CALIFORNIA – Several California Lemon Law updates go into effect in 2025 to help consumers get faster resolutions when they have defective vehicles. 

One recent update, though, gives consumers less protection when buying a used car that still has a valid manufacturer’s warranty.

The Song-Beverly Consumer Warranty Act, which covers the Lemon Law, compels auto manufacturers to buy back or replace a defective vehicle or lemon, sold in California. 

But recently, the California Supreme Court ruled that the Lemon Law doesn’t require manufacturers to honor warranties for used cars that are sold with an existing warranty.

Unexpired manufacturer’s new car warranty does not qualify

The Lemon Law is triggered when a problem vehicle cannot be fixed despite a “reasonable” number of attempts to repair and remedy the defect. 

Typically, a reasonable number of repairs ranges from two to four repair attempts depending on the severity of the problem and the defect’s impact on the vehicle’s safety. 

According to court documents, Plaintiffs in the Supreme Court case bought a two-year-old car with over 55,000 miles on it. The car had an unexpired manufacturer’s new car warranty. The car repeatedly experienced engine problems despite numerous repair attempts by defendant Fiat Chrysler Automobiles (FCA). 

Plaintiffs sued FCA to enforce the refund-or-replace provision, claiming that their car was a “new motor vehicle” because it was a “motor vehicle sold with a manufacturer’s new car warranty.”

However FCA argued that the refund-or-replace remedy does not apply because Plaintiffs’ car was not a “new motor vehicle.” 

“The trial court and Court of Appeal agreed with FCA. We conclude that a motor vehicle purchased with an unexpired manufacturer’s new car warranty does not qualify as a “motor vehicle sold with a manufacturer’s new car warranty,” said the court document.

Speed up the process and reduce delays

In addition the court ruling, legislation AB 1755 passed this year. It is designed to modernize California’s Lemon Law, according to the bill’s authors, Assembly Member Ash Kalra and Senator Tom Umberg.

The changes aim to speed up the process and reduce delays caused by the large number of Lemon Law cases being filed in California courts.

Updates to the law include:

Notification Requirement for Buy-back or Replacement:

• Consumers need to tell the manufacturer in writing if they want to get their vehicle bought back or replaced, and if they plan to ask for extra penalties because the manufacturer didn’t follow the rules for buy-backs.

Manufacturer’s Response Time:

• The manufacturer must provide an offer of repurchase or replacement to the consumer within 30 days of receiving the written notice.
• The manufacturer must complete the transaction (repurchase or replacement) within 60 days.

Statute of Limitations:

• Lemon law actions must be filed within one year after the expiration of the warranty.
• The claim must be filed no later than six years from the date the vehicle was delivered.

To view the fact sheet on all the updates to Lemon Law click here. 

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