
LEMON
LAW
The California Lemon Law is deigned to protect consumers who have either purchased or leased a vehicle that can be deemed a lemon. Many consumers try to handle this matter on their own, however, it is in the best interest of the consumer to talk to an experienced Lemon Law attorney to understand their rights.
1\What is lemon law?
If you have made a reasonable number of repair attempts under warranty for one or more problem that substantially impairs the use, value and/or safety of your vehicle then you may qualify for one of two scenarios:
Repurchase
If you car is deemed a lemon, the manufacturer will repurchase the vehicle from you.
What does that mean?
That means that the manufacturer will reimburse you for your down payments, monthly payments, and any out of pocket expenses that pertain to the issue minus the mileage the vehicle was driven without any issues.
This will give you your “lemon law buyback”
Replace your vehicle
A ‘vehicle replacement’ is where you will receive a vehicle that is of similar make and model to the one that is a lemon. However, the replacement will most likely be a vehicle in the current year model. Your current loan amount (or the term of your lease) will remain the same and for the same duration as the original loan or lease. Your sole expense will be payment for the time you enjoyed your vehicle prior to it being a lemon and additional taxes (if applicable).
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2\What is a “reasonable” number of repair attempts?
There is no set number. However, under California’s Lemon Law Presumption contains these guidelines in determining when a “reasonable” number of repair attempts have been made:
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When the manufacturer or dealer hasn’t fixed the same problem after four or more attempts; or
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Your vehicle’s problem could have caused death or serious bodily injury if it is driven, and the manufacture or dealer has made at least two unsuccessful repairs attempts or
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The vehicle has been in the shop for more than 30 days, in which those 30 days do not need to be consecutive, as long as the repairs are for any problem covered by warranty.
3\What if my vehicle does noes meet the Lemon Law requirements?
If your vehicle or other consumer good fails to meet the manufacturer’s warranty after a reasonable number of repair attempts, then it is a “lemon” and you are entitled to a refund or a replacement vehicle or other consumer good. If your vehicle is not determined to be a lemon, you may be entitled to receive cash compensation under the lemon laws for the diminished value of your vehicle or other consumer good.
4\Cash Compensation
If the problems with your vehicle do not rise to the level of it being considered a “lemon,” you may be entitled to receive cash compensation for its diminished value as a result of its problems. Many times the problems with a vehicle may not rise to the level of a “substantial impairment.” In these situations, the manufacturer will often pay the consumer a “cash and keep” settlement. This is where you will keep your vehicle and receive a sum of money for the problems you experienced with it. Also, the remaining portion of the warranty will remain in effect.
5\How long does the Lemon Law process take?
The length of time related to each lemon law case is unique to each set of individual facts. Some of our cases resolve within 90 days and others can take much longer. In order to maximize your potential for recovery it is important that you discuss your case with an experienced lemon law attorney as soon as possible so that you will have proper guidance from the outset of your case.
6\Does Lemon Law apply to my used vehicle?
Yes. A used car can and often does qualify under the lemon laws as long as it was sold with a written warranty. Often times, used vehicles are sold while still under the manufacturer’s warranty and/or a warranty from the dealer. If this is the case, then your used car may qualify under the lemon laws.
7\Do you pay any money out of pocket?
No, there are no up-front fees or out of pocket expenses for lemon law. The California Lemon Law requires that the manufacturer of your vehicle to pay attorney fees incurred by the consumer, along with any costs when the consumer prevails.
8\Mileage Offset Formula
If your vehicle is a “lemon” and you get a refund or replacement, the manufacturer is entitled to deduct an offset for the time that you drove your vehicle ‘trouble-free.’ The mileage offset is calculated by multiplying the purchase price by the mileage at the first warranty repair attempt for the problem that rendered it a lemon, and dividing this amount by 120,000 (which in California, is the average life expectancy of a vehicle).
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Following is an example to illustrate the mileage offset formula:
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Price paid by consumer for the vehicle………………………………..$20,000
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Miles driven by consumer at first repair attempt………………………9,000
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($20,000 x 9,000) / 120,000 = $1,500
In this case, the mileage offset would be $1,500.
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