Reviewed by Attorney: Charles Panzarella
Returning defective used vehicles in California can be confusing. This comprehensive guide breaks down everything you need to know about used car lemon laws, your legal consumer rights, and the steps to take if you have bought a used lemon.
What Percentage of Used Car Buyers Face Defects?
California has the highest number of used cars sold with a defect in the United States; about 5.6 million used cars have an open recall, meaning there is a defect that has not been fixed.
“Lemon laws provide important consumer protections when you end up stuck with a used car that turns out defective.”
What is the Lemon Law in California with No Warranty?
The Lemon Law in California usually applies to new cars because they are likely to still be covered by the original manufacturer’s warranty when it has a defect. This means that as long as the defective vehicle is still under the original warranty, used cars can be protected by the lemon law.
A used car can be considered a lemon in any of the following scenarios:
- A substantial defect occurs while the manufacturer’s original warranty is active
- The defect poses safety issues or impacts value/functionality
- There have been 2 or more repair attempts while still under warranty
- Total days out-of-service for repair work exceeds 30
“These lemon laws qualifying criteria can apply even if you lack documentation in some cases.”
Example: Tanya’s 2015 Toyota Camry
Tanya’s 2015 Toyota Camry had its engine completely fail at 90k miles. The car still had 1 year left on the original manufacturer’s powertrain warranty.
Despite two attempts to fix the engine, the dealership could not repair it correctly. Tanya took legal action under California’s used car lemon law and successfully obtained a full refund amounting to $15,000.
Your Rights Under Implied Warranties
In addition to manufacturer warranties, California provides powerful implied warranties on used cars covering:
- Functionality and safety
- Freedom from defects substantially impacting value
- Qualifying repairs made under implied warranties can count towards lemon law criteria
If the used car that you purchased did not come “as-is”, it is covered by an implied warranty of merchantability. This means that the dealer has sold you the used car with the unwritten promise that it will perform as expected.
If, however, the used car
Example: Samuel’s 2013 Honda Accord
Samuel bought a used 2013 Honda Accord “As-Is” with no warranty, unknowingly inheriting a pervasive oil leak defect from past repairs done improperly.
Despite purchasing the car “As-Is”, California’s implied warranty law still covered the defect.
After 3 failed attempts to fix the oil leak while the implied warranty was active, Samuel filed a successful lemon law claim.
Does As-Is Purchase Nullify Your Options?
Many used car dealers sell vehicles “As-Is” believing this bypasses lemon law protections. However, fraudulent non-disclosures or improper documentation can still make these purchases eligible under California lemon laws.
- Legal requirements exist on As-Is disclaimers and disclosures enforced by California’s Attorney General
- Infractions like failing to provide a separate signed disclosure can override an As-Is sale
- This loophole has allowed thousands of consumers to exercise lemon law rights despite As-Is purchases
4 Common Lemon Car Defects
While all defects impacting safety or value can potentially trigger lemon law claims, here are 4 of the most common mechanical issues in used car lemon cases:
- Engine Problems: Oil leaks, seized motors, combustion issues
- Transmission Defects: Gear shifting troubles, complete transmission failures
- Electrical Issues: Battery, sensor, computer, and wiring faults
- Brake Problems: Failure to stop, uneven wear, grinding, clunking noises
Documented repair attempts to fix these major mechanical or safety-related defects can form the basis of a successful used car lemon law claim in California if other qualifying criteria are met.
Step-by-Step Guide to Pursuing a Used Car Lemon Claim
Follow this checklist if you think you’ve purchased a defective, used lemon vehicle in California seeking compensation:
- Gather Documentation
- Warranty information, repair invoices, dealership communication
- Warranty information, repair invoices, dealership communication
- Consult an Attorney
- Share your experience and records for free case analysis
- Send Demand Letter
- The attorney helps compile formal notice to the manufacturer seeking a refund, replacement vehicle, or reimbursement
- The attorney helps compile formal notice to the manufacturer seeking a refund, replacement vehicle, or reimbursement
- File Lawsuit If Needed
- If the manufacturer denies the claim, litigation can force a refund or buyback based on state protections
“Consulting a lemon law attorney early when defects arise is key to receiving guidance tailored to your specific circumstances regarding eligibility and options.”
Most Common Used Car Lemon Law Questions
Q: What types of compensation am I entitled to if I qualify under California’s used car lemon law?
A: Remedies can include a full refund amount, a new replacement vehicle, reimbursement for repair costs, loan payments, rental cars, towing, and more related expenses.
Q: Can I still get a refund on a used car I bought 5 years ago?
A: Yes, used car owners have 4 years from their original warranty expiration date to exercise buyback rights under California lemon laws.
Q: Is a dealership’s 30-day warranty enough to trigger lemon law protections in California on a used car?
A: Yes, that limited dealership warranty qualifies as an express warranty. Defects arising and qualifying repair attempts undertaken during that period can meet lemon eligibility criteria for compensation.