How does a vehicle qualify under the Lemon Law?
Under the California Lemon Law, a vehicle can qualify for a refund or replacement if it meets just one of the following three criteria: 1) The vehicle has the same problem repaired FOUR or more times 2) The vehicle has the same problem repaired TWO or more times for a major safety defect 3)The vehicle is out of service for THIRTY or more days, total. 4)The problem with the vehicle must affect it’s safety, use, or value.
What is considered a "Major Safety Defect?"
"Major Safety Defect" has yet to be decided by the Courts. However, we know that it must be a life threatening potential problem with a vehicle, or the vehicle’s failure forces the owner into a dangerous situation. This would include, for example, stalling, failures to start, overheating, significant braking issues, fuel issues, air bag and seat belt issues, transmission failure, instrumentation failures, and the like.
How do you calculate repairs?
If you bring the vehicle in for repairs on a Monday, and the repairs are completed on Wednesday, it will count as three days. Likewise, if the vehicle is inoperative on a Sunday, but can’t be brought in for repair until Monday, and is repaired on Monday, it will count as two days.
Do my repairs need to be done at the dealership where I bought the vehicle?
No. You can have the repairs made at any service center authorized by the manufacturer to make repairs on your vehicle.
What does "Safety, Use, or Value" mean?
Just about anything wrong with a vehicle will affect its safety, use, or value. "Minor" problems, such as a broken cup holder, moldings, a cigarette lighter, an outside thermometer, a change holder, coat clips, and the like, will not count towards safety, use, or value.
What am I entitled to under the Lemon Law?
Once a vehicle qualifies under the Lemon Law, the consumer is entitled to either a refund of purchase for the vehicle, or a new vehicle. It is the consumer’s choice, not the manufacturer’s! A refund includes the down payment, all monthly payments, taxes, licensing fees, rental expenses, reasonable attorney’s fees, and in rare instances, penalties. The manufacturer will also pay off the balance of your remaining loan or lease. In the alternative, the manufacturer will provide you with a new vehicle which is substantially similar to the lemon vehicle. For example, if you owned a 2003 Ford Explorer, but there were no more 2003 models available, Ford will now give you a 2004 Ford Explorer.
Is the manufacturer allowed to charge me any money for the miles put on the vehicle?
Yes. This is known as the usage/mileage deduction. Simply put, the manufacturer is entitled to an offset for the miles placed on the vehicle before the first major problem which became the basis for the refund. Let’s say that your first transmission problem on the vehicle was at 5,000 miles, and the vehicle’s base price before taxes was $22,000.00. You simply multiply 5,000 by 22,000, then divide by 120,000 to determine the offset. In this case, that would mean a $916.67 offset, which would be deducted from any settlement.
How long will my case take?
The average, NON - LITIGATED case should take no more than ninety days to full completion. This is an average. Some case take longer for various reasons. If the case needs to be litigated, the case could take up to a year or more.
Do I have to still make payments on my vehicle while the case is pending?
Yes. Failure to continue making payments could lead to a repossession, and/or damage to your credit. Remember, all monthly payments will be returned to you as part of the settlement.
Do I have to repair the vehicle before I turn it in after the case is settled?
Any damage beyond ordinary wear and tear to the vehicle must be repaired prior to turning the vehicle to the manufacturer, or the manufacturer will deduct any damage from the settlement. Door dings and minor scratches are considered wear and tear. Dents, major paint damage, and interior damage such as cigarette burns must be repaired.
Who pays for the attorney’s fees?
The California Lemon Law requires manufacturers to pay reasonable attorney’s fees to your attorney. Because every manufacturer pays a different amount of fees to your attorney, your attorney may or may not charge additional fees beyond those fees paid by the manufacturer.
Will my case go to trial?
Despite what you may read or hear in the news, only a fraction of all civil cases eventually go all the way to trial, which is only about one percent. Only about ten percent of Lemon Law cases are litigated, with about ninety percent of those cases settling prior to trial. Some auto manufacturers force cases into litigation, despite settlement efforts, such as Mercedes. Because litigation is extremely expensive and time consuming, all efforts are made to settle all Lemon Law cases prior to litigation.
What should I do if my vehicle is unsafe to drive, but the dealership can’t find the problem?
This is a very tricky situation which will sometime occur if you have an intermittent problem with the vehicle, such as sudden stalling. In these situations, it is best not to drive the vehicle, but to insist that the dealership make all efforts to find the problem. Sometimes trying a different dealership will make a more comprehensive effort to locate the problem. If possible, ask the dealership to put in writing that the vehicle is safe to drive. If the vehicle then becomes involved in an accident due the unrepaired item, you may have grounds for a potential negligent repair case against the dealership in addition to the Lemon Law case.
Should I continue to take the vehicle back to the dealership for repairs while the case is pending?
Yes! In Lemon Law cases, additional repairs to the vehicle are always helpful.
Do I have to have the vehicle repaired at the same dealership from where it was bought?
No. You may have the vehicle repaired at any authorized service center of the manufacturer.
Do I have to go to arbitration before I proceed with a Lemon Law case?
No. You may proceed with your case regardless of whether you have been to arbitration. You may also still bring your Lemon Law case after you have been to arbitration, but lost.
Do I need all of my repair invoices to prove my case?
No, but without the repair invoices, determining whether a case even exists is difficult. Sometimes you may go to your dealership and ask it to print out a full history of all repairs. This will be helpful in determining whether there is a case, but it will not provide your attorney will ALL of the necessary information to make a fully informed decision.
Do only vehicles qualify under the Lemon Law?
No! The California Lemon Law also applies to trucks, boats, small water craft, motorcycles, computers, motor homes, and any other "consumer goods." There are some exceptions to this. Because automobiles and light trucks are most commonly seen as Lemon Law cases, other consumer goods usually prove to more difficult to pursue. For instance, a motor home case will usually be more difficult to pursue insofar as time, and expenses, are concerned.
Can you represent me if I move out of California?
Yes. As long as the vehicle is or once was registered in California, you can still be represented by a California attorney.
Now that my vehicle is no longer under warranty, can I still pursue my claim?
Yes. As long as most or all of the repairs occurred while it was still under the original manufacturer warranty, your claim is still valid. Sometimes dealership will even make "courtesy" repairs after the original warranty has expired. These also count as repairs. However, repairs made under an extended warranty (service contract) is a gray area. It is always preferable to have the repairs done while under the original manufacturer’s warranty.
Do all of my repairs have to be made before 18,000 miles or 18 months in order to bring a claim?
No. If the repairs are made before 18,000 miles, or within 18 months of ownership, the vehicle is presumed to qualify under the law. However, as long as the repairs continue while under the full warranty (for instance, within 3 years or 36,000 miles), the vehicle will still qualify, but the presumption may not apply.
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