What Qualifies as a Lemon Car: Key Insights
What qualifies as a lemon car? Consumer protection laws, governed at the state level, protect consumers when they purchase an automobile. California's Lemon Law "protects you when your vehicle is defective and cannot be repaired after a 'reasonable' number of attempts.
What Qualifies as A Lemon Car?
When you purchase a car and it turns out to be defective, the vehicle may or may not be a lemon, depending on a few factors. If you purchased one of the following, you may have protections:
- New vehicle under warranty
- Certified Pre-Owned vehicle still under warranty
- Leased vehicle under warranty
In all cases above, the "warranty" refers to the original manufacturer's warranty or a certified pre-owned or manufacturer’s extended warranty.
New and Certified Pre-Owned cars can be lemons, meaning that they don't work properly. Some vehicles come out of the assembly line with key manufacturing or design issues.
You must purchase or lease the vehicle in California for California state lemon law to apply. Out of state purchases are not covered under the law.
Vehicles that are purchased or leased are potentially covered by the Lemon Law even long after the first 18 months after purchase or lease and with mileage that greatly exceeds the first 18,000 miles on the odometer. Don’t let a dealership or manufacturer tell you otherwise.
Under the law, automakers must do one of the following if the vehicle doesn't operate "properly" after a "reasonable" number of repairs:
- Buyback the vehicle
- Replace the vehicle
Defining the word "reasonable" is key to knowing if your vehicle can be classified as a lemon.
What Does "Reasonable" Mean?
There are a few guidelines that you can follow to determine what is "reasonable":
- The dealership or manufacturer tried to repair the issue at least two times and the problem could cause death or serious injury.
- The problem was attempted to be fixed four times or more by the dealership or manufacturer.
- The vehicle has been in the shop for more than 30 days since you purchased or leased it.
When calculating the 30 days in the shop since purchase, it's important to know that the vehicle doesn't need to be in the shop for 30 days straight.
Determining what is a "reasonable" number of repair attempts can be difficult for a consumer. A lawyer can help determine what's reasonable or not. If the vehicle needs a major repair, it's not automatically a lemon if the dealership or manufacturer is trying to rectify the issue. There must be an attempt to fix the issue, normally multiple times, before it is considered a lemon by law.
What You're Entitled to Under Lemon Laws
If your vehicle is a lemon, you'll be entitled to either a replacement vehicle or a refund. The replacement is a vehicle of the same manufacturer’s suggested retail price, normally the same or a similar vehicle, but in some cases, a newer vehicle may be given. With a replacement, you may have the same loan in place with the same duration and payment requirements.
A refund would include all of the expenses that you've accrued for the vehicle to date:
- Down payment
- Payments made
- Taxes
- Original registration fees
- Incidental expenses
The incidental expenses could include costs that you incurred during ownership, such as:
- Tow truck fees
- Rental car fees
Under the Lemon Law, if you get a buy back or replacement vehicle, the manufacturer always pays your Attorney’s Fees.
You may not receive a full refund on the payment(s) you made on the vehicle because the manufacturer has a right to deduct a "usage fee." The fee is calculated by determining how many miles were put on the vehicle prior to taking it into the repair shop for the first time for the problem for which it is being bought back.
What If Your Warranty Ran Out?
When a defect occurred during the warranty and was not rectified during the warranty period you may still be covered under the Lemon Law.
Knowing if your vehicle qualifies as a lemon is difficult. A lawyer who specializes in Lemon Law will evaluate your case and determine if it's worth pursuing.
In cases where the defect is serious or lowers the value of the vehicle substantially, the vehicle is likely a lemon if it was repeatedly taken into a dealership for repair and still isn’t fixed.
Stuck with a Lemon?
If you're stuck with a lemon and want the best chance at a favorable outcome, there's no time to waste. Call a lemon car lawyer today to have your case examined and your rights upheld.