Consumers
and the “Lemon Law”
MOTOR VEHICLE WARRANTY AND LEMON LAW
A
purchaser or lessee of a new motor vehicle under
warranty in the state of California has various rights under
both the California lemon law, and federal lemon law if the
vehicle does not perform as provided under the express warranty
provided by the vehicle’s manufacturer.
Warranty
laws can be complex, and it is not practical to describe
comprehensively all of the law in just a few paragraphs. The
following information briefly explains the Song-Beverly Consumer
Warranty Act and what is popularly known as the California lemon
law.
Coverage
for New Motor Vehicles.
A.
OVERVIEW OF
SONG-BEVERLY WARRANTY RIGHTS – (AKA: “THE CALIFORNIA LEMON
LAW”)
The
Song-Beverly Consumer Warranty Act (beginning with Civil Code
section 1790.2) provides protection for consumers who lease or
buy new motor vehicles. The law requires that if the
manufacturer or its representative in this state, such as an
authorized dealer, is unable to service or repair a new motor
vehicle to meet the terms of an express written warranty after a
reasonable number of repair attempts, the manufacturer
is required promptly to replace the vehicle or return the
purchase price to the lessee or buyer. The purchase price that
must be returned includes the price paid for
manufacturer-installed items and transportation but does not
include the price paid for non-manufacturer items installed by
the dealer. The manufacturer is to repurchase the vehicle, or if
agreed upon by both vehicle owner and manufacturer, a new
replacement vehicle may satisfy the claim (replacement only on
vehicle’s purchased or leased as “new”). Whatever the
choice, the manufacturer is also responsible to pay for sales or
use tax; license, registration, and other official fees; and
incidental damages that the lessee or buyer may have incurred
such as finance charges, repair, towing, and rental car costs.
The
lessee or buyer may be charged for the use of the vehicle
regardless of whether the vehicle is replaced or the purchase
price is refunded. The amount that may be charged for use is
determined by multiplying the actual price of the new vehicle by
a fraction having as its denominator 120,000 and as its
numerator the number of miles traveled by the vehicle before it
was first brought in for correction of the problem. For
example, if the car had traveled 6,000 miles before it was first
brought in for correction of the problem, the lessee or buyer
could be charged 5% (6,000/120,000 = 5%) of the purchase price
for usage.
The
law applies for the entire period of your warranty.
For example, if your vehicle is covered by the primary
“bumper-to-bumper” warranty (typically 3 years/36,000 miles,
3 years/50,000 miles, or 4 years/50,000 miles) and you discover a defect during that
period that has been subject to an unreasonable number of repair
attempts under warranty, the manufacturer would be required to
repurchase the vehicle and reimburse you as outlined above if
the manufacturer or its representative is unable to conform the
vehicle to the express warranty after a reasonable number of
attempts to do so. Many manufacturers offer longer-term
“power-train” warranties. These warranties typically cover
the engine, transmission, and final drive/driveline components
from internal failure/malfunction. A lessee or buyer has the
same warranty rights under the statute on these
“power-train” warranties as is with the
“bumper-to-bumper” warranty.
Song-Beverly
does not apply if the problem was caused by abuse after the
vehicle was delivered, or if aftermarket non-factory performance
equipment was added that negatively impacted the vehicle’s
mechanical components, thus voiding factory warranties. Be sure
you follow the terms of the warranty for maintenance and proper
use of the vehicle.
Although
technically there is a statute of limitations to bring a law
suit for breach of warranty or for violations of Song-Beverly ,
you should act promptly by contacting a qualified lemon law
attorney to work to resolve the problem as fairly and quickly
as/if possible.
B.
THE "LEMON LAW" AND WHAT IS A REASONABLE NUMBER
OF REPAIR ATTEMPTS
What
is considered a reasonable number of repair attempts will depend
on the circumstances including the seriousness of the defect.
For example, one or two repair attempts may be considered
reasonable for serious safety defects such as brake failure,
depending on the exact situation. The most common “number”
for an un-reasonable number of repair attempts is four
for the same complaint/symptom. A recent appeals court decision
favored California consumers by more clearly defining what a
“repair attempt” is – more specifically
- so long as the consumer presents the vehicle to an
authorized dealer for the manufacturer with a reasonable
explanation of the symptom/defect on the Repair Order, the
authorized dealer does not necessarily have to verify or perform
a warranty repair for the visit to be considered a “repair
attempt” under the statute.
A
special provision in the "Lemon Law," helps determine
what is a reasonable number of repair attempts for problems that
substantially impair the use, value, or safety of the vehicle
during the first 18 months or 18,000 miles, whichever comes
first, which is known as the “presumption period”. The
"Lemon Law" applies to these problems if they arise
during the first 18 months after the consumer received delivery
of the vehicle or within the first 18,000 miles on the odometer,
whichever occurs first (presumption period). During the first 18
months or 18,000 miles, the "Lemon Law" presumes that
a manufacturer has had a reasonable number of attempts to repair
the vehicle if either (1) The same problem results in a
condition that is likely to cause death or serious bodily injury
if the vehicle is driven and the problem has been subject to
repair two or more times by the manufacturer or its agents, and
the buyer or lessee has at least once directly notified the
manufacturer of the need for the repair of the problem as
provided in the warranty or owner's manual or (2) The same
problem has been subject to repair four or more times by the
manufacturer or its agents and the buyer has at least once
directly notified the manufacturer of the need for the repair of
the problem as provided in the warranty or owner's manual or (3)
The vehicle is out of service because of the repair of any
number of problems by the manufacturer or its agents for a
cumulative total of more than 30 days since delivery of the
vehicle.
The
"Lemon Law" presumption is a guide, not an absolute
rule. Your rights to a “unreasonable number of repair
attempts” extends to all applicable “bumper-to-bumper” and
“powertrain warranties”. The consumer is NOT limited to the
18 month/18,000 mile presumption period. A trial jury can assume
that the manufacturer has had a reasonable number of chances to
repair the vehicle if all of the conditions are met. The
manufacturer, however, has the right to try to prove that it
should have the chance to attempt additional repairs, and the
consumer has the right to show that fewer repair attempts are
reasonable under the circumstances.
Be
sure to check your warranty and owner's manual for instructions.
You may be required to directly notify the manufacturer of the
problem(s). In California, the writing of a Repair Order and the
customer complaint, coupled with the dealers attempt to repair
is considered to be “notification”, as a “warranty
claim” is made with the manufacturer. You may also choose to
send your own written notice to the manufacturer at the address
shown in the warranty or owners manual by certified mail, return
receipt requested so that you have proof that your letter was
received. Keep a copy of all correspondence with the
manufacturer.
C.
WHO IS COVERED
The
law applies to a new motor vehicle that is bought or used
primarily for personal, family or household purposes. The law
also applies to a new motor vehicle with a gross vehicle weight
under 10,000 pounds that is bought or used primarily for
business purposes by a person, including a partnership, limited
liability company, corporation, association, or any other legal
entity, to which not more than five motor vehicles are
registered in this state.
D.
DEFINITION OF A “NEW MOTOR VEHICLE”
The
lemon law discussed above applies to "new motor
vehicles." (Certain limited protection may apply to used
vehicles as described in Section 2.) The term "new motor
vehicle" includes not only new motor vehicles but also
demonstrators; the chassis, chassis cab, and propulsion system
of a new motor home; and any other motor vehicle sold with a
manufacturer's new car warranty. For example, a two-year old
used car sold with the remaining one year portion of a
manufacturer's three-year new car warranty would be treated as a
new motor vehicle. The term "new motor vehicle,"
however, does not include motorcycles or exclusively
off-road vehicles.
Coverage
For “Used” Vehicles Under Warranty
Although
the special provisions discussed above apply to new motor
vehicles, Song-Beverly has many general rules that apply to any
consumer product sold with an express written warranty. As a
result, there is important coverage for motorcycles,
the living quarters of a mobile home, used vehicles sold with a
dealer's express written warranty, "lemon" vehicles
repurchased by the manufacturer and sold to consumers with an
express written warranty covering the defect.
A
full description of warranty rights is beyond the scope of this
message, but you should be aware that coverage is not identical
to the coverage for new motor vehicles. For example, a warrantor
who is unable to conform a consumer product to its express
warranty within a reasonable number of attempts is required to
repurchase the goods and return the purchase price less an
amount attributable to the consumer's use. Unlike the special
rules on new motor vehicles, however, there is different formula
for determining the charge for the consumer's use before the
discovery of the defect (the difference between the odometer
reading at purchase, and the odometer reading at the first of
the repeated warranty non-conformity), and the Lemon Law
presumption only applies if the vehicle is within 18 months or
18,000 miles of it’s original in-service date. For complete
advice concerning your legal rights, you should consult an
experienced lemon law attorney familiar with these matters.
Coverage
for “Certified Pre-Owned Warranty”
Vehicles in the state of California that are sold by
authorized dealers of a specific
manufacturer may come with a “CPO” (Certified Pre-Owned)
warranty from that vehicle’s manufacturer. “CPO”
warranties provide the
same “lemon law” consumer protection as does any used
vehicle that still has
the unused portion of the manufacturers original New
New Vehicle Limited Warranty still in effect/in force.
The “lemon law” protection afforded would be limited
to the covered components/systems as listed in the manufacturers
“CPO” warranty booklet or brochure. Vehicles that were
modified by the previous
owner, dealer, or current owner may be disqualified from
lemon law protection if
the problem was caused by abuse after the vehicle was delivered, or if aftermarket non-factory
performance equipment was added that negatively impacted the
vehicle’s mechanical components.
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you live in a state other than California?
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