Overview

California’s Lemon Law lets you get a buyback (repurchase) , replacement, or a cash settlement when a warrantied vehicle can’t be fixed after a reasonable number of tries.

This law (the Song-Beverly Consumer Warranty Act) applies to many new and used vehicles sold or leased in CA. Most cases end in a settlement —often a buyback or cash-and-keep deal.

Do You Qualify?

  • Covered vehicle: Car, SUV, truck, or van sold/leased in CA with a manufacturer’s warranty . Many used/CPO vehicles qualify if factory warranty remained.
  • Serious defect: A problem that substantially impairs use, value, or safety , not caused by abuse or unauthorized modifications.
  • Dealer repair chances: You gave the authorized dealer a reasonable number of opportunities to fix it during the warranty period.
  • Presumption window: Within 18 months or 18,000 miles , the law presumes a lemon if: 4+ repair attempts for the same issue; or 2+ attempts for a defect likely to cause death/serious injury; or 30+ total days out of service.
  • Timing: Repairs happened while under warranty. You generally have up to 4 years from when the manufacturer breached its warranty to file suit.
  • Small business use: Vehicles under 10,000 lbs. GVWR qualify if the business has 5 or fewer vehicles registered in CA.
  • Military exception: Active-duty service members stationed in CA may qualify even if the vehicle was bought out of state.

How CA Law Applies

Buyback vs. Settlement

Under California Civil Code, if the manufacturer can’t conform the vehicle to warranty after a reasonable number of repairs, it must repurchase or replace the vehicle, and pay your reasonable attorneys’ fees if you prevail.

Offset = (miles at first repair attempt ÷ 120,000) × purchase price.

  • Buyback (repurchase): Refund of the price paid or payable (including tax, title, license, options), minus a mileage offset for use before the first repair attempt, plus towing/rental and other incidental damages.
  • Replacement: Comparable new vehicle, with credit for what you paid and similar terms.
  • Cash-and-keep: Money for the trouble while you keep the car; no buyback. Useful if issues are intermittent or you like the vehicle.
  • Example: $36,000 price; first repair at 6,000 miles → 6,000/120,000 = 0.05 → $1,800 usage deduction.
  • Incidental/consequential damages: Towing, rental, registration renewal, and similar out-of-pocket costs.
  • Civil penalty: Up to 2× actual damages if the manufacturer willfully violated the law. This often drives better settlements.
  • Arbitration is optional in CA. You can go straight to court.
  • If you win in court (or settle), the manufacturer typically pays your reasonable attorney’s fees in addition to your recovery.
  • Used/CPO: Covered if factory warranty remained or a dealer warranty applies.
  • Motorhomes: Often the chassis/drive train is covered; the “house” portion may not be.
  • Motorcycles: Frequently covered as consumer goods; analysis is case-specific.

Step-by-Step: What to Do

  1. Document and repair: Take the vehicle to an authorized dealer . Describe symptoms clearly. Save every repair order, invoice, and work description. Note odometer at the first repair attempt for each defect.
  2. Make a written lemon-law demand: After multiple failed repairs or 30+ days out of service, send the manufacturer a written request for repurchase or replacement . Include VIN, timelines, repair orders, and your preferred remedy.
  3. Choose your path and negotiate: Consider buyback vs. replacement vs. cash-and-keep. Verify the buyback math (usage offset, loan payoff, taxes/fees). Consult a CA lemon-law attorney —fee-shifting means no out-of-pocket to you if you prevail.

Common Mistakes to Avoid

  • Not using an authorized dealer: Warranty repairs must go through an authorized shop to count.
  • Poor records: Missing repair orders or vague complaints weaken your case. Get detailed write-ups and keep copies.
  • Waiting too long: Don’t let the statute of limitations run or accept endless “no problem found” visits.
  • Accepting low settlements: Don’t agree to a cash-and-keep if the defect substantially impairs the car.
  • Signing broad releases or NDAs: Settlement papers can waive future claims. Read carefully and negotiate terms.
  • Wrong buyback math: Check the usage offset , included fees, and loan payoff . Ask how trade-in negative equity is treated before signing.
  • Aftermarket modifications: Mods that cause or contribute to the defect can sink your claim.

What You Should Do Next

Gather your repair orders, purchase/lease contract, and a timeline of issues. Write a clear repurchase/replacement demand to the manufacturer.

Then speak with a California lemon-law attorney about buyback and settlement options. They can pressure for a fair deal, verify the calculations, and their fees are typically paid by the manufacturer if you prevail.