages quickly.
• How to make sure you get the maximum compensation.

Wrapping Up

Knowing how to file for lemon law in California is not overly difficult - but it’s not exactly easy. While your lemon law attorney will do most of the heavy lifting, there are many key steps consumers need to manage before a lawyer comes into play.

In essence, many of the moves you make in the early stages of the process determine how the case is resolved. All too often, consumers come to us with a claim only to realize they made a fatal mistake in the beginning. That’s why we put this guide together to help consumers set themselves up for success.

The good news is you’re never alone in a lemon law California case - no matter where you are in the process. You can always reach out to an attorney for questions.

If you’re experiencing problems with your new, leased, or CPO vehicle in California, don’t hesitate to get in touch with a lemon lawyer in California at CLINE APC. We’re always here to help steer consumers in the right direction - whether it be dealing with manufacturers, collecting proper documentation, or managing cases from start to end.

Feel free to give us a call at 888-982-6915 or send us a message.