Lemon Laws of California for New Car Buyers

The Song-Beverly Consumer Warranty Act protects those who buy or lease new motor vehicles. The law covers the full period for which the vehicle is under warranty. It requires manufacturers to make reasonable attempts to correct problems with the vehicle. If attempts do not succeed, purchasers are given the option of receiving a new vehicle or a refund. Refunds include payments for taxes, fees, towing and rental costs a purchaser may have paid out during the attempted repair period. The law also provides protection for consumers who have purchased used vehicles accompanied by a dealer's express written warranty. A used car purchased with a remaining period of original warranty is treated like a new car.

California's lemon law does not provide recourse for purchasers who ignore required warranty service or other requirements. It does not provide recourse for cars whose warranties have expired. It also does not provide a single, automatic solution to disputes between purchaser and manufacturer.

Perhaps the most difficult provision of Song-Beverly is the concept of "reasonable efforts." Purchasers who have complied with their warranties and made required notification of problems to the manufacturer may find this frustrating. Repair requirements are most strict during the first 18 months after purchase; within the first 18,000 miles of driving; if the remaining problem presents life-threatening danger, such as brake-failure; if the manufacturer has made two or more attempts at repair. The law is also strict if the manufacturer has made 4 or more attempts to repair and the vehicle has been out of service for more than 30 cumulative days. The State Attorney General's Office cautions, however, that the lemon law is more a guide than an absolute rule.

The California Attorney General's Office warns consumers that they may or may not have recourse to free arbitration of the problem. In fact, the AG warns all purchasers facing possible conflict to seek legal advice on how the law applies specifically to their individual situations. Arbitration is essentially voluntary for car manufacturers, and different brands of cars are covered by different arbitration services. According to the Department of Consumer Affairs, arbitration is binding for the manufacturer but not for the purchaser. A purchaser who is not satisfied with the resolution of the problem retains the option to take the issue to court. It is then the responsibility of a judge to decide whether the manufacturer has fulfilled its obligations or the purchaser is entitled to further redress.

Both the California Attorney General's Office and the Department of Consumer Affairs stress the importance of keeping good records during a dispute. Find out whether the manufacturer requires notice of problems by certified, rather than regular, mail. Be certain of warranty terms based on the owner's manual. Put all issues in writing and retain copies. Consult Consumer Affairs to determine whether arbitration is available and through what program. Be prepared to go to court, if necessary. Remember that the law is designed to protect both purchasers and manufacturers; being able to state your position with supporting documentation is essential to successful resolution of your dispute.